Islamic Republic of Pakistan : News, Discussions & Updates
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PTI govt borrowed $49.23bn in its 45-month stint
The size of foreign loans has been increasing over the last three and half years from $10.59bn in 2018-19 to $10.662bn in 2019-20.www.dawn.com
PTI govt borrowed $49.23bn in its 45-month stint
That's more than a billion dollar per month....
Indian RAA Agent Imran Khan did some splendid Job of Destroying Pakistan's Economy....
@_Anonymous_
Add to that the impact of devaluation of PKR, the loan increased in Dollar value but the knockout blow was due to the fall of the PKR.
A dollar that used to be 180 PKR is now 230 PKR. Pak now needs 50 PKR more in revenue just to return the same dollar, forget interest. But with the debt servicing eating away all available funds, how does Pak increase revenue? There is nothing for new investment. So Pak being Pak is taking new loans to finance infra projects (dumbest strategy for its current state but thats for a separate post).
Pak is being forced hike energy prices, bank lending rate all of which reduce consumption. Reduced consumption means reduced revenues. The descent has begun and unless the Oil Sheikhs cut a cheque, Pak is in for a bumpy ride.
China isnt in the best of health and wont be able to fund Pak like before. The West's money comes with riders Pak cant agree to. If the Arabs dont help, well Pak will default on its debt and sink further. 2023 is going to be interesting.
It seems army soldiers are vacating their posts in FATA since they are not receiving their salaries and ration.
BANANA Republic....
Official now...
1$ is now = RS 243 PKR.. ...
Unofficial rates should be much higher than RS 270 to 1$....
India invites Pakistan's foreign minister for SCO meet: Report
Pakistan has not participated in the SCO Film Festival to be held in Mumbai later this month. While all countries have sent entries, Pakistan is the only country that did not send any film for screening in the group's third such film festival
www.livemint.com
And here we go again.
No choice in the matter. It's official protocol.India invites Pakistan's foreign minister for SCO meet: Report
Pakistan has not participated in the SCO Film Festival to be held in Mumbai later this month. While all countries have sent entries, Pakistan is the only country that did not send any film for screening in the group's third such film festivalwww.livemint.com
And here we go again.
Pakistan is put mildly an effing disaster of such magnitude one wonders if even cousin marriages and generations of amplified stupidity gene can alone cause this mess. Its almost like Pakistan puts its best minds to screw up the country.
Take an example -
Pakistan's coal is low quality - high on pollutants less thermal output i.e. not suited for power generation.
Pakistan's gas production is plagued by poor infra, lack of local talent - again dependent on imports to meet needs
Oil - negligible output
So what does Pakistan do? It builds 64 power plants running on fossil fuels. 2 more are in construction. Of these ONLY 2 run on Thar coal alone, 2 are mixed import/thar coal. Other 60 run on Fuel Oil, Gas, Coal - all imported.
On its share on Indus rivers, Pakistan has 33 Hydro plants with an installed capacity of 10000 MW ( half of these plants are over 40 years old). Of these 33 plants only 5 plants are rated over 1000 MW.
For a country plagued with inflation, poor tax collection, rampant corruption, betting your energy security on imports when you have no reliable income source is simply unbelievable. The Chinese sold them a weird fantasy where CPEC would make Pakistan a rich nation paying for imported coal would not be a problem.
In reality, the infra projects are turning into cash pits costing fortunes to maintain and run. E.g. Lahore metro - its revenues dont even cover its electricity bill leave alone other expenses.
80% of CPEC projects are running behind schedule causing cost overruns - meaning more loans and higher interest payments. Chinese power companies shut down plants in 2022 over non payment of dues to the tune of $1.5 Billion. The loss of power from these plants hurts economic output and further impairs Pak's ability to repay.
This disaster is now on autopilot. India will end up having to clean some of this mess just to have a clean living environment.
The only analogy to describe this mess is the Azadpur Garbage dump just outside Delhi (with Delhi being India and ......
)
Take an example -
Pakistan's coal is low quality - high on pollutants less thermal output i.e. not suited for power generation.
Pakistan's gas production is plagued by poor infra, lack of local talent - again dependent on imports to meet needs
Oil - negligible output
So what does Pakistan do? It builds 64 power plants running on fossil fuels. 2 more are in construction. Of these ONLY 2 run on Thar coal alone, 2 are mixed import/thar coal. Other 60 run on Fuel Oil, Gas, Coal - all imported.
On its share on Indus rivers, Pakistan has 33 Hydro plants with an installed capacity of 10000 MW ( half of these plants are over 40 years old). Of these 33 plants only 5 plants are rated over 1000 MW.
For a country plagued with inflation, poor tax collection, rampant corruption, betting your energy security on imports when you have no reliable income source is simply unbelievable. The Chinese sold them a weird fantasy where CPEC would make Pakistan a rich nation paying for imported coal would not be a problem.
