Pak plans to seek USD 15 bn in new loans to pay external public debt

[Cookie Monster]

compare public transport in Pakistan with India
Pakistanis despite being poorer have a poorer public transport system than India
that would be one good example of living above your means

Ur original argument...from which u r deviating was that "politicians are not to blame...it is the ppl who are living beyond their means(that are to blame for all the borrowing)"

Now let's discuss transportation. I assume u have made a typo and the point u were trying to make is that "despite Pakistan being poorer than India...it has better public transport"...
...which somehow illustrates Pakistanis living beyond their means...

Now let's dissect this. Do u know who is in charge of building public transportation? That's right the politicians...not the ppl. They decided to take loans...and they decided where to spend that money...NOT THE AVERAGE PAKISTANI.

A recent example is that of Metro orange line(among others). It was built by the last government of PML-N. It hasn't yet been investigated for corruption...but my guess is that just like most projects...there were DEFINITELY kickbacks involved. Projects like these present an opportunity for the politicians to legally allocate the money(creating the proper paper trail) from the treasury(whether taken on loans or not) towards these things. As I have explained before...the winning bid goes to some contractor who is chosen based on the fact that this contractor is then going to provide kickbacks(to the politicians who made it happen).
Now let's address the ppl...most ppl were AGAINST building this project. The case was taken to the court...and if I recall correctly Lahore High Court(since it was built in Punjab) got involved in it.

One of the main reasons people were against spending massive amounts of money on it...was the fact that there were so many other useful ways that money could be spent. At the time country was still struggling due to all the debt and reeling from reduced exports due to power outages that had peaked during the previous government of PPP.

Now that this particular case is addressed and few things are established as below...
- The average Pakistani isn't in charge of what gets built and how it is funded.
- The average person does not benefit monetarily from these projects...the only ones who do due to massive corruption are the few elites(politicians included).
- If there are other more pressing matters and a project such as the metro orange line(used as an example) is seen as an unnecessary cost...the ppl try to raise their voice against it. In fact I recall some members here on PDF who voiced their opinion that they were against that project.

Although in specific instances it is not acceptable to spend money on things like that orange line project when there are other pressing needs(as in getting ur priories straight)...
let's address the sweeping statement that u have made about transportation in general...as if that constitutes "ppl living beyond their means"...

To that I would say that u r wrong. Many countries take loans to build their infrastructure(like roads, rails, ports, and transportation)...which in general pays off in the long run...more than it had cost initially bcuz it drives economic growth. So IN GENERAL investing in infrastructure(even with loans) isn't "living beyond ur means" but rather investing in ur future. This is no different than a small business taking a loan...with which the business then grows(leading to repaying the loan with interest). If however that business owner squanders the money...it would be incorrect to label his/her employees as living beyond their means.

In conclusion...no matter how u slice it...IT IS NOT THE AVERAGE PAKISTANI WHO IS TAKING THESE LOANS AND LIVING BEYOND HIS/HER MEANS.

 

[Flight of falcon]

How illegal money flows in and out, is exactly why we are in the FATF grey list, there is no conspiracy, it is our very own incompetence.


A great man once said: Never love someone so much, that you become blind to their ills.

Our whole life we have made an argument that if Talibans are getting trained in Pakistan and crossing the border into Afghanistan at will then why only blame Pakistan? What was over 200000 NATO/Afghan troops as well the world's most advanced technology doing to curb the crossing? Blame lies equally with the other side for failing to stop infiltration.

