10-24-2018, 10:52 PM
*** 25-Oct-18 World View -- Pakistan's 'desperate' Imran Khan attends Saudi investment summit amid Khashoggi crisis
This morning's key headlines from GenerationalDynamics.com
****
**** Pakistan's 'desperate' Imran Khan attends Saudi investment summit amid Khashoggi crisis
****
![[Image: g181024b.jpg]](http://Media.GenerationalDynamics.com/ww2010/g181024b.jpg)
Pakistan prime minister Imran Khan meets Saudi King Salman (MBS's father) on Tuesday in Riyadh (AFP)
The bizarre story of the gruesome death of Saudi-born Washington Post
journalist Jamal Khashoggi in the Saudi Arabian embassy in Istanbul,
Turkey, seems to be settling down in the last couple of days, largely
because Turkey's president Recep Tayyip Erdogan has so far refused to
accuse Saudi's crown prince Mohammed bin Salman (MBS) of being
personally involved. Now, MBS is saying that it was "a heinous crime
that cannot be justified" and that "those behind this crime will be
held accountable... in the end justice will prevail." It may be that
Erdogan is holding back some evidence for use as leverage against MBS
at some future time.
MBS has been holding a three-day conference called the Future
Investment Initiative, whose purpose is to invite investments from
countries around the world. Thanks to the Khashoggi scandal, many
world leaders are boycotting the conference, although many of those
have sent high-level representatives in their place. Reports are that
the conference is going well for MBS, despite the boycott.
However, one national leader did attend the conference: Pakistan's new
prime minister Imran Khan.
Khan described Khashoggi's death as “sad beyond belief”, and indicated
that he did not consider credible the latest official Saudi account of
what happened:
<QUOTE>"What happened in Turkey was just shocking. What
should I say? It shocked all of us. The Saudi government will
have to come up with an answer... We wait for whatever the Saudi
explanation is. We hope there is an explanation that satisfies
people and those responsible are punished."<END QUOTE>
However, Khan has described his situation as "desperate," and that he
is is attending the conference because of Pakistan's deep debt crisis:
<QUOTE>"The reason I feel I have to avail myself of this
opportunity [to speak to the Saudi leadership] is because in a
country of 210 million people right now we have the worst debt
crisis in our history.
Unless we get loans from friendly countries or the IMF [the
International Monetary Fund] we actually won’t have in another two
or three months enough foreign exchange to service our debts or to
pay for our imports. So we’re desperate at the
moment."<END QUOTE>
Khan had previously visited Saudi Arabia in July to try to get aid,
but came away empty handed. However, Khashoggi's death has changed
things, and the Saudis are "desperate" as well, needing support from
someone like Imran Khan. So Khan was rewarded for attending. MBS is
providing $6 billion in aid to Pakistan, $3 billion in foreign
currency support and another $3 billion in loans.
Another issue is Saudi Arabia's war in Yemen. In the past, Pakistan
has refused to provide military support for the war, but now it may
turn out that Khan had to promise something to MBS in return for the
$6 billion in aid. So it's interesting that Khashoggi's murder has
provided the opportunity for all sorts of extortion and blackmail
among the countries in the Mideast and Asia. BBC and
CNN and Middle East Eye
****
**** Imran Khan considers the options in asking the IMF for a loan
****
When Imran Khan took office as prime minister in August, Pakistan had
only enough foreign reserves to pay for imports for two months. Since
then, Pakistan's "all-weather friend" China has loaned Pakistan enough
additional money so that they can pay for imports into December. Now
the $6 billion in aid from Saudi Arabia should give Khan several
months' more breathing room.
Khan, a Pashtun born in 1952, is extremely popular and charismatic.
He was one of Pakistan's greatest cricket players of all time. In the
1990s, he was voted as the "Sexiest Man of The Year" by the Australia
Magazine Oz. He's anti-American, has promised to distance Pakistan
from the United States. He's been particularly critical of previous
governments for borrowing from the International Monetary Fund (IMF),
and having to accept their austerity rules in return.
Now that Khan is prime minister, all his previous silver-tongued
promises are ignored. Pakistan has received over a dozen IMF programs
in the last 30 years, and now he says he's going to ask for another
one. Pakistan formally applied for IMF assistance early in October.
Pakistan is about $90 billion in debt, with $19 of that owed to China,
mainly because of the China-Pakistan Economic Corridor (CPEC). China
needs CPEC as part of its Belt and Road Initiative (BRI) in order to
have a cheap way to transfer commercial and military goods and people
between China and the Indian Ocean.
As usual, the terms are nothing but a debt trap for Pakistan. China
lends the money to Pakistan. Pakistan must use to purchase goods and
services from China, and to pay the salaries of the workers on the
project, almost all of whom will be Chinese. So, as usual, Pakistan
will have to repay the loan twice, once to pay for Chinese goods,
services and salaries, and once to repay the loan.
So there's a lot of bad dealing going on here. Saudi Arabia is
providing $6 billion in aid to Pakistan, but a lot of that money will
go, in one way or another, to China in debt repayments.
