China’s ‘soft’ imperialism: Will Pakistan gain nothing from CPEC?

[GlobalVillageSpace]

China’s ‘soft’ imperialism: Will Pakistan gain nothing from CPEC?
Global Village Space |

F. M. Shakil |

The US$56 billion China-Pakistan Economic Corridor (CPEC) – a part of China’s ‘One Belt One Road’ vision – has yet to translate into the ‘game changer’ envisioned by its sponsors. Worse than that, the unparalleled tax breaks and mounting security costs involved have already saddled Islamabad’s exchequer with a hole in its finances of over US$2.5 billion.

Pakistan’s lower house was informed last month that the government had issued a statutory regulatory order (SRO) giving a series of tax exemptions to Chinese firms as an incentive for working in what is considered a highly dangerous zone. These concessions – extensive tax breaks from customs duty, income tax, sales tax, federal excise duty and withholding taxes – have been granted to Chinese companies for the whole of the CPEC operation, including road, mass transit, and Gwadar port projects.

Read more: CPEC’s vulnerabilities: Can Pakistan carve a way out?

Islamabad went back on its oft-repeated position policy on tax immunity. Only this month, it withdrew tax exemptions worth Rs100 billion (US$945 million) with the aim of bringing its budget deficit down.

“There is absolutely nothing in the CPEC for the local trade and industry; even the labor is coming from China, which will cause a steep escalation in the operational cost of the project,” said Muhammad Ishaq, a leading industrialist and a director of Khyber Pakhtunkhwa Board of Investment & Trade in conversation with Asia Times. He cautioned CPEC will be a big disaster for Pakistan in the long run.

Interestingly, while affording concessions to the Chinese companies, Islamabad went back on its oft-repeated position policy on tax immunity. Only this month, it withdrew tax exemptions worth Rs100 billion (US$945 million) with the aim of bringing its budget deficit down. Since 2014, it has withdrawn around US$3.25 billion in exemptions.

​

The generous tax holiday to Chinese contractors and companies is in addition to the US$1 billion sum Islamabad has so far pledged to put in place a failsafe security to protect the CPEC-related projects and the Chinese personnel working on them. The overall project cost is expected to jack up thanks to the induction of a 15,000-strong force to provide round-the-clock surveillance.

Read full article:
China’s ‘soft’ imperialism: Will Pakistan gain nothing from CPEC?

 

[Tom M]

The topic discussed in the article is certainly a matter of concern, still again every nation provides such tax exceptions, incentives and relaxations for attracting foreign investment (provided it is FDI in it's true sense).

 

[Shajida Khan]

Did the iron go rusty or ocean dry or honey turn sour?

IMHO China had the policy of using CPEC and Gwadar as a backup route in case Mallaka gets blocked.

 

[RoadRunner401]

China’s ‘soft’ imperialism: Will Pakistan gain nothing from CPEC?
Global Village Space |

F. M. Shakil |

The US$56 billion China-Pakistan Economic Corridor (CPEC) – a part of China’s ‘One Belt One Road’ vision – has yet to translate into the ‘game changer’ envisioned by its sponsors. Worse than that, the unparalleled tax breaks and mounting security costs involved have already saddled Islamabad’s exchequer with a hole in its finances of over US$2.5 billion.

Pakistan’s lower house was informed last month that the government had issued a statutory regulatory order (SRO) giving a series of tax exemptions to Chinese firms as an incentive for working in what is considered a highly dangerous zone. These concessions – extensive tax breaks from customs duty, income tax, sales tax, federal excise duty and withholding taxes – have been granted to Chinese companies for the whole of the CPEC operation, including road, mass transit, and Gwadar port projects.

Read more: CPEC’s vulnerabilities: Can Pakistan carve a way out?

Islamabad went back on its oft-repeated position policy on tax immunity. Only this month, it withdrew tax exemptions worth Rs100 billion (US$945 million) with the aim of bringing its budget deficit down.

