3 MoUs signed for investment of $6.3bn signed

[farhan_9909]

KARACHI: Three separate Memorandum of Under standings (MoUs) with total investment of $ 6.3 Billion were signed between Government of Sindh and Japan-based company ETON to invest in priority projects of energy, infrastructure, and mass transit in a simple but impressive ceremony held at CM House here on Wednesday.

A CM House statement said that the Director General Sindh Board of Investment (SBOI), Riazuddin Qureshi, and the Chief Executive ETON Company, Shageston Kono, signed on behalf of government of Sindh and ETON Company respectively.

Chief Minister Sindh, Syed Qaim Ali Shah, Provincial Minister for Transport, Mumtaz Jakhrani, the Sindh Minister Information, Shajreel Inam Memon, the Sindh Minister Food Jam Mehtab Dahar, the Advisor to Chief Minister for Finance, Syed Murad Ali Shah, the Provincial Secretary Energy, Agha Wasif Abbas, Secretary Transport, Tuaha Ahmed, Secretary Finance, Sohail Rajput, Secretary to CM, Rai Sikandar and other officers of related Departments witnessed the ceremony.

The first MoU was signed by both parties showing the interest of ETON in assuming equity in both Sindh Engro Coal Mining company (SECMC) and Thar Power Company (TPC) and provides entire debt to the two companies by investing $ 1.6 billion to participate in the construction of 600 MW power project at mouth of Thar Coal mining.

The second MoU aimed to invest in another coal based power project for installation of two separate 660 MW power plant at Kati Bandar on Public Private Partnership (PPP) with investment of $ 2.2 billion.

This power plant will later be expanded to produce 6,600 MW after successful commissioning of the first phase of 2 X 600 mw.

The Project will cater for a Jetty, a transmission line, 235 KM rail track and other infrastructure facilities.

The Jetty will initially be used for import of general cargo and coal, till the Thar coal fields are fully exploited and after that the jetty would be used to export of Thar coal. Lying of 335 kM Railway track for transportation of coal from Thar coal mines and 500/750 kv Ac/d Transmission lines from Keti Bandar Power Plant to Thatta for onward power supply to Karachi and from Keti Bander to Jamshoro connecting with the rest of country will also be the part of this project.

The investment of 2x660 mw, power plants construction of Jetty, Transmission lines and rail track along with other infrastructure facilities is estimated $ 2.2 billion.

The third MoU was signed to make investment up to $ 4.5 billion in a JICA recommended Karachi Mass Transit Project (KMTP).

In this project JICA has recommended six priority Bus Rapid Transport (BRT) lines and two light Rail Transport (LRT) lines besides revival of Karachi Circular Railway KCR with estimated capital expenditure of about 4.5 billion US dollar.

The ETON signed MoU in the project along with Government of Sindh and to provide entire debt to the project.

The Sindh Government under the leadership of Chief Minister Syed Qaim Ali Shah has decided to pursue the projects of energy, infrastructure, Mass Transit and many other projects which are to directly benefit to people, accelerate economic activities and generate a great number of income and employment opportunities.

Meanwhile, the Chief Minister Syed Qaim Ali Shah has invited the foreign investment companies for their investment, specially to convert the street lights of Karachi and other big cities of province into solar energy and producing solid waste based energy there so that increasing burden of electricity consumption be declined and people be provide relief accordingly .

This he said while talking to the Ambassador of Italy, Adriano Chiodi, who called on him at CM House on Wednesday evening.

The Chief Minister said that Sindh Province was blessed with multi indigenous resources for generating electricity which include 180 billion tons of qualitative coal resources, powerful wind corridor, 70% gas reserve.

He said that in addition to that Sindh has good potential in agro products and we are self sufficient in producing wheat, rice, sugar cane, fruits and vegetable specially delicious mangoes.

He said that various investment companies from China, Japan, Turkey, United Kingdom and USA have made investment to exploit untapped indigenous sources of energy but still there was great potential for investment in Coal, Wind and solar based energy here in Sindh.

He said that Italy has also specialization in the preservation of heritage and Sindh was rich in heritage specially needs help in preservation of Moen-Jo-Daro and Bhanbhore Archaeological sites in addition to their investment in Solar and Solid waste based energy in big cities of the Sindh.

