Pakistan is playing musical chairs with its loans. In October 2018, Saudi Arabia had provided $6.2 bn of assistance to Pakistan. Out of which $3 bn was in cash assistance and $3.2 in annual oil and gas supply. The cash assistance was money to be parked with the Pakistani Central Bank - as BOP (balance of payments) support. Now, the time to return that parked money had come. So what did Pakistan do?
According to the Pakistani Ministry of Finance and the State Bank of Pakistan (SBP), Pakistan has taken the loan of $1 billion from China to pay back the Saudi Arabia loan. (Source: Daily Times
It took $1 billion from China and paid it to the Saudis.
So, the question is - if that $1 bn from the Saudis was for simply parking - as was discussed in the terms, where did it go away?
And an even tougher question - who will lend the next loan to pay the Chinese? Or will it sell its entire nation?
entire country has been mortgaged!
Just for information, Pakistan has already mortgaged the following national assets:
- Peshawar-Faisalabad motorway
- Faisalabad-Pindi Bhattian motorway
- Islamabad-Peshawar motorway
- Islamabad-Lahore motorway
Jinnah International Airport Karachi: security for the Sukuk bonds to raise Rs. 182 billion in 2013. In fact, this airport has been given as security for multiple loans:
- 2013 was the first year where the airport was put as collateral to borrow Rs. 182 billion.
- In December 2015, Rs. 117 billion were borrowed against the Karachi airport.
- In February 2016, Rs. 116.2 billion were raised by putting the airport on mortgage.
- A month later, in March 2016, the government used the airport as the underlying asset to borrow another Rs. 80.4 billion.
- Pakistan TV (PTV): All the assets of PTV across the nation have been mortgaged
- Radio Pakistan: 61 Radio Pakistan buildings across the country have been valued at just Rs. 72 crore, which is very low - but all of these have been mortgaged.
But the Pakistanis want to finance Kashmiri terrorism, even when their own future has been mortgaged to the world. Reminds one of the verse:
दिल जला है तो ज़ालिम अपना घर भी जला कर देख
दुनिया को आखिर पता तो चले के कहीं आग लगी है !