How China is forcing bankrupt Pakistan to sell Land?
In this video, we will discuss why China is lending one Billion Dollars to China.
Reference –
Transcript -
Hello Friends, welcome to Real Quick Info channel. Lets discuss about today's topic.You might have read, 70 Years after the independence, Policy makers of Pakistan seem to have learnt the basic lesson that, Tanks and Missiles alone can’t save Pakistan, if it’s not economically strong.
Just to give you brief example, As of March 2018, Pakistan’s total foreign exchange reserve was 18 Billion Dollar in comparison to 33 Billion Dollar of Bangladesh.
Pakistan, which always seek balance with India, must look at the fact that India holds total 426 Billion Dollar Foreign exchange reserves.
Pakistan is free to dream whatever they want. Anyways, what should land them on ground is the fact, their foreign exchange reserves is declining rapidly.
If you look at net foreign exchange reserves with State bank of Pakistan, it has declined from 16 Billion Dollar in March 2017 to 11 Billion dollar in March 2018.
Confirming their obsession with India, Even In this tight situation, they increased defense budget by 20 percent.
The question is, why is Pakistan foreign exchange reserve depleting so fast?
The answer is, they have very high current account deficit. It means, the value of their total imports far exceeds the value of their total export.
In simpler words, Total import of Pakistan is way more than its total export.
Now, in order to reduce any further depletion of Foreign exchange reserves, Pakistan should borrow from other countries to pay for its imports.
And that’s what Pakistan is doing, It has just got 1 Billion Dollar loan from China.
Though The iron friend in china has once again prevented the possibility of Pakistan knocking the doors of International Monitory fund, yet China is no way providing the solution, rather its pushing today's problem to future in even worse form.
China Pakistan Economic Corridor project may fuel Pakistan's growth in future, but right now, Though China is investing Money in Pakistan, Yet All this infrastructure is being built by Chinese man, material and equipment.
The result is, Pakistan has to import all these from China. that’s what is making difficult to contain the import bill.
Now, you see, China has again given loan to Pakistan and all this money will return to China.
If the deficit continues for long period of time, and White elephants of China Pakistan economic corridor don’t bring economic miracle, Pakistan will have to sell its land and assets to pay its creditors in China and for its imports.
Though it may take some time to happen, however Chinese interference in the Pakistan’s state of affairs is growing rapidly.
Consider this, when Chinese president met Prime Minister of Pakistan for 35 Minutes, 10 minutes were devoted to find how to fix the problem of Hafiz Saeed.
No wonder, Chinese president has asked Pakistan to send Global terrorist Hafiz Saeed to some west Asian country to quietly live in exile.
We all clearly remember, Not very long ago, Hafiz Saeed was also very proud of Chinese friendship with Pakistan.
Let’s be clear, China is doing all this because primarily it wants to safeguard its interests in Pakistan, and grow its stature on global platforms. This Time, Hafiz Saeed is just another sacrificial lamb.
Given the general elections are due in July, it’s difficult for current regime to deliver on this ask of Chinese president.
But it will be increasingly hard for Pakistani Prime Minister to delay doing what President Xi asks in future.
Sooner than later, Pakistan will realize the mistake of being over dependent on China.
Let’s see, how long bankrupt Pakistan continue to increase defense budget. More importantly, History teaches us, no Economically weak nation can afford Strong Army for long period of time.
As per your views, Will China not force Pakistan to sell off land in future?
Please let us know your views in comment section below.
Please find the reference links of this video in the description box below. Thank you friends for watching this video.
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