Disappointed in Imran Khan's Pitch at Davos in the Desert, Saudi Investment Conference

[GeraltofRivia]

China is responsible for $14b deficit and likely more because of corrupt port authority and FBR. Pakistan have become dumping ground of Chinese products. IMF will not bailout Pakistan to pay China. Hence CPEC is good trap for China, they may have to think alternative ways to get more out of Pakistan. Start investing in agriculture and industry for a start.

I'm not even sure how Pakistan will pay back Saudis. Again could be good thing, ask them to increase Pakistan labour to payback loan.

I always find it interesting that China is accused of being “responsible” for another country running trade deficit. Firstly You cannot have a trade without mutual consent between willing parties. China cannot make a trade by itself and has never forced anyone to buy from it. Secondly “dumping” sounds like Chinese traders ship and sell Chinese made goods. Instead in most of the cases the trades were done by Pakistani traders either going to China or ordering the goods on Alibaba and on selling them in Pakistan.

Look at another side of the equation which is export. One have to ask why Pakistan struggled to sell its products in the major market like China. Do the products cost competitive? Do they offer better value than their competitors? Are Pakistan traders/producers familiar with distribution channels and have relationships with major retailers? Are they familiar with local labeling rules? Is there any local liaison team that has local knowledge or connection? If the answers are no, then there are a lot of hard work to be done on these areas.

 

[CriticalThought]

I always find it interesting that China is accused of being “responsible” for another country running trade deficit. Firstly You cannot have a trade without mutual consent between willing parties. China cannot make a trade by itself and has never forced anyone to buy from it. Secondly “dumping” sounds like Chinese traders ship and sell Chinese made goods. Instead in most of the cases the trades were done by Pakistani traders either going to China or ordering the goods on Alibaba and on selling them in Pakistan.

Look at another side of the equation which is export. One have to ask why Pakistan struggled to sell its products in the major market like China. Do the products cost competitive? Do they offer better value than their competitors? Are Pakistan traders/producers familiar with distribution channels and have relationships with major retailers? Are they familiar with local labeling rules? Is there any local liaison team that has local knowledge or connection? If the answers are no, then there are a lot of hard work to be done on these areas.

That guy is a known supported of Nawaz Sharif. His government is directly responsible for bankrupting Pakistan, and now his supporters are actively trying to destroy our international relationships with brotherly countries. Pay no heed to his propaganda.

For all of the people who are suggesting production and export of high value products instead of lower valued item. Can you for a moment stop bashing governments of present and past and ask your incompetent and greedy corporate sector?
Your Tech industry is not even willing to Invest in producing a decent Fully Pakistan Designed motor bike, Look at your auto industry. folks at Indus Motors, Atlas motors, PSMCL assembling cars for decades yet dont bother to take an initiative to make a home grown car.
This is capitalism, this is driven by Businessmen. People are still stuck at Mentality of 60s and 70s socialism. Govt can only make policies. Initiatives, Productivity new ways are all given by people. Yes Govt have done a lot of wrong but honestly look at your corporate sector. They are pathetic introverts. For example I still cannot comprehend why despite having companies like Waves Singer PEL, We cant produce decent sewing machines for textile sector. We still have to look to Japan and Taiwan for these sewing machines for decades and now China is added to list of machine importers
When it comes to innovation your Corporate sector is a dud no matter how you defend it and try to shift all burden on Governments

This is FDI gone wrong. FDI that doesn't increase exports is a long term money drain.

 

[Zhukov]

That guy is a known supported of Nawaz Sharif. His government is directly responsible for bankrupting Pakistan, and now his supporters are actively trying to destroy our international relationships with brotherly countries. Pay no heed to his propaganda.



This is FDI gone wrong. FDI that doesn't increase exports is a long term money drain.

Yes and people always make yougart out of my brain arguing on this Foreign investment going to projects that are aimed to internal consumption only is not going to hit us bad in the long run.
No matter how comprehensively i try to explain, i almost always hear the same answer "They are completing the project, they will earn from the project and take back their investment, we don't have to pay anything" What they don't realize is that they will draw from our foreign reserves converting our paid Rupees to Dollars.
But nobody cares to understand this sugarcoated threat to our economy in the long run

 

[GeraltofRivia]

Yes and people always make yougart out of my brain arguing on this Foreign investment going to projects that are aimed to internal consumption only is not going to hit us bad in the long run.
No matter how comprehensively i try to explain, i almost always hear the same answer "They are completing the project, they will earn from the project and take back their investment, we don't have to pay anything" What they don't realize is that they will draw from our foreign reserves converting our paid Rupees to Dollars.
But nobody cares to understand this sugarcoated threat to our economy in the long run

When an external party makes a FDI, they will exchange their foreign currency (eg USD or Euro) into the local currency so that they can purchase stuff locally. The ultimate seller of local currency is Pakistan central bank and in the end Pakistan will be gaining foreign reserve as opposed to losing. Or am I misunderstanding your point?