China would like Pakistan to borrow from the IMF. Since most of the
IMF's money comes from the US taxpayer, tht means that the US taxpayer
will be paying for the CPEC project.
That's why US Secretary of State Mike Pompeo has said that the
administration will oppose any IMF loan to Pakistan, and said,
"There's no rationale for IMF tax dollars — and associated with that,
American dollars that are part of the IMF funding — for those to go to
bail out Chinese bondholders or China itself."
China would love having the US pay for Pakistan's debts. According to
China's foreign ministry spokesman Lu Kang said, "As a member of the
IMF, China supports the organization in making an objective evaluation
of Pakistan based on professionalism and earnestly helping it properly
address the current difficulty."
State Dept. spokesman Heather Nauert said:
<QUOTE>"Pakistan has formally requested assistance from the
International Monetary Fund. In all cases, we examine that closely
from all angles of it, including Pakistan’s debt position, in
evaluating any type of loan program. ... I think part of the
reason that Pakistan found itself in this situation is Chinese
debt and the fact that there is debt that governments have
incurred that they maybe thought wouldn’t be so tough to bail
themselves out of, but has become increasingly
tough."<END QUOTE>
IMF director Christine Lagarde has said that any IMF loan to Pakistan
would need to determine the debt sustainability of the country by
having "a complete understanding and absolute transparency about the
nature, size and terms" of its debt, both public and private, and
including the details about the relationship between Pakistan and
China.
However, all the information about Pakistan's Chinese debt is secret,
and even the State Bank of Pakistan is not privy to it. China has
already signaled that the secrecy should not be breached. China
welcomes IMF loans to Pakistan, but they must not affect economic
cooperation between China and Pakistan. Dawn (Pakistan) and Daily O (India) and CNBC (31-Jul) and Dawn and Committee For The Abolition Of Illegitimate Debt and International Monetary Fund (IMF)
Related Articles:
KEYS: Generational Dynamics, Pakistan, Imran Khan,
Saudi Arabia, King Salman, Mohammed bin Salman, MBS,
Turkey, Recep Tayyip Erdogan, Jamal Khashoggi, Yemen,
China, China-Pakistan Economic Corridor, CPEC,
Belt and Road Initiative, BRI,
International Monetary Fund, IMF, Christine Lagarde,
Mike Pompeo, Heather Nauert
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
This morning's key headlines from GenerationalDynamics.com
- Pakistan's 'desperate' Imran Khan attends Saudi investment summit amid Khashoggi crisis
- Imran Khan considers the options in asking the IMF for a loan
****
**** Pakistan's 'desperate' Imran Khan attends Saudi investment summit amid Khashoggi crisis
****
Pakistan prime minister Imran Khan meets Saudi King Salman (MBS's father) on Tuesday in Riyadh (AFP)
The bizarre story of the gruesome death of Saudi-born Washington Post
journalist Jamal Khashoggi in the Saudi Arabian embassy in Istanbul,
Turkey, seems to be settling down in the last couple of days, largely
because Turkey's president Recep Tayyip Erdogan has so far refused to
accuse Saudi's crown prince Mohammed bin Salman (MBS) of being
personally involved. Now, MBS is saying that it was "a heinous crime
that cannot be justified" and that "those behind this crime will be
held accountable... in the end justice will prevail." It may be that
Erdogan is holding back some evidence for use as leverage against MBS
at some future time.
MBS has been holding a three-day conference called the Future
Investment Initiative, whose purpose is to invite investments from
countries around the world. Thanks to the Khashoggi scandal, many
world leaders are boycotting the conference, although many of those
have sent high-level representatives in their place. Reports are that
the conference is going well for MBS, despite the boycott.
However, one national leader did attend the conference: Pakistan's new
prime minister Imran Khan.
Khan described Khashoggi's death as “sad beyond belief”, and indicated
that he did not consider credible the latest official Saudi account of
what happened:
<QUOTE>"What happened in Turkey was just shocking. What
should I say? It shocked all of us. The Saudi government will
have to come up with an answer... We wait for whatever the Saudi
explanation is. We hope there is an explanation that satisfies
people and those responsible are punished."<END QUOTE>
However, Khan has described his situation as "desperate," and that he
is is attending the conference because of Pakistan's deep debt crisis:
<QUOTE>"The reason I feel I have to avail myself of this
opportunity [to speak to the Saudi leadership] is because in a
country of 210 million people right now we have the worst debt
crisis in our history.
Unless we get loans from friendly countries or the IMF [the
International Monetary Fund] we actually won’t have in another two
or three months enough foreign exchange to service our debts or to
pay for our imports. So we’re desperate at the
moment."<END QUOTE>
Khan had previously visited Saudi Arabia in July to try to get aid,
but came away empty handed. However, Khashoggi's death has changed
things, and the Saudis are "desperate" as well, needing support from
someone like Imran Khan. So Khan was rewarded for attending. MBS is
providing $6 billion in aid to Pakistan, $3 billion in foreign
currency support and another $3 billion in loans.
