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Current Affairs

Pakistan owed debt from China

  • The debt owed by Pakistan to China has been pegged at $6.56 billion for the July-April period, equals to 3/4th of the total $8.6 billion worth loans that Islamabad received in the past 10 months.

  • These loans are for the Karachi nuclearpower plants, Known as K2 and K3, and China SAFE deposits. (SAFE is the State Administration of Foreign Exchange, China’s foreign exchange regulatory agency).
  • The full disclosure of Chinese loans was a sticky point in negotiations between the Pakistan government and the IMF regarding a $6-billion bailout package.
  • IMF is against Pakistan using its funds to repay Chinese loans.
  • Every government in Pakistan has been heavily relying on foreign loans to stay afloat.

Recession Risk

  • Wall Street: Trade War between USA-China can lead us to
  • Morgan Stanley: A global recession could start within nine months if President Donald Trump imposes 25% tariffs on an additional $300 billion of Chinese exports and Beijing retaliates.
  • JPMorgan Chase& Co: the probability of a U.S. recession in the second half of this year has risen to 40% from 25% a month ago.
  1. A recession is a macroeconomic term that refers to a significant decline in general economic activity in a region, country, or the entire world that goes on for more than a few months.

US-China trade war

  • Foreign minister Jaishankaremphasised that India will stay non-partisan in the Sino-US trade war and will be solely guide by national interests.
  • In every clash, there is an opportunity and risk also.

  • The International monetary Fund estimates the trade war between US and China could bring down global Gross Domestic Product (GDP) in 2020 by about $455 billion or 0.5%.
  • China has imposed extra duties on 774 American items.
  • Of the 531 tariff lines on which the US has imposed additional duties on China.

  • The study said the trade war may bring about a shift in the global trading patterns due to spillover effects and displacement of the bilaterally traded communities to other countries.

UAE launches UN-developed anti money laundering platform ‘goAML’

  • The UAE has become the first country in the Gulf to launch ‘goAML’, a new anti money laundering reporting platform developed by the United Nations Office on Drugs and Crime to curb organised crimes.
  • All financial entities and Designated Non Financial Businesses or Professions have to register on ‘goAML’.
  1. President of UAE:Khalifa bin Zayed Al Nahyan; Capital: Abu Dhabi.
  2. Currency of UAE: United Arab Emirates Dirham