China's Xi says will support Pakistan in stabilising its financial situation

[beijingwalker]

Another $13bn incoming from China, S. Arabia​

Khaleeq Kiani Published November 5, 2022

ISLAMABAD: Pakistan on Friday said to have secured about $13 billion in additional financial support from two traditional friends — about $9bn from China and over $4bn from Saudi Arabia — on top of assurances for about $20bn investments.

Finance Minister Ishaq Dar told journalists that during Prime Minister Shehbaz Sharif’s recent visit to Beijing, the Chinese leadership promised to roll over $4bn in sovereign loans, refinance $3.3bn commercial bank loans and increase currency swap by about $1.45bn — from 30bn yuan to 40bn yuan. The total worked out at $8.75bn.

“They promised the security of financial support,” Mr Dar said and quoted Chinese President Xi Jinping as telling Mr Sharif to “don’t worry, we will not let you down”.

Mr Dar said the Pakistani delegation had four major engagements, including meeting with the Chinese president and the prime minister, and the chairman of the National People’s Congress, the country’s legislature.

Another $13bn incoming from China, S. Arabia

"The Chinese leadership promised to roll over $4bn in sovereign loans, refinance $3.3bn commercial bank loans," says Ishaq Dar.

www.dawn.com

 

[epebble]

Pakistan has big population and good geographical position. It at least should have become another Vietnam or even Bengal. Sadly it didn't happen. Pakistanies should firstly learn from Vietnam: Offering a stable and open minded environment for investments.

The most desirable course of action is if China and Pakistan form a EU/NAFTA type common/free market to permit free movement of Capital, goods and labor. That will allow a realignment of industries and make both countries competitive. A lot of Chinese companies are now moving to Vietnam and other places for many reasons. Pakistan can be a destination too.

 

[khansaheeb]

Not Xi's role to stabilise Pakistan, Pak people themselves need to do it. This can't happen like a country always in financial crunch.

Beggars can't be choosers according to our PM.

 

[Goritoes]

No one can help the people who can't help themselves, Chinese can invest and bring major projects/investments in Pakistan but our leaders will never let Pakistan Prosper. I think China should invest in other countries in Africa, leave Pakistan and save your money and energy.

 

[S10]

China can help, but it will primarily be up to Pakistan to pull itself out of this mess. It needs to seriously tackle political corruption, stabilize security and reduce inefficiencies in its economy.

 

[IceCold]

The government in Pakistan does not represent its people and is imposed upon us as part of the larger US plan to make sure India remains focused on China and does not have to worry about Pakistan. This imported government is supported by none other than the Pakistan army which now happens to be more of an N League Army. China would be wise to not offer assistance to this bunch of thugs as any assistance offered by China will likely end up in UK and UAE and Pakistan would still be the same i.e. on the verge of a default.

 

[HAIDER]

Another $13bn incoming from China, S. Arabia​

Khaleeq Kiani Published November 5, 2022

ISLAMABAD: Pakistan on Friday said to have secured about $13 billion in additional financial support from two traditional friends — about $9bn from China and over $4bn from Saudi Arabia — on top of assurances for about $20bn investments.

Finance Minister Ishaq Dar told journalists that during Prime Minister Shehbaz Sharif’s recent visit to Beijing, the Chinese leadership promised to roll over $4bn in sovereign loans, refinance $3.3bn commercial bank loans and increase currency swap by about $1.45bn — from 30bn yuan to 40bn yuan. The total worked out at $8.75bn.

“They promised the security of financial support,” Mr Dar said and quoted Chinese President Xi Jinping as telling Mr Sharif to “don’t worry, we will not let you down”.

Mr Dar said the Pakistani delegation had four major engagements, including meeting with the Chinese president and the prime minister, and the chairman of the National People’s Congress, the country’s legislature.

Another $13bn incoming from China, S. Arabia

"The Chinese leadership promised to roll over $4bn in sovereign loans, refinance $3.3bn commercial bank loans," says Ishaq Dar.

www.dawn.com

This is all show money not for spending. Parking their money in the state bank. This exercise has been done by PMLN many times before when Suadi parked 1.5 billion in the State bank.

 

[Reichsmarschall]

China's Xi should send his PLA to liberate Pakistan from khakis occupation

 

[epebble]

This imported government

This fallacy is an exercise in self-delusion. That the government of fifth largest country that takes very great pride in its nuclear weapons just collapses because some low-level official of a foreign country made some indiscreet comments is comically absurd.

 

[IceCold]

This fallacy is an exercise in self-delusion. That the government of fifth largest country that takes very great pride in its nuclear weapons just collapses because some low-level official of a foreign country made some indiscreet comments is comically absurd.

Before calling it fallacy and absurd, all you need to do is look at Pakistan's history and how democratically elected governments were thrown, hanged, murdered with the same vicious cycle repeating.

 

[nahtanbob]

Before calling it fallacy and absurd, all you need to do is look at Pakistan's history and how democratically elected governments were thrown, hanged, murdered with the same vicious cycle repeating.

To blame the CIA or USA for it is absurd

 

[FuturePAF]

I said it multiple times. GOP is not capable of managing $2-5 billions help from China in these unprecedented financial difficulties. Now hear this, I propose that China pay all of our external loans ($130 billion) and also finance $70 billion worth project that are part of a comprehensive development plan to generate money producing sources.

Pakistan will pay loans back with an interest rate of 1% annually and a grace period of 5-7 years. Pakistan is already paying billions in interest alone, Pakistan is better paying that interest to China. Now I know this is an unprecedented proposal but hey, that's how you help a friend. Specially an idiot friend like Pakistan. We pay $14-17 billion each year in our loans. We can instead pay back $7-8 billion to China annually. Loans will be paid back in no time (that is 20 years).

The Chinese don’t interfere with the internal political dynamic of a country because they don’t want to be seen as taking sides. Hence why they’d wouldn’t do anything like this UNLESS there is a commitment from all in Pakistan’s ruling class that 25-30 year project like what you propose will be sustained through that entire period without being stopped by Pakistan’s other foreign friends.

If Pakistan gets political stable and reforms itself that it can balance its budget on its own (cutting subsidies to the businesses and increasing the tax of the private land to force its productive use), then Chinese investment can come in as direct infrastructure projects with export markets lined up.

Heck, there are industries Chinese companies may no longer be competitive in, because their labor costs have increased. Those industries can be shifted to Pakistan. Pakistan needs a more developed petrochemical and pharmaceutical industry. Those kinds of infrastructure can be built. Solar panel manufacturers can shift to Pakistan and mining companies can explore once the security situation is dealt with. The security is also a function of people that are receiving enough services from their government. Which is why government spending needs to be on providing services; schools, clean water, electricity, healthcare, job training, etc.

We need to get our own house in order, the Chinese have funds (hundreds of billions of dollars) and need a place to invest it in after their housing market seem to be a dead end. Btw, India is about to start receiving massive FDI, and that will allow them increase their military spending many fold, so if we don’t want to get left behind we need to fix our house like it’s on fire, because it is.

 

[manpk77]

China's Xi should send his PLA to liberate Pakistan from khakis occupation

Both China and USA are in competition. The higher bidder will buy the Pakistan army.

 

[lightning F57]

All money down the drain when corrupt leaders in place. Both China and SA should pressure both sides in Pak to come to settlement ( early elections) to deal with this instability. Its risking allot of money otherwise.