Pakistan Economy: News & Discussion

[Bhurki]

The reason of my interest on this topic is recent news..
https://www.brecorder.com/2019/10/2...ted-to-take-over-reko-diq-mines/amp/&ampcf=1/
Pakistani business tycoons ‘interested’ to take over Reko Diq mines
Reserves include -
11B lbs of copper worth about $30B,
9M ounces of gold worth about $14B
(Based on Oct'19 prices)

 

[Bhurki]

https://dailytimes.com.pk/490087/pakistans-gdp-in-2020/amp/
According to World Bank reports Pakistan’s gross domestic products (GDP) growth will go down 3.7 percent to 2.7 percent in 2020. It is very bad news for Pakistan and for its economy.
The GDP growth in Pakistan expanded 5.79 percent in fiscal year 2017. GDP growth rate in Pakistan averaged 4.92 percent from 1952 until 2018, reaching an all-time high of 10.22 percent in 1954 and record low of 1.80 percent in 1952 and 2020 will be the second lowest GDP of Pakistan according to the World Bank.

 

[Bhurki]

https://tribune.com.pk/story/2087309/2-pakistan-unlikely-meet-debt-reduction-targets/?amp=1
Pakistan unlikely to meet debt reduction targets
Total public debt stood at 80.4% of GDP by the end of June 2019, which the government wants to cut to 66.5% by 2024. The share of domestic debt in the total public debt was 66%, which the government seeks to slash to 59% in five years.

 

[sthf]

Reserves include -
11B lbs of copper worth about $30B,
9M ounces of gold worth about $14B
(Based on Oct'19 prices)

Spread over 30+ years. Something Pakistani establishment fails to mention whenever they are selling this churan.

Gross revenue of $1.5 billion translates to roughly $200 million in taxes. Not exactly the fate changing amount Pakis think it is.

 

[Chinmoy]

Is there a defined timeline for pakistan to pay back $5.9B to TCC in Reko Diq case?

Actually now Reko Diq is asking for out of court settlement for the same.

They are not pushing anymore for the payment.

 

[Bhurki]

Spread over 30+ years. Something Pakistani establishment fails to mention whenever they are selling this churan.

Gross revenue of $1.5 billion translates to roughly $200 million in taxes. Not exactly the fate changing amount Pakis think it is.

I read a news article quoting $500B of total reserves. I didn't believe it but wonder where that came from..
And balochistan share was 25%, so income would be higher.
Also secondary effects in industries like transport, processing etc would spur a line of items contributing to gdp of quite a backward area.
TCC was to process the ore out of Pakistan, denying the secondary benefits to the area.

 

[Bhurki]

Actually now Reko Diq is asking for out of court settlement for the same.

They are not pushing anymore for the payment.

I know there will be attempts to bypass a direct payout, but is there a specific time before which they are obliged to pay?

 

[Chinmoy]

I know there will be attempts to bypass a direct payout, but is there a specific time before which they are obliged to pay?

Thats what I am saying.

The Turkish company has reached a out of court settlement with Pakis and not pushing for any payment.

 

[ezsasa]

I know there will be attempts to bypass a direct payout, but is there a specific time before which they are obliged to pay?

What is the angle you are looking at? Impact of payout on their paki govt CAD?

 

[Bhurki]

What is the angle you are looking at? Impact of payout on their paki govt CAD?

Not really.. Just interested to see UN enforcement..

 

[ezsasa]

Not really.. Just interested to see UN enforcement..

Nope, UN or anyone is not enforcing anything on Pakistan. Except for travel advisories.

even FATF has been a slap on the wrist so far.

Pakistan has even moved up the ease of doing business 12 spots to 103.

 

[nongaddarliberal]

Nope, UN or anyone is not enforcing anything on Pakistan. Except for travel advisories.

even FATF has been a slap on the wrist so far.

Pakistan has even moved up the ease of doing business 12 spots to 103.

International crackdown on Pakistan has been a pipe dream of ours for the past 20 years. The world has proven again and again that it will do nothing against Pakistan except convey strong words. If we want to weaken Pakistan, we need to do it ourselves. We have many options (discussed ad nauseum of this forum) which we do not exercise. The best thing we can do is work against Pakistan behind the scenes and ignore it in public. They crave attention from India.

 

[HariPrasad-1]

Collected the fun to build the dam and then the damn the dam and then pocketed all the money.

 

[sthf]

I read a news article quoting $500B of total reserves. I didn't believe it but wonder where that came from..
And balochistan share was 25%, so income would be higher.
Also secondary effects in industries like transport, processing etc would spur a line of items contributing to gdp of quite a backward area.
TCC was to process the ore out of Pakistan, denying the secondary benefits to the area.