Another issue is Saudi Arabia's war in Yemen. In the past, Pakistan
has refused to provide military support for the war, but now it may
turn out that Khan had to promise something to MBS in return for the
$6 billion in aid. So it's interesting that Khashoggi's murder has
provided the opportunity for all sorts of extortion and blackmail
among the countries in the Mideast and Asia. BBC and
CNN and Middle East Eye
****
**** Imran Khan considers the options in asking the IMF for a loan
****
When Imran Khan took office as prime minister in August, Pakistan had
only enough foreign reserves to pay for imports for two months. Since
then, Pakistan's "all-weather friend" China has loaned Pakistan enough
additional money so that they can pay for imports into December. Now
the $6 billion in aid from Saudi Arabia should give Khan several
months' more breathing room.
Khan, a Pashtun born in 1952, is extremely popular and charismatic.
He was one of Pakistan's greatest cricket players of all time. In the
1990s, he was voted as the "Sexiest Man of The Year" by the Australia
Magazine Oz. He's anti-American, has promised to distance Pakistan
from the United States. He's been particularly critical of previous
governments for borrowing from the International Monetary Fund (IMF),
and having to accept their austerity rules in return.
Now that Khan is prime minister, all his previous silver-tongued
promises are ignored. Pakistan has received over a dozen IMF programs
in the last 30 years, and now he says he's going to ask for another
one. Pakistan formally applied for IMF assistance early in October.
Pakistan is about $90 billion in debt, with $19 of that owed to China,
mainly because of the China-Pakistan Economic Corridor (CPEC). China
needs CPEC as part of its Belt and Road Initiative (BRI) in order to
have a cheap way to transfer commercial and military goods and people
between China and the Indian Ocean.
As usual, the terms are nothing but a debt trap for Pakistan. China
lends the money to Pakistan. Pakistan must use to purchase goods and
services from China, and to pay the salaries of the workers on the
project, almost all of whom will be Chinese. So, as usual, Pakistan
will have to repay the loan twice, once to pay for Chinese goods,
services and salaries, and once to repay the loan.
So there's a lot of bad dealing going on here. Saudi Arabia is
providing $6 billion in aid to Pakistan, but a lot of that money will
go, in one way or another, to China in debt repayments.
China would like Pakistan to borrow from the IMF. Since most of the
IMF's money comes from the US taxpayer, tht means that the US taxpayer
will be paying for the CPEC project.
That's why US Secretary of State Mike Pompeo has said that the
administration will oppose any IMF loan to Pakistan, and said,
"There's no rationale for IMF tax dollars — and associated with that,
American dollars that are part of the IMF funding — for those to go to
bail out Chinese bondholders or China itself."
China would love having the US pay for Pakistan's debts. According to
China's foreign ministry spokesman Lu Kang said, "As a member of the
IMF, China supports the organization in making an objective evaluation
of Pakistan based on professionalism and earnestly helping it properly
address the current difficulty."
State Dept. spokesman Heather Nauert said:
<QUOTE>"Pakistan has formally requested assistance from the
International Monetary Fund. In all cases, we examine that closely
from all angles of it, including Pakistan’s debt position, in
evaluating any type of loan program. ... I think part of the
reason that Pakistan found itself in this situation is Chinese
debt and the fact that there is debt that governments have
incurred that they maybe thought wouldn’t be so tough to bail
themselves out of, but has become increasingly
tough."<END QUOTE>
IMF director Christine Lagarde has said that any IMF loan to Pakistan
would need to determine the debt sustainability of the country by
having "a complete understanding and absolute transparency about the
nature, size and terms" of its debt, both public and private, and
including the details about the relationship between Pakistan and
China.
However, all the information about Pakistan's Chinese debt is secret,
and even the State Bank of Pakistan is not privy to it. China has
already signaled that the secrecy should not be breached. China
welcomes IMF loans to Pakistan, but they must not affect economic
cooperation between China and Pakistan. Dawn (Pakistan) and Daily O (India) and CNBC (31-Jul) and Dawn and Committee For The Abolition Of Illegitimate Debt and International Monetary Fund (IMF)
Related Articles:
- Pakistan faces imminent financial crisis threatening China's CPEC (07-Aug-2018)
- Pakistan's anti-American 'hope and change' candidate Imran Khan runs again (30-Apr-2018)
- Pakistan's Imran Khan blockades supplies to Nato in Afghanistan (26-Nov-2013)
- Pakistan protesters end their blockade of the Nato supply route (28-Feb-2014)
- Pakistan's army called to quell massive anti-government protest (20-Aug-2014)
- Pakistan celebrates its 70th birthday, wondering what Pakistan is (15-Aug-2017)
KEYS: Generational Dynamics, Pakistan, Imran Khan,
Saudi Arabia, King Salman, Mohammed bin Salman, MBS,
Turkey, Recep Tayyip Erdogan, Jamal Khashoggi, Yemen,
China, China-Pakistan Economic Corridor, CPEC,
Belt and Road Initiative, BRI,
International Monetary Fund, IMF, Christine Lagarde,
Mike Pompeo, Heather Nauert
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
