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Govt shuns plans to renegotiate $15b energy projects

Wood

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Pakistan does not have to worry about repaying the Chinese loans. Some private Pakistani companies may default, but the sovereign state will always be accommodated by China if the payment is not on time. This is because China needs Pakistan for its strategic need.

I'm sure the decision makers in Pakistan are well aware of this privilege in their relationship with China :-)
 

Patriot forever

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Sir i think you do not follow anyone or shaukat tarin. Or you follow someone from PTI how is in school or somewhere of class 7 to 9.

One the reason importing massive food and wheat and sugar is to build a useless strategic reserve of food and cold storage, which only incompetent person can give idea to an incompetent person.

Sugar and wheat is self created crisis just like petrol in covid ,where now petrol prices changes 2 times a month and gift of Naya Pakistan.
Every country including China and US maintain strategic reserves. Oil reserves and gas storage is the next most important thing for us.

I am sure they take will get rid of their reserves once they hear your advice.

What will happen if drought or locust or flood damage our crops?

You should read the BS what you write before posting.

The timing can be questioned not the decision.

Anyways are you actually defending $3-5b payments?
Yes that was the one that create the mess and they had to in China in 2019 February to sort things out and Imran Khan had to say sorry. What ever Imran Khan try to audit becomes turd like sugar, wheat prices, PCB, PSX, PKR.

If Bajwa was not Army Chief, Chinese would removed Imran Khan 2018 easily due to his stupid and incompetent decision. He thinks everyone is stupid like his PTI followers.
Yes yes why did he question the 30% ROI. Of course he told them that Pakistani people can not afford such deals.

The only option we had was to ask them, we know how corruption and incompetence in these sort of deals e.g. Riko dik, Karkey.

They refused now suck up and pay the bill.
 

HAIDER

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Every country including China and US maintain strategic reserves. Oil reserves and gas storage is the next most important thing for us.

I am sure they take will get rid of their reserves once they hear your advice.

What will happen if drought or locust or flood damage our crops?

You should read the BS what you write before posting.

The timing can be questioned not the decision.

Anyways are you actually defending $3-5b payments?


Yes yes why did he question the 30% ROI. Of course he told them that Pakistani people can not afford such deals.

The only option we had was to ask them, we know how corruption and incompetence in these sort of deals e.g. Riko dik, Karkey.

They refused now suck up and pay the bill.
We only believe in Allah ki marzi and miracles.
 

TheDarkKnight

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Well Nawaz made those agreements when he and Ishaq dar were maintaining a constant dollar to PKR rate at 100. It was a good deal then. The country was growing at decent rate of over 5%. And had it continued this payment would have been easy. So what started this meltdown? Imran's constant dharnas and labbaik sit in, which undid the growth. Contrary to popular belief here, terrorist attacks and US drone attacks came down in PML-N period not Imran's. Army too wanted PML-N out for their own reasons. So growth came to a naught, these expenses became a huge overhead. All of PML-N financial plans came to tatters and Pakistan as a country had to stare at a massive debt blackhole.

So moral of the story is to let any government in power to do its job till the end and make a decision on their performance. Too many institutions of Pakistan have a stake in administration and each vying to undercut others. I don't know if it is cultural but it has become a bane for Pakistan for too long now. Pakistanis should come together and should make sure that boundaries are established between various organs clearly.
So your silly excuse is that it all happened because NS was disturbed by opposition? If you believe that was condemnable then you should be consistent and condemn PMLN in trying to destabilize PTI govt with Dharna long marches with JUIF and PDM etc, and running an international campaign to isolate and declare state institutions as rogue.

Now to your specific silly argument-the payments are due in USD ! Not rupees. You earn dollars via exports, remittances or through FDI.Exports and remittances went down since PMLN took over from ppp and FDI didn’t grow as well. The exchange rate is not going to help us here! At least admit the blunder and treason done again here along with the IPP agreements done by PPP, and idiots like you and @FOOLS_NIGHTMARE and @Desprado are running a misleading campaign.
 

Pak Nationalist

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Govt shuns plans to renegotiate $15b energy projects
Pakistan, China holds 10th JCC meeting through videoconference
Shahbaz Rana| September 23, 2021

10th joint coordination committee on cpec photo radiopakistan

10th Joint Coordination Committee on CPEC. PHOTO: RadioPakistan

ISLAMABAD:

Islamabad on Thursday committed with Beijing that it would not reopen $15 billion deals of energy projects under the China-Pakistan Economic Corridor (CPEC), as both the nations also agreed on new areas of cooperation to deepen strategic economic relations.
With Pakistan’s written assurance to China, the chapter opened by the government of Prime Minister Imran Khan on reducing power tariffs and withdrawing tax concessions given to the Chinese energy projects seems closed now.
The consensus was reached during the 10th meeting of the Joint Cooperation Committee – the highest decision making body of the CPEC -- which finally met nearly after two years.
The meeting was held through videoconference and co-chaired by Asad Umar, Minister for Planning and Ning Jizhe, Vice Chairman of the National Development and Reform Commission (NDRC) of China.
The Pakistani side is committed to maintaining the tax and tariff policies stable and establishing a more standardised and facilitating power market in Pakistan, according to the decision of the JCC.

