China wishes to shift industries to Pakistan: Iqbal

[barbarosa]

It is a good news that China does not transfer money to State Bank of Pakistan, because Pakistani leader ship will transfer it to Dubai and utilize for their own trade.

 

[Scavenger]

It is a good news that China does not transfer money to State Bank of Pakistan, because Pakistani leader ship will transfer it to Dubai and utilize for their own trade.

As I Have Mentioned Earlier Chinese Do Not Normally Give Direct Cash Handouts.It Is Not Like That $46 Billion Will Suddenly Be Transferred to State Bank Accounts And Get Recorded As FDI.The Money Is Transferred to Chinese Companies And Those Companies Then Mobilise Men and Material To Complete The Desired Infrastructure

So If The Money Is Not Appearing In SBP Records It Does Not Mean That The Investment Is Not Coming.Get Your Facts Strait

You have been misinformed Sir's about what a Central Bank is and what it does.

Money is not deposited to Central Bank's. The Govt of Pakistan cannot take any kind of money like that.

Even when a private Chinese company invests in Pakistan directly, the money is recorded by SBP. In fact it even records stock market investments in Pakistani stock exchanges made by foreign companies.

That is the cumulative sum total of every penny that has come inside Pakistan from foreign shores whether by Governments or by private companies.

Only grants or aid is not reflected by Central Bank (SBP). Every investment is.

 

[Nilgiri]

It Is Going To Be Given As Project Assistance Over A Period Of Time.

So how long will this period of time be? Is the main investment flow supposed to be from now to 2018....or does it start in big way from 2018 onwards? Thanks for your post.

 

[Jlaw]

Chinese make ganesha idols...they even rip off old handicraft designs that have been traditionally made in the sub continent..They even have all varieties of mangoes growing albeit fake ones for e.g.

I look at the chinese nation as a big corporation (because that's how they run their country) that kills the domestic industry completely. .raw material to end products...manipulate weak nations like pakistan, Sudan etc with their loans and handouts while doing nothing to actually rid them of their internal issues and dominate them as vassal states. Big corporations follow such policies. .when people are as fallible and desperate then it's easy to manipulate them.

Chinese make Ganesha idols and countless other things because they can do it most efficiently with good quality helping corporations make a lot of money. I can't say the same for a certain sub-continent.

 

[Samlee]

So how long will this period of time be? Is the main investment flow supposed to be from now to 2018....or does it start in big way from 2018 onwards? Thanks for your post.

Most Projects Agreed To In 2013 Will Be Completed In 2018 From There CPEC Will Start Functioning.Full Fledged CPEC Development Will Continue upto 2030

 

[Nilgiri]

Most Projects Agreed To In 2013 Will Be Completed In 2018 From There CPEC Will Start Functioning.Full Fledged CPEC Development Will Continue upto 2030

So in 2019 start, we will know how much exactly of the 46 billion was materialised on the ground.

This fiscal year should already show a big uptick. Are there any estimates for FDI from China for this fiscal year alone?

 

[Samlee]

You have been misinformed Sir's about what a Central Bank is and what it does.

Money is not deposited to Central Bank's. The Govt of Pakistan cannot take any kind of money like that.

Even when a private Chinese company invests in Pakistan directly, the money is recorded by SBP. In fact it even records stock market investments in Pakistani stock exchanges made by foreign companies.

That is the cumulative sum total of every penny that has come inside Pakistan from foreign shores whether by Governments or by private companies.

Gentleman My Field Of Study Covers What A Central Bank Is And What It Does.But I Think You Are Not Getting Me.Here Is How China Works:
Suppose You Enter Into An Agreement With China For Lets Say $2 Billion Investment for A Hydel Power Project.The $2 Billion Never Enters Pakistan(And So Not Recorded), They Are Imbursed To A Specific Chinese Company(Normally State Owned) And Then The
Company Moves Men And Material To Get That Hydel Power Project Completed

So in 2019 start, we will know how much exactly of the 46 billion was materialised on the ground.

This fiscal year should already show a big uptick. Are there any estimates for FDI from China for this fiscal year alone?

Yes The Effect Will Be In The Form Of Zero Load Shedding,Diversified Range Of Industries On New SEZs, Speedier And Efficient Railways and Most Of All The Movement Of Chinese Cargo Through This Corridor

 

[sathya]

Rome wasn't built in one day......this is not 5 year plan. It will take Gawadar at least 5-10 years to develop, other cities can take 20-25 years. There is obvioustly advantage of having coastal cities, ask this to a land lock country.?
Current government is corrupt and completely incompetent.

