Tag: China

  • BBZ is going to India next month for the Shanghai Cooperation Org

    BBZ is going to India next month for the Shanghai Cooperation Org

    In a major diplomatic development, Foreign Minister (FM) Bilawal Bhutto-Zardari will be visiting India to attend Shanghai Cooperation Organisation (SCO) which is set to take place on May 4-5 in Goa, India, Foreign Office Spokesperson Mumtaz Zahra Baloch has confirmed.

    The minister is going to India at the invitation of the country’s External Affairs Minister Dr Subrahmanyam Jaishankar.

    Pakistan is currently preparing for the meeting.

    It is pertinent to mention that Bilawal’s visit to India will be the first by a Pakistani foreign minister in nearly 12 years. In 2011, the then-top Pakistani diplomat, Hina Rabbani Khar, now Bhutto-Zardari’s deputy in the foreign ministry, visited India.

    If Bilawal’s visit goes as per plan, it is likely that Prime Minister Shehbaz Sharif will visit India too for the summit, reports Express Tribune.

    ​Bilawal also attended the last meeting of the Council of Foreign Ministers held in July last year in Tashkent.

    The SCO is a regional political and security bloc whose members include Russia, China, India and Pakistan.

  • Police arrest Chinese worker on accusation of blasphemy

    Police arrest Chinese worker on accusation of blasphemy

    A Chinese worker at the Dasu Hydropower Project in Upper Kohistan was arrested by the police on Sunday after being accused of committing blasphemy by some of the laborers working on the location, Dawn has reported.

    The SHO of Komila confirmed the arrest and mentioned that an FIR has been lodged against the accused under Section 295-C of the Pakistan Penal Code.

    The complaint was filed by Gulistan and Yasir. According to the complaint filed at the Komila police station, a mob attempting to break into a Chinese camp near Barseen was reported to police official Jehanzeb on Sunday night.

    “After receiving the information, a police party reached the site, took control of the area and safely shifted the accused to the Komila police station,” the complaint said.

    Despite the arrest, a large number of protesters arrived at Komila early on Monday and once again obstructed the Karakoram Highway while raising slogans against the Chinese man. However, following the police’s guarantee of filing an FIR, the protestors reopened the Karakoram Highway for traffic. Additionally, local religious leaders appealed to the demonstrators to end the protest.

  • Affordable bus service between Islamabad and China to start soon

    Affordable bus service between Islamabad and China to start soon

    A bus company in Pakistan has announced its decision to launch a private bus service between Islamabad and Tashkurgan, a city in China, following Eid-ul-Fitr.

    According to a spokesperson for the company who spoke to Gwadar Pro, the service will commence on 13th May 2023, with the first phase involving the deployment of a mini-Utong bus capable of accommodating 28 passengers.

    The journey, including the immigration process, is expected to take approximately 38 hours, with passengers staying overnight at the Sost border. The fare for the journey is estimated at Rs60,000.

    To travel, individuals must have an original passport and copy, a valid original visa with its copy, and an invitation to China (visa category).

    The service is available to all, including tourists and those travelling for business and official purposes. Given the service’s popularity, the company plans to expand it to cater to the needs of the people of both countries.

  • Sri Lanka considering exporting 100,000 monkeys to China

    Sri Lanka considering exporting 100,000 monkeys to China

    Sri Lanka’s Agriculture Minister, Mahinda Amaraweera, has instructed officials to examine China’s proposal to import 100,000 toque macaque monkeys, which are native to Sri Lanka and classified as endangered by the International Union for Conservation of Nature (IUCN).

    The monkeys will be displayed in over 1,000 Chinese zoos with the minister suggesting that Sri Lanka might be able to meet the request due to the large macaque population in the country.

    As per a Sri Lankan news portal, a meeting was held on Tuesday to discuss the possibility of sending monkeys to China under the first phase of the programme. Agriculture Minister Mahinda Amaraweera led the meeting, which was attended by officials from the Agriculture Ministry, Department of National Zoological Gardens, and Department of Wildlife Conservation.

    During the meeting, it was revealed that the current monkey population in Sri Lanka has grown to almost 3 million and that the monkeys were causing significant damage to local crops.

    Despite Sri Lanka’s ban on almost all live animal exports, the country is currently considering fulfilling China’s request for macaque monkeys, as the country grapples with its worst economic crisis.
    Sri Lanka is also looking to fulfill China’s request due to the fact that Beijing is one of Sri Lanka’s major bilateral lenders.

