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India.com
18 hours ago
- Business
- India.com
Bad news for Shehbaz Sharif as Pakistan nears bankruptcy, will soon face Rs 650000000000 'bomb' due to....
Rs 7500 crore drones, intelligence and Jihad: Pakistan and this Muslim country planning big conspiracy against India, trying to… New Delhi: Bankrupt Pakistan is likely to witness more financial crunch in the current financial year. According to the reports, if Pakistan fails to repay a debt of Rs 6.50 lakh crore (approximately USD 23 billion) during this period, a default is likely. Citing Pakistan's Economic Survey 2024–25, The News reported that the government is required to repay USD 23 billion in debt during 2025–26. Failure to do so could push the country to the brink of default. The country's total public debt stood at Rs 76.01 trillion by the end of March 2025. This includes Rs 51.52 trillion in domestic borrowing (approximately USD 180 billion) and Rs 24.49 trillion (around USD 87.4 billion) in external loans. The external debt is divided into two parts: funds borrowed directly by the government and loans received from the IMF. This debt has accumulated over years due to economic mismanagement, temporary funding solutions, and repeated bailouts. However, the repayment demands for this year have exposed how little room the government has left to maneuver. USD 12 Billion in Temporary Deposits The bankrupt Pakistan is required to repay USD 23 billion this year. To meet this obligation, USD 12 billion will be received as temporary deposit amounts from four of its friendly countries. These include USD 5 billion from Saudi Arabia, USD 4 billion from China, USD 2 billion from the United Arab Emirates, and USD 1 billion from Qatar. Here are some of the key details: Pakistan is required to repay USD 23 billion this year. USD 12 billion will be received as temporary deposit amounts from China, UAE, Saudi Arabia and Qatar. USD 5 billion from Saudi Arabia, USD 4 billion from China, USD 2 billion from the United Arab Emirates, and USD 1 billion from Qatar. If any of these countries decide to withdraw their support, Pakistan will have to repay the entire amount within this year. The News has warned that if these friendly nations refuse to extend the rollover of their deposits, the situation could deteriorate further. This would make repayment unavoidable for the government, pushing it to rely more on diplomatic goodwill than on financial strength. And there are signs that even that goodwill is weakening. USD 11 Billion in Payments Still Pending The Shehbaz Sharif government still has to pay around USD 11 billion to external creditors this year even if all its temporary deposits are rolled over. This includes USD 1.7 billion in international bonds, USD 2.3 billion in commercial loans, USD 2.8 billion to institutions like the World Bank, Asian Development Bank, Islamic Development Bank, and Asian Infrastructure Investment Bank, and $1.8 billion in bilateral loans. This financial burden comes at a time when Pakistan's foreign exchange reserves are already under pressure. The country has limited sources of new income and is still awaiting a new extended programme from the IMF.