 

[Zhukov]

When an external party makes a FDI, they will exchange their foreign currency (eg USD or Euro) into the local currency so that they can purchase stuff locally. The ultimate seller of local currency is Pakistan central bank and in the end Pakistan will be gaining foreign reserve as opposed to losing. Or am I misunderstanding your point?

Thats the First part, The investment and Inflow.
I am concerned with the second part. when those Investors want the return of income from that investment. If the investment is made in THOSE industries that are engaging in export business, then the Investment will first generate Foreign Reserves and then the Investors will take out profits from the investment back home. (Outcome, Win win for Both countries) Just like Some Investors from China currently investing in Agriculture and Sea Food sector to grow Food products and Export it back to China and other Asian Countries like Phillipines.
BUT If the projects are wholly for local consumption like Power Projects or Industries selling in local market only like some auto makers etc Then What ever Investment they did in Pakistan, They brought in, converted it to Rupee and Started operations, then they will sale its product to Pakistanis and earn Rupees from it, Then they will go to State bank, Purchase Dollars and Euros etc by converting Rupees and Send the Dollars back home. And Foreign Reserves keep depleting in the long run.
Balance should be maintained which unfortunately i am not seeing for now. China should outsource Production Facilities and Raw Material Conversion Industries of Labor Intensive industries to Pakistan that are too costly to operate in china as Chinese Labor is getting expensive due to their economic growth and GDP rise. Other wise its a debt trap for us.

 

[CriticalThought]

When an external party makes a FDI, they will exchange their foreign currency (eg USD or Euro) into the local currency so that they can purchase stuff locally. The ultimate seller of local currency is Pakistan central bank and in the end Pakistan will be gaining foreign reserve as opposed to losing. Or am I misunderstanding your point?

Actually, if the machinery is imported, there wouldn't be much of an inflow. I suspect that's what happened with local car manufacturers such as Toyota and Honda.

Thats the First part, The investment and Inflow.
I am concerned with the second part. when those Investors want the return of income from that investment. If the investment is made in THOSE industries that are engaging in export business, then the Investment will first generate Foreign Reserves and then the Investors will take out profits from the investment back home. (Outcome, Win win for Both countries) Just like Some Investors from China currently investing in Agriculture and Sea Food sector to grow Food products and Export it back to China and other Asian Countries like Phillipines.
BUT If the projects are wholly for local consumption like Power Projects or Industries selling in local market only like some auto makers etc Then What ever Investment they did in Pakistan, They brought in, converted it to Rupee and Started operations, then they will sale its product to Pakistanis and earn Rupees from it, Then they will go to State bank, Purchase Dollars and Euros etc by converting Rupees and Send the Dollars back home. And Foreign Reserves keep depleting in the long run.
Balance should be maintained which unfortunately i am not seeing for now. China should outsource Production Facilities and Raw Material Conversion Industries of Labor Intensive industries to Pakistan that are too costly to operate in china as Chinese Labor is getting expensive due to their economic growth and GDP rise. Other wise its a debt trap for us.

At least with projects such as power, there are follow on benefits to the export sector. For a country like Pakistan, our exports would be non-competitive without power.

 

[ni8mare]

well india has dozen govt to govt nuclear plants more expensive than chinese

Because they have to share significant technology to pvt firms

 

[GeraltofRivia]

Thats the First part, The investment and Inflow.
I am concerned with the second part. when those Investors want the return of income from that investment. If the investment is made in THOSE industries that are engaging in export business, then the Investment will first generate Foreign Reserves and then the Investors will take out profits from the investment back home. (Outcome, Win win for Both countries) Just like Some Investors from China currently investing in Agriculture and Sea Food sector to grow Food products and Export it back to China and other Asian Countries like Phillipines.
BUT If the projects are wholly for local consumption like Power Projects or Industries selling in local market only like some auto makers etc Then What ever Investment they did in Pakistan, They brought in, converted it to Rupee and Started operations, then they will sale its product to Pakistanis and earn Rupees from it, Then they will go to State bank, Purchase Dollars and Euros etc by converting Rupees and Send the Dollars back home. And Foreign Reserves keep depleting in the long run.
Balance should be maintained which unfortunately i am not seeing for now. China should outsource Production Facilities and Raw Material Conversion Industries of Labor Intensive industries to Pakistan that are too costly to operate in china as Chinese Labor is getting expensive due to their economic growth and GDP rise. Other wise its a debt trap for us.

