China pakistan debt trap

The visuals from Sri Lanka are still fresh. An economic crisis which led to violent protests and ultimately to the resignation of Prime Minister Mahinda Rajapaksa grabbed the attention of the world. Covid-19, the war in Ukraine and a mounting debt burden had all proven to be last straws for the South Asian country. Sri Lanka, it seems, was first among many nations facing imminent threat of complete economic unwinding. Laos, for one, is saddled with threats to its economy – which is on the verge of defaulting. Laos is a Communist state, and public dissent is unwelcome. Yet, the people of this Southeast Asian country are increasingly getting angry and frustrated with the state of affairs. Oil shortages have begun hitting Laos, and long queues at petroleum stations are now a common sight. Apart from its debt crisis, Laos’s currency – the Kip has begun nosediving. Separately, inflation is soaring. Essentially, an economic storm promises to turn Laos upside down. This time last … [Read more...] about Laos Finds Itself Deep in China’s Debt Trap Amid Signs of Economic Collapse

Finance Minister K.N. Balagopal said Kerala was not moving towards debt trap. Inaugurating the Pazhayangadi sub treasury building at Eripuram, he said government spending had increased over the past two to three years. During the pandemic, there were food kits, medicines, and hospital expenses. Two packages worth ₹20,000 crore were implemented. A package of ₹5,800 crore was implemented for traders and retailers, he said. “It is because of such interventions that there were no starvation deaths in Kerala during the pandemic. This is administrative excellence, and the government will continue to spend more money on such initiatives,” the Minister said. He added that necessary funds were also being set apart for infrastructure development. Funds are being released for the modernisation of roads, hospitals, and schools. The Minister said the government would go ahead with new projects. Treasuries are on the path of modernisation. The state-of-the-art Pazhayangadi sub treasury … [Read more...] about Kerala not moving towards debt trap, says Finance Minister

The Pakistani rupee (PKR) has been falling continuously; from 150 in April 2021 to 213 against the dollar on 21 June, an all-time low. Pakistan’s foreign exchange reserves have been depleting during the last one year. According to State Bank of Pakistan data, from $17.2 billion in June 2021, the net reserves with the SBP have come down to $8.9 billion in June 2022. The new government has already increased the fuel price — in late May and early June. Besides, the new budget has proposed resuming the petroleum development levy. This would mean increased oil and electricity prices, which has the potential to bring people to the streets. Earlier this month, citing “heightened external vulnerability risk” and the “ability to secure additional external financing,” the rating agency Moody’s downgraded Pakistan’s outlook to negative. The government-International Monetary Fund (IMF) talks have remained complicated. Will the IMF bail out Pakistan? The immediate future of Pakistan’s … [Read more...] about Pakistan’s economic muddling and the IMF challenge

The story so far: China has been investing across the African continent throughout the last decade. While the emphasis has been on investments and raw materials, it took a new turn on June 20, with the first “China-Horn of Africa Peace, Governance and Development Conference.” Beijing’s first special envoy to the region Xue Bing, appointed in February 2022, said that this is the first time China aims “to play a role in the area of security”. The conference held in Ethiopia witnessed the participation of foreign Ministries from the following countries of the Horn: Kenya, Djibouti, Ethiopia, Sudan, Somalia, South Sudan, and Uganda. What are the recent projects between China and countries from the Horn of Africa? China’s focus on the Horn is a part of its focus on Africa. In January 2022, during his 17th trip to Africa, China’s Foreign Minister and State Councillor Wang Yi focused on increasing the infrastructural investments in African countries. He refuted accusations of … [Read more...] about Explained | China’s interventions in the Horn of Africa

The story so far: In a historic moment for Bangladesh, Prime Minister Sheikh Hasina on June 25 inaugurated the Padma Multipurpose Bridge across thePadma river, calling it “a symbol of pride.” The bridge is currently the longest in the country. The inauguration took place over 20 years after Ms. Hasina laid the foundation stone. The bridge will connect nearly 30 million people living in the country’s less-developed southwestern region with the capital Dhaka and other areas. Seen as a symbol of Bangladesh’s resolve and its successful development journey, the infrastructure project was self-financed by the Bangladesh government despite the apprehensions of experts. The bridge was constructed at a cost of $3.6 billion. Besides its potential to transform trade and communication in the region, the government estimates that the Padma Bridge will boost the country’s GDP by 1.2 per cent Also Read India congratulates Bangladesh as Prime Minister Sheikh Hasina opens Padma bridge … [Read more...] about Explained | Bangladesh’s Padma Bridge and why Dhaka clarified reports linking it with China