The Ambassador of Italy while talking on the occasion said that there were many companies in Italy interested in the investment in Karachi.

He said that we have good relations with Government and people of Pakistan.

He said that businessmen of Italy want to promote the trade and business activities with people of Sindh.

He said that Italy has specialization in various fields and our companies are ready to contribute in the development of Pakistan and Sindh.





Copyright APP (Associated Press of Pakistan), 2013

 

[Kompromat]

Good news keep coming from Thar. Looks like finally Pakistan might get its economy working again.

 

[Yogi]

looks like Nawaz is doing good work, don't know why PDF members don't like him...

 

[FaujHistorian]

Not to disrupt the party here,

Our super hero @W.11 posted this thread somewhere.

Now which one to believe.

Karachi turning into biggest village of the world

I hope this third one gets going soon.


--------------------------------------------------
The third MoU was signed to make investment up to $ 4.5 billion in a JICA recommended Karachi Mass Transit Project (KMTP).

In this project JICA has recommended six priority Bus Rapid Transport (BRT) lines and two light Rail Transport (LRT) lines besides revival of Karachi Circular Railway KCR with estimated capital expenditure of about 4.5 billion US dollar.
-------------------------------------------------------




May be we should "borrow" Shahbaz Sharif for 6 months.


I was hoping Imran khan will do this

But he is too busy wanking the Mullahs.

 

[WAR-rior]

Not to disrupt the party here,

Our super hero @W.11 posted this thread somewhere.

Now which one to believe.

Karachi turning into biggest village of the world

I hope this third one gets going soon.



The third MoU was signed to make investment up to $ 4.5 billion in a JICA recommended Karachi Mass Transit Project (KMTP).

In this project JICA has recommended six priority Bus Rapid Transport (BRT) lines and two light Rail Transport (LRT) lines besides revival of Karachi Circular Railway KCR with estimated capital expenditure of about 4.5 billion US dollar.




May be we should "borrow" Shahbaz Sharif for 6 months.


I was hoping Imran khan will do this

But he is too busy wanking the Mullahs.

Its just an MoU. I still doubt any active development until any investors sees his RoI.

Just wanna know, how will Karachi repay the investor for its development? Also, how do you guyz plan to maintain these infrastructure? You need active tax payers. How has govt planned to increase the number of Tax payers from 2,3% to more than 10%.

For me, as of now Pakistan need Aid to build and maintain its infra. The somewhat money earned shud be then used for next stages so as to not let pile the burden of Debt.

Investment is ok but repaying for the investment is a must to sustain the continous investments.

 

[FaujHistorian]

Its just an MoU. I still doubt any active development until any investors sees his RoI.

Just wanna know, how will Karachi repay the investor for its development? Also, how do you guyz plan to maintain these infrastructure? You need active tax payers. How has govt planned to increase the number of Tax payers from 2,3% to more than 10%.

For me, as of now Pakistan need Aid to build and maintain its infra. The somewhat money earned shud be then used for next stages so as to not let pile the burden of Debt.

Investment is ok but repaying for the investment is a must to sustain the continous investments.

True this is MoU

However PML-N gov has relatively high rate of turning MoU into actual projects.



IN Pakitan we do pay a ton of taxes. Paani tax, bijli tax, phone tax, petrol tax, property tax, sales tax, agri taxes (5 minimum types) every salaried person pays income tax.

So when people say we don't pay taxes, they are generally talking about income tax from self-employed Pakistanis.


So repayment is not an issue.


PML-N has proven in the past that they can build large project with multinational help.


AID for Pakistan is a misnomer.

We offer military services and get paid for it.

I wish US and Pakistan change the name from AID to Consultancy fee.


That will be true reflection of the money flow from USA to Pakistan.


peace

 

[WAR-rior]

True this is MoU

However PML-N gov has relatively high rate of turning MoU into actual projects.



IN Pakitan we do pay a ton of taxes. Paani tax, bijli tax, phone tax, petrol tax, property tax, sales tax, agri taxes (5 minimum types) every salaried person pays income tax.