You are right that keeping the balance is very important. As to your point of the outflow, it is true but it will happen to any open economies. And It is common that even a foreign invested business makes handsome profit on an accounting basis, the profit may not necessarily be sent to the home country. More than likely the profit will be reinvested in order to further increase production capacity.

I don’t know these power projects be looked at on a standalone basis because they are built mainly for the purpose of supporting the various industries in the economic zone that will be developed.

 

[ziaulislam]

Because they have to share significant technology to pvt firms

Bangladesh had similar deal with Russia more expensive too..
Chinese reactors are simply much cheaper, they are going to win every international competition because nobody else is investing in reactors or building new reactors

 

[ni8mare]

Bangladesh had similar deal with Russia more expensive too..
Chinese reactors are simply much cheaper, they are going to win every international competition because nobody else is investing in reactors or building new reactors

No again wrong.....you need to study about india's industrial capability here specially L&T, BHEL, BF...a large portion was localised with russian reactors and same being now done with france reactors too.
Even in case of bangladeshi reactor that to be built by russian, india is getting a major non-nuclear component share (Not getting nuclear component because of being non-NSG member)

Read them
http://www.world-nuclear.org/inform...tors/heavy-manufacturing-of-power-plants.aspx
http://www.world-nuclear.org/information-library/country-profiles/countries-g-n/india.aspx

As you can see where indian nuclear industrial capability lies with respect to world

 

[RoadRunner401]

But I'm sure next government will figure out something to buy more time if they can't pay back, as always. Now I know Imran Khan is pragmatic and all his political slogans were just to fool gullible potis. and win election. I'm sure in 2001 if Imran Khan was president, he would have joined war on terror.

The federal government’s debt that was Rs14.4 trillion exactly five years ago shot up by two-thirds to Rs23.8 trillion during the Pakistan Muslim League-Nawaz (PML-N) government’s tenure – the highest increase recorded in any government’s term since the creation of Pakistan. So, you are saying is we should have voted for PML_N again and all will be good ?

Sure in 4-5 years Pakistan doesn't need to start paying back $4-5 billion to China per year.

4 - 5 years from now our economy will be in much better shape because we will have not feed the PIG (Politically Invested Gandoos) of PML_N or PEE PEE PEE, so yes we will have no problem paying back the loans.

PTI have just brought more time by taking loan from one party to pay to another, didn't fix anything yet.

What do you mean he hasn't done (fix) anything yet, what did you expect him to do in this short time fix all that was broken by PML_N and pee pee pee over night?

WTF, you cry babies you talk from both sides of your mouth. He had to borrow money to fix the flocking economy because the thieves before him stole it all, how do you suppose he fixes all that with a magical wand. I love it how the thieves are now blaming IK for what they did?

 

[ziaulislam]

The federal government’s debt that was Rs14.4 trillion exactly five years ago shot up by two-thirds to Rs23.8 trillion during the Pakistan Muslim League-Nawaz (PML-N) government’s tenure – the highest increase recorded in any government’s term since the creation of Pakistan. So, you are saying is we should have voted for PML_N again and all will be good ?



4 - 5 years from now our economy will be in much better shape because we will have not feed the PIG (Politically Invested Gandoos) of PML_N or PEE PEE PEE, so yes we will have no problem paying back the loans.



What do you mean he hasn't done (fix) anything yet, what did you expect him to do in this short time fix all that was broken by PML_N and pee pee pee over night?

WTF, you cry babies you talk from both sides of your mouth. He had to borrow money to fix the flocking economy because the thieves before him stole it all, how do you suppose he fixes all that with a magical wand. I love it how the thieves are now blaming IK for what they did?

well he has fixed the CAD, decreased by half by simple measures
re jenvated the export industry by tarrif rationalization
solved the 18 billion crisis via saudi funding
the list long but people cant see