Pakistan begins defaulting on Chinese debt

Discussion in 'Pakistan' started by Armand2REP, Jul 20, 2013.

  1. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Off track: Govt refuses to bail out Pakistan Railways

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    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/
     
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  3. Bhadra

    Bhadra Defence Professionals Defence Professionals Senior Member

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    That is a good news....

    Let some private company form China take over Railways in Pakistan
     
  4. AVERAGE INDIAN

    AVERAGE INDIAN EXORCIST Senior Member

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    so what about those bullet trains ROFL
     
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  5. Ray

    Ray The Chairman Defence Professionals Moderator

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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!
     
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  6. JBH22

    JBH22 Senior Member Senior Member

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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.
     
  7. farhan_9909

    farhan_9909 Tihar Jail Banned

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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
     
  8. amoy

    amoy Senior Member Senior Member

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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
     
    Last edited: Jul 20, 2013
  9. bose

    bose Senior Member Senior Member

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

    Ray The Chairman Defence Professionals Moderator

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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.
     
  11. agentperry

    agentperry Senior Member Senior Member

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    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
     
  12. Bhadra

    Bhadra Defence Professionals Defence Professionals Senior Member

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    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...
     
  13. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    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...
     
  14. Tianshan

    Tianshan Regular Member

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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.
     
  15. Bhadra

    Bhadra Defence Professionals Defence Professionals Senior Member

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    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.
     
    Last edited: Jul 20, 2013
  16. Defcon 1

    Defcon 1 Senior Member Senior Member

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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?
     
  17. Ray

    Ray The Chairman Defence Professionals Moderator

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    But for how long?
     
  18. vishwaprasad

    vishwaprasad Regular Member

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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

     
    Last edited by a moderator: May 10, 2015
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  19. vishwaprasad

    vishwaprasad Regular Member

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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 :(
     
  20. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    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?
     
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  21. farhan_9909

    farhan_9909 Tihar Jail Banned

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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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