World Bank cancels &500 million dollar loan to Pakistan

Crux of the article..

The World Bank has cancelled over $500 million budget support loan to Pakistan after Islamabad could not timely implement some major conditions, including revision of the China-Pakistan Economic Corridor (CPEC) power purchase agreements.

Pakistani authorities said that no breakthrough could be achieved in renegotiations with CPEC power plants. China has multiple times refused to reopen these deals, including its refusal to restructure the energy debt totalling around $16 billion, said the sources.


16B dollars is pennies for China with trillion dollar trade surplus. Looks like they want full loyalty before writing off the debt.
 
kmc_chacko said:
You guys neither reforming nor achieving tax collection target or repaying loans, how can you expect to continue with your economy in that fashion without availing loans ?
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The elites of Pakistan are animals. These people don't want to change their bastard ways. They love to eat and feed haram. Easy money. Just give them remittances, aid and loans all day long. They are happy campers.

A time will come now where even loans won't be given. Pakistan is like a black hole. Money disappears and the elites only plead for more.
 
vasanthm said:
Why doesn’t the iron brother just write off a chunk of their loans? It’s pocket change for China in the grand scheme of things.
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Yeah sure thing. Let's just write it off and keep providing more.
 
koolio said:
tribune.com.pk

World Bank cancels $500m loan to Pakistan | The Express Tribune

World Bank cancels $500m loan to Pakistan
tribune.com.pk tribune.com.pk
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its the old Western tactics to insult Pakistan, by this so small amount of loan. .......

since N-tests by Pak in 1998, they struggled to grow similar to Asian nations. Pakistan is among only '2' nations who never signed NPT including India. :coffee:

Iran, N-Korea-Israel first signed NPT and then they refused so they were lacking similar right like Pakistan for N-tests without sanctions......
India was the 6th country with Nuclear test in 1974, "the Smiling Buddha" test, without signing NPT....

its said, one day it will be proved that those who never signed NPT, India-Pakistan, were more powerful than those who signed NPT including P5s. ☕
 
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Cryptonian said:
16B dollars is pennies for China with trillion dollar trade surplus. Looks like they want full loyalty before writing off the debt.
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You are talking as if the money is owed to a single entity 'China'. In reality, it may be a bunch of private sector firms that may have to take serious write-offs if they cancel the debt. With current crisis of debt in China, that might set off chain reaction. Private debt can be messy, especially in systems that don't have a well-established process to discharge debts. Even with a system, look at what happened to our mortgage bond market in 2008.
 
Dalit said:
A time will come now where even loans won't be given. Pakistan is like a black hole. Money disappears and the elites only plead for more.
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With the high inflation/high interest rate/strong dollar regime, the day when music stops will arrive soon. The debt can no longer be juggled around.
 
Not surprised. The current government is incompetent. They came in and argued that they'd be better for the economy, but all they've proven is how much they don't understand what drives an economy forward.
 
EugeneP said:
You are talking as if the money is owed to a single entity 'China'. In reality, it may be a bunch of private sector firms that may have to take serious write-offs if they cancel the debt. With current crisis of debt in China, that might set off chain reaction. Private debt can be messy, especially in systems that don't have a well-established process to discharge debts. Even with a system, look at what happened to our mortgage bond market in 2008.
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There is barely anything "private" in China, especially banking sector. Such losses can just be swept under the rug.
Muji.Iqbal said:
So what?
Saudi Arabia and China can help us out.
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Indeed, Pakistan doesn't lack of patrons. It has plenty.
 
Cryptonian said:
There is barely anything "private" in China, especially banking sector. Such losses can just be swept under the rug.
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If you follow the current unravelling of property developers, it is anything but that simple. They (the builders) have huge equity and debt exposure to entities in PRC, Hong Kong and abroad (including U.S.). Some of these defaults are having a cascading effect on other private sector firms and also on municipal debt. It is much more complicated than you think. It is so complicated that Chinese central government doesn't know what to do! It is a bit like our 2008, but we had very good lessons to fall back on from 1929 experience!
Take a look
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