How? Total reserves are well known and you can calculate their value.


Tethyan conducted a feasibility study at Reko Diq in
August 2010; the total mineral resources were estimated to be
1.27 billion metric tons (Gt) at grades of 0.54% copper and
0.24 gram per metric ton (g/t) gold, and the total Joint Ore
Reserves Committee (JORC)-compliant inferred mineral
resources were estimated to be 1.14 Gt at grades of 0.48%
copper and 0.31 g/t gold.
Reko Diq’s proposed processing plant was expected to produce 200,000 metric tons per year (t/yr) of copper and 7,800 kilograms per year of gold from 600,000 t/yr of concentrate

https://prd-wret.s3-us-west-2.amazonaws.com/assets/palladium/production/atoms/files/myb3-2015-pk.pdf

So copper comes at (200,000 tons x $6000) - $1.2 billion.

Gold comes at (7800 kg x $48,000) - $370 million.

This is value of goods sold not the net profit. People with better understanding of mining industry and economics can explain things further.

Coal India had the revenue of $20 billion and net income of $2.5 billion. Yet to meet an Indian who will claim this to be path breaking.

===========================

Now let's address the Balochistan development. Balochistan ranks at the bottom of an incredibly shitty Pakistan education system. And since their politicians have sold their souls to their Khusra fauj, it will continue to be so.

A nation three times the size of France, can't that even make a 100 cc motorcycle engine is not going to run an industry competently.

IK being the smart guy that he is has realised that and is therefore asking Pakistanis to export donkeys to China. Their core competency.

To know and understand more, listen to this eminent Pakistani researcher.

http://www.unewstv.com/47531/jaiza-faisal-raza-abidi-exclusive-interview-11th-june-2014

From 21:00-25:20. Enjoy.

 

[Mikesingh]

Collected the fun to build the dam and then the damn the dam and then pocketed all the money.

At the Lahore Literary Festival, when Mr Nisar was asked what he proposes as the way forward for the construction of the dams, given the gap between the required amount — a whopping Rs 1.5tr — and the modest Rs 9.8bn collected, he responded by saying the understanding was that the funds would be used to create awareness, and not for the actual construction of the dams!!!!!
WTF??? Rs 1.5 trillion just for 'Awareness'?? Lol!

 

[Bhurki]

How? Total reserves are well known and you can calculate their value.


Tethyan conducted a feasibility study at Reko Diq in
August 2010; the total mineral resources were estimated to be
1.27 billion metric tons (Gt) at grades of 0.54% copper and
0.24 gram per metric ton (g/t) gold, and the total Joint Ore
Reserves Committee (JORC)-compliant inferred mineral
resources were estimated to be 1.14 Gt at grades of 0.48%
copper and 0.31 g/t gold.
Reko Diq’s proposed processing plant was expected to produce 200,000 metric tons per year (t/yr) of copper and 7,800 kilograms per year of gold from 600,000 t/yr of concentrate

https://prd-wret.s3-us-west-2.amazonaws.com/assets/palladium/production/atoms/files/myb3-2015-pk.pdf

So copper comes at (200,000 tons x $6000) - $1.2 billion.

Gold comes at (7800 kg x $48,000) - $370 million.

This is value of goods sold not the net profit. People with better understanding of mining industry and economics can explain things further.

Yeah i did the calculation for primary revenue on the last page but reports like these claiming stupid valuations just threw me off.
https://amp.thenational.ae/business/pakistan-s-500bn-gold-mine-kept-under-wraps-1.606927
https://www.thefridaytimes.com/bearing-the-burden-the-cost-of-reko-diq-disaster/

 

[Indx TechStyle]

Wah BC. Kya fayeda greylist aur blacklist ka?
ADB approves $1 billion emergency loan for Pakistan

 

[Deathstar]

Wah BC. Kya fayeda greylist aur blacklist ka?
ADB approves $1 billion emergency loan for Pakistan

World will not let a nuclear power to go down. And this loan money will be spent on defence purchases and paying chinese loans.

 

[mayfair]

World will not let a nuclear power to go down. And this loan money will be spent on defence purchases and paying chinese loans.

Absolutely and Napakis know this very well. They are used to this arrangement and this shall never change unless Shitistan itself is destroyed.

 

[Deathstar]

Absolutely and Napakis know this very well. They are used to this arrangement and this shall never change unless Shitistan itself is destroyed.

Pakistan is in a strategic position. Every superpower will try hard to bring it under its influence