Sorry, but this sort of rambling on about CPEC has been going on for too long. Misrepresentation because the government put out simplistic maps which a single dotted line running north to south giving Pakistanis the impression that CPEC is simple a monorail. Or a one way 50 lane super highway that can bend this way and that to accommodate provinces.
This is false. CPEC is not about a single road or a route, CPEC has within it multiple projects for developing industry, energy production through diversified means. Transportation is simple one aspect of it, and that aspect is covered by the development in Gwadar, the port, the city and the airport. The next aspect of transportation are the roads and railways. And there is NO one road selected as a route, there's a network of roads being built under this project. Including roads that go through KP, Sindh, Southern punjab and they are all interlinked or through one another to Gwadar.
For God sake, stop this divisive stuff, pretending that CPEC is all about a single road and route, and killing this one chance for real progress just because of nasty provincial politics.
Sir there are two main objectives for the CPEC project, connecting Gawder to China and easing the energy crises, everything else is either support project or will be the by product of all this activity. Out of $46 billion $36 will be energy related. Now sole object of Chinese investor like anyother investor is to develop a quick, small revenue producing project to take money back to china with profit. i.e coal and gas turbine power plants. Now if our govt had little bit brain power, they would have realized that cost of such project for Pakistan economy, people and industry will be overwhelming.
1. We have to buy foreign oil or LNG or Chinese coal power plants. (Billions every years)
2. All revenue will go back to china with interest and profits. (Billions every year)
3. Cost of energy will keep getting higher and will cause inflation.
4. Higher electric price mean higher cost of production for Pakistani products.
5. Higher cost of production mean Pakistani will not be able to compete in the export market.
5. Average consumer will pay more money to foreign LNG companies and in electric bill, leaving them broke reducing local economic activity hurting local business and Tax collection.
Now on scale of having no investment to this, obviously even this is good. but what could have been done to improve this investment.
1. As per media, since Chinese are being so generous, they should been given option, b/w building dams.
2. Dams last for several decades,
3. Provides revenues in billions every year.
4. Revenue could be used for build all the other that Ahsan Iqbal has on his wish list, without foreign loan, funding or interest.
5. Cheap hydro-energy, low production cost, more exports, more money for consumer to spend, more Tax collection, more Capital in the country.
6. Once limited life cycle of LNG or coal plant is over and money recovered, Pakistan will be back in the same spot asking for another foreign investment, siting in a dark stagnant economy.
With current approach, Ashan Iqbal talk about of hundred of billions of dollars is all trash talk. If there is no money left in consumer pocket to pay for the investment, no one is investing another dime in this country.
