Pakistan to issue another $1 billion Eurobond this week

[Arya Desa]

Can't China help? If IPI goes through, Pakistan could easily earn this money in transit fee. India and Pakistan should put down their egos and go for a win-win deal.

Why should our money go to pakistan? There will be no IPI we are going to build a pipeline underwater bypassing them.

 

[dadeechi]

Why should our money go to pakistan? There will be no IPI we are going to build a pipeline underwater bypassing them.

It's not charity. It is transit fee. IPI would be cheaper than undersea pipeline. Now with Iran sanctions gone and Russia/China chipping in with Investment and technology, it could be a win for all.

 

[Indus Pakistan]

I expect though now - post Iran nuclear deal that within next two to three years this pipe being completed. The Chinese company that was originally contracted pulled out after it realized that it would lose all Western customers. In short it had more to lose then gain. However now I am hopping that everything will fall in place and this damned thing is completed.

 

[Arya Desa]

It's not charity. It is transit fee. IPI would be cheaper than undersea pipeline. Now with Iran sanctions gone and Russia/China chipping with Investment and technology, it could be a win for all.

When they use that money on nukes and weapons are you going to tell your children that they were killed because India wanted a cheaper gas route? Our money will not go to them. Thankfully GoI isn't so shortsighted.

I expect though now - post Iran nuclear deal that within next two to three years this pipe being completed. The Chinese company that was originally contracted pulled out after it realized that it would lose all Western customers. In short it had more to lose then gain. However now I am hopping that everything will fall in place and this damned thing is completed.

Why would anyone build a pipeline for your country? You have no market. Your economy is smaller than Bombay's.

 

[Indus Pakistan]

When they use that money on nukes and weapons are you going to tell your children that they were killed because India wanted a cheaper gas route? Our money will not go to them. Thankfully GoI isn't so shortsighted.

Smart thinking. I would be tempted to chuck a fired match into such a pipe. Bang goes your supply. So best thing to do is sneak under the water all safe and snugg. Make it go twenty thousand leagues under the sea. Let it snake from one countr to another then let it dance under the sea.

When they use that money on nukes and weapons are you going to tell your children that they were killed because India wanted a cheaper gas route? Our money will not go to them. Thankfully GoI isn't so shortsighted.



Why would anyone build a pipeline for your country? You have no market. Your economy is smaller than Bombay's.

I know Pakistan is smaller then Bombays but we also have less of these. This is what your super duper economy manages to do. Look below?

And we don't have 300 million hungry which is more than entire population of Pakistan, Iran, Turkey, Aghanistan, Saudia Arabia, Iraq put togather.

And the other 300 million who do manage to scavenge some food shatt openly on the streets.

No one starves in India. The poor drink, get sick and die - Firstpost

 

[dadeechi]

When they use that money on nukes and weapons are you going to tell your children that they were killed because India wanted a cheaper gas route? Our money will not go to them. Thankfully GoI isn't so shortsighted.

I am ok with you calling me myopic but few questions for you

Will India not doing business with Pakistan result in denuclearization of Pakistan?

Do you really believe that Pakistan is going to nuke India?

Have you ever given a thought that the terrorist incidents in India and Pakistan could have 3rd party involvement to keep the countries from rapprochement?

Hypothetically speaking, do you consider a financially weak Pakistan dancing to 3rd party tunes a better scenario than a strong and Independent Pakistan?

 

[Arya Desa]

I am ok with you calling me myopic but few questions for you

Will India not doing business with Pakistan result in denuclearization of Pakistan?

Do you really believe that Pakistan is going to nuke India?

Have you ever given a thought that the terrorist incidents in India and Pakistan could have 3rd party involvement to keep the countries from rapprochement?

Hypothetically speaking, do you consider a financially weak Pakistan dancing to 3rd party tunes a better scenario than a strong and Independent Pakistan?

This is a country that hid Osama Bin Laden from America. They trained the Taliban. Nothing is beyond them, given the chance they will nuke India, no 3rd party necessary. They will not get Indian money for them to spend on weapons.

 

[dadeechi]

You have not answered my questions but I will respond to yours

This is a country that hid Osama Bin Laden from America.

Do you think Pakistan is out of it's senses or strong enough to take on America?

They trained the Taliban.

Don't you think if they were strong enough they would have stayed non-aligned like India?

Nothing is beyond them, given the chance they will nuke India, no 3rd party necessary.

Let's say we give a supari offer to two people. One is a millionaire with no worries and the other is dirt poor guy with all the problems in this world. Who is more likely to take the offer and carry out.

Here we do not have strength to take on the guy giving the supari but ready to take on the poor guy. We have the opportunity to raise the standard of poor guy to a middle class person at which point time he would also decline the supari offer.