“There is absolutely nothing in the CPEC for the local trade and industry; even the labor is coming from China, which will cause a steep escalation in the operational cost of the project,” said Muhammad Ishaq, a leading industrialist and a director of Khyber Pakhtunkhwa Board of Investment & Trade in conversation with Asia Times. He cautioned CPEC will be a big disaster for Pakistan in the long run.

Interestingly, while affording concessions to the Chinese companies, Islamabad went back on its oft-repeated position policy on tax immunity. Only this month, it withdrew tax exemptions worth Rs100 billion (US$945 million) with the aim of bringing its budget deficit down. Since 2014, it has withdrawn around US$3.25 billion in exemptions.

​

The generous tax holiday to Chinese contractors and companies is in addition to the US$1 billion sum Islamabad has so far pledged to put in place a failsafe security to protect the CPEC-related projects and the Chinese personnel working on them. The overall project cost is expected to jack up thanks to the induction of a 15,000-strong force to provide round-the-clock surveillance.

Read full article:
China’s ‘soft’ imperialism: Will Pakistan gain nothing from CPEC?

Same old same old, bull crap, losers who couldn't get any contracts or other incentives to make them richer are at it again this time, spreading lies

 

[SHAH820]

you are right , we are getting sick of this none sense without any prove

Same old same old, bull crap, losers who couldn't get any contracts or other incentives to make them richer are at it again this time, spreading lies

Did the iron go rusty or ocean dry or honey turn sour?

IMHO China had the policy of using CPEC and Gwadar as a backup route in case Mallaka gets blocked.

The topic discussed in the article is certainly a matter of concern, still again every nation provides such tax exceptions, incentives and relaxations for attracting foreign investment (provided it is FDI in it's true sense).

China’s ‘soft’ imperialism: Will Pakistan gain nothing from CPEC?
Global Village Space |

F. M. Shakil |

The US$56 billion China-Pakistan Economic Corridor (CPEC) – a part of China’s ‘One Belt One Road’ vision – has yet to translate into the ‘game changer’ envisioned by its sponsors. Worse than that, the unparalleled tax breaks and mounting security costs involved have already saddled Islamabad’s exchequer with a hole in its finances of over US$2.5 billion.

Pakistan’s lower house was informed last month that the government had issued a statutory regulatory order (SRO) giving a series of tax exemptions to Chinese firms as an incentive for working in what is considered a highly dangerous zone. These concessions – extensive tax breaks from customs duty, income tax, sales tax, federal excise duty and withholding taxes – have been granted to Chinese companies for the whole of the CPEC operation, including road, mass transit, and Gwadar port projects.

Read more: CPEC’s vulnerabilities: Can Pakistan carve a way out?

Islamabad went back on its oft-repeated position policy on tax immunity. Only this month, it withdrew tax exemptions worth Rs100 billion (US$945 million) with the aim of bringing its budget deficit down.

“There is absolutely nothing in the CPEC for the local trade and industry; even the labor is coming from China, which will cause a steep escalation in the operational cost of the project,” said Muhammad Ishaq, a leading industrialist and a director of Khyber Pakhtunkhwa Board of Investment & Trade in conversation with Asia Times. He cautioned CPEC will be a big disaster for Pakistan in the long run.

Interestingly, while affording concessions to the Chinese companies, Islamabad went back on its oft-repeated position policy on tax immunity. Only this month, it withdrew tax exemptions worth Rs100 billion (US$945 million) with the aim of bringing its budget deficit down. Since 2014, it has withdrawn around US$3.25 billion in exemptions.

​

The generous tax holiday to Chinese contractors and companies is in addition to the US$1 billion sum Islamabad has so far pledged to put in place a failsafe security to protect the CPEC-related projects and the Chinese personnel working on them. The overall project cost is expected to jack up thanks to the induction of a 15,000-strong force to provide round-the-clock surveillance.

Read full article:
China’s ‘soft’ imperialism: Will Pakistan gain nothing from CPEC?

