Pakistan Economy Thread

[Michaelsinodef]

Yes, the PML-N government has a tendency of accelerating projects etc., but that isn't necessarily always in Pakistan's interest.


Pakistan will have to choose a side and that is exactly what the US has always demanded. From WoT to Russian war in Ukraine condemnation. Pakistan cannot remain neutral and that is the whole problem.

Why can it not be neutral lol?
There's loads, and I mean loads of countries that have not followed the US in sanctioning Russia.

As for why the US doesn't want Imran, its more like he was TOO anti-US (visiting Russia and talking with Putin after the invasion began or on the day of sanctions, or something like that. Basically slapping the US' face, even India didn't do something of that extend).

Also I think it was the Pakistan military thread, where there was a lot of back and forth about this subject, you should check out those pages (rather recent).

 

[gelgoog]

He was visiting Putin on the day the invasion started. But I doubt it was planned like that.
It is just that he did not cancel his trip because of the invasion like the West would have liked him to do.
From his point of view he went there to negotiate an important deal. Notice how the Brazilian President did not leave either.
Brazil needed a deal for fertilizer. And Khan needed a deal on food imports I think. What probably grated the West the most was how Khan did not grovel at the West but asked if Pakistan was the West's slave. That really grated on them.

Pakistan and India are nuclear powers but they still do not have respect from the West. Because they lack power projection capabilities. And Pakistan in particular has a highly fragile form of government unfortunately. And a fragile economy as well still. However as the leading military power of the Muslim world, the other Muslim nations would never allow Pakistan to collapse I think.

 

[Dalit]

Why can it not be neutral lol?
There's loads, and I mean loads of countries that have not followed the US in sanctioning Russia.

As for why the US doesn't want Imran, its more like he was TOO anti-US (visiting Russia and talking with Putin after the invasion began or on the day of sanctions, or something like that. Basically slapping the US' face, even India didn't do something of that extend).

Also I think it was the Pakistan military thread, where there was a lot of back and forth about this subject, you should check out those pages (rather recent).

Neutral isn't good enough for the Americans. When Imran Khan visited Russia it had nothing to do with Ukraine war. It was solely business related. Yet, the Americans made it personal and conspired to overthrow a sitting government. The Americans seek a master slave relationship with Pakistan.

 

[Michaelsinodef]

Neutral isn't good enough for the Americans. When Imran Khan visited Russia it had nothing to do with Ukraine war. It was solely business related. Yet, the Americans made it personal and conspired to overthrow a sitting government. The Americans seek a master slave relationship with Pakistan.

They aren't gonna be able to get that though lol.

Again, you should go through some of the last 10ish pages on I believe it was pakistan military thread (there was also something on the breaking news, although have to go farther back).

 

[aahyan]

He was visiting Putin on the day the invasion started. But I doubt it was planned like that.
It is just that he did not cancel his trip because of the invasion like the West would have liked him to do.
From his point of view he went there to negotiate an important deal. Notice how the Brazilian President did not leave either.
Brazil needed a deal for fertilizer. And Khan needed a deal on food imports I think.What probably grated the West the most was how Khan did not grovel at the West but asked if Pakistan was the West's slave. That really grated on them.

Pakistan and India are nuclear powers but they still do not have respect from the West. Because they lack power projection capabilities. And Pakistan in particular has a highly fragile form of government unfortunately. And a fragile economy as well still. However as the leading military power of the Muslim world, the other Muslim nations would never allow Pakistan to collapse I think.

Khan negotiated & secured 30% off along with soft loans on fuel/Gas & Wheat imports with Putin .....

 

[NiuBiDaRen]

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[NiuBiDaRen]

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[Rettam Stacf]

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One major difference not mentioned in the article is how much these two countries owe to China, which is far more willing to accommodate the financial difficulties of a developing country rather than pushing them towards insolvency, like most G7 countries and international institutions controlled by them tend to do.

In the case of Sri Lanker, only about 10% of her foreign debt is owed to China. The majority of the rest are held by Asian Developed Bank (controlled by Japan), Japan, and World Bank (controlled by US and EU), etc. They are the ones pushing Sri Lanka into the current debt payment default.

Foreign Debt Summary - Sri Lanka​

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A significant portion of Pakistan's foreign debt is held by China. Earlier this year, China agreed to rollover $4.2B debt to avert a financial crisis.