So when people say we don't pay taxes, they are generally talking about income tax from self-employed Pakistanis.


So repayment is not an issue.


PML-N has proven in the past that they can build large project with multinational help.


AID for Pakistan is a misnomer.

We offer military services and get paid for it.

I wish US and Pakistan change the name from AID to Consultancy fee.


That will be true reflection of the money flow from USA to Pakistan.


peace

Well as for takes are concerned, all the taxes mentioned by you are reinvested in the same dept. Paani Tax is used to maintain pipelines, Bijli Tax for maintaining transformer substations, etc.

My point is, for any new development the allocation is done from the income tax. Hence, if thats missing where will the infusion come from?

Now you said bout conversion of projects by PML-N. But do u understand that if there is no money for maintenance, the whole burden comes back to comman man in terms of inflation.

Why do u think current inflation is around 25% in Pakistan? Simple reason, there is no coming back of money in Pak Economy. So my questions stands, Where will the money come back from and how has govt planned to do it. I assume, during elections in PLM-N manifesto this info must be there. Common man of Pakistan wud have asked for answers regarding this issue.

 

[FaujHistorian]

Well as for takes are concerned, all the taxes mentioned by you are reinvested in the same dept. Paani Tax is used to maintain pipelines, Bijli Tax for maintaining transformer substations, etc.

My point is, for any new development the allocation is done from the income tax. Hence, if thats missing where will the infusion come from?

Now you said bout conversion of projects by PML-N. But do u understand that if there is no money for maintenance, the whole burden comes back to comman man in terms of inflation.

Why do u think current inflation is around 25% in Pakistan? Simple reason, there is no coming back of money in Pak Economy. So my questions stands, Where will the money come back from and how has govt planned to do it. I assume, during elections in PLM-N manifesto this info must be there. Common man of Pakistan wud have asked for answers regarding this issue.

Look we can print rupees as much as the government wants. Obviously there is downside to paper money floating around


But the real issue with any country other than US, UK, EU members, is the availability of hard currencies like dollars and Euros.

I think that's what you are trying to talk about when you say there is no money.

You mean there are no dollar reserves with statebank.

Correct?

 

[WAR-rior]

Look we can print rupees as much as the government wants. Obviously there is downside to paper money floating around


But the real issue with any country other than US, UK, EU members, is the availability of hard currencies like dollars and Euros.

I think that's what you are trying to talk about when you say there is no money.

You mean there are no dollar reserves with statebank.

Correct?

Well yes but not exactly. My question is a simple macroeconomics ka funda.

You print paper money and invite inflation which is even worse.

Any investment leads to development rite? Now this development creates employment. More the number of employees in a country means more INCOME TAX coming back. Now this tax is the treasury for all new investments.

Any new investment can be done in 3 ways. 1. PPP, 2. BOT, 3. Govt Funded. Now in all these model, the onus to sustain the infra leans on Govt Budget. Whether its building or maintaining. This treasury gets its money from Taxes. Now dont count those taxes which is reutilised for the same sector like paani for pipelines, bijli for substations, etc.

For any new development as i repeat, Income Tax is a MUST.

Now its not the people of Pakistan are not employers of the country but due to lack of monitoring, almost 98% dont pay their IT. Now tell me how can a new development not become a burden on common man if treasury of govt is empty.

Hope I am more clear this tym.

 

[FaujHistorian]

Well yes but not exactly. My question is a simple macroeconomics ka funda.

You print paper money and invite inflation which is even worse.

Any investment leads to development rite? Now this development creates employment. More the number of employees in a country means more INCOME TAX coming back. Now this tax is the treasury for all new investments.

Any new investment can be done in 3 ways. 1. PPP, 2. BOT, 3. Govt Funded. Now in all these model, the onus to sustain the infra leans on Govt Budget. Whether its building or maintaining. This treasury gets its money from Taxes. Now dont count those taxes which is reutilised for the same sector like paani for pipelines, bijli for substations, etc.

For any new development as i repeat, Income Tax is a MUST.

Now its not the people of Pakistan are not employers of the country but due to lack of monitoring, almost 98% dont pay their IT. Now tell me how can a new development not become a burden on common man if treasury of govt is empty.