They will not get Indian money for them to spend on weapons.

This is a choice. People love to quote this all the time but forget when it is actually needed. So I will quote it.

There are no permanent friends or enemies. Just permanent Interests.

Pakistan is India's neighbor. A stable, friendly and independent Pakistan is in India's interest.

 

[Viper0011.]

This is a country that hid Osama Bin Laden from America. They trained the Taliban. Nothing is beyond them, given the chance they will nuke India, no 3rd party necessary. They will not get Indian money for them to spend on weapons.

Very low quality posts and waste of forum's disk space!!! Do you think Pakistan wants your money? ....

At this point, they are ranging about 1-1.5 billion a month getting added into their savings account. Which means, initially, they were slated to have around $ 40 billion in their savings account by 2020-2022.

At the current rate, they can cross having $ 40 billion by 2018. That is NOT bad!!! This is a country that had $ 11 million left in their checking account when this government took over. Currently, they have around $ 20 billion dollars. Add three years, and 25-30 billion more (based on the current pace), $ 40-50 billion is VERY achievable in next 3-4 years. Very good work indeed .

 

[saadee]

I heard Pakistan's Economy doing well recently.., what happened why this bond??

Nawaz Shareef a cancer that should be eliminated soon. If I am at COAS's place, I would execute his behind in the public.

 

[Viper0011.]

Can't China help? If IPI goes through, Pakistan could easily earn this money in transit fee. India and Pakistan should put down their egos and go for a win-win deal.

Excellent and a rare post, yet very intelligent. As you can see, response to your post from your own countrymen is pretty hateful. What they are not realizing is that if the ego's don't get locked up inside a box and thrown away in the ocean, one day, the entire region will suffer.
And second, many people from India are still in denial that Pakistan can be a growing economy. Well it is happening and Indian businesses have an opportunity to jumps in and work with the Pakistanis and the Chinese. These relationships can establish peace for ever. If not....sooner or later, India would need to join the CPEC. But that should be now, before it becomes too difficult and a lot of drama takes place, making it more complex.

 

[Spectre]

Very low quality posts and waste of forum's disk space!!! Do you think Pakistan wants your money? ....

At this point, they are ranging about 1-1.5 billion a month getting added into their savings account. Which means, initially, they were slated to have around $ 40 billion in their savings account by 2020-2022.

At the current rate, they can cross having $ 40 billion by 2018. That is NOT bad!!! This is a country that had $ 11 million left in their checking account when this government took over. Currently, they have around $ 20 billion dollars. Add three years, and 25-30 billion more (based on the current pace), $ 40-50 billion is VERY achievable in next 3-4 years. Very good work indeed .

What is your view on yield of these bonds Sir?

As often stated by you Pakistan is a potential Top 10/15 economy that implies it should have no trouble getting these issues subscribed at much lower yields of 6/7% which is appropriate to it's sovereign rating.

Also kindly inform me good Sir - Is it healthy for a economy to issue foreign currency denominated bonds at a yield higher than that of Greece's Euro Bond issue? Country has to pay it back in Euros (can't print your way out of it) also sets a bad precedent because unlike Greece Pakistan's economy does not fall in junk category.

Sir also please inform me as to what constitutes foreign currency reserves? Shoring up reserves based on high cost FC denominated bonds is a terrible idea - It is like borrowing from a bank at high interest cost and letting that money sit idle but then I am just a neophyte in finance and would defer to your wisdom

 

[Viper0011.]

Pakistan to issue another $1 billion Eurobond this week
ISLAMABAD: Pakistan will raise at least $1 billion from international debt markets in the next two days, choosing the easier but more expensive path of capital markets financing rather than implementing tough but necessary energy sector reforms and accessing the much cheaper financing available from international aid agencies.

There is nothing wrong with issuing bonds. China bought over a Trillion dollar's worth of US treasury bonds and that trillion, helped out the US economy in recovering faster.

In a country where the electricity doesn't get produced to the level needed, the CPEC is being built and the businesses are running at much lower capacity, and silly fools are protesting inside and outside Pakistan (Brooklyn drama a few days ago), what do you expect? The FDI will remain low. You guys need to play as a nation not a broken pieces of one puzzle that can't stand together for a day!!! The perception and image is everything and you guys don't think that by 500-1000 people going on their own, holding Pakistani flags is wrong in a foreign country and it ruins the image that many people recently worked so hard to build, JUST to get investments (NASDAQ and Dr. Lodhi's speech).

But the FDI will change rapidly once the electric generation starts.

The writer has NO freaking clue what he's talking about. This is JUST like everything else on this forum from anti Pakistani government's standpoint, paid or bribed serving IK and his buddies the best. To "sound" highly educated and an expert, the author used terms like "Energy Sector Reforms" and associated it to getting "capital". How the hell do you do that???

