• Monday, August 19, 2019

Pakistan proposes some $1.3 Billion US Dollars for CPEC in fresh budget

Discussion in 'CPEC' started by Clutch, Jun 12, 2019.

  1. Clutch

    Clutch ELITE MEMBER

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    Pakistan proposes some 1.3 bln USD for CPEC in fresh budget

    Source: Xinhua| 2019-06-12 01:12:40|


    ISLAMABAD, June 11 (Xinhua) -- The Pakistani government on Tuesday proposed in its fresh budget to allocate 200 billion rupees (about 1.33 billion U.S. dollars) for the China-Pakistan Economic Corridor (CPEC) and relevant projects during the 2019-20 financial year starting July 1, 2019.

    The country's Minister of Revenue Hammad Azhar, who presented the budget of 7.022 trillion rupees for the upcoming fiscal year, said that the government has increased CPEC budget by 1 percent than the ongoing year, while the total budget increased by 30 percent compared to the current fiscal year.

    Addressing the National Assembly, or the lower house of the parliament, Azhar mentioned focal projects that could achieve industrial development, road infrastructure and modernization of railway network under the CPEC, saying that the government will give priority to such projects.

    "CPEC continues to remain in the spotlight and the government has funded the projects under it to accelerate the development and creation of job opportunities in the country," said the minister.

    He said that the government has managed to cut the trade deficit by 4 billion U.S. dollars during the current fiscal year by mainly decreasing luxurious and capital imports.

    According to the planed budget, Pakistan's defense budget in the next fiscal year will remain static at 1.15 trillion rupees without any increase, said the minister, adding that the government will ensure that there would be no compromise on the security of the country.

    On the government's revenue, Azhar said that the government has set a target of 5.82 trillion rupees out of which 5.56 trillion will be collected through different taxes. The government has increased taxes on different items, including edible oil, cement, cigarettes and sugar, but it did not change the current sales tax at the rate of 17 percent.

    The minister added that the government is likely to get 6 billion U.S. dollars loan on low-interest rate from the International Monetary Fund and 3 billion U.S. dollars worth of fuel on deferred payments from Saudi Arabia.

    According to the minister, on the direction of Prime Minister Imran Khan, the government will continue its austerity drive by reducing the salaries of ministers by 10 percent and slashing government's running expenses by 23 billion rupees.

    Earlier on Monday, Pakistan's Ministry of Finance released the Annual Economic Survey for the fiscal year of 2018-19, revealing that the country's gross domestic product grew by 3.3 percent in the outgoing fiscal year, which is the lowest in the last nine years.

    According to the survey, the overall economic growth slowed down amid monetary and fiscal tightening by the government.
     
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  2. Clutch

    Clutch ELITE MEMBER

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    $27 Billion dollars projects completed under CPEC: Asad Umer

    June 10, 2019


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    ISLAMABAD, Jun 10 (APP):Pakistan Tehreek-e-Insaf senior leader Asad Umer on Monday said that projects amounting to $ 27 billion under China Pakistan Economic Corridor (CPEC) have completed or near completion.

    Speaking in National Assembly, he said, “Total of 50 billion dollar projects were started in the country under CPEC out of which 27 billion dollars projects have been completed or near completion.”

    He said that only seven billion dollars Foreign Director Investment (FDI) arrived in the country during Pakistan Muslim League (N) tenure out of which 4 billion dollars FDI came under CPEC.
     
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  3. aziqbal

    aziqbal PDF THINK TANK: ANALYST

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    20-30% of Pakistans national debt is from China

    yet China accounts for 90% of Pakistanis infrastructure projects

    did anyone mention the debt trap?
     
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  4. AZADPAKISTAN2009

    AZADPAKISTAN2009 ELITE MEMBER

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    Fantastic news hope we make 4-5 Desalination plants as part of CPEC to help grow new cities
     
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  5. 313ghazi

    313ghazi SENIOR MEMBER

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    This is the third Pakistani government to approve this project and work on it. Nobody has to accept a loan. We could choose not to have infrastructure instead. Or maybe we could pay tax and develop it ourselves... :woot: Perhaps we should check out the threads of tax before we go down that road. :P

    All debts have to be repaid - you know that. If we are borrowing money to build infrastructure, lets hope we have a plan to utilise said infrastructure to generate revenue to help pay off the debt. Or should the Chinese do that for us too?
     
  6. aziqbal

    aziqbal PDF THINK TANK: ANALYST

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    those projects are big infrastructure projects, from power to rail to road to port to airport

    they will directly contribute 2-3% to annul GDP

    if Pakistans GDP is $300 billion for sake of argument thats $6-9 billion per year, lets just say $5 billion

    the loan repayments have not started in full for all projects

    but by 2020 we will be repaying loans and also ending up with money left over

    we are gaining by these projects, when repayment start the additional income due to growth will not only cover repayments but also leave us money in the pocket
     
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  7. AZADPAKISTAN2009

    AZADPAKISTAN2009 ELITE MEMBER

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    Without cpec money their would be shortages for power
     
  8. ALi Rizwan

    ALi Rizwan FULL MEMBER

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    Would you like to explain???
    Even before when Pakistan was facing 12 hrs + load shedding/day it was more to do with cost <Circular Debt> rather then production capacity.
    Using few projects and that too on imported fuel instead of dams is not a logical step.
    Not to forget we not only need cheap electricity but also water and for Agri & huge population.
    Ground water is not infinite.
     
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  9. aziqbal

    aziqbal PDF THINK TANK: ANALYST

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    Power shortages not only power generation

    It’s also the transmission lines

    They are old and outdated

    Pakistan needs new power lines where the loss is low

    I don’t know is there any CPEC project that covers upgrade of the transmission lines?
     
  10. AZADPAKISTAN2009

    AZADPAKISTAN2009 ELITE MEMBER

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    Massive Electricity Upgrade coming to Pakistan
    NuclearPowerplant.png
     
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  11. ALi Rizwan

    ALi Rizwan FULL MEMBER

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    No its not. This load shedding is primary due to Circular Debt and secondary due to Production Capacity.

    We constructed Main Transmission lines for what???? Too connect major Production unit<Dams> with actual load <Punjab/Sindh>. Did we construct any dams later???

    Please recheck your words and your attached list.

    CHASMA project was launch and active before CPEC. Even Google Map can confirm that.

    And why Kanupp-1 is in list????? Kanupp-1 is older then many users in defence.pk

    You credit CPEC for resolving Power Issue and you failed to mention even a single project under it.

    Not to forget those imported fuel + expensive unit cost is not a long term solution.
     
  12. aziqbal

    aziqbal PDF THINK TANK: ANALYST

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    Ali Rizwan kindly calm down