If it was easy to catch crooks then Mafias and drug dealers and bank frauds wouldn't exist. USA with the world's most powerful economy and law enforcement resources experience $300 billion is laundered money every year. Pakistan does not have resources , technology or strong courts to investigate and prosecute these money launderers. This is where the responsibility lies with the country with more resources and most to gain from this illicit money. We are in FATF and I am glad to see that some rules are being applied to other countries as well.
About UAE this is what FATF has to say :
"The United Arab Emirates recently strengthened its legal framework to fight money laundering and terrorist financing but, as a major global financial centre and trading hub, it must take urgent action to effectively stop the criminal financial flows that it attracts.........
The UAE is a major international and regional financial centre and trading hub which attracts both legitimate financial and business activities as well as financial flows with links to crime and terrorism. The country must urgently deepen its understanding of the risks it faces at national and individual Emirate-level and take action to strengthen the effectiveness of its measures to stop money laundering, terrorist financing and proliferation financing."
https://www.fatf-gafi.org/publications/mutualevaluations/documents/mer-uae-2020.html


Me and Canada are As much relevant as your law enforcement career. You are on the enforcement side and I am doing on the political side. There is a lot of money being brought by Pakistani politicians and the former government officials. I am leading the charge against such people. I have urged politicians to legislate and make it difficult for people to cheat claiming investments and enforce immigration laws. We had several meetings with the federal government and we pounded on them through contacts we made during campaign fund raisers/voluterism to push our point. They listen when they see what you have contributed.I am determined to force some sort of action and stricter enforcement of rules to stop questionable sources of money coming in. I must admit it is so far a loosing battle but I don't care.
we had our small victory too. My group visited Ottawa twice and managed to convince immigration minister to add Pakistani students for priority visa processing. To me a great achievement.



We did not have high rate by choice. It was the pill we had to swollow from IMF. When one is trying to control high government spending, inflation and deficit you need to control the money flow first. I remeber in 1990-1991 Canadian interest rates were 16%. It was during the recession time. Turkey i believe in 2018 had 18% interest rate.
Our rates are down to 8 % now. So the high rates didn't even last one year. No need to worry about those rates. They will slowly come down.

And finally just a reminder: it took almost 14 years for Riaste Madina to establish. We are on year two right now.

 

[nahtanbob]

Ur original argument...from which u r deviating was that "politicians are not to blame...it is the ppl who are living beyond their means(that are to blame for all the borrowing)"

Now let's discuss transportation. I assume u have made a typo and the point u were trying to make is that "despite Pakistan being poorer than India...it has better public transport"...
...which somehow illustrates Pakistanis living beyond their means...

Now let's dissect this. Do u know who is in charge of building public transportation? That's right the politicians...not the ppl. They decided to take loans...and they decided where to spend that money...NOT THE AVERAGE PAKISTANI.

A recent example is that of Metro orange line(among others). It was built by the last government of PML-N. It hasn't yet been investigated for corruption...but my guess is that just like most projects...there were DEFINITELY kickbacks involved. Projects like these present an opportunity for the politicians to legally allocate the money(creating the proper paper trail) from the treasury(whether taken on loans or not) towards these things. As I have explained before...the winning bid goes to some contractor who is chosen based on the fact that this contractor is then going to provide kickbacks(to the politicians who made it happen).
Now let's address the ppl...most ppl were AGAINST building this project. The case was taken to the court...and if I recall correctly Lahore High Court(since it was built in Punjab) got involved in it.

One of the main reasons people were against spending massive amounts of money on it...was the fact that there were so many other useful ways that money could be spent. At the time country was still struggling due to all the debt and reeling from reduced exports due to power outages that had peaked during the previous government of PPP.

Now that this particular case is addressed and few things are established as below...
- The average Pakistani isn't in charge of what gets built and how it is funded.
- The average person does not benefit monetarily from these projects...the only ones who do due to massive corruption are the few elites(politicians included).
- If there are other more pressing matters and a project such as the metro orange line(used as an example) is seen as an unnecessary cost...the ppl try to raise their voice against it. In fact I recall some members here on PDF who voiced their opinion that they were against that project.

Although in specific instances it is not acceptable to spend money on things like that orange line project when there are other pressing needs(as in getting ur priories straight)...
let's address the sweeping statement that u have made about transportation in general...as if that constitutes "ppl living beyond their means"...

