Pakistan in danger of falling into China’s “debt trap”

[shahbaz baig]

So basically Pakistanis can't run their own country right.

You should look at history about foreign direct investment of india, china and other nations.

 

[protest]

You should look at history about foreign direct investment of india, china and other nations.

How so? India and China gets fdi on their own merit not by renting the whole country to someone else.

 

[gangsta_rap]

@shahbaz baig I found you your spirit animal. Do me a favor and decode his post for me. On second thought don't- nvm.

Whats with white males and their spree of sh*t posting these days? cool it down bra

 

[Hareeb]

Reuters? LOL, okay.

 

[mkiyani]

China Needs to prove them wrong by quickly making "CPEC" operational so that profit earned can be used to lower debt and so on..

 

[wiseone2]


Foggy financing.
Last year, with more than $1 billion in debt to China, Sri Lanka handed over a port to companies owned by the Chinese government. Now Djibouti, home to the US military’s main base in Africa, looks about to cede control of another key port to a Beijing-linked company, and the US is not happy about it.

Beijing “encourages dependency using opaque contracts, predatory loan practices, and corrupt deals that mire nations in debt and undercut their sovereignty, denying them their long-term, self-sustaining growth,” said US Secretary of State Rex Tillerson on March 6. “Chinese investment does have the potential to address Africa’s infrastructure gap, but its approach has led to mounting debt and few, if any, jobs in most countries,” he added.

Some call this “debt-trap diplomacy“: Offer the honey of cheap infrastructure loans, with the sting of default coming if smaller economies can’t generate enough free cash to pay their interest down. In Sri Lanka, acrimony remains around Hambatota and projects like “the world’s emptiest airport.”


China has characterized its “Belt and Road” initiative as a win-win for its aspirations to become a global trade leader and developing economies’ desire to fund transportation infrastructure. It has certainly filled the vacuum created by a shrinking American presence in global institutions. But as with Western internationalist projects, China is also facing accusations of imperialist behavior when its debt plans go wrong.

The Center for Global Development, a non-profit research organization, analyzed debt to China that will be incurred by nations participating in the current Belt and Road investment plan. Eight nations will find themselves vulnerable to above-average debt: Djibouti, Kyrgyzstan, Laos, the Maldives, Mongolia, Montenegro, Pakistan, and Tajikistan.


The researchers note that they did not estimate how this debt would effect growth, and that they needed to assemble much of their data from media reports. But they still say their evidence should raise concerns about economic distress stemming from debt that would undermine development efforts altogether. In the past, China has responded to the debtors inconsistently and hasn’t followed best practices adopted by international lenders working with poor countries. Sometimes, the debt has been forgiven; other times, disputed territory or control of infrastructure has been demanded as recompense.

They argue that China should work to bring other countries into their investment programs to spread debt more equally, and adopt stricter standards and more transparency about how sustainable its support for developing economies really is. Some countries aren’t waiting on China to take action: Pakistan and Nepal turned down Chinese infrastructure loans last year in favor of other sources of funding.

https://qz.com/1223768/china-debt-t...verloads-from-chinas-belt-and-road-plans/amp/

https://mobile.reuters.com/article/amp/idUSKCN1GK114

nothing stops sri lanka from reneging on the deal and nationalizing hambonta port
it is the oldest trick in the game

 

[Menace2Society]

Yes Pakistan should be US slave again and be used over and over again,stay poor and denuclearize and weak. Beg for money and balkanize to keep India happy. Also accept Indian genocide in Kashmir.

That is what they want you to be. Poor, insignificant and weak.

Give them 2 middle fingers, do the ICBM test and proxy warfare their as*ses out of Kabul and take all their enemies down with them.

Pakistan has a destiny which transcends the whims of american redneck bharati wet dreams.

There will be a day when they will dread to go even near a neighbor country of Pakistan with no bases of theirs in sight. Hold firm. In the end you will be there and they will break just like Alexander, British Empire, India, Soviet Union.

 

[Majid Awan]

All of Pakistan should be given on lease to China for 25 years, so the desi-corruption and Political system from pre-Mughal upto British era upto now should end forever.

After 25 years, the old system will be dead, the new generation will lead the country through new policies and system.

 

[SoulSpokesman]

This is a bet Pakistan cant lose.

What is the worst case scenario? Pak cant repay CPEC debt. What is the recourse? Pak sells its equity stake in Big G and a few other infra projects- , maybe a few thousand acres of barren land surrounding these assets. Big deal. What does Pak gain? Even in the worst case scenario, some world class infra assets.

Win-Win for Pak, if you ask me.

Regards

 

[patman]

Reuters? LOL, okay.

Lol it's funny every time any newspaper reports facts on Pakistani economy & terror , they suddenly become fake news on this site.

Like
Dawn
Nytimes
Wjs
Bbc

 

[kasper95]

This is a bet Pakistan cant lose.

What is the worst case scenario? Pak cant repay CPEC debt. What is the recourse? Pak sells its equity stake in Big G and a few other infra projects- , maybe a few thousand acres of barren land surrounding these assets. Big deal. What does Pak gain? Even in the worst case scenario, some world class infra assets.

Win-Win for Pak, if you ask me.

Regards

Barren land ? Chinese have plenty of it in their own country,what they are after is fertile land

 

[MrSato1]

Barren land ? Chinese have plenty of it in their own country,what they are after is fertile land

I wouldnt use the word barren, most of china is not “barren”, its just not suitable to grow food crops, but normal grasslands, highlands and forest exist, but you can’t grow rice and vegetables in these areas. Not barren just not Suitable for food crops.

 

[CHACHA"G"]

I don't buy this and other types of propaganda .............. old enough ............ But my age told me "To much of every thing is bad" ....................
So "Control" and "Balance" are 2 things which we need.......

 

[AMCA]

I dont think Pakistan is in trouble as long as China continues to grow.

 

[Sh@msu]

Lol it's funny every time any newspaper reports facts on Pakistani economy & terror , they suddenly become fake news on this site.

Like
Dawn
Nytimes
Wjs
Bbc

i think india should make a list of what they think as reliable source.
Last time i checked,one little indian was giving lecture to Elon Musk about how bad chinese things are provoking a direct response from EM.And other indians were educating him about "manufacturing" and "copying"
Too much third eye use i guess.