Express Tribune
2 days ago
- Business
- Express Tribune
Victory celebration and reality check
Listen to article Pakistani luck is flying these days. It has been blessed with massive success, one after the other. First, Pakistan successfully and comprehensively defeated India in the military conflict. It was an enormous triumph, which laid the foundation for a regional reset. India, which had portrayed itself as the regional power, a rising market and economy in Asia, and a leader of the Global South, had to face a checkmate at the hands of Pakistan. Second, on the diplomatic front, Pakistan achieved many accomplishments. After the war, India sent a delegation to the world to launch a propaganda campaign. It wanted to tag Pakistan with terrorism. Pakistan analysed the situation and sent its own delegation, which outperformed the Indian delegation. The world did not buy the Indian argument, and the Pakistani point of view had wider acceptance. Pakistan maintains a balanced relationship with the world's major powers, including China, the United States, and Russia. There is no need to discuss the China-Pakistan relationship, as everyone is aware that both countries share a deep and enduring brotherhood. However, the recent shift in the Pakistan-US relationship is the talk of the town. The US played a prominent role in halting the war between India and Pakistan. After the truce, President Trump praised Pakistan for its sensible and rational behaviour. He also invited Army Chief General Asim Munir for a meeting at the White House. Both sides reportedly discussed enhancing the relationship in multiple fields. On the other hand, Pakistan and Russia intensified efforts to further enhance and strengthen their bilateral relationship. Russia has shown interest in investing more than $2 billion in reviving and expanding Pakistan Steel Mills. It is a good omen, as Pakistan was looking for opportunities to revive the mill. Also, a breakthrough happened at the SCO defence ministers' meeting, where Russia supported Pakistan's stance on terrorism. Simultaneously, Pakistan played a prominent and leading role in ending the Iran-Israel war. It diligently convinced the US administration that the war in the region had no justification. Therefore, all efforts must be made to end the war and work for peace. These examples collectively indicate that Pakistan has achieved significant success in recent months. However, the country needs to be cognizant that these achievements cannot be sustained without solving domestic challenges. Pakistan continues to face multiple challenges. The economic and governance system is in shambles. The government claims that the economy is improving and that the budget will provide a foundation for accelerated economic growth and development, as promised the previous year. But the Economic Survey 2024-25 and the budget for 2025-26 present a bleak picture. The Economic Survey shows that the national GDP grew at a 2.7% rate. However, independent sources are not willing to accept government claims and instead raise questions. They question that, during the first three quarters of FY25, the economy grew at an average annual rate of 1.7%. To achieve a yearly rate of 2.7%, the economy would have had to grow at 5.3% during the last quarter, which is not possible. Apart from that, agriculture, which had provided a significant boost to economic growth in FY24, presented a dismal picture in FY25. A booming sector experienced a sharp decline in production and market share. The growth rate fell to 0.56% in FY25 from 6.25% in FY24, driven by a steep fall in the growth of major crops. Major crops' growth rate fell to -13.26% in 2025, from 11.3% in 2024. Similarly, the large-scale industry is struggling to enter a positive growth trajectory, having demonstrated a negative growth of -1.7%. Social indicators too are pretty disturbing. The World Bank estimates that 44.7% of the population lives below the poverty line, and 16.5% of the population resides in extreme poverty. Poverty is increasing, despite the government's assertions of investing in poverty reduction such as the Benazir Income Support Programme (BISP). This raises questions about the effectiveness and sustainability of the BISP. Food insecurity is another constant irritant, and a 2013 study estimated that 58.8% of the population in Pakistan was food insecure. Unfortunately, we have to rely on old data because the government has not updated it. There are fears that food insecurity has increased over the years due to multiple factors. Poor economic conditions and the devaluation of the PKR have substantially impacted people's purchasing power, resulting in fewer resources available to afford healthy food. Additionally, inadequate governance and management of the agricultural sector have led to lower production and reduced availability of quality food. Bad governance is further complicating the situation. The elite class has designed the institutions to ensure the exclusion of common citizens from the governance system without explicitly mentioning it. The system encourages wealth accumulation, and there is no system in place for redistributing wealth or resources. It is deepening the divide between the haves and have-nots. A few influential individuals have all the resources, while millions struggle to make a decent living. Furthermore, the elite have devised an extremely complex business system and environment to strengthen their control over the economic system and resources. This system has given birth to rampant corruption and deep-rooted rent-seeking behaviour. It only works for the powerful or those who can afford to offer bribes. Environmental degradation, particularly climate change, is another issue that is worsening over time. Climate change-related disasters, such as floods and droughts, are regular visitors. Pakistan is still struggling to recover from the impacts of the 2022 floods, and there is a prediction that Pakistan will again face floods. On the other hand, climate change is severely impacting agriculture, which is threatening Pakistan's food security and economy. Farmers are bearing the brunt of climate change. Poor governance and attitude of the government have left farmers vulnerable to the impacts of climate change. In conclusion, Pakistan needs to be mindful that its heyday can be limited if it does not address these issues. The writer is a political economist and a visiting research fellow at Hebei University, China