To that I would say that u r wrong. Many countries take loans to build their infrastructure(like roads, rails, ports, and transportation)...which in general pays off in the long run...more than it had cost initially bcuz it drives economic growth. So IN GENERAL investing in infrastructure(even with loans) isn't "living beyond ur means" but rather investing in ur future. This is no different than a small business taking a loan...with which the business then grows(leading to repaying the loan with interest). If however that business owner squanders the money...it would be incorrect to label his/her employees as living beyond their means.

In conclusion...no matter how u slice it...IT IS NOT THE AVERAGE PAKISTANI WHO IS TAKING THESE LOANS AND LIVING BEYOND HIS/HER MEANS.

I am looking at general numbers - savings, income, living standards - India, Pakistan, Bangladesh. It is clear that Pakistan's saving rate is lower. there is greater dependence on foreign capital.

Pakistanis use the public transport less compared to peers in India. The use of individual cars leads to current account deficit - cars & petroleum

Building a motorway for hundreds of millions of dollars when the economic payoff is not clear. This is a good example of living beyond your means.

CPEC projects are a good example. Despite $30 billion+ in completed projects Pakistani exports are at the same level for years 2010 and 2019.

I am sure ordinary citizen won't see the effects because some pakistani leader with a begging bowl will be pleading their case to the Chinese or other foreigners

 

[Cookie Monster]

I am looking at general numbers - savings, income, living standards - India, Pakistan, Bangladesh. It is clear that Pakistan's saving rate is lower. there is greater dependence on foreign capital.

Savings being lower for the average Pakistani means either less income, higher inflation(cost of living), higher unemployment, higher taxes, or any combination of these factors. How exactly does that support ur argument of the average Pakistani living beyond his/her means? If anything it disproves ur argument...it shows that they are struggling.

Pakistanis use the public transport less compared to peers in India. The use of individual cars leads to current account deficit - cars & petroleum

This again shows how u r not at all in touch with ground realities in Pakistan. I have no idea where u r getting ur numbers from. Why don't u look up how much tax is involved with purchasing a car. A car is considered a "luxury item" and a person buying a car in Pakistan pays a much higher price(than that of the car itself) bcuz of all the added taxes. The same insanely high taxes are applied to petroleum as well.

It seems u r trying to make a point that somehow the loans taken end up in the pockets of Pakistani ppl...with which they go on a spending spree buying cars and gas with handouts.

Building a motorway for hundreds of millions of dollars when the economic payoff is not clear. This is a good example of living beyond your means.

CPEC projects are a good example. Despite $30 billion+ in completed projects Pakistani exports are at the same level for years 2010 and 2019.

Usually the reason why ANY country invests in its infrastructure projects...is not that u have a guarantee from businesses who are eagerly waiting for u to finish building infrastructure...and then they will dole out all their cash to u. U build ur infrastructure and provide a business friendly environment(laws and regulations) and that attracts businesses to set up shop. What alternative are u suggesting? That Pakistan shouldn't build its infrastructure? What sort of businesses and industry go running to a country that doesn't have infrastructure?

I am sure ordinary citizen won't see the effects because some pakistani leader with a begging bowl will be pleading their case to the Chinese or other foreigners

Here u have just admitted that ur original argument doesn't hold up. Yes the ordinary citizen doesn't gain personal benefits from the national treasury or foreign loans. It is the leaders who GAIN from it. The average citizen is only burdened from these loans...he/she suffers when the currency is inflated...robbing him/her of the purchasing power. He/she has to struggle harder just to be able to afford the rent and food that he/she could before(a little easier). The corrupt leaders borrow and plunder...leaving the ordinary citizen burdened with debt that their generations upon generations will be stuck paying for with interest.

So u see it is the politicians...who are to blame...making disastrous decisions for their personal benefits and not thinking how it effects the ordinary citizen. I'm glad u came around...
...unless u haven't...and u only accidentally contradicted urself. Could u clarify whether the politicians are to be blamed or not?

 

[Jungibaaz]

Brother, this is the most dissapointing part, of this whole "tabdeeli."

