China to build mega oil pipeline from Gwadar to Kashgar

[dadeechi]

That's a very good point.

Any idea about the rates of interest China is charging to these three countries?

The interest rates vary depending on the project (road, port, power etc.) and the type of involvement in the engagement. Note that China typically brings its own construction companies and workforce for these projects.

China's original offer to Pakistan road project was 3% which was later reduced to 1.6%.

For Myanmar, its interest free loan while Thailand it is 2.5%

Of all the three, Myanmar is the ideal route for China as it connects to the population centers of China in its east coast apart from Myanmar being politically closer to China.

Thailand has been historically closer to the west and the route still passes through the minefield called SCS.

The Pakistan route travels through barren lands of western china. Security is also an issue.

 

[Shareef]

Good if all that happens, but here are some points to see it in a more realistic manner, sans the hyperbole:

1. Industrial park at Gwadar:

a) How much stake Pakistani govt. and/or Pakistani companies hold in that park, or is it a Chinese business refining crude oil on the port and reducing the transit cost for themselves? If Pakistan's contribution is only the piece of land, then I doubt Pakistan is gaining much in terms of revenue. In fact I am expecting that China will get more than a fair share for the unequal nature of the China-Pakistan relationship and Pakistan's dependency on China. But I may be wrong on the last part.

b) China has this tendency to avoid local recruitment and getting the job done with Chinese workers to the extent possible, so how many jobs will go to Pakistanis, especially the high value jobs, remains a question.

c) Even if all goes in Pakistan's favour, still it's a transit route with a refinery and port, it will have some positive returns for Pakistan, but not to the astronomical proportions that Pakistanis are projecting in hundreds of threads. especially when Pakistan is not a tiny country but a population of 150 million!

2. Jobs from road and pipeline making:

That's temporary employment if Pakistanis are getting that job, the road and pipeline will be finished in a few years. Roads also boost business activities, but for whom? Pakistanis seems to be giving away all manufacturing activities to China and importing everything from there, even silly handbags and umbrellas!! That road might be used for importing Chinese stuff than to support its own manufacturers who must be distressed by Chinese competition in everything. So who will get richer here remains doubtful.

3. Transit revenue:

There is hardly any clarity on that, China is investing and making all the infrastructure they need, and China also has upper hand in the relationship, and they are hardcore business-minded, so Pakistan might not get much in terms of transit fee.

Regarding point 3... If Pakistan allows free passage of goods through its territory... it will repent afterwards. It must charge decent money from Chinese... This CPEC is more important for China than for Pakistan... China will be able to avoid a Naval Blockade of its Economy using CPEC. Chinese are investing because of their own benefit. Pakistan should mean business and impose a small amount of tax on passage of Chinese goods and trucks.

 

[dray]

Regarding point 3... If Pakistan allows free passage of goods through its territory... it will repent afterwards. It must charge decent money from Chinese... This CPEC is more important for China than for Pakistan... China will be able to avoid a Naval Blockade of its Economy using CPEC. Chinese are investing because of their own benefit. Pakistan should mean business and impose a small amount of tax on passage of Chinese goods and trucks.

Check Post #62 of @dadeechi

 

[optimisticlad]

This is good news for both countries and I see and India

hahahhahaha
you just explode it..