China lends $1 billion to Pakistan to boost plummeting FX reserves

[ziaulislam]

Yes .. More loans from China. So and Chinese are kind people...

Pakistan loan situation in tax to gdp rario
Is better than India. This has been discussed to death in other threasa

 

[AyanRay]

Pakistan loan situation in tax to gdp rario
Is better than India. This has been discussed to death in other threasa

Nope it's not.

 

[haidian]

It is important to discuss these issues. They say the forewarned is forearmed.Lets see what the Sri Lanks have to say about China

China can be a “big bully,” says top bureaucrat

By Sunimalee Dias
View(s): 32
A top bureaucrat this week insisted that the stalling of talks between Sri Lanka and China authorities was inevitable since giving in would hurt Colombo in the long run and cited Beijing as a “big bully” in this respect.

Export Development Board Chairperson Indira Malwatte in an interview with the Business Times on Thursday at her office in Colombo said that “They (China) will try to be a big bully as much as possible” in trying to get the deal on the Free Trade Agreement (FTA) between the two nations more favourable to them.

She explained, “Sri Lanka did not agree to the time period to reduce the import duties for 10-20 years since that could have affected Sri Lanka.”

Under the FTA if this is agreed upon it could affect the local industries in Sri Lanka, Ms. Malwatte noted adding that in this respect the government has plans to have a trade adjustment package.

This trade adjustment package would ensure that the local industries would be assisted so that they would not be affected by this type of trade deal but noted that this would take time.

The Chairperson insisted, “We cannot give in just because we are in debt,” adding that Sri Lanka currently owes China money as it has been involved in a number of key infrastructure projects in the country having built ports, roads and power stations.

On the other hand the trade agreement with India is moving, she said adding that “We have to look outside and take advantage of Asia’s growth.”

With the fast increasing middle income group in Asia countries like Sri Lanka need to take to bilateral arrangements with Asian states and in this context give confidence to exporters and buyers that we need the FTA.

Sri Lanka’s Asia focus has led to talks for trade with India, Pakistan, Singapore and negotiations are also underway with Thailand, Korea and Malaysia.

Moreover, with remittances reducing despite a slight increase last year, Ms. Malwatte explained that in a bid to service debts the country needs to do so through its revenues from exports.

“We have become a nation of consumption and not a manufacturing nation,” the chairperson stated adding that a conducive environment and political stability were crucial for the advancement of the economy.

In this respect, the National Export Strategy (NES) would help to reap the full benefits of exports and increase its earnings through diversified exports in boat building, wellness tourism, electrical and electronics, IT-BPM, spices and concentrates, processed food and beverages.

“I don’t think we have had such an extensive strategy policy done,” previously for exports with even the private sector being actively involved with the EDB, she explained.

Ms. Malwatte also explained that Sri Lanka needs to link up with the value chains of the world to become part of the total manufacturing product.

She insisted that the board requires a further boost by increasing the salaries of its staff in line with the private sector as it had once been in the past under the Ministerial leadership of the late Lalith Athulathmudali.

She also had issues about the bureaucracy in the public service noting “There has to be a process to any madness” adding that there had been about 50 appointments made since she assumed office that was possible by doing follow-ups; but insisted no ministerial interference was allowed into her department.

http://www.sundaytimes.lk/180701/bu...e-a-big-bully-says-top-bureaucrat-300061.html

You took money from America and served their interests and look where you are today. With China you singned an FTA which led to a huge trade imbalance. Infact, their vice like grip on you is so complete that Pakistan will never have any manufacturing base of their own, You will provide raw material for them. And you are addicted to loans and can't survive without it. These are very interesting developments indeed.

Please bully me with money. would you?

 

[Trango Towers]

Fascinating

Shameful.

 

[abc123xyx]

Pakistan loan situation in tax to gdp rario
Is better than India. This has been discussed to death in other threasa

that means taking loan is a win-win...
then better take a bigger LOAN.
so it will be WIN --WIN

 

[Rajesh Singh]

@SunilM is doing the job which suppose to highlight by Pakistani friends to their people.

Eye's opener...... I don't have any concerns and business about pak economy but people should not blind or ignore their county faults and highlight at higher level to address ...

 

[Theparadox]

This kind of news just made my day, @SunilM great info

 

[waz]

It's abysmal, there's no glossing over it, and I hope will mean the PML will never see power.

This kind of news just made my day, @SunilM great info

You must lead a miserable life for this to be the news that made your day. Go out and do a hobby.

 

[xyxmt]

Mean Indian terror money stopped to BLA and TTP, that is not good
that is one FDI Pakistan can use now

 

[SunilM]

It's abysmal, there's no glossing over it, and I hope will mean the PML will never see power.

What about Asad Umar? Do you think he has what it takes to turn around the situation?

 

[Indus Pakistan]

Monthly drip feeding by IRON BROTHER.

Do something useful like go and build a toilet for your family. Borrow if you have to, But have some dignity.

 

[Samlee]

China lends $1 billion to Pakistan to boost plummeting FX reserves

BUSINESS NEWS
JUNE 30, 2018

ISLAMABAD (Reuters) - China has lent Pakistan $1 billion to boost the South Asian country’s plummeting foreign currency reserves, two sources in Pakistan’s finance ministry told Reuters, amid growing speculation of another International Monetary Fund bailout.

