fifty years ago June 28, 1971 Archives

From the Archives (June 28, 1971): Pakistan loses financial credibility

Karachi, June 27: The threatened cut-off of Western aid to Pakistan, because of the situation in East Bengal, has caused a loss of Pakistan’s financial credibility among foreign businessmen. They are asking for “super guarantees” on letters of credit which is bringing commercial transactions to a halt. Importers of lorries and automative spare parts, for example, are being forced to look for International Bank guarantees on top of the Pakistan Bank guarantees. An order abroad to build two ships for Pakistan costing $13 millions is not being executed because the ship-builders are asking for special guarantees. Importers from Japan have reduced to a trickle after Japanese credit guarantee institutions refused to back Pakistani orders.

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Printable version | Oct 17, 2021 3:58:47 AM |

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