In reality, the infra projects are turning into cash pits costing fortunes to maintain and run. E.g. Lahore metro - its revenues dont even cover its electricity bill leave alone other expenses.
80% of CPEC projects are running behind schedule causing cost overruns - meaning more loans and higher interest payments. Chinese power companies shut down plants in 2022 over non payment of dues to the tune of $1.5 Billion. The loss of power from these plants hurts economic output and further impairs Pak's ability to repay.
This disaster is now on autopilot. India will end up having to clean some of this mess just to have a clean living environment.
The only analogy to describe this mess is the Azadpur Garbage dump just outside Delhi (with Delhi being India and ......
)
I hope anybody reading & still on P D F takes it there with the caption - Thank you Jinnahbhoy ! Trust you'd not mind .Pakistan is put mildly an effing disaster of such magnitude one wonders if even cousin marriages and generations of amplified stupidity gene can alone cause this mess. Its almost like Pakistan puts its best minds to screw up the country.
Take an example -
Pakistan's coal is low quality - high on pollutants less thermal output i.e. not suited for power generation.
Pakistan's gas production is plagued by poor infra, lack of local talent - again dependent on imports to meet needs
Oil - negligible output
So what does Pakistan do? It builds 64 power plants running on fossil fuels. 2 more are in construction. Of these ONLY 2 run on Thar coal alone, 2 are mixed import/thar coal. Other 60 run on Fuel Oil, Gas, Coal - all imported.
On its share on Indus rivers, Pakistan has 33 Hydro plants with an installed capacity of 10000 MW ( half of these plants are over 40 years old). Of these 33 plants only 5 plants are rated over 1000 MW.
For a country plagued with inflation, poor tax collection, rampant corruption, betting your energy security on imports when you have no reliable income source is simply unbelievable. The Chinese sold them a weird fantasy where CPEC would make Pakistan a rich nation paying for imported coal would not be a problem.
In reality, the infra projects are turning into cash pits costing fortunes to maintain and run. E.g. Lahore metro - its revenues dont even cover its electricity bill leave alone other expenses.
80% of CPEC projects are running behind schedule causing cost overruns - meaning more loans and higher interest payments. Chinese power companies shut down plants in 2022 over non payment of dues to the tune of $1.5 Billion. The loss of power from these plants hurts economic output and further impairs Pak's ability to repay.
This disaster is now on autopilot. India will end up having to clean some of this mess just to have a clean living environment.
The only analogy to describe this mess is the Azadpur Garbage dump just outside Delhi (with Delhi being India and ......
They are trying to use English to Urdu feature on google translate right now.
After no Electricity and no Water now it's no Petrol and no Diesel....
Wheat is bad, whats worse is Afghans saying enough is enough and leaving Pak with dollars.
Afghans can cross the border with 1000 USD per crossing. A large amount of US currency has exited Pak to Afghanistan since the Taliban takeover.
Good Taliban. Right.
Currency smuggling to Afghanistan drains Pakistan's foreign exchange reserves
Pakistan's finance minister has said in public that hundi-based currency dealings, speculative activities, and gambling are holding the country's financial system hostage and have brought foreign exchange reserves down to the bare minimum.
english.almayadeen.net
ENI unable to deliver Feb LNG cargo to Pakistan, declares force majeure
Eni said on Wednesday that the delivery of a liquefied natural gas (LNG) cargo to Pakistan LNG Limited that was scheduled for February has been disrupted due to an event of force majeure.The Italian major has a 15-year deal to supply Pakistan LNG with one cargo a month from 2017 to 2032.
“February LNG delivery disruption is beyond the reasonable control of ENI and due to an event of force majeure. ENI does not benefit in any way from the situation,” said the company in a statement to Reuters.
“All the previous disruptions in LNG delivery suffered by ENI have been caused by the LNG supplier who didn't fulfill the agreed obligations. Also in these cases, ENI did not take advantage or benefit in any way from these defaults and applied all contractual provisions to manage such disruptions.”
Pakistan has struggled to procure spot cargoes of LNG amid elevated global gas prices, which spiked to record highs last year following Russia's invasion of Ukraine.
LNG shipments to Pakistan under long-term deals are insufficient to match the country's rising fuel demand.
Pakistan LNG, a government subsidiary that procures LNG from the international market, did not immediately respond to a request for comment.
Pakistan imported nine billion cubic metres (bcm) of LNG last year, according to Refinitiv data, down nearly 20 per cent from 11.2 bcm in 2021.
ENI unable to deliver Feb LNG cargo to Pakistan, declares force majeure
The Italian major has a 15-year deal to supply Pakistan LNG with one cargo a month from 2017 to 2032.
www.dawn.com