And WHICH Energy sector reforms? Pakistan had a well thought out plan to get cheaper and immediately available Gas from Iran. But Iran is under sanctions and its taking a LONG time to lift those sanctions. How's that Pakistani government's fault? They then went to Qatar as a backup and that's working but not to a degree that Iran's pipeline would've worked and helped.

Not to mention, whatever happened to the Generals and everyone else who ruled Pakistan for like 6 decades....they didn't realize that with growing population, this would be an issue? Why blame the current government for three years for everything, including the Earthquakes and Tsunami's caused by an active God???

We should ALL read the stuff before we post to make sure what we post, was written correctly and with expertise. Otherwise, you continue to waste everyone's time by adding "spices" to political favoritism!! None of this garbage helps the ordinary people of Pakistan!!!

Could someone also tell me how paying 8.25% back on a bond is more expensive than putting in multi-billion dollar investments (power plants), which then would take years to complete, and then produce electricity, and then break even and then, start giving a profit!!!! And who would finance such expensive deals from the West worth billions?

The bonds are the best option and the 8.25% interest on bonds, isn't much. Average return in Pakistan at this time is 20%+ - 35%. So the government STILL makes a ton of profit even after paying the interest back. That's VERY smart actually. Good work Pakistan . Something important to note, is that there has been so much trust put in by the American and other investors that they are accepting Pakistani paper (Bond) and are buying it through HARD CASH!!! That ONLY happens when you KNOW a country is solid and your money is safe with good returns.

Tell Russia or Iran to issue bonds to Europe and the US. I'd love to see who pays for it . You guys should be thankful for the work being done by the elected government, WHILE dealing with ALL problems of 70 years!!! This is NO easy work and no one EVER in Pakistan's ruling elite has done 25% of what the current government is doing.

What is your view on yield of these bonds Sir?

As often stated by you Pakistan is a potential Top 10/15 economy that implies it should have no trouble getting these issues subscribed at much lower yields of 6/7% which is appropriate to it's sovereign rating.

Read my post right above. Yes it is PERFECTLY healthy to issue bonds. The Chinese bought the US treasury bonds worth over a Trillion dollars. We (the US) bought bonds (and still do) from all over the world and sell notes (which is considered a bond with different terms). And 7% or 8.5% means nothing. Its all subjective. A country where average return is around and sometimes over 30% (Pakistan's economy and market), paying back 8.5% is a joke. The Pakistan government can take the billion, invest it themselves, get a 35 or 30% return, and pay back 8.75% and not only get a billion cash by selling these, still make over 20% profit on this billion and return the 8.5%. I think that's HELLa smart way.

What everyone need to see is the fact that Pakistan has won international confidence so much that a Billion worth of bonds are ALL sold in just a couple of days. Like I said in my other post, ask Iran, Russia or even China to issue bonds right now and see what happens

 

[Spectre]

Average return in Pakistan at this time is 20%+ - 35%.

Can you clarify your statement sir?

It does not seem to make sense my good sir - if avg return of Pakistan was 20 - 35% it's GDP would be 25% not hovering around 4.5% - 5%.

May be you can tell me which sectors, government enterprises or private companies are having year on year growth of 20 -35% and what proportion do they form of Pakistan's economy Sir.

Kindly also provide me with a source good Sir.

A country where average return is around and sometimes over 30% (Pakistan's economy and market), paying back 8.5% is a joke. The Pakistan government can take the billion, invest it themselves, get a 35 or 30% return

How sir? I don't get the figure of 30% - it is not possible even for China.

Can you perhaps provide me a source sir so that I can educate myself to the tremendous possibilities of Pakistan's economy.

P.S. Kindly restrain your comments to real economy not stock markets.

 

[Viper0011.]

Can you clarify your statement sir?

It does not seem to make sense my good sir - if avg return of Pakistan was 20 - 35% it's GDP would be 25% not hovering around 4.5% - 5%.

May be you can tell me which sectors, government enterprises or private companies are having year on year growth of 20 -35% and what proportion do they form of Pakistan's economy Sir..

How about you do your own research cup cake??? You have access to a lot of stuff. See KSE indexes, see market returns, see overall market performance. The market has doubled within the past 2+ years.

Return on investment and the GDP are TWO VERY different things!!!! Return on investment is I put money into a power plant for example and I got 30% back due to electric usage from that plant and profit after ALL expenses were paid. GDP on the other hand is Gross Domestic Product!!!! How do you calculate a country's GDP based on a project's ROI or ARR????

I don't have time to waste with you, we've been through these things before. Go do your research or learn economy and market. When your questions show me you have some basic command over the topic, we'll talk. Till then, you are welcome to keep filling up the white board with stuff that can't be understood and good luck with it