Connect with us

International

Chinese investors ask 'iron brother' Pakistan to relocate funds as default risk gets real

Published

on

Islamabad, May 7 (IANS) Pakistan’s economic woes continue to dampen its credibility among global investors as now its closest ally, friend, and ‘iron brother’ China, too, has put forward a demand, which has forced emergency consultations in Islamabad.

Amid increased fears of a complete meltdown of the Pakistani economy leading to default, Chinese investors have told Islamabad to relocate funds in off-shore bank accounts to service debts sustained for establishing energy plants under the China-Pakistan Economic Corridor (CPEC).

Moreover, Chinese investors have also insisted that Islamabad should clear $125 million in dividends it owes to Chinese firms functioning in Pakistan.

The Chinese demand has forced emergency huddles in relevant quarters of the Pakistan government, who are now contemplating and consulting the kind of response that should be given.

Sources aware of the development say that Pakistan has not accepted the demand till now and is being cautious over its potential reaction.

“Islamabad is also cautious about potential reactions from the International Monetary Fund (IMF) to any new concessions to Beijing,” said the government source.

ALSO READ:  Houthis say they attacked 3 ships in Red Sea, Indian Ocean

Pakistan’s Finance Minister Muhammad Aurangzeb has urged focused caution in accepting any Chinese demand.

“The Finance Minister has cautioned the Cabinet Ministers in accepting any Chinese demand at the moment due to sensitivities surrounding the upcoming bailout programme talks with the IMF,” said a senior official.

The government maintains that Islamabad has never defaulted on Chinese energy debt repayments, a reasoning that may be used to respond to Chinese investors’ demand.

Pakistan is also expected to put forward its response during the Joint Working Group on Energy meeting in Beijing next week.

One more reason for the latest Chinese demand, sources reveal, is that Chinese investors are finding it difficult to obtain new loans due to financial troubles in Pakistan.

“To address banks’ concerns, investors are now seeking to place funds in off-shore accounts to demonstrate their revenue streams,” the official, who requested anonymity, said.

Chinese investments in energy projects in Pakistan are estimated at a value of at least $21 billion, while the Chinese debt for energy projects stands at around $15 billion.

ALSO READ:  17 killed in Israeli action in Gaza Strip: Palestinian authorities

China has established energy projects in Pakistan with an understanding of 75 per cent debt and 25 per cent equity. Now, it has to pay annual payments of about $2.4 billion in debts and dividends.

On the other hand, Pakistan’s thin foreign exchange reserves — $9 billion, currently — block the central bank’s capacity to allow outflow of funding.

Most of these reserves were acquired through foreign loans and purchasing of around $5.5 billion from the open market.

Islamabad is also not ready to cater to any demand from China that may have any negative impact on the upcoming Pakistan visit of an IMF team.

However, ignoring the Chinese demand is also something that the current government cannot afford to do.

–IANS

hamza/as/khz

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

International

11th-century cathedral in France's Rouen catches fire

Published

on

By

Paris, July 11 (IANS) Fire engulfed the spire of France’s famous Rouen cathedral on Thursday, local officials said.

The cause of the fire in the gothic Notre-Dame de Rouen’s 150-metre-high spire – the tallest church spire in France – was still unknown, Rouen Mayor Nicolas Mayer-Rossignol posted on X, adding firefighters are trying to extinguish the blaze.

The cathedral, built in the 11th century, has been evacuated and a security cordon placed around it, officials said.

Images on social media showed flames near the top of the cathedral, where restoration work had been going on since 2015, as per French media. The extent of damage to the structure is unclear for now.

The cathedral had been a favourite monument for renowned French impressionist artist Claude Monet, who painted it several times.

–IANS

vd

ALSO READ:  Houthis say they attacked 3 ships in Red Sea, Indian Ocean
Continue Reading

International

IAF's Sukhoi fighter jets set to roar Australian skies during Exercise Pitch Black

Published

on

By

Darwin, July 11 (IANS) India’s Sukhoi-30 MKI fighter jets will be seen in action during Exercise Pitch Black — Australia’s biggest international air combat training activity — that begins at the Royal Australian Air Force (RAAF) bases in Darwin and Tindal from Friday.

With approximately 140 aircraft and over 4000 personnel from 20 nations participating, this year’s iteration of Exercise Pitch Black is the largest participation in its 43-year history, the RAAF announced on Thursday.

Held every two years, the exercise focuses on large-force employment missions involving large numbers of international aircraft.