For me this isn’t the biggest issue, probably because I was fully expecting it. For me, I think IK’s government had been compromised a long while ago, I stopped supporting back in 2014. But where he is right or blamed for something he can’t change, I also speak up to try and add my view.

There are reasons to be hopeful though, night is always darkest before dawn. And it would only take what the government is doing already and a little bit more vision and fiscal space to get back to normalcy, and hopefully... some major progress.

Your assessment is right but here is what I feel may happen. I agree that until the long term macroeconomic adjustments are made we are doomed to long term but here are few immediate and near-future changes we may require.


People hear the word loan and they freak out. Pakistan has a debt to GDP ratio of 80 percent which puts us at #38 in the world. Japan's ratio is around 240%.

What is important is to understand the type of debt and what it is being used for.
I personally feel the current government has done well with the trade balance and fiscal deficit issues. Until we balance our books nothing really will work. Tightening the belt was necessary. Every time government stops spending it affects the market and people tremendously. Remember every dollar spent by the government has an effect of generating 10 dollars in the market.

It's not that they did something new or radical but they have been very lucky with the price of oil dropping and despite COVID disaster our are Remittances still relatively untouched.

Before we start to worry about paying the debt we need to really bring our house in order. Fiscal balance is an absolute necessity. Non-productive debt builds up when we start borrowing to run the government and pay unproductive expeditures. The government must control the fiscal deficit first. Too many leakages of revenue and unnecessary expenses must stop.

Steps that must be taken immediately:

Broaden the tax base. This is one area where they have identified almost 3 trillion Rs worth of additional taxes accessible simply by implementing and enforcing proper tax policies.

Stop illegal remittances transfer. At least 5 billion dollars worth of remittances is moved outside of our banking system.

Smuggling and under-invoicing. US Department of Commerce estimated that Pakistan in 2019 exported $5 billion worth of software alone. Yet only one billion shows up on SBP figures. Most software houses keep money in foreign bank accounts instead of remitting it to Pakistan.

Terrible import policy. In order to collect huge taxes and duties, the government discourages local production of things such as cell phones. We need 45 million smartphones in the country and yet we do not produce ore than few million. Why? cause its easy for the government to put duty and taxes to increase their revenues rather than encourage local production.

NO MORE SUBSIDY TO STATE ENTERPRISES. PIA, Steel Mill, and power companies alone eat away almost 500 billion Rs. WTF!!!!!!!!!!!!!
add the circular debt and we are looking at the astronomical waste of money. Why is the government in the business of running airline and producing steel???????.....incredibly stupid and unnecessary waste of resources.....

As for the worry about the IMF, I think it may not be necessary at this stage. IMF response to COVID includes relief to lenders in the short term and long term. Our program with them is on hold and they even released $1.4 billion immediate payment without any preconditions. IMF may even think of loan forgiveness and that's where good diplomacy is necessary and when IK in early COVID days floated the idea of debt relief the very same people who borrowed this money initially called him a bagger and a looser. Expect IMF to allow more government spending and loosen monetary policy. That's all necessary to kick start the world economy.

In short, if we want to get rid of the IMF we need to put our house in order. If we are generating electricity just to waste 30 % during the line transmission or theft and another 10% by not paying bills then why even bother producing it.




Bhai Jaan I am not sure if it was done intentionally or unintentionally. Even I didn't know or realize how bankrupt the government was after Nawaz was done. Rape is not the word to explain what Tubbar and Bhutto have done to this country.
And maybe Imran didn't realize what he was about to inherit. I used to have sleepless nights thinking about what a terrible situation he has walked into without realizing the challenges he is about to face. Thank God things have stabilized and results were starting to show until COVID hit. InshAllah we will manage...

Agree on almost everything you said, I would say however that our debt to GDP is actually a problem. It may seem at a superficial comparison that at least we’re better than Japan fiscally, but that is not so. Japan owes most of its debt to itself, it also has an ageing population. For us as a young underdeveloped country to be above our necks in current expenditure, that’s a bad place for us to be. Japanese are fine being high income, low growth, shrinking population, it’s not ideal for them, but I think we’re in a worse spot right now.