Coastal cities are good for the following reason
1. Building new cities with better infrastructure (you wont' have to remove half the city population to build orange lane)
2. Second and third option to the Navy (Enemy can't block trade route)
3. Ability to build navy units (Karachi, Gawadr, Pasni, Ormani)
4. Will increase Import export business (MQM/PPP won't be able to take bride/Bhata from every Coastal city)
5. Trade route immediately set up between costal cities
6. Shipping ports will improve economy - Car Manufacturing, Sea food, Textile Industry can be build in Port cities.
7. Access to Fresh Seafood - Export seafood to Middle east.
8. Meat processing plant to export meat to other countries.

Here is my take in this.....
We need honest and competed government which can allocate the funds for the development projects.
(Not like PPP Sheila Raza, spending development funds on Sex parties in UAE, and PPP money laundering money outside the Pakistan using Pakistani actresses and Models)


1. Extremism:

Pakistan's main problem is self grown Extremism.
A. Make laws to control the Jihadi Narrative
B. Control the funding of Madares.
C. Create a Islamic supreme council to help teach the true Islam to people (Not Bidat and Shrik taught by some Islamic channels)
D. Under the guidence from Islamic Supreme Council (Shura), setup and National Madressa Board (NMB)




E. Government must assigned a qualified individual as a Federal Minister for the Ministry of Religious Affairs. (Not Jahil Jali doctor like the one from Jahil online)

2. Economy:

A. Improve current economic situation
B. Privatization and free market economics
C. Reduce government overspending
D. reduce Load Sheading / eliminate power theft.
E. Develop local industries.
F. Reduce Inflation
G. Reduce Unemployment
H. Abolish medieval feudal system of Pakistan ("Feudalism has to be abolished if the country is to prosper for all, and in peace.")
I. Devalued Currency - stop borrowing money for fake projects.


3. Government:
A. Eliminate Corruption/ cut-overheard
B. Unity, internal cohesion and political stability



C. Reformation of Political Parties:
1. No party should be allowed to run for election based on ethnicity.
2. No party should be allowed to run for election if they were found guilty of corruption
(If this law is implemented correctly most of the current political parties will NOT be allowed to
participate in the next elections).
3. No party should be allowed to run if they are supporting separatist or extremist groups or organizations.
4. Initially create a 6 party system which will allow only 6 main parties to participate in the election
(Allow more parties to participate in election after the progress of political education process)
5. Political Education process: Educated/ internship for those recently graduated with political science
degree. Educating the Politicians of tomorrow.
6. "Pakistan need political institutes which can help create better politicians: politicians who are more
capable of understanding the technical advice, understanding the policy areas, which they govern."

D. Improvement of Financial system on City, State and Country level, reduced corruption.
E. Social Justice and Equal Opportunity/
F. Respect for Diversity
G. Provincial Disharmony
H. Weak Foreign Polices.
I. Decentralization Government, give more power to provinces.

J. Smaller provinces to reduce corruption.
1. Each Provincial (or "Super district") government responsible creating their government policies.
2. Provincial Democratic Governance
3. Poverty Reduction (Eradicate Extreme Poverty and Hunger)
4. Crisis Prevention and Recovery (Natural disasters, Flood,Earth quake)
5. Energy and Environment
6. Improve Health Care system (Reduce Child Mortality /Improve Maternal Health)
7. Develop global partnership for Economy and Social development

Such an effort, no one to thank ..
@Pak members

 

[Scavenger]

Gentleman My Field Of Study Covers What A Central Bank Is And What It Does.But I Think You Are Not Getting Me.Here Is How China Works:
Suppose You Enter Into An Agreement With China For Lets Say $2 Billion Investment for A Hydel Power Project.The $2 Billion Never Enters Pakistan(And So Not Recorded), They Are Imbursed To A Specific Chinese Company(Normally State Owned) And Then The
Company Moves Men And Material To Get That Hydel Power Project Completed

Are you suggesting that the Chinese company will do everything - bring its own workers from China, hire further Chinese subcontractors, bring in labourer's and equipment and Pakistan local economy will gain nothing?