Economic Times
4 days ago
- Business
- Economic Times
Niti for easing curbs on China investments
Synopsis Niti Aayog has suggested easing investment rules for Chinese entities, proposing to allow up to a 24% stake purchase in Indian companies without stringent security clearances. Currently, Chinese investments require government security approval, a rule implemented in 2020. The proposal is under review by various ministries, including finance and external affairs, to assess its implications. Reuters Niti Aayog has proposed allowing Chinese entities to buy up to 24% stake in Indian companies without additional checks, easing a rule that delays investments from the present, any investment by Chinese entities in Indian companies needs security clearance from the Indian government. In July 2020, the government restricted bidders from countries which share a land border with India from bidding in any government procurement contracts on grounds of national security and avoid takeovers. Such bidders have to register with a Registration Committee constituted by the Department for Promotion of Industry and Internal Trade and require political and security clearance from the ministries of external and home affairs, respectively.'The report has gone. We need to see what happens,' said an report is being examined by various ministries including finance, commerce and industry, and external report comes amid external affairs minister S Jaishankar's first trip to China after five years. He met his Chinese counterpart Wang Yi in Beijing and raised restrictive trade measures and roadblocks to economic cooperation in the backdrop of restrictions on rare earth magnet supplies to India. He also brought up the issue of faster de-escalation along LAC in eastern Ladakh and the two sides agreed to take additional practical steps. The Economic Survey in 2024 had made a case for allowing foreign direct investment from China, saying that this can help increase India's global supply chain participation and push exports.
Time of India
4 days ago
- Business
- Time of India
Niti for easing curbs on China investments
Niti Aayog has proposed allowing Chinese entities to buy up to 24% stake in Indian companies without additional checks, easing a rule that delays investments from the neighbour. At present, any investment by Chinese entities in Indian companies needs security clearance from the Indian government. In July 2020, the government restricted bidders from countries which share a land border with India from bidding in any government procurement contracts on grounds of national security and avoid takeovers. Such bidders have to register with a Registration Committee constituted by the Department for Promotion of Industry and Internal Trade and require political and security clearance from the ministries of external and home affairs, respectively. Explore courses from Top Institutes in Select a Course Category Healthcare Leadership Cybersecurity Digital Marketing CXO MBA Finance Data Science healthcare Data Science others Public Policy Artificial Intelligence Others Product Management Technology Management Design Thinking Project Management PGDM Degree Operations Management MCA Data Analytics Skills you'll gain: Financial Analysis in Healthcare Financial Management & Investing Strategic Management in Healthcare Process Design & Analysis Duration: 12 Weeks Indian School of Business Certificate Program in Healthcare Management Starts on Jun 13, 2024 Get Details 'The report has gone. We need to see what happens,' said an official. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like When the Camera Clicked at the Worst Possible Time Read More Undo The report is being examined by various ministries including finance, commerce and industry, and external affairs. Following EAM's Trip to China The report comes amid external affairs minister S Jaishankar 's first trip to China after five years. He met his Chinese counterpart Wang Yi in Beijing and raised restrictive trade measures and roadblocks to economic cooperation in the backdrop of restrictions on rare earth magnet supplies to India. He also brought up the issue of faster de-escalation along LAC in eastern Ladakh and the two sides agreed to take additional practical steps. Live Events The Economic Survey in 2024 had made a case for allowing foreign direct investment from China , saying that this can help increase India's global supply chain participation and push exports.
Forbes
4 days ago
- Business
- Forbes
Consumer Confidence Rises Even As Inflation Does, Too
Consumer sentiment improved above expectations last month to a five-month high as Americans appear to be less worried about inflation—even as it spiked this month—according to the University of Michigan's monthly survey released Friday, though those polled still see a 'substantial risk' inflation could rise in the future. While inflation expectations have improved, consumers still foresee a "substantial risk" that ... More inflation will jump in the future. Getty Images A preliminary reading of the University of Michigan's consumer sentiment survey was 61.8, above June's reading of 60.7 and slightly above the Dow Jones estimate for 61.4, the strongest sentiment level since February (64.7). This is a developing story .
