Tuesday, August 14, 2018
Pakistan: What Does a Loan From China Mean for the Already Indebted Country?
As Imran Khan prepares to take over as prime minister, his administration's first challenge will be to address Pakistan's depleting foreign exchange reserves. While Khan could turn to the International Monetary Fund for a loan, China — Pakistan's strongest partner on the world stage — is another option. But a bailout from Beijing will add to Pakistan's heavy debt to China, offering a test case for whether Islamabad will eventually have to sign over strategic assets to pay down its obligations. What Happened
China has reportedly agreed to give Islamabad a loan to shore up Pakistan's plummeting foreign exchange reserves as its import bill grows. Although the two countries have yet to sign a deal, the prospective loan — reportedly on the order of at least $10 billion — would enable Pakistani Prime Minister-elect Imran Khan's incoming administration to avoid turning to the International Monetary Fund (IMF) for help, as Pakistan has done 12 times in its history. The IMF attaches conditions to its loans, and austerity measures such as spending cuts, tax hikes and structural reforms would undermine Khan's ability to fund his populist vision for Pakistan: to turn the country into a social welfare state aimed at improving the lives of the poor.
Some Background
China has already lent Pakistan $5 billion in a mix of bilateral and commercial loans during the latest fiscal year, which ended June 30. But rising oil prices continue to drive up Pakistan's import bill, and remittances and exports aren't growing quickly enough to keep up. The result is a growing current account deficit; in July, it reached $18 billion, double the goal amount Islamabad had set.
From Beijing's standpoint, bailing Pakistan out is necessary to ensure the country's stability, given its strategic significance. Pakistan is China's strongest partner in South Asia, while China is Pakistan's strongest global partner. Their relationship, forged in the 1960s, is rooted in a shared desire to counterbalance India, which Pakistan views as an existential adversary and Beijing considers a rival (if less powerful) Asian military power.
In 2013, Pakistan and China's relationship assumed a more robust economic dimension when the two countries launched the China-Pakistan Economic Corridor, a network of roads, power plants, ports and special economic zones now worth $62 billion in total. The project, meant to spur development in western China's landlocked Xinjiang province by linking it to the Arabian Sea through the port of Gwadar, is part of Beijing's broader strategy to lessen its reliance on the Strait of Malacca. The economic corridor itself is a branch of Beijing's Belt and Road Initiative, which spans the entire Eurasian landmass.
Why China's Loan to India Matters
If the loan goes through, it will prompt questions about China's role as an alternative lender to U.S.-backed institutions like the IMF. And though Chinese foreign exchange loans to Pakistan have lacked conditions in the past, critics in the country nevertheless point to China's majority stake in Sri Lanka's Hambantota port as a cautionary tale of what Beijing could expect from Islamabad if it, too, fails to service its growing debt. Such a large bailout, at a time when Pakistan may struggle to make payments, probably will come with some strings attached, but it is not yet clear what sorts of commitments China might expect in return.
#Pakistan - As a nation,we have to protect our core values: Bilawal Bhutto
He was speaking to the media after taking oath as a member of the National Assembly.
“The sacrifices given by Shaheed Zulfikar Ali Bhutto, Shaheed Mohtarma Benazir Bhutto and thousands of party workers teach us to defend democracy and to stand by it,” he said, adding that he would struggle for the rights of the people and democracy.
In his greetings to the nation on the occasion of the Independence Day, Bilawal said that there was a need to strive for the country dreamt by the founder, Quaid-e-Azam Mohammad Ali Jinnah.
The PPP chairman said that Shaheed Zulfikar Ali Bhutto and Shaheed Mohtarma Benazir Bhutto pursued the vision of Quaid-e-Azam in their struggle for an egalitarian and democratic country, and eventually laid down their lives to uphold those principles. “Extremism and terrorism are two major diseases ailing our society. Both have to be completely routed out to put Pakistan on the path of peace, progress and prosperity,” he said, adding, “as a nation, we have to protect and promote our core values, which have been eroded by those seeking chaos and darkness.”
Bilawal further said that only a democratic order and constitutionalism could strengthen the nation and parliamentary supremacy needed to be respected as the institution represented the will of the people.
