15 C
Athens
Πέμπτη, 7 Νοεμβρίου, 2024

Pak’s high expectations from China may fall flat amidst its plunging economy

Περισσότερα Νέα

- Advertisement -

Pakistan has been reeling under heavy economic turmoil and it is hoping that its all-weather ally China will come to its rescue however eminent economist differs, saying expectations from Beijing are highly misplaced.

By increasing petroleum prices, the Pakistan government hopes to dodge sovereign default, salvage the International Monetary Fund (IMF) deal and leverage the support of multilateral financial institutions and friendly nations to stabilise the economy. A Chinese package is said to be in the works, reported Dawn.
Talking to the media, Finance Minister Miftah Ismail said that he was optimistic about China’s help as the engagements of Prime Minister Shehbaz Sharif and Foreign Minister Bilawal Bhutto Zardari with Chinese counterparts were both positive and productive.

However, an eminent economist argued that high expectations from China are misplaced and that hoping for a generous IMF deal without assurance to roll back CPEC is silly, reported Dawn.

“Who are we fooling? China signed deals under the CPEC on its own terms. Even if China does in the end roll over the repayment schedule and agree to extend some financial support it might buy us some time but economic stability and progress are hard to comprehend in absence of fiscal adjustments and structural reforms. We need our own economic doctors to fix it,” said the economist.

“It is very clear that the IMF suspects its money is used to settle Chinese bills. It is clearly unwilling to let its money land in the coffers of US rival China.”
The Council on Foreign Relations (CFR), a body that tracks sovereign default risk, recently placed Pakistan’s scoring at 10 (indicating 50 per cent or higher chances of defaulting), equivalent to countries such as Sri Lanka, Ukraine, Russia, Venezuela, Argentina, Ghana, Tunisia. Some of these nations have already defaulted, reported Dawn.
The details of Pakistan’s profile on the CFR Index website show Pakistan’s current account at -4.5pc of GDP, external debt at 42pc of GDP, short term debt and current account at 107 pc of revenues, government’s debt at 68 pc of GDP, political instability index at -1.9 and credit default swap spread at 824 basis points.
On the CFR Index, the score of India is 1 and Bangladesh is 3. Sovereign risk implies that a government will default on their binding liabilities or impose foreign exchange regulations that hurt foreign exchange contract values.

- Advertisement -

ΑΠΑΝΤΗΣΤΕ

εισάγετε το σχόλιό σας!
παρακαλώ εισάγετε το όνομά σας εδώ

The reCAPTCHA verification period has expired. Please reload the page.

Ροή ειδήσεων

ΣΧΕΤΙΚΑ ΑΡΘΡΑ

Pakistan and Central Asian Region – A Chronicle of Conflicting Interests

Pakistan's security establishment has been increasingly focusing on a "Vision Central Asia" strategy, aiming to enhance its defence ties with the five Central Asia...

The CCP Insists that Chinese Islam Should Be “Confucianized”

From October 17 to 18, 2024, the Jiangsu Islamic Association and the Research Center for Strengthening the Consciousness of the Chinese Nation’s Community hosted...

Taiwan reports 44 aircraft, 6 vessels and 1 ship from China around it’s country

Taiwan's Ministry of National Defence (MND) reported a significant increase in Chinese military activity around Taiwan early Monday, detecting a total of 44 People's...

Pakistan is third worst nation globally in terms of law and order: World Justice Project index

In the latest World Justice Project (WJP) Rule of Law Index for 2024, Pakistan has been ranked 140th out of 142 countries, making it...

ΔΗΜΟΦΙΛΗ ΑΡΘΡΑ

Έκλεψε αλυσίδα από λαιμό ηλικιωμένης, συνελήφθη, αφέθηκε ελεύθερος και συνελήφθη ξανά για το ίδιο αδίκημα

Έκλεψε, εντοπίστηκε, συνελήφθη, αφέθηκε ελεύθερος, και... συνελήφθη εκ νέου για το ίδιο αδίκημα. Ο λόγος για τον νεαρό δράστη που είχε κλέψει από μία ηλικιωμένη...

Ιράν: 16χρονη αυτοκτόνησε αφού απειλήθηκε με αποβολή επειδή χόρεψε χωρίς χιτζάμπ

Σοκ προκαλεί η είδηση της αυτοκτονίας μιας 16χρονης στο Ιράν, η οποία έβαλε τέλος στη ζωή της αφού απειλήθηκε με αποβολή όταν καταγράφηκε να...

ΣΥΡΙΖΑ: Κασσελάκης και 87 συναντήθηκαν τυχαία σε στέκι στο Παγκράτι – Έντονοι διάλογοι με Φλαμπουράρη, Νοτοπούλου, Σπίρτζη

Ανατροπές χωρίς τέλος λαμβάνουν χώρα στον ΣΥΡΙΖΑ Προοδευτική Συμμαχία, καθώς μετά από μια ημέρα γεμάτη ένταση χθες ανάμεσα στους «Κασσελίστας» και την πλειοψηφία, η...

Φορολογικές δηλώσεις: Πότε θα υποβάλλονται – Τα μπόνους και τα «τσουχτερά» πρόστιμα

Όλα αλλάζουν στην υποβολή των φορολογικών δηλώσεων, όπως προβλέπει το νέο νομοσχέδιο. Οι μεταρρυθμίζεις αλλάζουν τα έως είχαν συνηθίσει οι φορολογούμενοι. Πιο συγκεκριμένα, η σταθερή...