# CPEC Value Rises to $55 Billion after new Chinese Investment



## Dawood Ibrahim

LONDON: The government has secured an additional $8.5 billion of investment from Beijing as part of the countries’ joint energy, transport and infrastructure plan, Planning Minister Ahsan Iqbal said on Wednesday.

That is on top of the $46-billion China-Pakistan Economic Corridor (CPEC) project, which focuses on road building and energy infrastructure to end chronic power shortages in the country and to link China’s landlocked north-west with the deep-water port Gwadar on the Arabian Sea.

*Bahria Town in deal to build Hyatt hotels*

Some $4.5 billion of the additional investment will be spent on upgrading tracks and signaling on Pakistan’s main railway line from Karachi to Peshawar and increase the speed on the line to 160 km per hour from the current 60-80 kph, Iqbal told Reuters in an interview.

Another $4 billion will go toward an LNG terminal and transmission line, he added.

“This has now all been approved, so this is an additional $8.5 billion to the $46 billion we had already, so we are now close to $55 billion,” Iqbal said.

The International Monetary Fund said in June that repayments and profit repatriation from large-scale investments such as CPEC could add to Pakistan’s medium- and long-term risks, predicting that the country’s gross external financing needs would rise to $15.1 billion in 2018/2019 from $11.4 billion in the current financial year.

*Boosting investment: Italy, Pakistan joint venture will enhance trade ties*

But Iqbal said those risks would be countered by the economic boost the investment would give to industries such as steel, construction and engineering, pushing future annual growth to above 6 percent.

In July the IMF upped its forecast for growth in Pakistan to 5 percent from 4.7 percent in the fiscal year to June 2017, citing China’s investment plans.

“As the economy grows, our capacity to undertake the responsibilities of repayments also improves, what really matters is that all of that investment is going into productive sectors,” Iqbal said.

Under CPEC, a number of new economic zones will be created along the corridor. Pakistan hopes that some industry will relocate from China, due to cheaper wages and production costs, Iqbal said.

“Our preferred mode is joint ventures, because that will give a stake to both Pakistani and Chinese enterprises so now our government is actively promoting business-to-business links,” he said.

http://tribune.com.pk/story/1242351...illion-investments-pakistan-says-ahsan-iqbal/

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## Muhammad Omar

Still no news about Dasu and Bhasha Dams.... BOoooooo


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## Tiger Genie

isn't steel a lot cheaper to buy from China?


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## Hyde

I had created a thread on CPEC predicting, CPEC will ultimately end up investing 100-200 billion USD or so in Pakistan due to obvious reasons (industrial zones being build but no investment for industries as part of CPEC thus far, oil pipelines are proposed but not yet part of CPEC)

Its slowly rising after every few months

From 45.50 billion dollars ro 51.5 and now 55 billion usd already

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## war&peace

Aether said:


> I had created a thread on CPEC predicting, CPEC will ultimately end up investing 100-200 billion ISD or so in Pakistan due to obvious reasons.
> 
> Its slowly rising after every few months
> 
> From 45.50 billion dollars ro 51.5 and now 55 billion usd already


Sir Chinese are shrewd business men in addition to being our sincere friends. They know that even USD 200 billiion is peanuts in comparison to the return on investment they get and also the benefits of having a strong and healthy ally and friend in the region where two large bullies are pairing up to bite the tail of the dragon. Plus there is no shame in doing business that's mutually beneficial. There is nothing like an HSR to travel from city to city for distances between 300-600 kms

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## Hyde

war&peace said:


> Sir Chinese are shrewd business men in addition to being our sincere friends. They know that even USD 200 billiion is peanuts in comparison to the return on investment they get and also the benefits of having a strong and healthy ally and friend in the region where two large bullies are pairing up to bite the tail of the dragon. There is nothing like an HSR to travel from city to city for distances between 300-600 kms


I foresee Pakistan will be developed very quickly in the same effort of China trying to develop Western China.

There is talk of creating 29 industrial zones along the corridor of CPEC and some 21 energy and mineral extraction zones something like that

So even just few medium to large scale industries are established, we are talling about billions of dollars worth of investment. I am sure this is where our other economic partners such as Turkey, UAE, Saudi Arabia, US and Germany will jump in

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## Kabira

Aether said:


> I had created a thread on CPEC predicting, CPEC will ultimately end up investing 100-200 billion USD or so in Pakistan due to obvious reasons (industrial zones being build but no investment for industries as part of CPEC thus far, oil pipelines are proposed but not yet part of CPEC)
> 
> Its slowly rising after every few months
> 
> From 45.50 billion dollars ro 51.5 and now 55 billion usd already



Now they need to include Dasu and Bhasha dams, another $26 billion.