Former president Asif Ali Zardari also addressed the media after the inaugural NA session. He said that the workers of PPP were heirs to a great legacy. He said that he was proud of the party workers who were without a match in Pakistani politics. “No other party can claim to have as devoted, dedicated and fearless workers as the PPP,” he said, adding that Zulfikar Ali Bhutto held deep compassion for the downtrodden masses. The former president pledged to make Pakistan a democratic, progressive, liberal and welfare oriented country.
http://paktribune.com/news/As-a-nationwe-have-to-protect-our-core-values-Bilawal-Bhutto-281225.html
‘Felt like Nelson Mandela’: Tanzeela Qambrani on taking oath as Pakistan’s first Sheedi woman MPA
Tanzeela, who was nominated by Pakistan People’s Party (PPP) on the quota of reserved seats for women, shared how she feels about becoming a voice for her community as Member of Provincial Assembly (MPA).
Being a woman of African descent, Tanzeela revealed that she has an emotional connect with great revolutionist Mandela, probably the biggest leader that Africa has ever produced and that she herself feels like Mandela.
“Arriving at the oath-taking ceremony I was overwhelmed by emotions. I thought I am Nelson Mandela. As I descended the stairs of the Sindh Assembly, I felt like kissing the ground, the very ground that has blessed mewith so much respect, love and acceptance,” she shared while in conversation with media.
“Arriving at the oath-taking ceremony I was overwhelmed by emotions. I thought I am Nelson Mandela. As I descended the stairs of the Sindh Assembly, I felt like kissing the ground, the very ground that has blessed mewith so much respect, love and acceptance,” she shared while in conversation with media.
Talking about the surreal experience of being sworn in as provincial legislator, she said, “Now that I am an MPA I feel I am highly responsible, especially for women and my community, at large. I feel happy on this achievement, but responsible at the same time.”
Shedding light upon the issues she is passionate working for, Tanzeela stated, “My objectives are very clear. I aim to work towards furthering women empowerment. In addition to that, I want to work for the education sector as well as access to clean drinking water.”
Tanzeela, whose ancestors came to Sindh from Tanzania, believes that the apt representation of minorities in assemblies has only been done by Pakistan People’s Party.
“When I say that PPP gives the earth and the sky to its workers, I strongly believe that it is the only party that works for the representation of minorities. If you take a glance at history, you’ll notice that PPP has always brought women, minorities to the forefront and has worked for the oppressed; at times in the face of Krishna (first Hindu Dalit woman from Thar to become Senator), Surendar Valasai, or in the shape of Tanzeela,” she said.
To have minorities’ representation is highly imperative, as they are an unavoidable, eminent part of the society, Tanzeela further added.
“My vision, my ideology rests in working to provide education opportunities to women as well as children who cannot afford it,” asserted the 39-year-old post-graduate in Computer Science.
“My vision, my ideology rests in working to provide education opportunities to women as well as children who cannot afford it,” asserted the 39-year-old post-graduate in Computer Science.
http://www.thesindhtimes.com/sindh/08/felt-like-nelson-mandela-tanzeela-qambrani-taking-oath-pakistans-first-sheedi-woman-mpa/
PPP Chairman Bilawal Bhutto congratulates nation on 71th Independence Day
In his message on the occasion, the PPP Chairman reiterated that vision of Quaid-e-Azam was pursued by Shaheed Zulfikar Ali Bhutto and Shaheed Mohtarma Benazir Bhutto who struggled during their whole for an egalitarian and democratic Pakistan eventually laying down their lives for their principles and ideals.
Bilawal Bhutto Zardari said that extremism and terrorism are two major diseases ailing the whole country and its society. Both these diseases have to be completely routed out to put Pakistan on a real path to peace, progress and prosperity, he added.
He said that as a nation we have to protect and promote our core values, which were being eroded by the elements chaos and darkness to shatter the mission of the founding fathers.
Bilawal Bhutto Zardari further said that only a democratic order and constitutionalism can strengthen the nation and parliamentary supremacy shall be respected as people’s voice.
PPP Chairman said that his Party was struggling for an egalitarian Pakistan to be a role-model Muslim democratic nation on the world map and a source of inspiration for Muslims around the globe.
Bilawal Bhutto Zardari pledged that the PPP was bound by the commitment of its past leadership for working towards the interest of downtrodden people and bring equal opportunities for all the segments of society so that fruits of independence should not remain limited to few corridors.
https://mediacellppp.wordpress.com/2018/08/13/ppp-chairman-bilawal-bhutto-zardari-congratulates-nation-on-71th-independence-day/