Pakistan will have to take tough decisions if US blocks bailout

[Path-Finder]

13 times under whose leadership?

munshi of piggie tubbar, dalla dollar dar

 

[RIP Pak LAW]

@ noothiyaas

Don't worry. We will than sold Nawaz Sharif and his clan all land and properties.

 

[nahtanbob]

The thing is that even before CPEC, all the projects being undertaken, private and public, were more in number in comparison to all Chinese Projects in Africa combined. So, where was the 'debt trap' then?

Furthermore, what this article fails to consider is that most of the CPEC loans of which have surfaced have been revealed to be soft loans meaning loans with extremely low interest rate, of around 1.5%, not to mention the numerous grants the Chinese Government has given and also loans whose interest rate has been dumbed down to zero!

Not to mention, this article treats the entire CPEC as a single unit package which is already not doing justice to the narrative. CPEC is a collection of multiple projects to be undertaken in different categories and each project has their own agreement, amount of loan, bidding and interest rates. The whole of CPEC isn't a singular agreement. Basically, CPEC is a composite financial package which provides long-term concessional and preferential loans.

What makes me most confused is how do these organizations which overlook Economic situation, come to the conclusion that Pakistan will be under such and such debt, with such and such interest, and will have to pay such and such yearly-amount, while crying foul that details regarding CPEC agreements should come to surface. It's extremely confusing, how can you make these calculations and predictions without knowing the details of the agreements about which you cry foul.

So far, of the details that have been surfaced, which you can check on Wikipedia, these are soft interest loans which are lower than what the World Bank and ADB even provide, there are numerous grants as well as loans whose interest rate has been dumbed down to zero. But then again, these are only for those that have surfaced.

Why aren't the details being allowed to surface? I don't know. But I think it's too early, and there's too less information, to say anything regarding it. However, from what we have seen, so far it has yielded a few results such as the restoration of Energy sector in Pakistan. We used to have immense load shedding in Punjab as well as Sindh, now it's been near-eradicated with load shedding mostly occurring in areas where the Electricity bills are not paid, from my experience at least. Furthermore, it has encouraged local industries, not sure if you're aware but many of the local industries and factories closed down to Energy shortage issues, so it certainly helps them. CPEC is also bringing a lot of infrastructure to Pakistan in the form of massive road networks, railway lines and increased inter-connectivity, it is basic economics, if you want your Economy to grow, the very first thing you need is some form of Connectivity and Electricity, so it certainly helps lay the foundation.

Only time will tell, but I really doubt that CPEC is a debt trap as Indians and Western media like to portray it as. To portray CPEC is a debt trap is to portray the entire BRI as an attempt to increase control via economy on other nations, and to put it into perspective, many countries are a part of this BRI including Russia and some European nations.

https://en.wikipedia.org/wiki/Belt_and_Road_Initiative#/media/File:One_Belt_One_Road.png

Here's a picture. CPEC is simply the crown-initiative of this BRI.

If things are as straight forward as you say why keep details under wrap ? it is not like foreign spies have not stolen the details.

For all the talk of Russian support what BRI project has Russia participated in ?

 

[VCheng]

If the US pulls the plug on an IMF bailout package, the new government in Islamabad will have to make tough decisions.

USA will have no problems with any IMF bailout package, which will come its its own set of conditions that must be met, requiring tough decisions to be taken in Islamabad. IMF must do its due diligence in granting any large loans requesting by any country, not just Pakistan.

The choice is for Pakistan to make what set of difficult decisions does it wishes to implement.

 

[Tom M]

We all know the true reasons why the US and India keep mentioning the fake debt trap with regards to CPEC.

This has absolutely nothing to do with US/Indian concern for any debt that Pakistan has accrued. This has to do with US/Indian concern at growing relations between China and Pakistan.

The US and India are unable to digest a healthy relationship between China and Pakistan.

Firstly, are you guy's able to digest good Indo-US or better Indo-Russian relationships ?? NO, not at-least in PDF as it is quite evident from responses of Pakistani members.

Then why in the world do you expect that India will like China-Pak relationship ??? That too when we have direct indifference and disputes with both ???

 

[Champion_Usmani]

Devaluation of Rupee is the main reason why we are in such dire economic situation, govt must take Rupee value in control like dar did for 4.5 years, and not let open market decide the rupee value, or else the rupee will keep devaluate and our debt will keep rising.... This is the basic mistake PTI govt. making, the Rupee is vulnerable (plus rumours of new taxes due to new loan from IMF), so investors are wary of the situation and cautious, that is why investors pulled 270 plus billions from stock market, as a result stock market crashed.

This is the IMF game... They will provide high interest loans to countries and force them to devaluate their currency, thats it, the country is done.

The youthias here are not ready to learn or understand current crisis, all their intents are to defend IK and PTI, and abuse/accuse whoever disagrees with them.

https://twitter.com/x/status/1050041916237189120

https://twitter.com/x/status/1049867789916229632

 

[Lincoln]

If things are as straight forward as you say why keep details under wrap ? it is not like foreign spies have not stolen the details.

