China offers Duty free import & $13 Billion trade in Yuan to Pakistan

Then Why Foolish IMF is providing Bailout to Pakistan


Reference -
https://www.voanews.com/a/china-pakistan-agree-to-conduct-bilateral-trade-in-yuan/4645164.html
https://www.ndtv.com/world-news/china-pakistan-economic-corridor-criticized-in-european-parliament-1944442
https://thediplomat.com/2018/11/after-khans-visit-pakistan-doubles-down-on-china-dependence/
https://tribune.com.pk/story/1842806/1-pakistan-secures-1b-duty-free-access-china/

Transcript - 



Hello Friends, welcome to Real Quick Info channel. Lets discuss our Original Real Quick Analysis.


Members of European Parliament held a seminar on the topic 'CPEC - East India Company Mark 2'.



As usual, majority of scholars in this seminar were worried on behalf of Pakistan for falling in to Chinese debt trap.



One expert has said, that China has invested so much money in Pakistan, that Pakistan will not be able to repay it, and one day the government power in Pakistan will be transferred in the hands of China.



While world wide leaders are losing sleep over Pakistan's increasing Chinese debt. A high level delegation of state bank of Pakistan is in China to discuss the terms and conditions for next 6 Billion Dollar loan and grant from China.



The fundamental question is, Does Pakistan not understand the basic economics?



Smart Pakistan clearly realizes that in order to fix its economic problem, it has to increase its export from its current low level.



In fact, Pakistan need not know anything, after all experts in the worlds are providing ready to use advice free of cost in news papers.



The thing is different , it can only happen by deliberate design, that Pakistan is increasing China's dependence on Pakistan.



You heard it right, With increasing amount of money thrown in Pakistan, China is getting more dependent on Pakistan.



You know, China has formally accepted that its a Chinese responsibility to take care of Pakistan.



Now please consider this, during China Visit, Imran khan was requesting China to reduce custom duty on Pakistani export to China.



In response, China offered duty free import of Pakistani goods worth one billion dollar.



And if Pakistan is able to utilize duty free export of goods worth 1 Billion Dollar, China is ready to allow duty free export of Pakistani goods worth 2 Billion Dollar from year 2019.



As per Commerce advisor of Imran Khan, Pakistan was so surprised that now its facing the challenge to identify the items, it can export to China.



Hopefully, Pakistan will be able to sell 1 Billion Dollar goods to China, now that duty free Pakistani goods have become cheaper in Chinese Market.



You can see now, by not charging custom duty, Chinese revenue will take hit on behalf of Pakistan.



The question comes, Why China has become so generous on Pakistan?



The answer is simple, failure of Pakistan has become a danger for China.



In fact, the way China is helping Pakistan clearly suggests that China doesn't want to catch Pakistan in any kind of trap.



Pakistan has enormous significance in Chinese strategy against India and United Sates.



by trapping Pakistan, China will simply push Pakistan towards America, thus losing its influence built over many decades in the past.



When strategy plays more important role, economics takes back seat.



In fact, the offer of 1 Billion Dollar Duty free export aside, China has allowed Pakistan to pay for Chinese import in Chinese currency Yuan.



Right now, China exports goods worth 13 Billion Dollars to Pakistan. If China starts accepting payment in Yuan, Pakistan will  have 13 Billion Dollar saved in its foreign currency reserves.



This is major concession from China to Pakistan.



Now, you would say, that China is working on its strategy to replace Dollar with Yuan as global reserve currency.



Lets remember, Last  time after two world war and one great recession, American Dollar has replaced British Pound Sterling as global reserve currency.



Multiple events of global scale are needed to bring about the fundamental change in global trading system.



Moreover, China is trying to challenge the dominance of Dollar. it doesn't mean that America is going to take a hit on the chin and sleep.



America will also respond, and in fact as you already know, its responding as we talk.



The point is simple, Chinese Yuan may replace American Dollar as global currency in future, but Pakistan right now has got the huge relief worth 13 Billion Dollar.



Without Buying Dollars and worrying about exchange rates, Pakistan can trade with China in State controlled Yuan.



You see now, why Pakistan calls China as its all weather friend. because Pakistan can make China fool in all weathers.



Pakistan has no need to worry, when whole world is ready to worry on its behalf.



Few months ago, many of our viewers were expecting Pakistan to go bankrupt. but now you see, it has got billions of dollars from China and Saudi Arabia.



On top, IMF delegation is right now in Pakistan to negotiate for next 3 years bail out.



Once dollars start flowing from IMF, other global lending agencies will also start sending money to Pakistan by foolishly assuming that next bailout of IMF will work on super smart Pakistan.



Forget about three years, the moment Pakistan gets even a sense of economic recovery, it will start abusing IMF and stop following bailout conditions in between.



You can measure the economic expertise of IMF by simple fact that it has provided survival support to Pakistan for 21 times in last 70 years. Now its ready for do it again 22nd time.

Every one asks, why Pakistan took help from IMF for 21 Times.

Unfortunately, no expert is asking easy question to IMF, when its 21 program didn't work on Pakistan, what is guarantee that its 22nd program will succeed in Pakistan.



Global economic experts are ready to give free advice to Pakistan, which doesn't want to listen them, but why they are not giving their advice to IMF, which may listen to them.



for now Pakistan can smile again for successfully coming out of another economic crisis.



As per your analysis, Should IMF not be considered as most foolish financial organization for committing same mistake 22 times in last 70 years?



 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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