1)for CPEC the government only grant tax exemption to those chinese companies cause it will benefits their pockets many project which falls under government are done by those chinese companies but due to tax exemption the tax money or remaining money will goes to their pockets
2) it is normal to grant tax exemption to a certain companies and it is practice in many countries (for you people INDIA is the biggest example https://thewire.in/25216/why-52911-profitable-indian-companies-pay-0-tax/ http://timesofindia.indiatimes.com/...-of-pharma-companies/articleshow/47210365.cms ) and in case of pakistan it was done due to IMF program which needed to be paid off
3)due to poor economic condition in previous government some thing have to be done to attract investment and to revive our economy and development
4) and any one who still think pakistan have taken $90 billion loan please

 

[salarsikander]

We will Pakistani will remain slaves. And India is warning us

 

[Sine Nomine]

CPEC a x-y-z Billion dollar investment,how
that's just loan
A project being done with loan from china,contaracts awarded to chinese companies without public bidding and chinese money going back to china.
Pakistan left with debt and Roads,which of course are not manufacturing units.

“There is absolutely nothing in the CPEC for the local trade and industry; even the labor is coming from China, which will cause a steep escalation in the operational cost of the project,” said Muhammad Ishaq, a leading industrialist and a director of Khyber Pakhtunkhwa Board of Investment & Trade in conversation with Asia Times. He cautioned CPEC will be a big disaster for Pakistan in the long run.

 

[terranMarine]

Don't you just love it, how Indians have the best interests for Pakistan? They are so concerned Pakistan is being used by China, will not gain a thing from this important project, will be saddled with huge debts. China is there to destroy our Iron Buddy's economy. Yeah China is putting a gun to our Iron Buddy's head and tell them to do it or else ....
Nope nope, Pakistan should listen to what Indians' advice because that's how they are gonna become the future supa powa, Pakistan better follow India's path.

 

[Laozi]

Don't you just love it, how Indians have the best interests for Pakistan?

Why any Chinese be worried about what Indians are advising to Pakistanis. Everybody knows that two of them will never listen to each other.

But tell us frankly What are the real motives of China in investing in CPEC ?

China is using its own equipment, China is using its own labour, Chinese banks are lending money to Chinese, Chinese banks are earning above normal interests which will be borne by Pakistanis. Chinese Insurance companies are getting insurance premium for providing insurance cover, again to be borne by Pakistanis. Chinese company will be getting all the revenues generated from Gwadar Port.

Moreover, Chinese don't have to pay any taxes on money which they take home

Now look at what Pakistan is getting. They have been saddled with providing security for CPEC upsetting their budgetary deficit. They are liable to purchase all the power produced by Chinese companies at an exorbitant rate. They are giving sovereign guarantee on Return on every Chinese Investment and guaranteeing every Chinese Loan. Not to mention, that nobody knows if any Toll will be paid by Chinese to use this corridor.

We know you are like big brother to Pakistan but it looks like that you are not showing that attitude. In fact you are not treating them like younger brother but it is more like how one treats a foolish client.

 

[Shajida Khan]

We will Pakistani will remain slaves. And India is warning us

There is no India in this warning. Author is F. M. Shakil
He works for Tribune Pakistan.
Why so much obsession with India?

 

[salarsikander]

There is no India in this warning. Author is F. M. Shakil
He works for Tribune Pakistan.
Why so much obsession with India?

No, I see daily Indian typical whining over this issue. I CIA s are far Kore obsessed with Pakistan than anything. The prrof is in front of you . you see more Indian in pakistani forum than Pakistanis in bharat rat shit forum. And until of that Indian troll troopers comes with multiple IDs after they're band

 

[terranMarine]

Why any Chinese be worried about what Indians are advising to Pakistanis. Everybody knows that two of them will never listen to each other.

But tell us frankly What are the real motives of China in investing in CPEC ?

China is using its own equipment, China is using its own labour, Chinese banks are lending money to Chinese, Chinese banks are earning above normal interests which will be borne by Pakistanis. Chinese Insurance companies are getting insurance premium for providing insurance cover, again to be borne by Pakistanis. Chinese company will be getting all the revenues generated from Gwadar Port.

Moreover, Chinese don't have to pay any taxes on money which they take home

Now look at what Pakistan is getting. They have been saddled with providing security for CPEC upsetting their budgetary deficit. They are liable to purchase all the power produced by Chinese companies at an exorbitant rate. They are giving sovereign guarantee on Return on every Chinese Investment and guaranteeing every Chinese Loan. Not to mention if any Toll will be paid by Chinese to use this corridor.

