What's new

China declares Pakistan has a future Economic power

I am questioning the reasoning you've put behind why they're holding the loan. From what I understand, it's because of reforms, not because we're unable to pay them back.

Ain't it obvious..IMF like all banks in the world is a commercial bank and not a charity..and first thing they consider when you go to a bank for a loan is "can you pay it back?"

Infact in early 90s (after the collapse of Soviet Union), when India went to them for a loan..they made first made India liberalize our economy and kept our gold as security..because they din't believe we could pay them back.)

Even now same thing is happening to you..unless you make some solid economic reforms no other orgs like IMF, WB ,IDB ,ADB will provide you with any more budgetary support..because they don't believe you can pay them back.
 
If pakistan is super power then it is good news for india. We don't have to go to USA for work.
 
Ain't it obvious..IMF like all banks in the world is a commercial bank and not a charity..and first thing they consider when you go to a bank for a loan is "can you pay it back?"

Infact in early 90s (after the collapse of Soviet Union), when India went to them for a loan..they made first made India liberalize our economy and kept our gold as security..because they din't believe we could pay them back.)

Even now same thing is happening to you..unless you make some solid economic reforms no other orgs like IMF, WB ,IDB ,ADB will provide you with any more budgetary support..because they don't believe you can pay them back.

You're putting words in their mouth. ADB is still willing to give us loan. Now you're comparing an international organization to a local bank, completely different things. America has been pushing us to make reforms, IMF would be one way to exert pressure on that front.
 
I think you are misinformed.
Chinese have always made joint ventures with local partners and have established production facilities to target local market.
While Pakistan's export industry have benefited great deal from imports of basic components from China.
In Pakistan trade is very much open.... with slight connections with ruling parties... any thing would land duty free but we cannot blame China for that.
Only damage being done not only to Pakistan's industry but also to infrastructure is by virtue of smuggling of Indian goods, under the guise of free transit facility for Afghanistan and India and trade with Dubai who virtually export only Indian goods to Pakistan.

The only complain about China i can have is that the tend to carry out construction contracts on their own.
I wish if China just keep the design part and sublet the detailed engineering and construction to Pakistani contractors.

I'm afraid not if you are paying attention to your own economist and business community. I'll have posted as reply to another poster where your own chamber of commerce and economist have agreed with me... numbers , facts and realties on the ground are supportive of what I have said. like it or not they taking you to the bank...


Take at look the what i read in the past Pakistan News Service - PakTribune

The 75 locomotives were ordered from China after President Zardari himself intervened and forced the Railways to oblige the Chinese suppliers despite large-scale opposition within the Railways Ministry. Railways Minister Ghulam Ahmad Bilour had gone on record against the Chinese suppliers but he was given a shut-up call.

The GM Railways disclosed that already an advertisement to purchase 150 locomotives has been published internationally and now the Railways will ensure that no substandard locomotives are procured.

Sources say the Chinese supplier has also refused to honour the warranty on these 32 locomotives as they are in Railways sheds in Karachi and Lahore. Purchase of 69 sub-standard locomotives from China by spending billions of rupees was one of the initial mega corruption scandals against General Pervez Musharraf and his team.[/QUOTE]


Pol Eco, NOS, The News International Pakistan dumping grounds for china



analysis of mutual trade statistics reveals that since the signing of Free Trade Agreement (FTA) between the two countries in Nov 2006, China has exported goods worth around $ 11 billion whereas Pakistan’s exports could hardly reach $ 0.25 billion.



Another misbalance in this respect is that Pakistan imports about 1,000 items from China while the latter’s export-basket is limited to hardly 50 items.

Pakistan exports items like seafood, cotton yarn, leather, marble, fruits, sports goods, rice, raw hides and vegetables. On the other hand, China exports almost every thing available under the sun to Pakistan and that also at very low prices. Mass availability of these goods at low rates has pushed local industry out of competition.

Pakistan’s local industry alleges that the absence of government patronage and lack of supporting infrastructure, like energy, water, roads, has spurred import of cheap Chinese goods into Pakistan. Industrialists say China dumps a lot of goods into Pakistan but no action is taken for various reasons. The biggest of these is that Pakistan does not want to take even a symbolic step that harms friendly relations between the two, they add.



