Pakistan’s fresh £580m loan from China intensifies debt burden fears

[SoulSpokesman]

@etylo

China is already doing it.

So why is Showbaaz running with a begging bowl to IMF?

Regards

 

[Olympus81]

@etylo

China is already doing it.

So why is Showbaaz running with a begging bowl to IMF?

Regards

The Chinese credit card seems to have maxed out.

 

[SoulSpokesman]

@Olympus81

It seems it might be a good idea for Pak to expropriate all Chinese assets and repudiate all debt. They dont seem to have any leverage against you

Regards

 

[etylo]

@etylo

China is already doing it.

So why is Showbaaz running with a begging bowl to IMF?

Regards

China cant cover everything, multiple channels sought are reasonable as by many countries including Sri Lanka.

 

[fisher1]

Those crying this loans comes at a cost seems to have forgotten that American aid came at a cost of killing our own Muslim brethren and making Pakistan terrorism hub.

Before we fought American wars for $$$, Pakistan was a beautiful peaceful country. We killed our own patriotic citizens to please Uncle Sam.

Everyday there’s a bomb blast or terrorism in Pakistan and that’s the cost of American loans

 

[epebble]

Not a traditional bank, but there are plenty of vulture funds - they will probably be willing to lend at 25 cents on the dollar in the example above.

Consider this thought experiment to realize the risk perception of Pakistan's sovereign debt:

https://www.forbes.com/profile/shahid-khan/?sh=6997b4e8159b has a net worth of $12 billion. He can call up Chase or Citibank and ask for a credit line of $400 million; they will approve it same day on phone. Then he can buy $400 million of Pakistan bonds and redeem them for $1 billion on April 2024, pocketing a cool $600 million. His cost would be under 7% of $400 million, which is $28 million, giving him a profit of $540 million. Guess what? He is not doing it. Nobody else is doing it too.

 

[Paji]

Consider this thought experiment to realize the risk perception of Pakistan's sovereign debt:

https://www.forbes.com/profile/shahid-khan/?sh=6997b4e8159b has a net worth of $12 billion. He can call up Chase or Citibank and ask for a credit line of $400 million; they will approve it same day on phone. Then he can buy $400 million of Pakistan bonds and redeem them for $1 billion on April 2024, pocketing a cool $600 million. His cost would be under 7% of $400 million, which is $28 million, giving him a profit of $540 million. Guess what? He is not doing it. Nobody else is doing it too.

The definition of a market price is that it is the intersection of the highest price a buyer is willing to pay and the lowest price a seller is willing to accept. If the market price is 41 cents on the dollar, it means that is the price at which there is both a buyer and a seller.

 

[Inception-06]

Wow!

Pardon my language but, just declare bankruptcy you idiots. Your fake pride will drag you nowhere. Your politics and future planning sucks too (much more than my country Bangladesh).

BTW, Pakistan needs to eliminate tribalism, mullah hooliganism and zamindari first.

Exactly First a country as a state needs a functional law and order, lynching mops every month are making headlines. Totally unstable country. No amount of billions and nor political Parties can’t fix the economy till they can’t reform the law and order situation in the whole country. Pakistan is like a Wild West Nation.

 

[Abu Shaleh Rumi]

@Abu Shaleh Rumi

just declare bankruptcy you idiots.

That sir, is completely uncalled for. You can make your point without resorting to invectives. Just in case you foget this is the Pak Defence Forum.

Regards

They're taking loan to payback previous loan and you want me to show respect? Pakistani government is selling Pakistan for pennies and destroying Pakistans scope for recovery.

Pakistani people should do a bloody French revolution on Pakistani ruling elites.

 

[HAIDER]

 

[ProblemSolver]

None of this matters at the end of they day. We run on a colonial British model that we still haven't fully rooted out and just use it as a way to gain power or benefits over our own fellow country men.

We need proper structural reforms, a country where Ratta(memorization) is more valuable than genuine creative thought. Where an "American, Canadian, English" product is just way superior than anything a "paindu" from Daska can make. Where we still drink tea even though tea is not native and mostly can't be produced in our region again a remnant of British Indian culture. Where we are an agriculture economy but can't feed our own people without importing.

To me it just seems incompetence, laziness and closed thinking.
Also signing a loan, to pay off other loans is the dumbest approach. Build a stronger internal economy by giving people what they need so they can start their own profitable businesses instead of wanting to run out of the country first chance they get.
And it is a long term thing, can't be done in two months.

Without this, country has no future.

 

[maithil]

Thanking God for a loan from China.. Well..

 

[Menace2Society]

These Sharifs and Zardaris are so useless. They are just running the country on as minimum as they can. As long as their businesses get preferential treatment, export contracts, subsidies etc and the army gets its budget. The rest of the country is screwed. Worst of all they have no shame. Still the same since the 90s. But now they are wearing expensive suits.

 

[zn426]

Those crying this loans comes at a cost seems to have forgotten that American aid came at a cost of killing our own Muslim brethren and making Pakistan terrorism hub.

Before we fought American wars for $$$, Pakistan was a beautiful peaceful country. We killed our own patriotic citizens to please Uncle Sam.

Everyday there’s a bomb blast or terrorism in Pakistan and that’s the cost of American loans

The Chinese are better? They're "reeducating" Muslims in Xinjiang and trying to stamp out the rapid native spread of Christianity due to local Chinese evangelists. Will atheism eventually become the state religion of Pakistan?

Pakistan needs to repent of the sin of claiming to be a moral society, turn to Jesus, and start being a truly honest society. We Christians in America are not perfect, but we are growing day by day. Don't see that with Pakistan. Most Christians here are now very anti-foreign wars.
80% undocumented means 80% of Pakistan's people are too unpatriotic to support their own country. Yes, I understand that the Sharifs are chors and liars as is the rest of the imported government. But the damage would be a lot less if everyone was paying their own taxes. They'd still be looting, but they'd have to be much more accountable to all those tax payers as those taxpayers would start kicking politicos to the curb when the government is being managed poorly.

 

[VCheng]

Thanking God for a loan from China.. Well..

Obviously, there is no irony in that at all, since money has no religion.