China allows $1 billion as "budgetary" support to Pakistan

Discussion in 'Pakistan' started by rock127, Jun 25, 2013.

  1. rock127

    rock127 Maulana Rockullah Senior Member

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    China allows $1 billion as "budgetary" support to Pakistan

    ISLAMABAD: China has come in a major way to rescue the ailing Pakistan economy by allowing the utilisation of $1 billion under the China’s Safe Deposits for meeting the budgetary support requirements of Islamabad.

    At a time when the Chinese tourists are becoming victims of terrorist attacks in Pakistan, Beijing has come a long way for creating substantial fiscal space of Rs99 billion for the PML-N government during the next financial year, starting July 1, 2013.

    “For the first time, China has allowed the Pakistani government to utilise this money for budgetary support which was basically extended by Beijing for the purpose of only boosting the foreign currency reserves held by the State Bank of Pakistan (SBP),” official sources confirmed to The News here on Sunday. It can be termed substantial assistance to Pakistan when the country is facing severe financial crunch.

    When contacted and inquired whether China had allowed Islamabad to utilise its deposits of $1 billion for budgetary support, Governor State Bank of Pakistan Yaseen Anwar replied, “Both deposits are on the books of Ministry of Finance, so yes they can be used for the budgetary support.”
    To another query that when China had granted permission to this effect, the SBP governor said that this money would not only be used for boosting the foreign reserves but the Ministry of Finance also had the option to take rupee equivalent to that amount.

    When he was told that the Ministry of Finance had included this amount in the foreign assistance estimates for fiscal year 2013-14, he said it confirmed that the rupee component was being used.According to the plan for 2013-14, the PML-N led government is hoping that it will receive more than double the foreign assistance in the next fiscal year as the total inflows will touch the mark of Rs576 billion against the revised estimates of Rs243 billion for the outgoing fiscal year. The major increase in foreign inflows has been estimated in the wake of two major factors including the revival of programme loans from the World Bank and Asian Development Bank in the aftermath of Islamabad’s decision to go under the scrutiny of the IMF programme and the second factor will be the Chinese assistance to the budgetary support to the tune of Rs100 billion.

    Earlier, sources mentioned that the PML-N led government had inserted a substantial increase in shape of receiving capital receipts in the budget documents for 2013-14 as inflows under the heading of others went up from Rs30.418 billion in the outgoing fiscal year to Rs192 billion in the fiscal year 2013-14.Such an unprecedented increase in inflows resulted in raising eyebrows of many concerned officials as some officials also hinted at the possibility of Saudi assistance as a major factor for this whopping increase.

    When this scribe contacted Finance Minister Ishaq Dar and inquired about the reasons for the sharp increase in inflows, the minister said that the government did not hide anything and every detail in this connection was available in the budget documents.However, the budget documents for 2013-14 clearly illustrate under the foreign assistance that China’s Safe Deposits would be standing at Rs99 billion in 2013-14 compared to zero amount in the outgoing fiscal year 2012-13.

    The government also expects to generate Rs49 billion through the rollover of $500 million from the Islamic Development Bank (IDB) and another $500 million (Rs49 billion) through Eurobond in 2013-14.
     
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  3. rock127

    rock127 Maulana Rockullah Senior Member

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    Just few Chinese killed by Paki terrorists and Pakis juiced 1 billion in aid.

    China paid too much in this case in the name of "Budgetary" support.

    Terrorists must be celebrating as they know this aid is gonna aid them.:lol:
     
  4. arya

    arya Senior Member Senior Member

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    dont be kid , that money will be use by pak army when china will attack on india

    pakistan army asked money from china so that they can fight when china open front
     
  5. farhan_9909

    farhan_9909 Tihar Jail Banned

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    thank God we have already entered into a recovery phase.
     
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  6. rock127

    rock127 Maulana Rockullah Senior Member

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    Right... I didn't say Paki terrorists would get all 1 billion.There is already a quota designated for all.

    Since Pak Army is scared to fight Indian Army face to face, Pakis send terrorists.
     