Pakistan owes China more money than it owes the IMF​

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Cash-strapped Pakistan says China agreed to rollover $4.2 billion debt

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[luosifen]

• Finance Division has been directed to take immediate measures to address the liquidity issues of CPEC IPPs

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Updated 06 Jun, 2022

ISLAMABAD: Prime Minister Shehbaz Sharif has directed State Bank of Pakistan (SBP) to hold meeting with Industrial and Commercial Bank of China (ICBC) and Bank of China for use of RMB/ PKR for bilateral trade between the two countries, official sources told Business Recorder.
Prime Minister issued these directions to SBP during a meeting with Chinese businessmen on May 30, 2022.
He further directed all relevant Ministries/ Divisions/ Organizations to ensure that timelines given by Planning Division and agreed by Chinese companies are adhered to. In case a Ministry is unable to meet the timelines for justifiable reason, this should be communicated to the Chinese Companies, Planning Division and the Prime Minister Office before expiry of timelines.
According to sources, Finance Division has been directed to take immediate measures to address the liquidity issues of CPEC IPPs.
Prime Minister directed Secretary Power Rashid Langrial to hold meeting with power companies based on imported coal to address their specific issues and to also work out mechanism/ modalities for their conversion from imported to local coal. Security of personnel of Chinese companies operating in Gwadar shall be further strengthened, he asked.
During the meeting, it was decided that investments in solar and wind power projects, and desalination plant at Karachi shall be encouraged to save precious foreign exchange being spent on imported fuels, the sources maintained.

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In another meeting under the chairmanship of Prime Minister, it was decided that in view of the low efficiency of non-cogeneration Captive Power Plants (CPPs), a Committee headed by Minister for Finance shall hold deliberations with the businesses/ corporates generating electricity through non-cogeneration CPPs and work out options for diverting gas to the national security system.
Power Division, sources said, has been directed to come up with sectoral plan to improve the financial health of power sector within two weeks.
It was also decided that levy on incandescent bulbs shall be imposed/ enhanced to discourage their use. This may be accompanied by incentives to encourage use of LED bulbs, if needed.
Petroleum Division has been directed to look into the matter of injecting additional gas from Mami-Khel gas field into the system.
It was noted that the bio-monthly price determination of POL products does not envisage non-applicability of 10 per cent duty on Motor Spirit imported from China. Ministry of Finance and Petroleum Division shall immediately look into this issue so that any unfair advantage to OMCs is stopped forthwith and recovery initiated in case of past undue benefits.
The Economic Coordination Committee (ECC) of the Cabinet, in its meeting held on June 3, 2022 imposed 10 per cent Regulatory Duty (RD) on MS import from China. The decision will be ratified by the federal cabinet in its forthcoming meeting.
Prime Minister has also directed that privatisation of loss making SOEs be expedited as presently this process is very slow.
Copyright Business Recorder, 2022

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[NiuBiDaRen]

• Finance Division has been directed to take immediate measures to address the liquidity issues of CPEC IPPs

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Updated 06 Jun, 2022

ISLAMABAD: Prime Minister Shehbaz Sharif has directed State Bank of Pakistan (SBP) to hold meeting with Industrial and Commercial Bank of China (ICBC) and Bank of China for use of RMB/ PKR for bilateral trade between the two countries, official sources told Business Recorder.
Prime Minister issued these directions to SBP during a meeting with Chinese businessmen on May 30, 2022.
He further directed all relevant Ministries/ Divisions/ Organizations to ensure that timelines given by Planning Division and agreed by Chinese companies are adhered to. In case a Ministry is unable to meet the timelines for justifiable reason, this should be communicated to the Chinese Companies, Planning Division and the Prime Minister Office before expiry of timelines.
According to sources, Finance Division has been directed to take immediate measures to address the liquidity issues of CPEC IPPs.
Prime Minister directed Secretary Power Rashid Langrial to hold meeting with power companies based on imported coal to address their specific issues and to also work out mechanism/ modalities for their conversion from imported to local coal. Security of personnel of Chinese companies operating in Gwadar shall be further strengthened, he asked.
During the meeting, it was decided that investments in solar and wind power projects, and desalination plant at Karachi shall be encouraged to save precious foreign exchange being spent on imported fuels, the sources maintained.

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In another meeting under the chairmanship of Prime Minister, it was decided that in view of the low efficiency of non-cogeneration Captive Power Plants (CPPs), a Committee headed by Minister for Finance shall hold deliberations with the businesses/ corporates generating electricity through non-cogeneration CPPs and work out options for diverting gas to the national security system.
Power Division, sources said, has been directed to come up with sectoral plan to improve the financial health of power sector within two weeks.
It was also decided that levy on incandescent bulbs shall be imposed/ enhanced to discourage their use. This may be accompanied by incentives to encourage use of LED bulbs, if needed.
Petroleum Division has been directed to look into the matter of injecting additional gas from Mami-Khel gas field into the system.
It was noted that the bio-monthly price determination of POL products does not envisage non-applicability of 10 per cent duty on Motor Spirit imported from China. Ministry of Finance and Petroleum Division shall immediately look into this issue so that any unfair advantage to OMCs is stopped forthwith and recovery initiated in case of past undue benefits.
The Economic Coordination Committee (ECC) of the Cabinet, in its meeting held on June 3, 2022 imposed 10 per cent Regulatory Duty (RD) on MS import from China. The decision will be ratified by the federal cabinet in its forthcoming meeting.
Prime Minister has also directed that privatisation of loss making SOEs be expedited as presently this process is very slow.
Copyright Business Recorder, 2022

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Every country should do direct currency swap with the partner nation.