Pakistan at the brink of Sovereign default on its IPP dues

[AsifAmeer]

lol... looks like an interesting site! Checken it out right now.

This 1 book I read "Alchemy of Finance" by Soros. Blew my mind away! Then there was this book written in the 1970s covering events from the 1920s.. No opinions, just events. And it showed me reality conflicts with theory. I.e. School's full of it! But I had been trading before I started by finance classes. They were trying to tell me its supply and demand and I'd argue that leverage, momentum and speculation smacks supply and demand in the face!

Ooo she hated me! She hated me with passion! But I made many friends !

Hey then you should check out "The Institute of Unlearning" (Google it, it exists lol)

That actually appealed to me, the idea of unlearning everything we have been told and taught, in order to understand reality from a Neutral point of view

 

[Waseem]

Dear brother asif, can you please write how to post thread on Siasat.pk ....... as i have searched all around, i couldn't find any option to upload some thread ..... Jazak Allah

Dear Shah Zad, did you see the support section? We have tutorial threads on almost everything, here is the one you were looking for, How to Create a thread on Siasat.pk .

 

[Temojin]

I think these IPPs will not get their payments now kionke hukoomat valon ne keh dia hoga bhaar mein jayein :) We even don't need them newer IPPs for catering our needs. PEPCO could still produce more than needed with what they already have.

Gazoo, mate I once went after these issues and you know what I was told, zindagi bari pyari cheez hai Mirza sahab, isko zaye kerne ki koshish na kero though I never stopped but no newspaper or magazine would still agree to printing what I had collected.

 

[Shah Zad]

Dear Shah Zad, did you see the support section? We have tutorial threads on almost everything, here is the one you were looking for, How to Create a thread on Siasat.pk .

Thank you very much Waseem Bhai! for your support. Jazak Allah Khair .....

 

[AsifAmeer]

[h=1]UPDATE NEWS: IPPs give 72-hour ultimatum[/h]

LAHORE - The advisory council of independent power producers (IPPs) has issued an ultimatum of 72 hours to the government for the non-payment of Rs 34 billion, failing which the IPPs legal counsel will proceed with legal options. The ultimatum was issued after the failure of government to honor its sovereign commitment. Moreover, eight IPPs served another fresh notice for payment of Rs 9 billion to the government. Sources said the government must act positively to avoid any embarrassment in court of law, as the industry was facing a hard time with severe cash crunch, especially when banks had stopped further loans. However, in the larger national interest, the IPPs are continuing to run their plants on the basis of fuel payment they got from NTDC for a few hours. The sources revealed that despite this huge default, the IPPs were generating power per their commitment based on funds they were given for fuel, but the situation was getting worse day by day.

The IPPs would soon start to default on their loans, both short-term and project loans from the banks, which would cause another of Pakistani industry (banks) to collapse. The sources said since the deadline of the final 10-day notice of Rs 34 billion payment ended on May 4, 2012, which was served by the same eight IPPs on April 19, it had become evident that soon the IPPs would have all their investment jeopardized by the government’s indifference towards financial woes of these power producers. They said a case outside Pakistan against this sovereign default would immediately result in severe reactions by the global financial sectors. The banks, they added, would stop honouring trade documents from Pakistani banks and would insist on cash payments.

---

PERSONAL NOTE: I have mentioned in the past that I expect the Commercial Banks in Pakistan to collapse. I was thinking that it would be triggered by Govt bonds loosing values, hence erasing bank capital. I missed this situation. I am honestly starting to feel that the Greek default will come after Pakistan's default.