Chinese Investment to Resolve Energy Crisis, Build Infrastructure in Pakistan

[AgentOrange]

We'll just have to wait and see how much of it is executed, though I do know that PMLN is better at execution than the previous PPP govt whose performance was horrible.

As to Chinese equipment, money and personnel, it's true everywhere, including your country. There are tens of thousands of Chinese workers building power plants in India today.

Chinese are now supplying equipment for about 25% of the new generating capacity India is adding to its national grid, up from almost nothing a few years ago. There are thousands of skilled Chinese expatriates at Indian plant sites, along with Chinese chefs, Chinese television and ping pong.

Haq's Musings: Soaring Chinese Imports and Twin Deficits Worry India

That's an interesting graph. No wonder there's such a large trade deficit. India simply can't "make" anything that China wants. Still, I suppose if India wants to close the gap, they'd better send more of their natural resources to China.

 

[mr.robot]

Talk about retail prices, not wholesale on world markets. Prices at the pump are down about 10% which is good but not comparable to the crude oil price decline of over 20%. There's always a significant lag between source and retail prices.

Besides, electricity rates are not declining anywhere in the world. In fact, elect rates are rising every year, though more slowly than in the past.

The problem in Pakistan is that the rates have always been and continue to be much lower than the costs of production and delivery of electricity. Hence the gap and the circular debt.

Before 2007, did you ever hear about this much circular debt? Circular debt started increasing as soon as there was increase in cost of oil and the profits of IPPs started surging.
Electricity in whole world is not generated using our fuel mix. So, they won't go up or down with oil. Ours should go down because they went up this much due to cost of fuel.
The whole argument was that a mix of hydro and coal will bring down cost of production because they cost less. If oil prices go at level of 2007 or before, the circular debt and electricity prices should also touch that point approximately...

 

[SomaliaSupport]

Chinese made good move !!

 

[Viper0011.]

Gwadar will give China an alternate shorter route for oil freight and will wipe out any risk of Indian blockade on Chinese cargo passing through Indian ocean. Its a win-win for both Pak and China and lose for India and USA.

You know its sad to see so much negative sentiment even WITH so much military aid, support in different projects and over 70 years of cooperation. Let's divide the bold from your post into two issues, : The US and China, 2: The US and Pakistan

If the Chinese get access to Gawader, the US and the Indians won't be very happy. But I don't think this would cause WWIII frankly. The Chinese get this oil today, this pipeline, port and the highway system will just shorten the distance. Which is good for Pakistan and China but it doesn't pose a "New" or significantly "enhances" a current threat. China is an economic power and India, the US or anyone else can't stop others from trading with it, in fact they trade with the Chinese for trillions of dollars every year themselves.

To put in perspective, yes, as competitors, the Indians and the US may not be very happy about Gawader access by the Chinese, but you also know its old news. The Chinese own the port so there is nothing new. I'd suggest we deal with this as an old news as no new reaction is expected from India or the US on it....

On the other hand, from a US - Pakistani relationship's standpoint, actually, this relationship resulting in trade, growth of Pakistan and more jobs for the Pakistani people is in the US's interest DIRECTLY. That's why you haven't and wouldn't see a lot of opposition to it either. The US wants Pakistan to become a modern state where the word Talibanization belongs to a dark past that would never get repeated. Pakistan itself (FIRST) is secured and safe, resulting in safe guarding others, including the US. That is in everyone's interest. On a separate note, it'll be nice to ONCE in a while see a positive thread or even a comment on the things the US has actually done for Pakistan or the support it provides, albeit limited and sanction proof but the US follows its laws. But it also has maintained a 70 year old relationship too where it provided a lot of good to Pakistan. Just saying.