With that said, I agree that for us, fixing this problem is certainly possible. In terms of multiplier on government expenditure, you’re absolutely right, in Pakistan I expect the coefficient is huge. But also, government needs to think seriously about slashing current expenditure and prioritise capital expenditure. I know it’s hard and it will hurt some people, especially bloated companies you mentioned, but it’s necessary to make our economy run smoothly.

 

[nahtanbob]

Savings being lower for the average Pakistani means either less income, higher inflation(cost of living), higher unemployment, higher taxes, or any combination of these factors. How exactly does that support ur argument of the average Pakistani living beyond his/her means? If anything it disproves ur argument...it shows that they are struggling.

This again shows how u r not at all in touch with ground realities in Pakistan. I have no idea where u r getting ur numbers from. Why don't u look up how much tax is involved with purchasing a car. A car is considered a "luxury item" and a person buying a car in Pakistan pays a much higher price(than that of the car itself) bcuz of all the added taxes. The same insanely high taxes are applied to petroleum as well.

It seems u r trying to make a point that somehow the loans taken end up in the pockets of Pakistani ppl...with which they go on a spending spree buying cars and gas with handouts.

Usually the reason why ANY country invests in its infrastructure projects...is not that u have a guarantee from businesses who are eagerly waiting for u to finish building infrastructure...and then they will dole out all their cash to u. U build ur infrastructure and provide a business friendly environment(laws and regulations) and that attracts businesses to set up shop. What alternative are u suggesting? That Pakistan shouldn't build its infrastructure? What sort of businesses and industry go running to a country that doesn't have infrastructure?

Here u have just admitted that ur original argument doesn't hold up. Yes the ordinary citizen doesn't gain personal benefits from the national treasury or foreign loans. It is the leaders who GAIN from it. The average citizen is only burdened from these loans...he/she suffers when the currency is inflated...robbing him/her of the purchasing power. He/she has to struggle harder just to be able to afford the rent and food that he/she could before(a little easier). The corrupt leaders borrow and plunder...leaving the ordinary citizen burdened with debt that their generations upon generations will be stuck paying for with interest.

So u see it is the politicians...who are to blame...making disastrous decisions for their personal benefits and not thinking how it effects the ordinary citizen. I'm glad u came around...
...unless u haven't...and u only accidentally contradicted urself. Could u clarify whether the politicians are to be blamed or not?

In India and Bangladesh petroleum is taxed equally. All of you are on the same boat. I do not think ground realities in Pakistan are different.

In theory you need better infrastructure for more economic development. you are right about this. The point on infrastructure is that it has not moved the needle on exports. Everything points to debt driven consumption driven economy. Imran Khan has expended lot of political capital abroad and at home paying for this debt. The PTI supporters on this forum have correctly pointed out the better economic record under Nawaz Sharif is a function of this debt driven economy.

what percentage of the people who drive on the motorways are the elite ? I am assuming a good chunk of the middle class does drive on the motorways

 

[Cookie Monster]

In India and Bangladesh petroleum is taxed equally. All of you are on the same boat. I do not think ground realities in Pakistan are different.

In theory you need better infrastructure for more economic development. you are right about this. The point on infrastructure is that it has not moved the needle on exports. Everything points to debt driven consumption driven economy. Imran Khan has expended lot of political capital abroad and at home paying for this debt. The PTI supporters on this forum have correctly pointed out the better economic record under Nawaz Sharif is a function of this debt driven economy.

what percentage of the people who drive on the motorways are the elite ? I am assuming a good chunk of the middle class does drive on the motorways

I don't understand how u can argue both sides of this argument...
So here u r admitting that infrastructure development(roads included) is NECESSARY for economic development...
...and yet u also think that bcuz Pakistan built these roads and infrastructure...and ppl drive on it...this somehow equates to "ppl living beyond their means"

It is the classic "heads I win tails u lose" kind of reasoning.