The last edition of the exercise held in 2022 saw the participation of an Indian Air Force contingent that included four Su-30 MKI and two C-17 aircraft.

For the first time, aircraft and personnel from the Philippines, Spain, Italy, and Papua New Guinea and embedded personnel from Fiji and Brunei will participate in the exercise.

In addition, aircraft from France, Germany, Indonesia, Japan, Malaysia, South Korea, Singapore, Thailand, the United Kingdom, United States; and embedded personnel from Canada and New Zealand will also participate.

ALSO READ:  New Zealand govt allows 'granny flats' to reduce housing costs

Aircraft will operate from the RAAF bases Darwin and Tindal in the Northern Territory, with additional tanker and transport aircraft at RAAF Base Amberley in Queensland.

“Exercise Pitch Black is our premier activity for international engagement, held every two years to build stronger ties with like-minded nations. Training with our partner nations throughout Exercise Pitch Black demonstrates our commitment to the shared value of sustaining peace and stability across the region,” said Exercise Director Air Commodore Peter Robinson.

According to the RAAF, the exercise exposes participants to complex scenarios whilst utilising some of the most advanced aircraft and battlespace systems, in one of the biggest areas of military training airspace in the world.

“For international participants, there is a significant benefit to participating in Exercise Pitch Black 24. It provides experience in how to deploy over great distances, with some countries travelling from around the globe to reach Australia,” said the Australian Defence Ministry.

ALSO READ:  Houthis say they attacked 3 ships in Red Sea, Indian Ocean

–IANS

as/uk

Continue Reading

International

Russia not to participate in new Ukraine summit: Deputy FM Galuzin

Published

on

By

Moscow, July 11 (IANS) Russia does not accept ultimatums and will not participate in a new summit on Ukraine, local media quoted Russian Deputy Foreign Minister Mikhail Galuzin as saying on Thursday.

“We are aware of Kyiv’s and its Western sponsors’ intentions to ‘redeem’ themselves after the failed peace summit in Burgenstock, Switzerland, in mid-June this year, and to attempt a similar event,” he said, adding, “They are even considering inviting Russia.”

While the specific location for the next summit has not been determined, Galuzin emphasised that the geographical location is not fundamentally important, Xinhua news agency reported.

“What matters more is the content, which must be extremely clear,” he said.

Russia observes “a deliberate disregard for other initiatives to resolve the Ukrainian crisis,” said Galuzin, calling this approach “another manifestation of fraud.”

–IANS

int/rs/svn

ALSO READ:  UK PM apologises for infected blood scandal cover-up
Continue Reading

International

South Korea's population aged 65 and older tops 10 million

Published

on

By

Seoul, July 11 (IANS) South Korea’s population aged 65 and older topped 10 million, coming closer to a super-aged society, the Ministry of the Interior and Safety said on Thursday.

The number of officially registered residents aged 65 or higher reached 10,000,062 on Wednesday, reported Xinhua news agency, citing the interior ministry.

The age group accounted for 19.51 per cent of the total population, which stood at 51,269,012.

The proportion of the elderly continued to go up from 11.79 per cent in January 2013 to 13.60 per cent in January 2017, 15.48 per cent in December 2019, and 17.45 per cent in April 2022.

South Korea drew near to a super-aged society, which refers to a country with more than 20 per cent of the population aged 65 or higher.

Men aged 65 or higher numbered 4,427,682, lower than female peers at 5,572,380.

The elderly living in the Seoul metropolitan area came to 4,489,828, lower than the corresponding figure of 5,510,234 outside the metropolitan area.

ALSO READ:  UK PM apologises for infected blood scandal cover-up

–IANS

int/sd/svn

Continue Reading

International

Six dead as heavy rains lash China's Chongqing

Published

on

By

Beijing, July 11 (IANS) At least six people have died from the heavy rain in southwest China’s Chongqing Municipality overnight, local authorities said on Thursday.

The casualties were reported after rainstorms pelted Dianjiang County from Wednesday night to Thursday morning, according to county officials, with the maximum daily precipitation measured at 254.6 mm, a record high since the county had meteorological records, reported Xinhua news agency.

A total of 6,985 people in the county have been affected in the latest round of rainstorm, including 170 people who were evacuated, officials said.

Vehement downpours have hit the municipality since Wednesday evening, raising water above alert levels in 15 rivers.

Rescue operations are underway in the area.

–IANS

int/sd/svn

ALSO READ:  S.Korea's Finance minister to leave for Brazil to attend G20 meeting
Continue Reading

Trending