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## Hyde

save_ghenda said:


> Now they need to include Dasu and Bhasha dams, another $26 billion.


It doesn't matter if the projects or funded separately or included as part of CPEC.

The Karachi Nuclear power plant is costing 9.5 billion usd and 2 of such units are under construction/proposed

Add Chashup Unit 5 into it and we are talking about another 20-35 billion USD of investment

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## war&peace

Aether said:


> I see Pakistan will be developed very quickly in the same effort of China trying to develop Western China.
> 
> There is a talk of creating 29 industrial zones along the corridor of CPEC and some 21 energy and mineral extraction zones something like that
> 
> So even just few medium to large scale industries are established, we are talling about billions of dollars worth of investment. I am sure this is where our other economic partners such as Turkey, UAE, Saudi Arabia, US and Germany will jump in


Sir the funny thing is that our enemies are aware of this potential more than most of us and that is why they are trying to sabotage this project day 'n' night, through openly engaging at borders, using terrorism in Balochistan and finally using their political proxies in Pakistan to sabotage it, make it controversial. 

But Pakistani nation and army are safe guarding it. Once it reaches the 50% operational capacity, you will see foreign investors swarming Pakistan. If we use this opportunity the right way, we can become the richest country in the region within a very short time

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## Kabira

Aether said:


> It doesn't matter if the projects or funded separately or included as part of CPEC.
> 
> The Karachi Nuclear power plant is costing 9.5 billion usd and 2 of such units are under construction/proposed
> 
> Add Chashup Unit 5 into it and we are talking about another 20-35 billion USD of investment



True, China investment isn't limited to projects included in CPEC. And now Chinese company have just won Pakistan DTH bid!

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## Star Expedition

They will be the seeds for trees of wealth in CPEC

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## abc123xyx

Doordie said:


> $4.5 billion of the additional investment will be spent on *upgrading tracks and signaling on Pakistan’s main railway line *from Karachi to Peshawar and increase the speed on the line to 160 km per hour from the current 60-80 kph, Iqbal told Reuters in an interview.
> 
> Another $4 billion will go toward an *LNG terminal and transmission line,*



this money going directly into the govt of pakistan's owned infrastructure , railway, terminals and transmission lines..
its a loan , can't be a chinese investment...


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## Chinese-Dragon

China's domestic economy has been over-saturated with domestic investment, which for the past decade or so has made up more than half our entire GDP.

Due to our economic transition (away from being an investment-based economy), a lot of that money is now being redirected to the outside world.

What you have seen is only the tip of the iceberg. Chinese outwards investment is going to be soaring over the next decade.

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## 艹艹艹

There will be more international enterprises to invest in Pakistan, Pakistan's future is bright, to be full of confidence in the future, Pakistan will be a new Asian light. Congratulations to Pakistan，China-Pakistan Long live friendship

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## The SC

Chinese-Dragon said:


> China's domestic economy has been over-saturated with domestic investment, which for the past decade or so has made up more than half our entire GDP.
> 
> Due to our economic transition (away from being an investment-based economy), a lot of that money is now being redirected to the outside world.
> 
> What you have seen is only the tip of the iceberg. Chinese outwards investment is going to be soaring over the next decade.


And the timing is just right for Pakistan to benefit from such a win/win move..

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## haidian

China bet big on CPEC, now there's no turning back.

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## as1mz

Keep it coming 

http://todayinpakistan.com/cpec-55-billion-project/

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## Srinivas

The investments are increasing on paper. Do they get the same returns or they want more leverage on Pakistan's resources?


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## Devil Soul

*CPEC investment soars to $55bn after new Chinese loan*
November 23, 2016, 9:53 pm
SHARE : 





*Reuters*
inShare


The government has secured an additional $8.5 billion of investment from Beijing as part of the countries' joint energy, transport and infrastructure plan, Federal Minister Ahsan Iqbal said on Wednesday.

That is on top of the $46-billion China-Pakistan Economic Corridor (CPEC) project, which focuses on road building and energy infrastructure to end chronic power shortages in Pakistan and to link China's landlocked north-west with the deep-water port Gwadar on the Arabian Sea.

Some $4.5 billion of the additional investment will be spent on upgrading tracks and signaling on railway line from Karachi to Peshawar and increase the speed on the line to 160km per hour from the current 60-80kph, Ahsan told Reuters in an interview.

Another $4 billion will go toward an LNG terminal and transmission line, he added. "This has now all been approved, so this is an additional $8.5 billion to the $46 billion we had already, so we are now close to $55 billion," Ahsan said.

The International Monetary Fund said in June that repayments and profit repatriation from large-scale investments such as CPEC could add to Pakistan's medium- and long-term risks, predicting that the country's gross external financing needs would rise to $15.1 billion in 2018/2019 from $11.4 billion in the current financial year.