For all the talk of Russian support what BRI project has Russia participated in ?

Refer to the BRI Wikipedia page. Like I said, I don't know why all the details are under wrap. I already outlined those which have surfaced, they have been soft loans. But if the previous Government as well as this Government are not willing to bring details to surface and if IMF is so hell bent on getting these agreements on surface, just maybe, not saying with 100% guarantee, but just maybe there's a factor of National Interests to it's secrecy.

 

[nahtanbob]

Refer to the BRI Wikipedia page. Like I said, I don't know why all the details are under wrap. I already outlined those which have surfaced, they have been soft loans. But if the previous Government as well as this Government are not willing to bring details to surface and if IMF is so hell bent on getting these agreements on surface, just maybe, not saying with 100% guarantee, but just maybe there's a factor of National Interests to it's secrecy.

I do not see where the need for secrecy arises

 

[VCheng]

Devaluation of Rupee is the main reason why we are in such dire economic situation,

Oh bhai meray. the devaluation is a symptom of the underlying economic weakness and not the cause. Please understand this basic concept before pontificating any further on this topic.

 

[Lincoln]

I do not see where the need for secrecy arises

You don't. They do.

Devaluation of Rupee is the main reason why we are in such dire economic situation.

https://twitter.com/x/status/1049867789916229632

If you truly believe that then you are in a desperate need of a class on Economics, even a high school student taking Business Studies could tell you why a currency is devaluated. Kindly, educate yourself or at least look at what economists, books and other sources of information regarding Economics have to say regarding devaluation of currency, instead of making stuff out of thin air.

 

[Turingsage]

The LOWEST rate charged by China on BRI where CPEC is a part is 6%. This is considered a soft loan. If its such a low rate (1.5%) than why does the govt not inform parliament or keep it hidden from the Pakistani awam who ultimately has to pay back these "loans".
Peoples parliament would be delighted to hear that its only 1.5% as would every Pakistani. It would STOP all the carping and dangerous speculation in one blow.
It would stop the IMF, World Bank, Western governments with one thunderous swoop from criticism about unsustainable loans etc etc . They would have to eat crow

By the way IMF charges about 2-3% on average. More than half the rate that China charges


WHY ?

 

[That Guy]

While the US can make it harder to get a loan from the IMF, it cannot block such a transaction. I don't know why people think the US has the authority to block the IMF from loaning to nations, when it doesn't.

Pakistan will likely get the loan, especially since both Pakistan and the US seem to have come to some sort of understanding.

@BHarwana

So, now that Pakistan is official going to the IMF for another bailout, what do you think?

I'm not gonna say "I told you so", because it's something I hate as well. Having said that, it was clear that Sharif, Zardari before him, and Musharraf before Zardari, have all forced Imran Khan's hand, with their excessive borrowing to fund worthless projects.

IK is doing the right things; the false gains on the PSX are declining (which is why there was a recent mild crash), as a result of going after corruption, and the market seems to finally be stabilizing on a better more legitimate platform.

IK's austerity measures are going to help a lot. NS was spending far too much on big projects, and cutting back on them, as well as restructuring other projects will help a lot. I hope IK can go through with the economic reforms he's promised.

 

[BHarwana]

While the US can make it harder to get a loan from the IMF, it cannot block such a transaction. I don't know why people think the US has the authority to block the IMF from loaning to nations, when it doesn't.

Pakistan will likely get the loan, especially since both Pakistan and the US seem to have come to some sort of understanding.

@BHarwana

So, now that Pakistan is official going to the IMF for another bailout, what do you think?

I'm not gonna say "I told you so", because it's something I hate as well. Having said that, it was clear that Sharif, Zardari before him, and Musharraf before Zardari, have all forced Imran Khan's hand, with their excessive borrowing to fund worthless projects.

IK is doing the right things; the false gains on the PSX are declining (which is why there was a recent mild crash), as a result of going after corruption, and the market seems to finally be stabilizing on a better more legitimate platform.

IK's austerity measures are going to help a lot. NS was spending far too much on big projects, and cutting back on them, as well as restructuring other projects will help a lot. I hope IK can go through with the economic reforms he's promised.

For me you can say this is karma but still this is a under process event. Assad Umer is in Indonesia talking to IMF and negotiating but we have not yet applied for the loan. So to make things simple Pakistan is just exploring all its options. We have been to Saudis and they have agreed to finance on certain conditions then we have been to IMF and also taken note of their conditions and on November 3rd we Wil go to Chinese and see what they offer us. Then we will sit down and decide what is the best option for us. To take loan or to follow a free market policy all together.
At this stage you cannot say we are going to IMF but Pakistan is exploring all its options and will chose the best one available.

 

[Thorough Pro]

Zahoor is an idiot trying to make non-issues, issues.

View attachment 504159

https://twitter.com/x/status/1049882032430567424

 

[KAMDEV]

It will be okay. It cannot get worse than PML-N performance.

Fasten your seatbelts an face the tough economic dsys ahead.

Zahoor is an idiot trying to make non-issues, issues.

Don't beat the messenger. See the message how you are going to deal with it .