China to lend $2bn to Pakistan to shore up rupee

[GHALIB]

Wrong move. Never do this silly step. You will burn thru reserves within a day.

You must let the entire exhange play it out. But many things you can do right away.

1. Immediately restrict all non essential imports.
2. Enforce duties for material/equipment which is already produced internally by up to 100% or more
3. Promote local.
4. Restrict forex availability for transfers.

I have read somewhere that cosmetics are 20 percent of import.it can be reduced .

 

[denel]

I have read somewhere that cosmetics are 20 percent of import.it can be reduced .

really!.... oouch.

 

[maithil]

A friend in need. IK should ask China for 6-7 billions more ( even if on more interest rate ). So that Pakistan can avoid western IMF.

 

[Quibbler]

China will help Pak to solve the problems that hinder the economic development of Pak.

You said the same to maldives and sri lanka

 

[Surya 1]

What difference will just 2 bn USD will make?

 

[bluesky]

China will help Pak to solve the problems that hinder the economic development of Pak.

It is time that Pakistan trains and mobilizes its own citizens to build its own infrastructures, machines, and factories instead of relying on China and others for easy money. Allah helps him who helps himself. The countries of EU and Japan have developed themselves by mobilizing its internal resources.

Only countries like Pakistan and Bangladesh are trying to shorten the length of the development period by borrowing in dollars and throwing the projects to the donor countries. It is certainly not a recipe for progress. It starts a vicious cycle that causes these countries to borrow more to finance the repayment of arrear Principal and Interest.

 

[Sanchez]

You said the same to maldives and sri lanka

But those guys are more Indians like, you know what I mean!

It is time that Pakistan trains and mobilizes its own citizens to build its own infrastructures, machines, and factories instead of relying on China and others for easy money. Allah helps him who helps himself. The countries of EU and Japan have developed themselves by mobilizing its internal resources.

Only countries like Pakistan and Bangladesh are trying to shorten the length of the development period by borrowing in dollars and throwing the projects to the donor countries. It is certainly not a recipe for progress. It starts a vicious cycle that causes these countries to borrow more to finance the repayment of arrear Principal and Interest.

Pls don't quote my words for your comments. You can't build a Padma bridge yourself even though you have the money.

 

[GHALIB]

You said the same to maldives and sri lanka

Kenya ,Burma , Indonesia same story .

 

[Pakistansdefender]

really!.... oouch.

That is Iran I guess not Pakistan..

 

[Skull and Bones]

Wrong move. Never do this silly step. You will burn thru reserves within a day.

They had been doing the same for all these years causing this dire economic condition.

 

[denel]

They had been doing the same for all these years causing this dire economic condition.

And their croonies will hedge bets and they will make a quick killing with exchange rates knowing it will fail.

 

[Placemat]

Why not simply cut imports specially luxury items till the time economy picks up rather than using our reserves in order to artificially maintain rupee something what the previous government was doing and what has brought us to this day.

I don't know how many times I have said ( on other forums) that cut imports / tariff on imports is not the way to stimulate economy or save forex. This will only encourage smuggling and fees the black ecomomy and will cause more inefficient usage of funds thereby defeating the express intention of saving the rupee.

 

[bluesky]

Pls don't quote my words for your comments. You can't build a Padma bridge yourself even though you have the money.

Why do you have to stop me from telling the truth? Do you think a mere $2 billion credit will cause Pakistan to pay its $96 billion debt to other countries including China? The interest value is at least $2 billion per year for this $96 billion. Pakistan has already made many mistakes by the lure of sweet borrowing and our Bangladesh is doing the same. BD has also a staggering $45 billion loan to be repaid with interest. More are forthcoming.

A country should develop itself with its own efforts, and not by others' sweet money. I must speak when a country's sovereignty is at stake. I understand Padma Bridge by the Chinese companies is necessary. However, I must say in order to NURTURE the local companies the GoB should have employed two other large local companies, one for design and the other for construction, alongside Hyundai when it was constructing the Jamuna Bridge.

These local two companies could have been given the contract for a long bridge like Padma and any Japanese, Chinese or Korean Companies could have been made Consultants/Advisors. This did not and does not happen in countries like BD and Pakistan. That is why these two countries have to continuously go for foreign money, technology and know how. This is why they are unable to progress and move forward.

So, may I ask you am I wrong in my hypothesis?
@UKBengali, @Atlas, @Mage, @Homo Sapiens @Nilgiri

 

[maithil]

China alone is going to deposit more than 2 billions in coming days. 2 billions from Saudi are yet to come. 3-4 billions from UAE and 2 billions from Qatar.

 

[GeraltofRivia]

It is time that Pakistan trains and mobilizes its own citizens to build its own infrastructures, machines, and factories instead of relying on China and others for easy money. Allah helps him who helps himself. The countries of EU and Japan have developed themselves by mobilizing its internal resources.

Only countries like Pakistan and Bangladesh are trying to shorten the length of the development period by borrowing in dollars and throwing the projects to the donor countries. It is certainly not a recipe for progress. It starts a vicious cycle that causes these countries to borrow more to finance the repayment of arrear Principal and Interest.

Note that Europe and Japan were rebuilt with US' capital and machinery after WWII. Also a key difference (to a typical developing country) is that both of them have already industrialized before being completed destroyed in WWII so they have established institution and industrious workforce, which can be regarded as "internal resources". It will take them much much longer to re-establish their industry if US did not pour capital and machinery onto them. Most of the developing countries will not be so "lucky" because they are not in their camp.

I do agree that the developing countries need to work really hard to "strengthen" themselves economically though. Economic development works with a combination of capital, technology, workforce, and resources, of which developing countries find themselves lack and are difficult to improve.