Pakistan's Economic Crisis Worsens As China Refuses To Provide Additional Loans Or Debt Relief

Pakistan's Prime Minister Imran Khan (2nd R) attends talks with China's President Xi Jinping (not pictured) at the Great Hall of the People in Beijing on November 2, 2018. Photo: AFP / Thomas Peter / Pool

Asia Times: Pakistan begs China for power debt forgiveness

Islamabad may decline to pay Chinese banks it owes billions in perceived as onerous take-or-pay power production contracts

PESHAWAR – Pakistan’s debt problems are escalating as liabilities due on China-funded energy projects established under the China-Pakistan Economic Corridor (CPEC) surpass $31 billion and Beijing declines to restructure $3 billion in liabilities coming due that Islamabad possibly won’t pay.

The debt load, owed largely for the building of independent power producers (IPPs) on take-or-pay power generation contracts, is substantially more than the $19 billion in total invested in the plants, according to reports and industry analysts.

Pakistan is obliged to pay $5.9 billion to the power companies for take-or-pay capacity payments alone over the next four years by 2025. Those will entail more pay than take at current power usage rates.

Read more ....

Update: Pakistan economic crisis intensifies as China refuses to provide debt relief (ANI)

WNU Editor: Three days ago I put up this post .... China’s Bond Defaults Are Exploding. What Does This Mean? (May 28, 2021). In short .... China is getting rid of all of its bad debts, zombie companies, and non-functioning assets.

The Chinese are now implementing this policy towards countries that are deeply in debt to them, and who want to renegotiate better terms. Pakistan is one of those countries.

But Beijing is treating these countries the same way that they are dealing with their own companies and institutions who are deeply in debt and who want to make a deal. Bottom line. There is going to be no renegotiating or debt forgiveness. You pay what you owe, and forget about getting any debt forgiveness.

This is big news, and it will have global implications.

As for Pakistan. They must have got the message last month when the Chinese said no to an expected loan for a massive infrastructure project .... China reluctant to clear $6 billion loan for CPEC project over debt concern (Hindustan Times). Pakistan expected that money, and it must have come as a big surprise to them when China said no. Since then it has been all downhill for Pakistan, with access to credit becoming very difficult to obtain.

from War News Updates https://ift.tt/3yOjtcC
via IFTTT

Comments

US And Russian Chiefs Of Staff Discuss Ukraine In Rare Phone Call

U.S. Chairman of the Joint Chiefs of Staff Gen. Mark Milley (left) and his Russian counterpart Valery Gerasimov (file photo) The Hill: Milley speaks with Russian counterpart for first time since start of war Chairman of the Joint Chiefs of Staff Gen. Mark Milley spoke with his Russian counterpart on Thursday, the first such conversation between the two since the Kremlin’s invasion of Ukraine began in late February, according to the Pentagon. Milley spoke by phone with Valery Gerasimov, chief of the Russian general staff, and they “discussed several security-related issues of concern and agreed to keep the lines of communication open,” Joint Staff spokesperson Col. Dave Butler said in a readout of the conversation. The Pentagon did not provide further information on the conversation. Read more .... WNU Editor: So much for the reports last week that Chief of the General Staff of the Armed Forces of Russia Valery Gerasimov was fired by Putin last week .... Putin rumor

Is Putin's Inner Circle Already In Discussions On Who Is Going To Replace Him?

Russian President Vladimir Putin leads a meeting on economic issues in Moscow on Monday. (Alexei Nikolsky, Sputnik, Kremlin Pool Photo via AP) Daily Beast: Putin’s Own Men Are Already Discussing Who Will Replace Him Three months into Vladimir Putin’s bloody “special operation” in Ukraine, his own men in the Kremlin are reportedly discussing who will replace him. That’s according to new reporting by the independent news outlet Meduza, which cited several sources close to the Russian presidential administration who said officials are increasingly fed up with Putin personally. Some of Putin’s own allies within the Kremlin walls have reportedly floated the idea of Moscow Mayor Sergei Sobyanin becoming his successor, or former President Dmitry Medvedev, who is now the deputy chairman of the Security Council. Sergei Kirienko, the first deputy chief of staff of the presidential administration, was also said to have been discussed as a contender. Read more .... Update: Krem

China's shipyard CSSC launches 1st Pakistani Hangor class submarine PNS Hangor

According to information published by the Pakistani MoD on April 26, 2024, the Hangor class submarine PNS Hangor was launched by the Chinese shipyard CSSC. This submarine is a part of the Hangor-class, which itself is based on the Yuan-class Type 039B submarines provided by China. Read full news at this link Hangor class submarine PNS Hangor. (Picture source: Pakistani MoD) Read more from World Defence News https://ift.tt/dgQWhs7 via IFTTT

MTQ News

Search This Blog