But Ahsan said those risks would be countered by the economic boost the investment would give to industries such as steel, construction and engineering, pushing future annual growth to above six per cent.

In July the IMF upped its forecast for growth in Pakistan to five per cent from 4.7 per cent in the fiscal year to June 2017, citing China's investment plans.

"As the economy grows, our capacity to undertake the responsibilities of repayments also improves. What really matters is that all of that investment is going into productive sectors," Ahsan said.

Under CPEC, a number of new economic zones will be created along the corridor. Pakistan hopes that some industry will relocate from China, due to cheaper wages and production costs, Ahsan said.

"Our preferred mode is joint ventures, because that will give a stake to both Pakistani and Chinese enterprises so now our government is actively promoting business-to-business links," he added.
http://nation.com.pk/business/23-No...xtra-8-5bn-chinese-investments-in-rail-energy

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## Qutb-ud-din Aybak



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## Hyde

To be honest with you,

Technically China has started naming or Pakistan has been insisting on naming every single project as part of CPEC for no reason. It gives them a sense of security perhaps.

The Gwadar-Nawabshah LNG terminal was to be financed by China anyway, they had already committed to it. The only thing is, instead of calling it a foreign "Chinese" investment they will now consider it as part of CPEC. The pipeline project, cost, timeline, everything remains as it is


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## Star Expedition

Srinivas said:


> The investments are increasing on paper. Do they get the same returns or they want more leverage on Pakistan's resources?




Indian elites are very cautiously, that makes them almost never fail, also less succeed.

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## ChTahir

*We Proudly Getting Better Investment banking analyst position.Better Worked out great and we are looking forward. Pakistan Zindabad *

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## lonelyman

war&peace said:


> Sir Chinese are shrewd business men in addition to being our sincere friends. They know that even USD 200 billiion is peanuts in comparison to the return on investment they get and also the benefits of having a strong and healthy ally and friend in the region where two large bullies are pairing up to bite the tail of the dragon. Plus there is no shame in doing business that's mutually beneficial. There is nothing like an HSR to travel from city to city for distances between 300-600 kms


Right on, a strong and prosperous Pakistan is in China best interests

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## DJ_Viper

Aether said:


> I foresee Pakistan will be developed very quickly in the same effort of China trying to develop Western China.
> 
> There is talk of creating 29 industrial zones along the corridor of CPEC and some 21 energy and mineral extraction zones something like that
> 
> So even just few medium to large scale industries are established, we are talling about billions of dollars worth of investment. I am sure this is where our other economic partners such as Turkey, UAE, Saudi Arabia, US and Germany will jump in



Sir, I've read various assessments on this CPEC program. Almost every Western economic powerhouse is interested in this, and the growth potential of Pakistan. An article in the times magazine has a one pager on this not too long ago, it said that in the next ten years, there will be about 4-6 cities that would look like "new Dubai's", along with over 20-30 business / manufacturing districts across Pakistan supporting business and trade activity. 

This article also mentioned that Pakistan would be in the top 16 economies before 2030. By looking at the speed at which the work is getting done, I'd probably guess that this would happen by 2025. Thanks

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## SMC

Now CPEC needs a loan to buy 1.2 billion heartburn medicines for our bharati friends. Then I will be happy.


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## Hassan Guy

Barely half the amount needed to replenish burnol stocks in India


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## Talwar e Pakistan

It isnt 55; didnt they also increase it by like 27 billion for the construction of 2 dams?


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## Clutch

DJ_Viper said:


> Sir, I've read various assessments on this CPEC program. Almost every Western economic powerhouse is interested in this, and the growth potential of Pakistan. An article in the times magazine has a one pager on this not too long ago, it said that in the next ten years, there will be about 4-6 cities that would look like "new Dubai's", along with over 20-30 business / manufacturing districts across Pakistan supporting business and trade activity.
> 
> This article also mentioned that Pakistan would be in the top 16 economies before 2030. By looking at the speed at which the work is getting done, I'd probably guess that this would happen by 2025. Thanks


I like the enthusiasm and share most of it with you. But, some concerns of mine that can potentially dampen those forecasts are:
*1. Continued corruption,
2. Poor law and order, 
3. Political instability, and
4. Weak judicial system.*

If those fundamentals are not addressed sooner than later, then CPEC may never reach the rosy future we are painting! And to be honest, I don't see any of those concerns being addressed currently. 

Just my 2 cents.


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## DJ_Viper

Clutch said:


> I like the enthusiasm and share most of it with you. But, some concerns of mine that can potentially dampen those forecasts are:
> *1. Continued corruption,
> 2. Poor law and order,
> 3. Political instability, and
> 4. Weak judicial system.*
> 
> If those fundamentals are not addressed sooner than later, then CPEC may never reach the rosy future we are painting! And to be honest, I don't see any of those concerns being addressed currently.
> 
> Just my 2 cents.