  • IMF receives assurance of $1 billion from UAE to support Pakistan’s economy

    IMF receives assurance of $1 billion from UAE to support Pakistan’s economy

    In a significant development towards reviving the stalled bailout programme, the authorities in the United Arab Emirates (UAE) have pledged to provide $1 billion in bilateral support to Pakistan, according to Finance Minister Ishaq Dar.

    Dar tweeted, “UAE authorities have confirmed to the IMF for their bilateral support of $1 billion to Pakistan.” He also stated that the State Bank of Pakistan is currently in the process of completing the necessary documentation to receive the deposit from the UAE authorities.

    Pakistan was required to provide assurance that its balance of payments deficit is fully financed for the remaining period of the IMF programme, which has been stalled since November last year. Last month, the IMF’s Director of Strategic Communications, Julie Kozack, emphasised that “timely financial assistance from external partners will be critical to support the authorities’ policy efforts and ensure the successful completion of the review [with Pakistan].” She added, “Ensuring that there is sufficient financing to support the authorities is the paramount priority. A Staff Level Agreement (SLA) will follow once the few remaining points are closed.”

    Earlier this month, Saudi Arabia also pledged to provide a $2 billion loan to Pakistan, according to Pakistan’s Minister of State for Finance Aisha Ghaus Pasha. The country’s economic situation has been further exacerbated by months of political and economic turmoil, crippling floods last year and record inflation. Pakistan has been grappling with a debt crisis and foreign exchange reserves have fallen to less than four weeks of imports.

    In an effort to ease the situation, China has agreed to refinance $2 billion, of which $1.7 billion has already been credited to Pakistan’s central bank. China also rolled over a $2 billion loan last month, providing relief during Pakistan’s acute balance of payments crisis. However, talks with the IMF for a delayed $1.1 billion loan tranche, part of the bailout agreed in 2019, have been ongoing.

  • Rare type of bird flu causes first death in China

    Rare type of bird flu causes first death in China

    According to the World Health Organisation (WHO), a woman in China has died after contracting a rare type of bird flu, making the death the first known human fatality from the strain.

    However, the H3N8 subtype of avian influenza does not seem to spread from person to person.

    The woman, aged 56, was from the southern province of Guangdong and is the third person to have contracted this subtype, with the previous two cases also reported in China last year. Although the Guangdong Provincial Centre for Disease Control and Prevention confirmed the third infection in the woman last month, no further information has been provided regarding her death.

    The World Health Organisation (WHO) stated that the person who died from the rare H3N8 subtype of avian influenza had various pre-existing health conditions and had been in contact with live birds.

    In China, sporadic cases of bird flu among humans are frequent as avian flu viruses are prevalent among the large populations of domesticated and wild birds. The WHO mentioned that samples taken from a wet market that the woman visited before falling ill tested positive for influenza A(H3), indicating that this might have been where she contracted the infection.

    Although the H3N8 subtype of avian influenza is uncommon in humans, it is prevalent among birds and typically does not cause any noticeable symptoms in them. It has been known to also infect various other animals. The World Health Organisation (WHO) reported that no other individuals who were in close proximity to the woman were found to have been infected.

  • Pakistan received over $48 billion in bailout loans from China between 2008-2021

    Pakistan received over $48 billion in bailout loans from China between 2008-2021

    A study published on Tuesday revealed that China has spent $240 billion rescuing 22 developing countries between 2008 and 2021. This amount has increased in recent years as more countries struggled to repay loans taken for the building of “Belt & Road” infrastructure.

    The researchers, from the World Bank, Harvard Kennedy School, AidData, and the Kiel Institute for the World Economy, found that almost 80 per cent of the rescue lending was made between 2016 and 2021, primarily to middle-income countries such as Pakistan, Argentina, and Mongolia. However, lending has decreased since 2016 as many projects failed to generate expected financial dividends.

    The report also highlighted that Beijing’s ultimate objective was to rescue its banks, which is why it engaged in the risky business of international bailout lending. Chinese loans to countries in debt distress increased from less than 5 per cent of its overseas lending portfolio in 2010 to 60 per cent in 2022.

    Argentina received the highest amount of bailout money with $111.8 billion, followed by Pakistan with $48.5 billion and Egypt with $15.6 billion, while nine countries received less than $1 billion.