The tariff reduction negotiations with China have to be seen in the context of exceptionally cordial relations between both the countries, Umar said while addressing a press conference after the JCC meeting.
The PTI government in the past had announced plans to renegotiate the power tariffs and return on equity given to Chinese investors of the energy projects. It also wanted to seek a rollover of the $3 billion maturing Chinese repayments.
So far, 10 energy projects worth $10 billion have been completed and four projects costing $4.7 billion are under implementation. The government wanted to renegotiate terms of these schemes.
Pakistan also assured China to disburse $1.4 billion or Rs230 billion payables of the Chinese power plants on account of power generation cost that has been stuck up in the vicious circular debt cycle.
Pakistan had committed to open a revolving fund that would have deposits equal to 21% of the power generation cost. But the commitment was never honoured.
China on Thursday hoped that the Pakistani side would get the article related to the revolving account on the ground soon.
Umar said the ministries of finance and energy were working on a path to resolve the issues of overdue payments of the CPEC energy projects and the revolving fund.
The minister said about $1.4 billion or Rs230 billion were payable to the Chinese power plants and a solution would soon be found to it.
The JCC also approved the decision of inclusion of 700.7 MW Azad Pattan HPP and exclusion of RY Khan 1320 MW project from the CPEC framework.
Both sides agreed that the remaining 600MW Zonergy Projects at Quaid-i-Azam Solar Park will be implemented, in accordance with Pakistan’s generation planning, by means acceptable to both sides.
Pakistan and China also agreed to include new areas for cooperation under the CPEC framework.
Both the countries agreed to carry out a joint study for future development of Thar Coal blocks with a view to meeting Pakistan’s energy needs, conversion of coal into other products for domestic demand as well as exports.
China offered support for a plan for oil and gas sector development. For Thar Coal Gasification to Fertiliser Project, it was decided that the Pakistani side would prepare a policy framework to bring this technology to the country.


The Chinese side noted the progress on the North-South Gas Pipeline Project and offered support to carry out related actions under the framework of the development plan for the oil and gas sector of Pakistan.
For Strategic Underground Gas Storages, the government is planning to develop underground gas storages to ensure uninterrupted supply of natural gas.
The Pakistani side invited technically capable and financially sound Chinese companies in the exploration, development and production of metallic minerals.
Both sides agreed to continue cooperation in areas including Emerging Technologies Maritime sector, Mines and Minerals (Oil & Gas), Tourism.


Chinese concerns
Regarding Sukkur-Multan (M-5) project, the Chinese side expressed concerns about the deductions by the Employer unilaterally, the non-payment of remaining 50% of retention money and deductions from the works already completed and claims.
After detailed deliberations, both sides agreed that Employer’s and EPC Contractor’s issues shall be expeditiously resolved as per provisions of contract.
ML-I project
Both the countries agreed that financing negotiations of the Mainline-I project of the CPEC would focus on package-I, whose five sub-projects had been confirmed. The two sides agreed to make efforts to reach agreement on the terms of financing in a timely manner.
Discussion on ML-I is an ongoing process and issues like loan currency mix and interest rates remain unresolved, Umar said.
Both the sides agreed that the DI Khan-Zhob project was on high priority list and the loan request forwarded by the Pakistani side on the new format would be positively considered by China.
The JCC agreed to take the realignment of KKH from Thakot to Raikot Projects as one of the short-term projects instead of the Thakot-Raikot N-35 remaining portion and advance the realignment as a priority.
It was decided that the Pakistani side will process loan requests for Chitral-Shandoor-Gilgit (369km) project for consideration of the Chinese side. They decided to deliberate on Mirpur-Muzaffarabad-Mansehra (MMM) project after the approval of its PC-1.
It was agreed to discuss Peshawar-DI Khan Motorway and Dir-Chakdara Motorway after approval of their PC-1s by Pakistan.
Pakistan proposed to include Chitral Chakdara M-1 (Swat Motorway) as part of CPEC Western Corridor.
The Chinese side agreed to consider it after the submission of the project proposal. Both the sides agreed to implement 300MW Coal-fired Power Plant in Gwadar as soon as possible.

In order to encourage the substantial commencement of the project and put it into commercial operation at the earliest, Pakistan and China agreed to jointly create favourable conditions for project financing.
Considering the impact of the Covid-19 pandemic, the extension in financing closing date and the commercial operation date will be evaluated.
Security cooperation
Pakistan and China reaffirmed that a secure environment was vital to the development of CPEC. The two sides agreed that under a significantly evolved regional security environment, threats had complicated security challenges confronting CPEC.
Our learning from the Dasu attack is that Pakistan has to provide a kind of security to non-CPEC projects that is available to the CPEC scheme, said Umar.
Both the sides strongly condemned recent terrorist attacks targeting CPEC projects.
Pakistan and China signed an MOU for the establishment of a Joint Working Group (JWG) on information technology.
The most exciting development of the 10th JCC is the decision to set up an information technology joint working group, as IT is tomorrow’s economy, said Umar.
Letter of Exchange of Provision of Balochistan Solar Power Lighting Equipment and Provision of Medical Equipment and Material were also signed.
The JCC also announced the signing of MoU on Karachi Coastal Comprehensive Development Zone (KCCDZ) and Agreement of Cooperation Framework between Ningbo Port and Gwadar Port as well as Lease deed of Gwadar Expo Centre.

Andthere goes Pakistan's dreams of getting any concessions from their iron brother 😂

@Desprado @FOOLS_NIGHTMARE @Mav3rick @blueazure @farok84 @ziaulislam @Patriot forever @Dual Wielder
The problem began with the government that negotiated such lousy deals. The "iron brother" then compounded the misery by not showing an iota of flexibility. The lessons to learn here are, 1) agreements should be made only after safeguarding your long-term interests as short-term interests are transitory in nature lest you be left with overcapacity and capacity trap, 2)Chinese do not muck around when it comes to business. It is futile to expect them to honor the special relationship by extending favors once a contract is signed, 3) Contracts are sacrosanct for the Chinese, make these right the first time and use prescient folks while making these.
 

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