Because if that is not true, then any of the payments made to Pakistani people/govt/company will be recorded.

 

[Samlee]

Are you suggesting that the Chinese company will do everything - bring its own workers from China, hire further Chinese subcontractors, bring in labourer's and equipment and Pakistan local economy will gain nothing?

Because if that is not true, then any of the payments made to Pakistani people/govt/company will be recorded.

Not Necessary.The Chinese Company Mostly Delivers The Machinery And Technical Management Expertise.Most Of The Manual Labour Is Local As Is The Consumable Supplies and Subcontracting.

Let Me Give You An Example,For Lahore Orange Line Metro The Construction Of Elevated Bridges And Other Civil Works Is Being Done By Habib Construction A Local Company Whereas The Chinese Company Norinco Is Providing The Project Management As Well As The Rolling Stock.

In Any Case The Pakistani Economy Ultimately Benefits Because Pakistan Is Getting The Infrastructure

It is a good news that China does not transfer money to State Bank of Pakistan, because Pakistani leader ship will transfer it to Dubai and utilize for their own trade.

Exactly That Is Why China Is More Liked.They Don't Give Political Bribes But Put Money Directly Into Projects Which Provide Jobs,Power And Other Economic Benefits For Local People

 

[somebozo]

You got the first part right. But not the second one......the Chinese economy is slowing down and India will be the 1st economy in the next couple of decades. The US and the West would put in a lot of $$ to make this happen. But nevertheless, Pakistan will still climb to the top 10th or 11th spot. The only caveat is that a democratically elected system, no terrorism, peace and stability need to continue for the next two decades without any interruptions!!

India and Financial Scams are very much a reality..no body knows the substance behind Indian number crunching...I dont see Indian companies churning quality products..being in Industrial line..I see many Indian products being rejected for quality..in this area..even Pakistan fares better than India in some aspects..

 

[sathya]

India and Financial Scams are very much a reality..no body knows the substance behind Indian number crunching...I dont see Indian companies churning quality products..being in Industrial line..I see many Indian products being rejected for quality..in this area..even Pakistan fares better than India in some aspects..

That's because of Chinese substitutes .. For more profit Margin.

Not all companies do that.

I don't say Chinese products are all inferior , but they have all qualities ..

 

[somebozo]

That's because of Chinese substitutes .. For more profit Margin.

Not all companies do that.

I don't say Chinese products are all inferior , but they have all qualities ..

Automatic assumption..blame china.....

If Chinese product is better than Indian..it will also cost more than Indian...

 

[sathya]

Automatic assumption..blame china.....

If Chinese product is better than Indian..it will also cost more than Indian...

I know this reply, that exactly why I said Chinese make al qualities

I just said some indian companies use low quality Chinese parts to make products at less price or make more profit,

Come on bro,I am admitting here.. Not hiding behind china..

But there are some local companies that's good quality too..

Ok let me stop here, not interfere with good discussion that was going on.

 

[Viper0011.]

India and Financial Scams are very much a reality..no body knows the substance behind Indian number crunching...I dont see Indian companies churning quality products..being in Industrial line..I see many Indian products being rejected for quality..in this area..even Pakistan fares better than India in some aspects..

I agree with majority of your post. But the matter of the fact is, whether right, wrong, good or ugly, 20-25 million Indians from the US sending billions every months back home is a HUGE amount, without any trade hassle or pain. Then, trillions being poured into India by the investors adds to it. At the end of the day, however any Indian company/ies cook up their numbers, you still have the largest FDI going into India. They also include their labor wages, and the money being sent by Indians in the West back to India, as "FDI" when its not. But does it change the fact that most inflows worth billions go to India? No, the fact remains the same.

These billions being sent by their expat population are being used for good purposes and its labor earned money. Which is in addition to trade that India does. So IMO, India has a huge leg up over China, and the West supports her. While China doesn't have labor market in terms of hi-tech, etc. Their language issue is still so significant that its keeping them behind in terms of labor. The best option for the Chinese to break India's labor monopoly in Hi-Tech and bio sectors is to bring up Pakistan's labor through investments. English is just as much of a second language in Pakistan as it is in India. Plus, Pakistan has over 120 million young adults who can work for the next 25-30 years. In the years to come, you'll see Pakistani labor starting to compete with the Indian labor, although at a smaller level due to India being 5 times more populous country.