Pakistan Economy: News & Discussion

[hit&run]

Just like dollars are printed by USA, Yuan is printed by China. There is no reason for Pakistan to buy Yuan from dollar as trade in Yuan is also feasible.

But the deficit is too large how they will get Yuan. First Buy from China paying Dollar or PRK and then pay them back when trading?

 

[Advaidhya Tiwari]

But the deficit is too large how they will get Yuan. First Buy from China paying Dollar or PRK and then pay them back when trading?

How will they get dollars? Even that deficit is large enough. The question then comes to how deficit is funded. The answer is that deficit is funded by loans or investments. Instead of China taking in USA dollars and keeping them as reserves, China can simply choose to give loans in Yuan. China has no use of trillions of dollars of USA dollars sitting in reserves. Why should China buy what USA prints? Instead China will simply loan out in Yuan itself and shun USD

 

[hit&run]

How will they get dollars? Even that deficit is large enough. The question then comes to how deficit is funded. The answer is that deficit is funded by loans or investments. Instead of China taking in USA dollars and keeping them as reserves, China can simply choose to give loans in Yuan. China has no use of trillions of dollars of USA dollars sitting in reserves. Why should China buy what USA prints? Instead China will simply loan out in Yuan itself and shun USD

I understand the advantage of China trading in Yuan but still can not figure out how Pakistan will pay back in Yuan.

Pakistan has quite a good influx of remittance which is traded in dollars. The aid and loans they get are again in dollars, not to mention most of the textile export is in dollars. Trading dollars would have been better for them. Like they say beggers have no choice. Even if you read how ordinary Abdul thinks quite highly of himself as an analyst especially when it comes to neutralizing hegemony of Evil India they very much like this idea of weaning dependency of Dollar to help their brother China.

One scenario is Pakistan will print PKR and then buy Yuan and then return the China-specific loan instalment in Yuan which they have borrowed on high-interest rate compare to what is available in the market and compromised skill development as Chinese are employed in large numbers.

China will earn money in exchange and in the interest of the loan amount. Pakistan will end up having an infrastructure which will generate revenue (in theory).

OTOH when China will buy something lets say Iron ore or Coal or cotton in PKR they will feel the pinch neither in exchange nor they are paying them any interests.

 

[AMCA]

Chinese officials gathered all statements of PM Imran Khan & his cabinet abt problems with #CPEC & showed them to him in a meeting. PM was then asked to b careful abt such statements in future & was also told to rein in his ministers on the subject

 

[Defenceanalyst91]

If Bruce riedel is saying this, it is entirely possible it is true.
=======
Bruce Riedel suggests the removal of JuD from #Pakistan’s list of banned groups is linked to the $6 bil Saudi gift.

Hafiz Saeed's Outfits Taken Off Terror List By Imran Khan's Government

https://www.ndtv.com/world-news/haf...by-imran-khans-government-in-pakistan-1937916

We should be careful. We dont know what strategic objective Saudis want to achieve via Hafiz saeed.

 

[Haldiram]

They didn't get any money at all. The 3bn is just Saudi depositing the money in Pakistani accounts WHICH Pakistan could show to creditors (not use it). This is to alleviate the fears that Pakistan is bankrupt.

The other 3bn is a deferred payment on oil imports from Saudi Arabia for 3 years provided Pakistani pays annual installment.

But because nobody in Pakistan studies math, they have calculated all of this as 12bn $$$. All of this would just increase their debts. It's like trying to cure diarrhea by eating panipuri.

But it's a politically significant move. Fiat currency in itself has no value, but this act of Saudi Arabia is a signal to other countries that they back the Pakistani establishment in its current form, with the ISI at its helm. The fact that they are sticking their neck out for Pakistan says that Pakistan has a goodwill credit of some kind which makes Saudi feel that they owe this. They wouldn't have done this for Indonesia or Egypt or Turkey. The fact that Pakistan can manage to have relations with Turkey and their regional rival Saudi Arabia is a red flag. Turkey and Saudi don't see eye to eye due to their rivalry but they both supply/finance weapons to Pakistan, despite India not having any hostility against the two. Clearly, both of them think that this gives them some leverage against India, to have propped up Pakistan. It should be on our long term agenda to wean these two nations from Pakistani tits.

 

[Raweg]

Hafiz Saeed's Outfits Taken Off Terror List By Imran Khan's Government

https://www.ndtv.com/world-news/haf...by-imran-khans-government-in-pakistan-1937916

We should be careful. We dont know what strategic objective Saudis want to achieve via Hafiz saeed.