What should be the alternative then? Pakistan shouldn't develop its infrastructure? Bcuz if it did that somehow means its citizens are living beyond their means? Should Pakistan attempt to attract those fictional non existent companies/businesses/industries that would jump at the chance of setting up shop in a completely undeveloped country?

As for the exports not growing...the biggest hit that Pakistan's exports took was due to the excessive power outages. During the time of PPP(which IMO did more damage than any other recent government) the country as a whole faced massive shortfalls in power generation. According to government's own data at the time the "power generation capacity should've been more than enough to meet the demands". This was due to bogus projects that only existed on paper or overstated power generation capacity or both. In reality the rising demand of electricity was not met through proper planning. Instead of fixing the errors of previous governments...PPP saw a massive opportunity to fill its own pockets and hence "rental power plants" were acquired. Feel free to google that and read up on it.

...but circling back to ur original argument "politicians are not to be blamed...it is the ppl living beyond their means"
So here we are not going to fault the politicians for these below...
1) Ignoring the projected rise in the country's power needs...and not building enough power generation capacity in time.
2) Acquiring rental power plants instead of fixing the problem(massive kickbacks involved).
3) Due to the two above...industrial output and exports suffered.

Instead let's blame the average Pakistani...how dare he/she travel on roads like some king/queen.

Like I said...u r out of touch with reality. U may read the news here and there...but that doesn't give u the complete picture of what goes on...not even close to it. So quit arguing on matters u don't understand.

 

[Blacklight]

Our whole life we have made an argument that if Talibans are getting trained in Pakistan and crossing the border into Afghanistan at will then why only blame Pakistan? What was over 200000 NATO/Afghan troops as well the world's most advanced technology doing to curb the crossing? Blame lies equally with the other side for failing to stop infiltration.

This is a very poor and irrelevant example, to simply cover our failure in curbing money laundering / illegal transfers.

Most countries in the world will not care where the funds came from, and neither will they cooperate with Pakistan, in the absence of any proper legal paperwork. No matter how many press conferences you hold to justify why you have fallen on your face, w.r.t. to pre-election promises of bringing back looted wealth.

If it was easy to catch crooks then Mafias and drug dealers and bank frauds wouldn't exist. USA with the world's most powerful economy and law enforcement resources experience $300 billion is laundered money every year. Pakistan does not have resources , technology or strong courts to investigate and prosecute these money launderers. This is where the responsibility lies with the country with more resources and most to gain from this illicit money. We are in FATF and I am glad to see that some rules are being applied to other countries as well.

Ref: Item in Bold - This has to be the most ludicrous thing you have said on this thread. Because we dont have the resources, or are complacent, now the onus is on the other party? WOW simply wow, political workers and their logic never ceases to amaze me.

About UAE this is what FATF has to say :
"The United Arab Emirates recently strengthened its legal framework to fight money laundering and terrorist financing but, as a major global financial centre and trading hub, it must take urgent action to effectively stop the criminal financial flows that it attracts.........
The UAE is a major international and regional financial centre and trading hub which attracts both legitimate financial and business activities as well as financial flows with links to crime and terrorism. The country must urgently deepen its understanding of the risks it faces at national and individual Emirate-level and take action to strengthen the effectiveness of its measures to stop money laundering, terrorist financing and proliferation financing."
https://www.fatf-gafi.org/publications/mutualevaluations/documents/mer-uae-2020.html

They were issued a warning, knowing how proactive they are, I'm sure they will fix it. WHEREAS can you tell me how long we have been in the grey list? and why we have failed to exit from it, till now?

Me and Canada are As much relevant as your law enforcement career. You are on the enforcement side and I am doing on the political side. There is a lot of money being brought by Pakistani politicians and the former government officials. I am leading the charge against such people. I have urged politicians to legislate and make it difficult for people to cheat claiming investments and enforce immigration laws. We had several meetings with the federal government and we pounded on them through contacts we made during campaign fund raisers/voluterism to push our point. They listen when they see what you have contributed.I am determined to force some sort of action and stricter enforcement of rules to stop questionable sources of money coming in. I must admit it is so far a loosing battle but I don't care.
we had our small victory too. My group visited Ottawa twice and managed to convince immigration minister to add Pakistani students for priority visa processing. To me a great achievement.