The trade deficit right now for Pakistan is $5.2 billion.
 
No, you've brought in the typical stuff that you bring to every thread - loans, defaulting, etc. This thread is not about what will happen in 1 or 2 years. You're not being a realist btw, you're being an extreme pessimist (like most bharatis - well let's not call it pesmissm, it's more like ego inflation and making one feel better about themselves).

Also, again, I don't care what WB or IMF or whatever predicts about Pakistan. They've always made predictions about all countries in the world, and they're wrong more often than not. Especially about Pakistan. They're not factoring in things such as WoT winding down and ending, Zardari going, etc.

You just want shut your eyes because you don't like what you see..even your own economist are predicting bad times ahead for your economy?..but if you rather believe in some la la land then so be it.
 
You just want shut your eyes because you don't like what you see..even your own economist are predicting bad times ahead for your economy?..but if you rather believe in some la la land then so be it.

That's too easy a comment to make. I could say that you are talking about this, even exaggerating it, posting it everywhere because it suits your world view. Your post is without substance. I never claimed that our economy will start doing great in just one year, however I do not take these doomsday predictions seriously because they've happened pretty much everyday since Pakistan came into existence.

You're saying that a lot of things need to happen within one year otherwise there will doom and gloom for Pakistan. Let me tell you what will happen in one year. It will go as another year in WoT, and one year later you'll still be making more doomsday predictions for Pakistan. That's how it's always been.
 
You're putting words in their mouth. ADB is still willing to give us loan. Now you're comparing an international organization to a local bank, completely different things. America has been pushing us to make reforms, IMF would be one way to exert pressure on that front.

If you don't believe me.. believe your own newspapers atleast.

Economic performance dampens foreign inflows | Pakistan | News | Newspaper | Daily | English | Online

KARACHI - Pakistan’s failure to implement economic reforms, proposed by multilateral lenders like International Monetary Fund (IMF), has now started to reflect on foreign inflows to the floods and terrorism-stricken country.

Whereas the IMF has already denied Islamabad its two tranches under the Stand-By Arrangement (SBA), other international donors like the World Bank, Islamic Development Bank and Asian Development Bank (ADB) have linked their budgetary support to the funds-stripped Pakistan with a Letter of Comfort (LoC) issued by the IMF.

Pakistan might find it hard to get the required LoC from IMF that, apparently, is unhappy with the PPP-led coalition government in Islamabad for its failure to implement economic reforms agenda – primarily aimed at widening the country’s tax base and cutting expenditures by introducing reformed General Sales Tax (GST) and eliminating power subsidies.

A failure to convince its political allies on the imposition of reformed GST forced the reconciliation-driven coalition government to seek a nine-month extension from the Fund in the SBA till September 30 this year. However, current poor flow of disbursements to Pakistan indicates that donors’ condition for an IMF-backed LoC has started unfolding its unpalatable repercussions on Pakistan.

According to the State Bank of Pakistan, foreign disbursements, during the first seven months of the current fiscal year, have dropped phenomenally by 61.16 percent. During the same period last year, Pakistan receipts of these disbursements, long and short-term project and programme loans from foreign funding agencies, amounted to $2.660 billion, the SBP data shows.

The floods-riddled country received zero commercial and IDB loans during July-January 2010-11 for undertaking short-term development projects and programmes.

The IDB had lent $322 million to Pakistan during the last corresponding period. As for long-term loans, the multilateral donors kept their funding as low as $1.033 billion during the period under review.
Long-term disbursements to Pakistan squeezed by over $1.3 billion, or 55.8 percent, compared to $2.338 billion in the last fiscal year. According to the State Bank, the country’s receipts under project and programme loans, in the current year, stand at a meager $ 409 million and $ 624 million, respectively, against $565 million and $1.773 billion in July-January 2009-2010.

This depicts an alarming slump in foreign long-term loans of 28 and 67 percent or $156 million and $1.149 billion in value terms. The present politically-embattled government had to slash its development budget during the current fiscal primarily due to non-materialisation of pledges made by its friends abroad, including Friends of Democratic Pakistan (FoDP).