They have done their job properly now wait for FATF meet to black list them

 

[hit&run]

Hafiz Saeed's Outfits Taken Off Terror List By Imran Khan's Government

https://www.ndtv.com/world-news/haf...by-imran-khans-government-in-pakistan-1937916

We should be careful. We dont know what strategic objective Saudis want to achieve via Hafiz saeed.

Saudis have nothing to do with it. Any benefit may be purely incidental and even that idea is farfetched. Imran was supported by these militant factions during elections. They broke NS's votes by dividing the vote share. He is returning the favour by letting them off the hook, which already was symbolic.

 

[Indx TechStyle]

Please enter a message with at least one magic spell which spanks this retard at least 30 times with a cactus.

 

[lcafanboy]

But the deficit is too large how they will get Yuan. First Buy from China paying Dollar or PRK and then pay them back when trading?

Bilateral trade between China and Pakistan will be done in their own currencies. With great trade deficit, it will be Pakistanis buying Chinese goods on Yuan and that Yuan will be purchased from the international market using American Dollars?

No need to buy yuan using US dollar. They have got HIRA MANDI where Chinese can relieve themselves by releasing their HAN SEEDS from their small lulli into big JIHADI BLACK HOLE in return for YUANS.....

 

[Flame Thrower]

They have done their job properly now wait for FATF meet to black list them

Totally missed this point sirji.

IMHO, But blacklisting occurs only if Modi comes to power.

Ek sal ki baath hai, let's see how things will go

 

[Raweg]

Totally missed this point sirji.

IMHO, But blacklisting occurs only if Modi comes to power.

Ek sal ki baath hai, let's see how things will go

Karma Karo fal ki aapeksha mat Karo

 

[mayfair]

One scenario is Pakistan will print PKR and then buy Yuan and then return the China-specific loan instalment in Yuan which they have borrowed on high-interest rate compare to what is available in the market and compromised skill development as Chinese are employed in large numbers.

China will never agree to it, because for them PKR is worthless, even more so if Shitistan prints more of it. Even if they agree to sell Yuan to Napakis, they'll end up with a pile of worthless paper that cannot be used anywhere in the world and since Shitistan has little to export to Cheenis, they cannot use this pile of worthless PKR to buy anything useful.

This is why CPEC deals and payments are all drafted in dollar terms, I believe. Chinese want hard currency in return for their "investment".

This is one big reason for IMF being reluctant to lend money to Napakis without pouring over CPEC repayment agreements first. The dollars they inject into Pakistan, will instantly find their way into Cheeni hands.

China will earn money in exchange and in the interest of the loan amount. Pakistan will end up having an infrastructure which will generate revenue (in theory).

The "revenue" will be used for upkeep and maintenance, all of which, will be conveniently handed out to Chinese companies under the terms of "guaranteed returns".

CPEC is the best thing ever to happen to Shitistan, it should be taken to its logical conclusion.

 

[The Juggernaut]

Totally missed this point sirji.

IMHO, But blacklisting occurs only if Modi comes to power.

Ek sal ki baath hai, let's see how things will go

Yes, it will be decided in 2019,

13th Jan 2019: Evaluation to see if Pak has done enough to check terror financing or money laundering.

24th September 2019: Next FATF meeting, new list. Decision to be taken if Pak could be released from grey-list or put it in black list.

 

[ezsasa]

News coming that paki banks have been hacked and account data stolen...

https://www.dawn.com/news/1443970

 

[indiatester]

News coming that paki banks have been hacked and account data stolen...

https://www.dawn.com/news/1443970

Those Chinese hackers are stealing back the money their government gave to the Pakis

 

[Raweg]

Those Chinese hackers are stealing back the money their government gave to the Pakis

Chinky didn't gave any money or any commitment about it........chinky said sign free trade agreement and then we will see

 

[indiatester]

Chinky didn't gave any money or any commitment about it........chinky said sign free trade agreement and then we will see

Damn those Chinese and Chinese hackers. Mullahs must protest.

 

[hit&run]

News coming that paki banks have been hacked and account data stolen...

https://www.dawn.com/news/1443970

What is there to hack? :biggrin2: Stupid hackers.

 

[ezsasa]

What is there to hack? :biggrin2: Stupid hackers.

yup,
they hacked.
they check the numbers.
they took pity.
they donated 1 pkr in each account.