For Chinese President Xi Jinping, a lot is at stake. Jinping is a man who dons many hats. For starters, he is the President of China. That is a direct consequence of him being the General Secretary of the powerful and authoritarian Chinese Communist Party, which is effectively the Chinese regime all by itself. Jinping is a strongman who has overseen the persecution of Uyghur Muslims in Xinjiang, apart from stripping Hong Kong of all its autonomy. Over the past two odd years, the man has led an unprecedented campaign to kill private enterprise in China – best epitomised by the crackdown on the country’s tech sector. Evidently, Xi Jinping has been toying with the Chinese economy at full throttle. To add to it all, China has antagonised the United States and the West at large. A key factor which led to such antagonism has been Beijing’s incessant want of engaging in what has now come to be known as “wolf-warrior diplomacy”. Heralded by Xi Jinping’s regime, wolf warrior diplomacy … [Read more...] about Pakistan Snubbed, Pro-Russia Diplomat Demoted: China’s Wolf-Warrior Diplomacy Takes a Backseat

Chinese President Xi Jinping hosted the High-Level Dialogue on Global Development (HLDGD) on June 24. This virtual meet was part of the BRICS summit that China recently hosted. This particular meeting included many non-BRICS members. Apart from BRICS member states like Brazil, Russia, India, China and South Africa, countries that attended the meeting were Iran, Egypt, Fiji, Algeria, Cambodia, Thailand, Indonesia and Malaysia. Guess who was not in attendance? Pakistan and its Prime Minister, Shahbaz Sharif. Pakistan’s absence in an important meeting that is being seen as a precursor to BRICS’ expansion is no small deal. The expansion of BRICS has been on the cards for quite some time now. The High-Level Dialogue on Global Development, meanwhile, represents all the countries that might be given entry into BRICS. Pakistan has always wanted to be a part of the same, yet, its absence from the significant virtual meet points to the fact that Islamabad is not a frontrunner to become a … [Read more...] about Pakistan Blocked Out of BRICS Event after India Asked China to Keep Islamabad Out

Pakistan is having a major shortage of paper. The country’s paper association has said that due to the paper crisis in the country, books will not be available to students in the new academic year starting August 2022. The paper crisis has been attributed to the economic crisis, rising inflation, a heavy tax levied on imported paper, and due to monopoly of the local paper industries. This means the education sector will be affected. Several students will not be able to get textbooks. Further, this comes at a time when Pakistan’s schools and colleges are gearing up for the new academic session. School boards in Sindh, Punjab, and Khyber Pakhtunkhwa will not be able to print new textbooks for the upcoming academic year and millions of students will not be provided textbooks, said Publishers and Booksellers Association of Pakistan. Further, the unavailability of textbooks will affect middle-class students. Educational institutions in the country could exploit the parents of the … [Read more...] about What is Pakistan’s Paper Shortage & How is it Impacting Academic Year

There are indications that Pakistan may be out of the FATF Grey List by October 2022 when the global money laundering and terror financing watchdog holds its next plenary in Paris. However, that can only happen after an on-ground inspection by the FATF staff itself, keeping in mind Pakistan’s shady record so far. A country on the Grey List means it cannot control money-laundering and terror-financing operations and is put under increased monitoring by FATF, an inter-governmental body. It restricts access to the international trade and financial system. The country can face difficulty in getting loans from multilateral organisations like IMF and the World Bank. Being on the FATF Grey List is a warning to the countries to take corrective measures otherwise their next destination will be ‘FATF Black List’. Being on FATF Black List means the country has become a high-risk jurisdiction on money laundering and terror financing with ‘significant strategic deficiencies in their regime’ … [Read more...] about Will Pakistan Be Out of FATF Grey List in Oct? Debt-Ridden Country Hopes for Relief After Rejections

Pakistan on Monday alleged that “one member” of the BRICS grouping blocked its participation in a virtual meeting held on the sidelines of the bloc’s recent summit hosted by China. The Foreign Office (FO) said Pakistan has noted that this year a high-level dialogue on global development was held as a side event at the 14th summit of BRICS nations — Brazil, Russia, India, China and South Africa. A number of developing/emerging economies were invited to the side event. It said China being the host country engaged with Pakistan before the BRICS meetings, where decisions are taken after consultations with all BRICS members, including extending invitations to non-members. “Regrettably one member blocked Pakistan’s participation,” the FO said. Though the FO did not name any country, it was apparently referring to India, given the history of the relationship between the two nations. The bilateral relations deteriorated after India announced withdrawing the special powers of … [Read more...] about Pakistan Claims BRICS Member Blocked Its Participation At Event, Points Fingers At India