We know you are like big brother to Pakistan but it looks like that you are not showing that attitude. In fact you are not treating them like younger brother but it is more like how one treats a foolish client.

I don't know what makes you think Chinese are worried what lessons Indians are lecturing to our Iron buddies to be honest. It's more like a comedy to us. You should be telling us what are your real motives for such uncalled warnings? I don't remember seeing Pakistani members asking for Indian wisdom on what their opinions are regarding CPEC. You like to use Laozi as avatar means you think highly of Chinese wisdom, well then you will have to put those neurons to work and think how Pakistan will benefit from it. If you can't figure it out then you are not worthy of using our philosopher icon.

 

[salarsikander]

Why any Chinese be worried about what Indians are advising to Pakistanis. Everybody knows that two of them will never listen to each other.

But tell us frankly What are the real motives of China in investing in CPEC ?

China is using its own equipment, China is using its own labour, Chinese banks are lending money to Chinese, Chinese banks are earning above normal interests which will be borne by Pakistanis. Chinese Insurance companies are getting insurance premium for providing insurance cover, again to be borne by Pakistanis. Chinese company will be getting all the revenues generated from Gwadar Port.

Moreover, Chinese don't have to pay any taxes on money which they take home

Now look at what Pakistan is getting. They have been saddled with providing security for CPEC upsetting their budgetary deficit. They are liable to purchase all the power produced by Chinese companies at an exorbitant rate. They are giving sovereign guarantee on Return on every Chinese Investment and guaranteeing every Chinese Loan. Not to mention, that nobody knows if any Toll will be paid by Chinese to use this corridor.

We know you are like big brother to Pakistan but it looks like that you are not showing that attitude. In fact you are not treating them like younger brother but it is more like how one treats a foolish client.

Certainly Indians are opening our eyes. But we Pakistanis want to keep it closed

Don't you just love it, how Indians have the best interests for Pakistan? They are so concerned Pakistan is being used by China, will not gain a thing from this important project, will be saddled with huge debts. China is there to destroy our Iron Buddy's economy. Yeah China is putting a gun to our Iron Buddy's head and tell them to do it or else ....
Nope nope, Pakistan should listen to what Indians' advice because that's how they are gonna become the future supa powa, Pakistan better follow India's path.

China should destroy whatever is left of non existent, inefficent, cartel type of industries in Pakistan and create a new era of Chinese style economy.
The only model to follow is Chinese. The way these people build up cities and infrastructure at fraction of cost is just outclass.

 

[SHAH820]

CPEC a x-y-z Billion dollar investment,how
that's just loan
A project being done with loan from china,contaracts awarded to chinese companies without public bidding and chinese money going back to china.
Pakistan left with debt and Roads,which of course are not manufacturing units.

please increase your knowledge on CPEC

you are right , we are getting sick of this none sense without any prove




1)for CPEC the government only grant tax exemption to those chinese companies cause it will benefits their pockets many project which falls under government are done by those chinese companies but due to tax exemption the tax money or remaining money will goes to their pockets
2) it is normal to grant tax exemption to a certain companies and it is practice in many countries (for you people INDIA is the biggest example https://thewire.in/25216/why-52911-profitable-indian-companies-pay-0-tax/ http://timesofindia.indiatimes.com/...-of-pharma-companies/articleshow/47210365.cms ) and in case of pakistan it was done due to IMF program which needed to be paid off
3)due to poor economic condition in previous government some thing have to be done to attract investment and to revive our economy and development
4) and any one who still think pakistan have taken $90 billion loan please
View attachment 394096 View attachment 394096

 

[Tom M]

We will Pakistani will remain slaves. And India is warning us

India in general and I personally are really happy with the progress of CPEC in Pakistan and want you quite entangled in it.

But look buddy it's not India but you own journalist giving you the warning and writing articles on this.

https://tribune.com.pk/author/2330/fm-shakil/

Then why are you dragging India in anything and everything related to CPEC ??