  7. arya

    arya Senior Member Senior Member

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    china is doing its home work before attack on india , we are doing a... ho..
     
  8. rock127

    rock127 Maulana Rockullah Senior Member

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    Possible... they don't want to get insulted like last time when they had to pack up their tents and leave outta LaC. :lol:
     
  9. EXPERT

    EXPERT Regular Member

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    NO TENTION ............

    HALF OF THE MONEY LOOTED BY politicians AND half will be used during some kind of national disaster ,,,,,,
     
  10. sayareakd

    sayareakd Moderator Moderator

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    Dont get it, this is loan or grant ? means that they have to pay back or not.

    BTW kill more Chinese and they will pay more money............
     
  11. Blackwater

    Blackwater Veteran Member Veteran Member

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    no pay back. pakis dont pay back money. they know how how to take money
     
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  12. Blackwater

    Blackwater Veteran Member Veteran Member

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    recovery phase:hmm::wat::hmm:
     
  13. Ray

    Ray The Chairman Defence Professionals Moderator

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    Imagine that!

    Even China is constrained to keep Pakistan financially afloat instead of her time tested support to all countries friendly to China with infrastructure development at Chinese expense!
     
  14. Dovah

    Dovah Untermensch Senior Member

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    Another step towards vassaldom :yawn:
     
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  15. AVERAGE INDIAN

    AVERAGE INDIAN EXORCIST Senior Member

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    i am not worried because their politicians will eat that money or for some ISI Sinister jobs till the last penny ill just sit and watch the show hehehe
     
  16. hit&run

    hit&run Elite Member Elite Member

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    So now money has started pouring in.

    I remember an expert (pun intended) Chinese propagandist on a different forum who is a moderator and ban Indians on every drop of a hat telling Indians to keep quite on their allegations that China is using Pakistan as proxy against India because there is no money trail or bailout given.

    Now we have money trail, port exchanged, corridors planed.

    Now what next we should wait for before calling these rouge nations up against India, official military treaty signing ceremony or even after that; ammunition dumps built at their wet and dry ports ?
     
    Last edited: Jun 26, 2013
  17. bose

    bose Senior Member Senior Member

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    These types of financial aid is not going to help Pakistan in any way... what Pakistan need some hard decision say tax reform to bring more people under tax net... now as long as Pakistan get these aids from China, USA & Saudia the Pakistani politicians will continue to postpone the hard economic measures for later date... and this will bring disaster to Pakistan very soon when there will be need noney to pay salary etc...

    So the so called friends of Pakistan are not doing any good for Pakistan... and in return Pakistan will continue to put the gun to its head and pretend to commit suicide to get more cheap money...
     
  18. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    Are we underestimating the significance of this aid? I doubt we are! Don't just laugh it off or write it off.

    China is not known to provide such budgetary supports, with the exit of the PPP government, the aid comes in immediately, says a lot of what is going to happen between Pak-Sino over the next 5 years, and remember, this is what is being officially reported and we have no idea about the deals being chalked out in the closed doors.

    If this is how the PML-N is starting of with their relations with China, expect this relationship to further get pretty strong, something that the PPP was hardly ever able to do for Chinese were ever suspicious about their real intentions.

    Pakistan is being developed into a satellite state, I wonder if ever there will be a pay back. On the surface they might report it as a loan, but on papers, it should be a grant.
     
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  19. sayareakd

    sayareakd Moderator Moderator

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    Guys Devil is in detail, Chini have not specified if it is grant or loan, had it been grant they would have been saying so. No doubt that this loan does not come with string attached but it will be costlier then what is been charged by WB or ADB. No doubt about it. After all Chini are businessman.
     
  20. arya

    arya Senior Member Senior Member

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    dont underestimate enemy ( them ), now they are doing under china , we should think and act smartly
     
  21. AVERAGE INDIAN

    AVERAGE INDIAN EXORCIST Senior Member

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    lets be honest as long as we have leaders who don't have balls to take concrete decisions there is nothing we can do much about it .
     

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