Sir, at this point in time, even the Americans would give you the same bullet points you've mentioned , depends on who you ask and about which leader. The same bullet points are a part of every society at some level, some more, some less. At the end of the day, a nation's economic and institutional system has to go on with democratic values. That is what takes a country forward. I've read a lot of people on here who apparently think Pakistan should be ruled by the same military who has ruled it for like 50 years? So that's fine if people think that way. But today, there is not a single country on the face of this planet who grew due to a military's efforts, period. Literally, not even one country which has become an economic power house due to dictatorship. 

What that tells you is, that corruption and everything else you brought up, are legit concerns, but you have to allow the system to fix itself. Plus, the law is the most supreme thing. A country is made for its people, not a small population for its military or political elite. The law and the people rule, overtime, the system starts to function and it fixed 80-90% of these. You can never fix anything 100% as that's impossible. Thanks


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## Clutch

DJ_Viper said:


> Sir, at this point in time, even the Americans would give you the same bullet points you've mentioned , depends on who you ask and about which leader. The same bullet points are a part of every society at some level, some more, some less. At the end of the day, a nation's economic and institutional system has to go on with democratic values. That is what takes a country forward. I've read a lot of people on here who apparently think Pakistan should be ruled by the same military who has ruled it for like 50 years? So that's fine if people think that way. But today, there is not a single country on the face of this planet who grew due to a military's efforts, period. Literally, not even one country which has become an economic power house due to dictatorship.
> 
> What that tells you is, that corruption and everything else you brought up, are legit concerns, but you have to allow the system to fix itself. Plus, the law is the most supreme thing. A country is made for its people, not a small population for its military or political elite. The law and the people rule, overtime, the system starts to function and it fixed 80-90% of these. You can never fix anything 100% as that's impossible. Thanks



I never mentioned dictatorship or military in my post. Wasn't my point. 

But i agree you need a free society for entrepreneurship to thrive and capitalism to grow. 

But as a side note and being the devil's advocate, China kinda goes against the grain... vis-a-vis the whole democracy and growth theory...


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## DJ_Viper

Clutch said:


> I never mentioned dictatorship or military in my post. Wasn't my point.
> 
> But i agree you need a free society for entrepreneurship to thrive and capitalism to grow.
> 
> But as a side note and being the devil's advocate, China kinda goes against the grain... vis-a-vis the whole democracy and growth theory...



I wasn't just addressing you, I linked your post with a few other discussions that I had with people and seeing a general behavior on here. So I thought I'd make a comment or two on that topic also.

China is different example, China isn't a dictatorship. It is a system like how Russia is (and was). I don't personally agree with the Chinese or the Russian system where the government decides everything for people, but it is still not a dictatorship where one general rules a country and there are military courts, suspension of the constitution and no growth or plans to grow anything for growing population (seen it all across the history in so many countries).

The Chinese at-least have a "party" where people combined run the country in one dimension and setup a legal framework for human freedom (obviously very limited), etc. But, they have grown the economy which a blind can see. And that one party system's what's been the case in China. 

I don't like it as an American individual, but I will respect the 1.3 billion people. If they are ok with it, who am I to tell them differently? Hey, their system has taken them from bicycles to one of the highest growth global economy so the results show the progress. Thanks

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## Pakistanisage

Pakistan needs to develop its " Human Capital " so that we have enough trained Manpower to run these upcoming projects.


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## Max

it will grow month by month.. inshaAllah it will be above 100bn by 2020.

CPEC will work as burnol factory for pathetic people who cant fathom progress in Pakistan..


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## Clutch

Pakistanisage said:


> Pakistan needs to develop its " Human Capital " so that we have enough trained Manpower to run these upcoming projects.



If all goes as forcasted Nd law and order improves... I foresee a lot of the overseas highly educated Pakistanis moving back to Pakistan and bringing their expertise and western work ethic with them. The first and most beneficial wave of them could very well be from America because of obvious reasons...


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## Basel

Aether said:


> I had created a thread on CPEC predicting, CPEC will ultimately end up investing 100-200 billion USD or so in Pakistan due to obvious reasons (industrial zones being build but no investment for industries as part of CPEC thus far, oil pipelines are proposed but not yet part of CPEC)
> 
> Its slowly rising after every few months
> 
> From 45.50 billion dollars ro 51.5 and now 55 billion usd already









http://urdu.aaj.tv/latest/پاک-چین-اقتصادی-راہداری-منصوبہ-6ممالک-ک/


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## tigerrock ali

How much will it rise now that Russia is IN?


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