Hope I am more clear this tym.

In Pakistan


All the taxes collected (OK most of the taxes collected go straight to the federal government).

It then keeps whatever it needs and distributes the money to provinces roughly based on their population + % for special categories.



So if you go eat at restaurant, the tax goes to Feds

so is your income tax

So is the petrol tax


etc.


etc.

 

[Contrarian]

In this project JICA has recommended six priority Bus Rapid Transport (BRT) lines and two light Rail Transport (LRT) lines besides revival of Karachi Circular Railway KCR with estimated capital expenditure of about 4.5 billion US dollar.

@FaujHistorian @Aeronaut
Why is JICA playing games with Pakistan?

JICA explicitly told India to not develop Circular Railway and BRT as the main nodes of transport. And politicians wanted to develop Circular railways and BRT as it was much cheaper compared to building a metro network.

They specifically told us that we need to develop a Metro as the backbone of the public transport and then use Light rail, BRT as feeders to the main Metro network.

That is the reason Delhi has a backbone of Metro, being augmented by BRT and in a couple of years monorail. Both of which feed into the Metro network.

Same for Bombay, Bangalore, Chennai, Jaipur.

Why the change with Pakistan?

 

[WAR-rior]

In Pakistan


All the taxes collected (OK most of the taxes collected go straight to the federal government).

It then keeps whatever it needs and distributes the money to provinces roughly based on their population + % for special categories.



So if you go eat at restaurant, the tax goes to Feds

so is your income tax

So is the petrol tax


etc.


etc.

Arre haan. I am not disputing bout where the collected tax go. I am only questioning Pakistan's strategy to collect tax from maximum people. I mean, its on quote that only 2,3 % people pay their taxes. I am asking how will this number increase.
Trust me, without increase in revenue from Incometax, no SUSTAINABLE DEVELOPMENT is possible. Which means sock up for 50% inflation if development do turn up.

 

[forcetrip]

Why do u think current inflation is around 25% in Pakistan?

Where did you get that number from? Last I read there was extreme agitation when it hit double digits of 10% a few weeks back.

 

[FaujHistorian]

Arre haan. I am not disputing bout where the collected tax go. I am only questioning Pakistan's strategy to collect tax from maximum people. I mean, its on quote that only 2,3 % people pay their taxes. I am asking how will this number increase.
Trust me, without increase in revenue from Incometax, no SUSTAINABLE DEVELOPMENT is possible. Which means sock up for 50% inflation if development do turn up.

I have to see the report you talk about'


However I assure you, the only low numbers we score on is the personal income tax from self employed and small biz.

Corporate income tax is paid for sure.

@FaujHistorian @Aeronaut
Why is JICA playing games with Pakistan?

JICA explicitly told India to not develop Circular Railway and BRT as the main nodes of transport. And politicians wanted to develop Circular railways and BRT as it was much cheaper compared to building a metro network.

They specifically told us that we need to develop a Metro as the backbone of the public transport and then use Light rail, BRT as feeders to the main Metro network.

That is the reason Delhi has a backbone of Metro, being augmented by BRT and in a couple of years monorail. Both of which feed into the Metro network.

Same for Bombay, Bangalore, Chennai, Jaipur.

Why the change with Pakistan?

Not sure. Haven't read the report.

But I trust your info is correct.


What Indian cities are doing is the right thing IF you got the hard currency aka dollars / Euros to pay for it.


The next cheeper solution is what Karachi is going for.


It has a nice circular railway from British times. We need to upgrade it, and keep it clean.

Then use BRT and light rail to feed the circular railway.


obviously the circular railway has to be augmented as the city continues to expand.


peace

 

[WAR-rior]

Where did you get that number from? Last I read there was extreme agitation when it hit double digits of 10% a few weeks back.

Just heard in on a Pakistani Talkshow some senior columnist quoted it. Also inflation can be calculated in different ways. as per WPI, CPI, Nominal, etc. Dont know which one was that person explicitly mentioning. But again, Inflation of Pakistani in Indeed very very high and thats where my argument start. What if it incereases more.