Pakistan begins defaulting on Chinese debt

Armand2REP

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Off track: Govt refuses to bail out Pakistan Railways



ISLAMABAD - The government on Thursday rejected pleas for help by Pakistan Railways, refusing to shoulder the burden of $112 million (about Rs 11.5 billion) worth of debt liabilities due to China, which is expected to further weaken the financial condition of the corporation, a local English daily reported.

Federal Railways Minister Khawaja Saad Rafique asked the Economic Coordination Committee (ECC) of the cabinet, in a meeting held on Thursday, to take on the debt as the railways was unable to meet its debt obligations, officials said.

ECC Chairman Ishaq Dar, who is also the finance minister, rejected the request, arguing that after Pakistan Railways, other entities would also start seeking similar treatment. However, a Rs 7 billion bailout was granted to the Pakistan International Airlines last week.

Pakistan Railways is facing acute financial problems and is unable to pay salaries and pensions to its employees without seeking grants from the government. Last week, the government gave a grant of Rs 500 million to the railways for repairing out-of-order locomotives.

http://www.pakistantoday.com.pk/201...k-govt-refuses-to-bail-out-pakistan-railways/
 

Bhadra

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That is a good news....

Let some private company form China take over Railways in Pakistan
 

Ray

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That is a good news....

Let some private company form China take over Railways in Pakistan
That could be China's aim of their friendship that is higher than X and deeper than Y.

Run Pakistan so deep in debt that Pakistan mortgages itself to China.

In other worlds, make Pakistan another Autonomous Region of China and then tweak the history to prove that it has always been a part of China!
 

JBH22

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Higher than the mountains deeper than the ocean, here is a good friendship.

Chicom don't subsidise fail states, USSR made the same mistake.
 

farhan_9909

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good news

would be amazing if railway is privatized followed by pia and Karachi steel mill and may be even pso
 

amoy

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That is a good news....

Let some private company form China take over Railways in Pakistan
tell me which railway on earth runs well after privatized.

112mln? I think Chinese shall write the debt off. PAK shall inject more funds to such public utilities.

Sent from my 5910 using Tapatalk 2
 
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bose

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Very good news indeed... sell yourself to prospective bidders... and do whatever it tells you to do...
 

Ray

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tell me which railway on earth runs well after privatized.

112mln? I think Chinese shall write the debt off. PAK shall inject more funds to such public utilities.

Sent from my 5910 using Tapatalk 2
Chinese understand the value of money better than all and also how to accumulate it.

They are not that easy on giving it out as alms.
 

agentperry

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good news

would be amazing if railway is privatized followed by pia and Karachi steel mill and may be even pso
wont in this case the privatization means selling it to chinese as no company or corporation will take over an organization with such a huge outstanding debt.
atleast today pakistan railways mandate is service to the nation which will surely change if ownership goes to a foreign hand
 

Bhadra

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That could be China's aim of their friendship that is higher than X and deeper than Y.

Run Pakistan so deep in debt that Pakistan mortgages itself to China.

In other worlds, make Pakistan another Autonomous Region of China and then tweak the history to prove that it has always been a part of China!
Oh yes they can do that by claimimg that Pakistan is part of their historical silk route. Still they can link their claim vial Changes Khan or Halaku Khan...
 

Armand2REP

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Higher than the mountains deeper than the ocean, here is a good friendship.

Chicom don't subsidise fail states, USSR made the same mistake.
Chicoms have given $550 billion in dirt cheap loans to countries with junk bond status over the last 4 years. They issue them at 2-4% interest with 22-28 year repayment plans. Inflation is greater than the interest rates making it free cash. How many of those do you think are going to fail to repay? I think plenty including Pakistan...
 

Tianshan

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Chinese understand the value of money better than all and also how to accumulate it.

They are not that easy on giving it out as alms.
of course we don't just give out money.

but all investment is a risk, sometimes you make money, sometimes you lose money.

if the money is gone then it is gone. just don't invest again.
 

Bhadra

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tell me which railway on earth runs well after privatized.

112mln? I think Chinese shall write the debt off. PAK shall inject more funds to such public utilities.

Sent from my 5910 using Tapatalk 2
Singapore, Hongkong etc..

Give Pakistani Railways to China and it would run well provided PLA is inducted to run it.

PLA would be required to kill the free loaders and Farhan.
 
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Defcon 1

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Hi, I am not very clear about laws but shouldn't a default necessarily enforce bankruptcy? How can a company be allowed to continue operations after it has defaulted?
 

Ray

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of course we don't just give out money.

but all investment is a risk, sometimes you make money, sometimes you lose money.

if the money is gone then it is gone. just don't invest again.

But for how long?
 

vishwaprasad

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Pakistan railway is in serious crisis...now their trains cannot even reach destination even after 4 days, please see youtube link

 
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vishwaprasad

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I cant even imagine Indian railway working like Pakistan railway...if no hurry to reach Karwar I always prefer Netravati or Matsyagandha from LTT....and while travelling in those trains (for that matter any train in India) I feel so sad when I remember the plight of Pakistani passangers shown in above video :(
 

thakur_ritesh

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That could be China's aim of their friendship that is higher than X and deeper than Y.

Run Pakistan so deep in debt that Pakistan mortgages itself to China.

In other worlds, make Pakistan another Autonomous Region of China and then tweak the history to prove that it has always been a part of China!
Precisely the direction this relationship has taken.

It is about defaults on part of Pakistan, soft loans, grants, aid, write-offs on part of the PRC, the idea seems to in-debt Pakistan so much that there comes a time where there is no scope of a no, as such the rhetoric around "friendship" helps tremendously for that has created a near blind following on part of Pakistanis, one of the most highly emotional society.

Chinese have to be by far few of the most pragmatic people out there, each investment well thought out, and if there is no return, they only are able to negotiate a better foot hold. Pakistan's strategic assets, willingly on part of the Pakistanis, will slowly move to the Chinese, matter of time only!

What's the point of a physical takeover when psychologically they have colonized them?
 

farhan_9909

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i still dont undetstand why do indians believe that china will take over pakistan.may be they are forced to believe so.

PR future under khawaja asif is much more better than the bilour brothers
 

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