What's new

China Pakistan Economic Corridor (CPEC) | Updates & Discussions

Chinese Investment (45 Billion) detail

2uy0kcm.jpg
 
Official route map of the Pakistan-China Economic Corridor released by the Planning Commission of Pakistan showing multiple routes through all provinces

10989205_811623962256828_5512808253237183426_n.jpg


I guess Pak-China Economic Corridor has 2 routes 1 from GB to Punjab then Sindh and enters Balochistan and 2nd from GB to KPK and Balochistan...
 
The China-Pakistan Economic Corridor is an important part of the current economic cooperation between China and Pakistan, and also showcases how China's "Belt and Road" initiative connects with Pakistan's strategy of boosting its economic development. Being a flagship project of the "Belt and Road" initiative, the China-Pakistan Economic Corridor sets up the strategic framework for bilateral pragmatic cooperation. We hope that the building of the China-Pakistan Economic Corridor would further strengthen pragmatic cooperation in various fields, deepen the integration of interests of the two countries and propel common development.
 
The China-Pakistan Economic Corridor is an important part of the current economic cooperation between China and Pakistan, and also showcases how China's "Belt and Road" initiative connects with Pakistan's strategy of boosting its economic development. Being a flagship project of the "Belt and Road" initiative, the China-Pakistan Economic Corridor sets up the strategic framework for bilateral pragmatic cooperation. We hope that the building of the China-Pakistan Economic Corridor would further strengthen pragmatic cooperation in various fields, deepen the integration of interests of the two countries and propel common development.

This will seal our old relationship for another 100 years.
 
Pakistan Economy: China-Pak Relation … Ready to Weather All?



In what has been hailed as a historic bilateral collaboration, Pakistan and China signed 51 MoUs for US$28bn worth energy and infrastructure projects, part of an ambitious plan of US$46bn projects to be undertaken by 2030. The power sector remained the biggest contender for funds promised by China, with nearly 30 MoUs signed relating to power projects that promise to add 10,400MW to Pakistan's energy grid over the next 3yrs, of which projects with 8370MW capacity have said to reach financial close. MoUs for infrastructure projects, relating to the development of the China-Pakistan Economic Corridor (CPEC) route were also signed which are stated to reach completion by Sep'16. While the CPEC is being touted for its potential to spur economic growth and foreign investments in Pakistan, we remain conscious of possible implementation risks for the agreements to become a reality emanating particularly from security threats. .



Power pacts: Pakistan and China signed 51 MoUs amounting to US$28bn (of a total US$46bn plan), adding to the China-Pakistan Economic Corridor. The energy sector remained the biggest contender for funds promised by China, with nearly 30MoUs signed for power projects promising to add 10,400MW to Pakistan's energy grid (current installed capacity at ~24,375MW) over the next 3yrs. Of these, projects with planned generation of 8,370MW are ready to be rolled out as for them the Planning Commission (PC) has announced a financial close. Most power project MoUs relate to financing agreements, with Chinese banks (primarily EXIM Bank of China and Industrial and Commercial Bank of China Limited (ICBC)) lending to stakeholders in these power projects.



Infrastructure for CPEC: US$10bn of the total US$46bn will be dedicated to infrastructure projects, primarily relating to development of the Pak-China economic corridor route. Four projects highlighted include Karakorum Highway, Karachi-Lahore Motorway, Gwadar Port East Bay Expressway and the Gwadar International Airport. The completion date for these projects has been set for Sep'16, which will be crucial to meet given the projects' operational importance for the eastern route of the corridor. As per the agreements, Pakistan will remain eligible to receive concessional loans to fund the projects, mark-up for which was earlier said to be subsidized by the Chinese Government.



Agreement to implementation: While the CPEC and its associated projects are being touted for their potential to spur economic growth and foreign investments in Pakistan, we also highlight possible implementation risks of the ambitious plan. Recalling the failure in complete implementation of MoUs signed in 2004 (China's share in FDI slipped from 1.5% in FY04 to 0.03% in FY05) as well as Pakistan's inability to derive the potential benefits (slow pace in realizing benefits of the FTA (US$15bn mark achieved last year against target of FY11), we remain conscious of possible impediments to the implementation of projects emanating from security threats and any administrative bottlenecks due to any change on the policy making front. However, some optimism can be derived for the initiatives, particularly infrastructure projects, given the strategic importance CPEC route for China as part of its broader 'One Belt, One Road' program (easy accessibility to Middle-Eastern imports with route reduction by 12,000km).



If all goes well … : Remaining conscious of possible risks, we also highlight opportunities for economic benefit coming through the CPEC agreements. While the holding structure of the said power plants remain to be clarified, Chinese firms such as China Three Gorges Corp (CTG), China Power International Holding (CPIH), Huaneng Group, and Zonergy Corporation are said to be investing in the form of commercial ventures, which could provide impetus to the country's ailing foreign direct investment (FDI) flows. Moreover, the influx of investment in infrastructure can prove to be potential growth driver for the economy with various sectors benefiting. Potentially led by the cements segment, we expect to see spillover benefits coming to local allied businesses such as steel and engineering. Some relief to the fiscal balance may also come on the back of concessional loans becoming a direct support to developmental expenditure. However, gauging more concrete implications of the program's implementation remains contingent on the detailed terms of the major power and infrastructure project
 
The massive project is supposed to be completed untill 2030 inshaAllah,however I have two questions if anyone is willing to help :
1) I heard that the total Chinese investment would be $75 bn and the $45bn announced is the initial investment meant to render the corridor running untill 2020.
Is this true ?

2) What is in this project for Pakistani engineers ? Will the scope for engineers increase 2-3 years from now or all the project is to be taken care off by Chinese engineers alone ?
 
The massive project is supposed to be completed untill 2030 inshaAllah,however I have two questions if anyone is willing to help :
1) I heard that the total Chinese investment would be $75 bn and the $45bn announced is the initial investment meant to render the corridor running untill 2020.
Is this true ?

2) What is in this project for Pakistani engineers ? Will the scope for engineers increase 2-3 years from now or all the project is to be taken care off by Chinese engineers alone ?

Well there will be Pakistani Engineers as well as Chinese Engineers like we saw in Bahawalpur Solar Power Project...

Well we all heard 45 Billion Dollar Investment nothing about 75 billion... There are 51 projects and work on 28 has been started maybe the total investment is 75 Billion
 
Well there will be Pakistani Engineers as well as Chinese Engineers like we saw in Bahawalpur Solar Power Project...

Well we all heard 45 Billion Dollar Investment nothing about 75 billion... There are 51 projects and work on 28 has been started maybe the total investment is 75 Billion
Well ideally with an investment of this scale,one would expect the amount of jobless engineers to decrease sharply in Pakistan.
 
Total 3 routes
1 from Balochistan and KPK
1 From Sindh Balochistan and Central Punjab
1 Is Karachi Lahore Motarway From Sindh and Punjab


View attachment 217279
This $46 bn is loan or investment.....If investment then it is unlikely for Pakistan to earn any toll and taxes in this route for long time....if loan then you have to pay them back such a huge money.....

Terrorists won't just come in and blow stuff up just because they feel like it. This isn't India where anyone can walk in anywhere and no one cares
Thats why foreigner scare to go to Pakistan
 
This $46 bn is loan or investment.....If investment then it is unlikely for Pakistan to earn any toll and taxes in this route for long time....if loan then you have to pay them back such a huge money.....


Thats why foreigner scare to go to Pakistan

Investment BOT
 

Pakistan Affairs Latest Posts

Back
Top Bottom