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

[Hakikat ve Hikmet]

The Pak Deep State's deep financing mechanisms are in action....

80% of Pak's economy is undocumented.......

The Pak Deep State shows the bare minimum of what it can actually afford to show - like shooting down only 2 IAF jets on 02-27....

IK has publicly stated if he had had an access to that "deep financing" he could have made himself into another Sher Shah Suri*......

It's all about the geo-strategic timing** for the Pak Deep State.......

*One of IK's forefathers was a governor under him.
**Time isn't without its MASTER.

 

[Goenitz]

@Jango
Chinese delegation recently visited Russia and now this?

 

[Paji]

So, for short answer, its no. Also, do you think Pakistanis trust Indian capability and quality of completing those infras and other projects for Pakistan ?

The answer is that in the present circumstances, there is no incentive for India to lose money trying to bail out Pakistan. It is irrelevant whether Pakistanis trust Indian capability and quality. They see India as the enemy, so will not allow Indian companies to be involved in critical projects - just like Iran will not allow Israeli companies to be involved in building its infrastructure irrespective of their capabilities or quality of work.

 

[epebble]

Well, it would depend on the interest rate charged. There are private investors who specialise in junk rated debt. I am sure at a high enough yield some will be willing to take risk on Pakistan once the IMF forced them to cut their budget deficit and become more creditworthy.

In September 2022, Pakistan's bonds due in April 2024 were valued at 41 cents leading to a yield of 81%. You think any commercial lender will write paper at that rate?

Pakistan bonds slump

10-year Pakistan Government International Bond, which is to mature in April 2024, trading at only 41.3pc of its face value.

www.dawn.com

 

[Enigma SIG]

I am sure this loan is against a collateral of strategic importance to Pakistan.

Maybe a port, airport, or a nuclear installation.

We have Maryam Nawaz's "assets" of highest value. Nothing else comes close to match. Hafiz pays a pretty for it.

 

[Paji]

In September 2022, Pakistan's bonds due in April 2024 were valued at 41 cents leading to a yield of 81%. You think any commercial lender will write paper at that rate?

Pakistan bonds slump

10-year Pakistan Government International Bond, which is to mature in April 2024, trading at only 41.3pc of its face value.

www.dawn.com

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.

 

[SoulSpokesman]

@Hakikat ve Hikmet

Hakikat bhai,

80% of Pak's economy is undocumented..

Why isn't the Pak govt using that undocumented money to pay off its debt?

Regards

 

[kmc_chacko]

@Hakikat ve Hikmet

Hakikat bhai,

80% of Pak's economy is undocumented..

Why isn't the Pak govt using that undocumented money to pay off its debt?

Regards

problem is "Who is going to bell the cat"

 

[pikkuboss]

So, what you are saying is that India gov want even better deal for itself than Chinese got in order to lend money to Pakistan. And your private sector doesnt want to lift a finger on how the people in Pakistan is suffering. So, all your talk of Pakistan can get better deals, possibly from India, is just cheap talk. Besides, what can India offer to Pakistan, any infras, energy plants, factories and Gwader port can India build for Pakistan, dont kid people !

We gave tiny Sri Lanka $4 billion at 0% interest when no country even looked at them. We signed the IMF guarantee paper for IMF restructuring of Sri Lankan economy. We are building a port right next to your Gwadar port. I don't think a Pakistani is capable of judging India's capabilities.

 

[pikkuboss]

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.

25 cents a dollar Is the repayment in USD or PKR? This is giving those gangsta loanshark vibe, international loan shark.

 

[etylo]

We gave tiny Sri Lanka $4 billion at 0% interest when no country even looked at them. We signed the IMF guarantee paper for IMF restructuring of Sri Lankan economy. We are building a port right next to your Gwadar port. I don't think a Pakistani is capable of judging India's capabilities.

If you did to Sri Lanka, but you definitely wont do it for Pakistan for sure.

 

[SoulSpokesman]

@etylo

but you definitely wont do it for Pakistan for sure.

Shouldnt you do it? After all you are their taller than mountain, deeper than ocean and sweeter than honey friend.

Regards

 

[Olympus81]

Its well known more than half of Pakistani economy is undocumented.

The small gold shops you see in Tariq Road, Karachi have revenue in excess of $1m annually. The bigger shops you can just 10x it. You think they can survive just by selling jewellery with margins on labor and making fee. You’d be stupid to think so.

Secondly, the plot business. Transaction fee are essentially non existent and so are the annual tax. If you can manage to charge transaction fee based on the real amount of transaction, your tax revenue can go up a trillion instantly.

Imagine if digital payment is implemented and everyone is incentivised. Finding avenues for revenue generation when payments are digital, get very easy.

But the whole ecosystem is just corrupted. Namaze paralo inse. Loot maar is the name of the game aur sahi kaam kisi ne nahi karna. But namaz jamat se. Soodh khori, bribes, behno ka paisa harapna, never making payments on time, is OK.

PTI documented mobile imports sector. Look what happened. They increased revenue manifolds and at the same time a company invested in assembling of mobile units.

 

[etylo]

@etylo

but you definitely wont do it for Pakistan for sure.

Shouldnt you do it? After all you are their taller than mountain, deeper than ocean and sweeter than honey friend.

Regards

China is already doing it.

 

[Skimming]

@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

Rudeness is Bangladeshi style. Bangladeshis are genetically inclined to be rude. Much more than even Indian Bengalis.