This is what happens when you are not aware of ground realities. Even if the political will is there to stop illegal funds, the manpower is not there. PLUS for any gov whatever money comes in to economy is good for them. Especially if it is from a jurisdiction, they have no control over, it becomes zero priority. You should be seriously focusing on more productive issues, than beating a dead horse.

We did not have high rate by choice. It was the pill we had to swollow from IMF. When one is trying to control high government spending, inflation and deficit you need to control the money flow first. I remeber in 1990-1991 Canadian interest rates were 16%. It was during the recession time. Turkey i believe in 2018 had 18% interest rate.
Our rates are down to 8 % now. So the high rates didn't even last one year. No need to worry about those rates. They will slowly come down.

But why did you have to swallow this pill?
"The former cricketer, who had in the past declared he would rather die than go with a begging bowl to the IMF"
https://www.ft.com/content/10318f10-7677-11e9-bbad-7c18c0ea0201
May 16 2019

After statements like these, not a lot left to his credibility, but I dont expect you to understand this.

And finally just a reminder: it took almost 14 years for Riaste Madina to establish. We are on year two right now.

My friend, forget 14years, even in 40years Mr.U Turn will not be able to build anything even remotely like Riyasat e Madina.

When fundamental issues are not addressed, nothing changes, except the party doing the rhetoric.

I know you are a good man, and your heart is in the right place, but please do try calling a spade, a spade. Considering that they do not even reciprocate 1% of your sincerity, this is something all political workers should seriously think about.

Do visit your policy, if you have one, on when to cut your losses and get out.

 

[volatile]

Regarding Ipp's Dr Samar Mubarak interview is the best regarding Thar coal. It was intentionally ignored and funding was withdrawn, more kickbacks for imported coal ones.
Now the recent projects in pipeline according to wapda website which were approved and will come online in the coming years are mainly much cheaper thar coal based and many hydro, only 1 or 2 are imported coal and in gawadar. And yes I might be wrong but PPP tenure was the one in which policy was revised or made, plmn continued with the same policy? .

Im a chemical Engineer and i have studied the Coal gasification plant technology the Dr`s idea was expensive and in efficient and feasibility wise not a good economic one .

The major concern is the agreements which were signed in plmn term with payment in dollars/cents instead of rupees. High return on investment, guaranteed profits for up to 25 years. Revising these contracts is a legal battle which might end up just like kakray or reko dek. The same goes for dawood razak or khusro bhaktiar they are skinning this nation and they also hinted for a legal course of action if their contracts were terminated.

Regarding trading in yuan, yes we should be doing all we can to limit our dependence on dollar. But one thing to keep in mind is we run a huge trade deficit with China, and to fund this deficit we need to borrow yuan, and only China is source instead of international creditors. We might actually end up paying more interest on Chinese commercial loans, unless gov of China grants concessionary funds. Again there are more informed people who can comment, my understanding is basic and insufficient.

I have worked my life in techno commercial sales and business ,the Dollar rates are always choosen just like LC`s are open in dollars and also all fuel imports in Dollar no one in the world will agree on Rs term as historically Pak rupee has depreciation rate of 1/2 Percent per annum minimum .

Regarding trading in yuan, yes we should be doing all we can to limit our dependence on dollar. But one thing to keep in mind is we run a huge trade deficit with China, and to fund this deficit we need to borrow yuan, and only China is source instead of international creditors. We might actually end up paying more interest on Chinese commercial loans, unless gov of China grants concessionary funds. Again there are more informed people who can comment, my understanding is basic and insufficient.

China Yuan is not an issue and its just bucket of currency / reserves which SBP can manage
http://www.chinadaily.com.cn/a/201801/14/WS5a5acfe5a3102c394518f142.html