Out of the total $ 5.3 billion Tokyo pledges, the 26-nation FoDP is said to have released only a friction, over a billion or 25 percent, of the pledged amount to Pakistan. Analysts see no respite in the prevailing gloomy situation and cite a negative global perception about Pakistan as a sole reason for lower foreign inflows.

“The internal threat of terrorism has combined with Pakistan’s global reputation as a country of bad governance to keep investors and donors away,” viewed Asfar Bin Shahid. Illustrating the reformed GST issue, the analyst said that foreign lenders and donors had developed the perception that “government functionaries (in Pakistan) say one thing and do the other.”

Shahid stated that incidents of governmental mis-commitments like PTCL real estate issue had brought the country’s credibility to disrepute in the eyes of investors. The analyst maintained that Pakistan might not get the Letter of Comfort from the Fund. “Specially now when its backers in Washington are displeased with it” over the Raymond Davis issue, he opined.
 
I'm afraid not if you are paying attention to your own economist and business community. I'll have posted as reply to another poster where your own chamber of commerce and economist have agreed with me... numbers , facts and realties on the ground are supportive of what I have said. like it or not they taking you to the bank...

Did you read the remaining part which i wrote...?
I stated China is making locla ventures in building new industry and local new local industry is springing in competition of same Chinese by using Chinese made basic components.
Where as the biggest damage to Pakistan industry is smuggling under the patronage of corrupt regime.
All what we need to do is put halt to smuggling of Indian goods.
Principally police shall raid all shops selling Indian goods and govt. shall advertise on mass media for help in curbing smuggling.
 
If you don't believe me.. believe your own newspapers atleast.

[/B]

You're not proving your point. I repeat, ADB is/was ready to give us loan. Other than that, the reason for not giving loan is political, just like I said.
 
That's too easy a comment to make. I could say that you are talking about this, even exaggerating it, posting it everywhere because it suits your world view. Your post is without substance. I never claimed that our economy will start doing great in just one year, however I do not take these doomsday predictions seriously because they've happened pretty much everyday since Pakistan came into existence.

You're saying that a lot of things need to happen within one year otherwise there will doom and gloom for Pakistan. Let me tell you what will happen in one year. It will go as another year in WoT, and one year later you'll still be making more doomsday predictions for Pakistan. That's how it's always been.

I think what he trying to say SMC , is that Chinese are placating to Pakistan and Pakistanis. If I can be crass for a second with my analogy- blowing sunshine up your ______, while robbing your economy blind. But no doubt you guys can get back to the 7% GDP growth you have , if your politicians just gets itself independent of the military and stand up to trading partners for equitable and fair trades.
 
I think what he trying to say SMC , is that Chinese are placating to Pakistan and Pakistanis. If I can be crass for a second with my analagy- blowing sunshine up your while robbing your economy blind.

He's not talking about the Chinese.
 
I gave you an article..where it says ADB will not give you anymore loans till Pakistan gets an IMF LOC first ..have you gotten a LOC from IMF?

Comfort letter - Wikipedia, the free encyclopedia

I assume they did, because they were ready.

Look, why don't you stop trying to divert from this thread. You know what, I will stop replying to your off-topic posts from now.
 
Did you read the remaining part which i wrote...?
I stated China is making locla ventures in building new industry and local new local industry is springing in competition of same Chinese by using Chinese made basic components.
Where as the biggest damage to Pakistan industry is smuggling under the patronage of corrupt regime.
All what we need to do is put halt to smuggling of Indian goods.
Principally police shall raid all shops selling Indian goods and govt. shall advertise on mass media for help in curbing smuggling.

yes I was addressing the other parts and did not bother with this whole Indian smuggling theory you have going. You are looking at a tree while the Forrest is burning due to other factors. Your statement that trading with China has been good for Pakistan is the bane of my contention. You in fact need more trade with India and on a fair level... your statement of "indian smuggling problem " is not driven by economically non bias sound thinking- sorry.

I mean what's next, stop eating indian stayled food , so your ecnomny can support Pakistan styled food economy and boom you are back to 7% GDP? that's how absurd it sounds- when you bring shop selling indian goods as your main ecnomic hurdels.... again sorry but it is what it is- eh.
 

Pakistan Affairs Latest Posts

Back
Top Bottom