    According to Reuters, the People’s Bank of China (PBOC) swap lines accounted for $170 billion of the rescue financing, including in Suriname, Sri Lanka, and Egypt. Bridge loans or balance of payments, supported by Chinese state-owned banks, amounted to $70 billion. Rollovers of both types of loans totaled $140 billion. However, the study criticized some central banks for potentially using the PBOC swap lines to artificially pump up their foreign exchange reserve figures.

    China is currently negotiating debt restructurings with several countries, including Zambia, Ghana, and Sri Lanka. However, it has been criticized for holding up the processes. In response, it has called on the World Bank and International Monetary Fund to offer debt relief as well.

  • China approves rollover of $2 billion SAFE deposits for Pakistan

    China approves rollover of $2 billion SAFE deposits for Pakistan

    China has given approval for the rollover of $2 billion State Administration of Foreign Exchange (SAFE) deposits for a year. Pakistan’s Finance Minister, Ishaq Dar, confirmed, stating that the rollover was a requirement of the International Monetary Fund (IMF).

    The IMF had requested the rollover of Chinese SAFE deposits to fulfill external financing needs and move towards a staff-level agreement. The agreement involves filling nine tables under the Memorandum of Economic and Financial Policies (MEFP), including a table related to the Net International Reserves (NIR) as an indicative target.

    This target cannot be met without incorporating the external financing needs of the program period until the end of June 2023. The IMF has asked Pakistan to bridge the gap of $6 billion to ensure its credibility and avoid default. This condition was put forth largely because representatives of Gulf countries on the Executive Board had made commitments before the approval of the seventh and eighth reviews for providing financial assistance to Islamabad in various forms.

    Now, the IMF is seeking the support of Saudi Arabia, the UAE, and Qatar to help Pakistan’s struggling economy. The Fund has warned Islamabad that its credibility would be at stake if the staff-level agreement is finalised, and Pakistan fails to materialize its commitment from the bilateral partners, which could lead to default.

    The IMF is investigating why Pakistan’s bilateral partners are not fulfilling their earlier commitments. China is the only country that has come forward to rescue Islamabad by fulfilling its commitments on the re-financing of its commercial loans as well as the rollover of its SAFE deposits.

  • Chinese bank to provide Pakistan with another $500 million loan soon

    Chinese bank to provide Pakistan with another $500 million loan soon

    A Chinese bank has committed to provide Pakistan with another refinanced $500 million loan within the next few days. This brings the total of commercial loans to $1.7 billion out of the committed amount of $2 billion.

    Pakistani authorities are currently seeking 100 per cent confirmation from friendly donor countries and multilateral creditors before moving towards an agreement with the International Monetary Fund (IMF). The IMF has set an unwritten condition that Pakistan must secure refinancing of commercial loans and a rollover on deposits from China during the program period, which is set to expire in June 2023.

    A top official from the Finance Division confirmed that another $500 million commercial loan from a Chinese bank is on its way and will be completed soon. Chinese banks have already provided refinancing of $1.2 billion in commercial loans in the past few weeks, and Beijing has given assurance on another $500 million in loan refinancing in the next few days. Pakistan has also requested a rollover on the Chinese SAFE deposit of $2 billion within the ongoing month.

    All these factors are prerequisites for moving towards the signing of a staff-level agreement between the IMF and Pakistan. The Pakistani authorities are waiting for confirmation from Saudi Arabia, UAE, and Qatar, as well as from the World Bank and the Asian Infrastructure Investment Bank, to fulfill the external financing needs of $6 billion until the end of June 2023. The guarantees for securing external financing are crucial for the sustainability of the IMF program.

    Brent crude and WTI are both down in the international market, which is good news for Pakistan’s economy. However, the IMF has secretly launched “Inclusive growth in the MENA region” at NUST. The IMF high-ups argued that state-owned enterprises (SOEs) possessing a major footprint resulted in the crowding out of the private sector. Pakistan’s budget makers have also assured the IMF that they will prepare gender-based budgeting in the next financial year.

    To meet the IMF’s demands, the CPI-based and SPI-based inflations have risen to unprecedented levels of 31.5 per cent every month and 42.3 per cent every week. The development budget of the federal government, known as the Public Sector Development Program (PSDP), has been slashed by 50 per cent for the current fiscal year in line with the Fund’s demand to curtail the budget deficit target.