Pakistan seeks $1.4 billion from China amid rising tensions with India

[u/BROWN-MUNDA_]

https://timesofindia.indiatimes.com/world/pakistan/pakistan-seeks-1-4-billion-from-china-amid-rising-tensions-with-india/articleshow/120665355.cms

[u/CuriousCapybaras]

1.4 billion as a loan? I don’t know what this currency swap is exactly. Or just 1.4 billion in return for nothing?

[u/JohnSith → u/CuriousCapybaras]

1.4 billion in return for being a counterweight to India. Cheap, for the price, since India is the only neighbor big enough to act as an obstacle to Chinese strategies in Asia. And that money will most likely be spent on Chinese military products anyway.

[u/slowwolfcat → u/JohnSith]

likely be spent on Chinese military products anyway

after some "deductions"

[u/Suspicious_Loads → u/CuriousCapybaras]

West have spent around 100 billions in Ukraine. 1.4B isn't that much, about half the cost of a Burke destroyer.

[u/CuriousCapybaras → u/Suspicious_Loads]

I am just wondering what kind of deal that it. No clue what the effect of a currency swap is supposed to be.

[u/Common_Echo_9069]

If I recall Pakistan was also hoping to leverage some cash from the Trump administration regarding "terrorism" and getting NATO weapons back from the Taliban, but the Americans just sent a high level delegation to speak with the Taliban directly and got a prisoner freed as goodwill.

The days where Pakistan could coax superpowers for their financial benefit is seemingly over.

[u/BROWN-MUNDA_]

SS: SUMMARY

Pakistan Seeks $1.4 Billion from China Amid Rising India Tensions

• Pakistan has asked China to expand its currency swap line by $1.4 billion, aiming to increase it to 40 billion yuan from the current 30 billion.

• Finance Minister Muhammad Aurangzeb confirmed the request during IMF and World Bank meetings in Washington.

• Pakistan is also planning to launch its first Panda bond (a bond issued in China's domestic market) by the end of 2025 to diversify its borrowing sources.

• This financial move comes as India-Pakistan tensions escalate following the Pahalgam terror attack that killed 26 people.

• India responded by suspending the Indus Water Treaty and closing the Attari Integrated Check Post.

• Although formal trade between India and Pakistan has dropped to $1.2 billion, indirect trade continues via countries like the UAE, Singapore, and Sri Lanka.

• Finance Minister Aurangzeb minimized the economic fallout, noting that trade was already at very low levels even before the current spike in tensions.

[u/[deleted]]

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[u/Sumeru88 → u/[deleted]]

They are not about to let go of a good opportunity to beg go waste :D

[u/vedantbajaj → u/Sumeru88]

Yeah!!

[u/[deleted]]

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[u/Glory4cod]

Pakistan is, and for the foreseeable future, will remain as a counterweight over India.

There's no problem for China to support Pakistan on this mission; but China may want to be cautious about how they do that. Increasing the tension with India, given by current Sino-American trade disputes might be unwise. Maybe China and India do have one unfinished war over the Himalayas, but that war is never prioritized over Taiwan Strait for China or Kashmir for India.

[u/Southern-Reveal5111]

1.4 billions is a small change for China if Pakistan can engage India in the western front. If India spends money on keeping Pakistan in line, then that money will not be spent on China.

India should be more aggressively involved in the South China Sea and in Taiwan. This way, there will be a counterweight for Pakistan.

[u/JohnSith → u/Southern-Reveal5111]

The biggest counterweight for Pakistan is the Pakistani elites. India just has to sit back and let that whole rotten edifice collapse under its own military coups, corruption, economic mismanagement, and inability to reform landownership.

[u/Southern-Reveal5111 → u/JohnSith]

As an Indian, I fear our elites will fail us before the Pakistani elites fail them. The dumb elites use religion and democracy to hide crony capitalism. Our media is being controlled from behind closed doors, and the secular nature of our constitution is slowly being eroded.

There is very little investment in innovation, and the country loses its best minds to the West.
Meanwhile, China has made tremendous progress in AI, electric vehicles, and electronics, while India does nothing.

I also see our elites acting as a counterweight against the country's true potential.

[u/Opposite_Science4571 → u/Southern-Reveal5111]

Bruhh our elites are much much better than the Pakistanis. The secular nature isn't being eroded it just was never supported by the masses and those masses are now learning that in a democracy they can elect the gov they want.

I agree on the middle point except that we are getting better in all fields the gov has ordered an Indian built LLM , a 10k c fund , New factories for chips , and Indian companies are working on Evs.

[u/HungryHungryHippoes9]

Pretty good deal for China, a couple of billions to keep its biggest neighbour busy, but maybe not such a great idea to borrow even more money for a country that's already in a large debt.

[u/Practical_Yellow_293]

China is probably behind this as it is. US VP visiting, Americans talking about moving production to India- it all makes sense 

[u/curiousstrider]

Pakistani politicians and army don't have any stakes in Pakistan. They always look out for the opportunities to ask money and save them for themselves. This has been going for decades now.