The latest loan highlights Islamabad’s growing dependence on Chinese loans to buffer its foreign currency reserves, which plunged to $9.66 billion last week from $16.4 billion in May 2017.


The lending is the outcome of negotiations for loans worth $1-$2 billion that was first reported by Reuters in late May, the two sources told Reuters.

“Yes, it is with us,” said one finance ministry source, in reference to the Chinese money. The second source added that the “matter stands complete”.

The finance ministry spokesperson did not respond to a Reuters request for comment.


With the latest loan, China’s lending to Pakistan in this fiscal year ending in June is set to breach $5 billion.

In the first 10 months of the fiscal year China lent Pakistan $1.5 billion in bilateral loans, according to a finance ministry document seen by Reuters. During this period Pakistan also received $2.9 billion in commercial bank loans mostly from Chinese banks, ministry officials told Reuters.

Beijing’s attempts to prop up Pakistan’s economy follow a strengthening of ties in the wake of China’s pledge to fund badly-needed power and road infrastructure as part of the $57 billion China-Pakistan Economic Corridor (CPEC), an important cog in Beijing’s vast Belt and Road initiative.


But analysts say China’s help will not be enough and predict that after the July 25 national election the new administration will likely seek Pakistan’s second bailout since 2013, when it received a package worth $6.7 billion from the IMF.

“Looking at the current scenario, it is likely after the new government comes in that they will go to the IMF,” said Suleman Maniya, head of research at local brokerage house Shajar Capital.

Reporting by Drazen Jorgic; Editing by Ros Russell

https://www.reuters.com/article/us-...-plummeting-fx-reserves-sources-idUSKBN1JQ0TV

Monthly drip feeding by IRON BROTHER.

Lagta Hai Tu Kabhi Baaz Nahi Aaye Ga


Forex kitty falls $19 bn in 2 months

The country’s foreign exchange reserves fell $2.25 billion to $ 407.8 billion for the week ended June 22 mainly due to fall in foreign currency assets, latest data released by the Reserve Bank of India (RBI) showed. Foreign exchange reserves touched an all-time high of $426 billion in the week ended April 13.

As such, in little more than two months, reserves fell about $19 billion as the central bank stepped up its intervention in the currency market to slow the pace of rupee depreciation.

https://www.thehindu.com/business/markets/forex-kitty-falls-19-bn-in-2-months/article24293944.ece

And Even Spending $19 Billion The Dollar Crossed Rs 69 At An All Time Low
Requiring Another Massive Intervention

 

[AyanRay]

Lagta Hai Tu Kabhi Baaz Nahi Aaye Ga


Forex kitty falls $19 bn in 2 months

The country’s foreign exchange reserves fell $2.25 billion to $ 407.8 billion for the week ended June 22 mainly due to fall in foreign currency assets, latest data released by the Reserve Bank of India (RBI) showed. Foreign exchange reserves touched an all-time high of $426 billion in the week ended April 13.

As such, in little more than two months, reserves fell about $19 billion as the central bank stepped up its intervention in the currency market to slow the pace of rupee depreciation.

https://www.thehindu.com/business/markets/forex-kitty-falls-19-bn-in-2-months/article24293944.ece

And Even Spending $19 Billion The Dollar Crossed Rs 69 At An All Time Low
Requiring Another Massive Intervention

RBI didn't spend $19 Billion to strengthen the dollar. The fall was in reserves was mainly due to FIIs booking profits and rise in imports due to higher oil prices. The intervention from RBI was minimal as a strong rupee was never a policy of the RBI

 

[Samlee]

Yes .. More loans from China. So and Chinese are kind people...

No, the 5-6 Billion dollars have already been used up for debt repayment and funding the current account deficit. You see Pakistan needs atleast two billion dollars of forex funding every month to keep afloat. They are given around 1 to 1.5 Billion by China and other amounts they try to manage from some where else or by using their forex reserve. You must also keep in mind that the true forex reserve with the SBP is less than 4 billion dollars now i.e 9.6. - 6 - 3.6 billion dollars. SBP took a loan from the commercial banks for the same amount through forward contracts and the same cant be used for debt repayment, because that amount belongs to the general public. So you see the situation is extremely prcarious. They have a import cover of less than 1 month. Iron Brother will drip feed them till the next government takes over which will then negotiate with the IMF. THeir external loans have now reached an alarming lever of 96 billion dollars, and will cross 100 billion dollars by Setermber 2018.

And you can gauge the desperation from the fact that the Government is thinking of extending the amnesty scheme till Septerm 30, 2018 inorder to get dollars to stay afloat. All the thughs/thieves/tax evaders are having a good time where they have to pay 2 to 5% of the amount and get to keep the rest of the amount parked outside the country. And you wonder why they are in the predicament they are.

The World Has No Shortage Of Kind People Even India Gets A Lot Of Kindness

https://www.indiatoday.in/business/...ion-mark-rupee-depreciates-1273797-2018-06-30


$529 Billion Debt and $407 Billion Forex And Falling Continuously

 

[A.A. Khan]

Indian Rupee has hit INR 70 against the dollar as its now the worst currency in Asia surpassing Philipines Pesos. India's external debt is also half a trillion now, the Foreign Institutional Investors have already withdrawn $800 million from India due to dollar demand and rising oil prices is going to increase already high food inflation. Indian situation getting bad and near election 2019 it'll be worse. Trump has warned them to stop taking petrol from Iran by Nov. 4, problems await for them as their import bill gets higher.