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CPEC a game changer ?

A-Team

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Ok I have been reading about CPEC and its impact on Pakistan and the region. Now can someone please correct me if I am wrong, from a nutshell it looks like a well oiled transit route which China will use to egress and ingress its products easily to the outside world and Pakistan.

Some quick questions.

- What does Pakistan gain from it apart from transit fees ?

- Is the term "game changer" being used without being backed by concrete facts and figures ?

- What is the main Pakistani export to China that is currently not being undertaken using the current road networks

/Peace


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http://www.dawn.com/news/1236949
 
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Ok I have been reading about CPEC and its impact on Pakistan and the region. Now can someone please correct me if I am wrong, from a nutshell it looks like a well oiled transit route which China will use to egress and ingress its products easily to the outside world and Pakistan.

Some quick questions.

- What does Pakistan gain from it apart from transit fees ?

- Is the term "game changer" being used without being backed by concrete facts and figures ?

- What is the main Pakistani export to China that is currently not being undertaken using the current road networks

/Peace


_______________________________________

http://www.dawn.com/news/1236949
I wont use the word game changer as it have been abused so much already. However there is no question that if proper policies are implemented properly, Pakistan will have a lot to gain from this. Surely the project is being undertaken by China mainly and it is in there interest as well but it is not like that Pakistan will not benefit from all this.

One thing that people usually do not understand is that it is NOT just a road network, there is a lot more to it then that.
 
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CPEC has been too much hyped in all Pakistani corners. I love they way pakistanis media experts are so euphoriatic abt the project and dreaming to be $20 trillion economy very soon.
On a brighter side, its an opportunity for the whole region to embark upon pragmatic economic ventures. The more we have trade & business conjunctions, lesser we will inclined towards war mongering snarls.
 
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Ok I have been reading about CPEC and its impact on Pakistan and the region. Now can someone please correct me if I am wrong, from a nutshell it looks like a well oiled transit route which China will use to egress and ingress its products easily to the outside world and Pakistan.

Some quick questions.

- What does Pakistan gain from it apart from transit fees ?

- Is the term "game changer" being used without being backed by concrete facts and figures ?

- What is the main Pakistani export to China that is currently not being undertaken using the current road networks

/Peace


_______________________________________

http://www.dawn.com/news/1236949
Well, most of it is energy projects. It has been established that energy deficit shaves off 1-2% from the GDP. On completion of these projects, the GDP of Pakistan will subsequently rise to 6-6.5% which is a significant pace. Other than that, availability of energy will provide investors with the confidence that their businesses will be able to function uninterrupted. On top of this, the tax-free region of Gawadar will also be an attractive place to set up businesses, especially for start-ups and small businesses. This is apart from the connectivity infrastructure being built across the country. Businesses will able to source materials and manpower from other cities more easily which improves productivity. I also read that several industrial and science parks are being constructed along major routes. This would provide ample office and resources for any company.
These points I have noted are related to Pakistan and it alone. I have not taken into consideration foreign investment as a response to these developments. Those factors can be explored by someone who has a better idea of the international market; the companies who are making good revenue and are looking to expand into new emerging markets.
 
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Ok I have been reading about CPEC and its impact on Pakistan and the region. Now can someone please correct me if I am wrong, from a nutshell it looks like a well oiled transit route which China will use to egress and ingress its products easily to the outside world and Pakistan.

Some quick questions.

- What does Pakistan gain from it apart from transit fees ?

- Is the term "game changer" being used without being backed by concrete facts and figures ?

- What is the main Pakistani export to China that is currently not being undertaken using the current road networks

/Peace


_______________________________________

http://www.dawn.com/news/1236949

Chinese companies must consider feasibility of there government who inducted billions of dollars and there government and armies are well aware of the regional facts .
 
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Depends more on the Chinese industries investing in Pakistan. Pakistan expects the industries to be a exporting manufacturing powerhouse.
Again the Gwadar port depends upon the wish of the Chinese companies deciding to offload it there and transport through land. Its easily said. But lots of work to be done. Main work has to be done in convincing Chinese companies to invest such amounts and export it from Pakistan.
 
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I dont think they are going to get any transit fee... Roads are built by them and pakistan has to repay at a rate of 18% on dollar value... Gwadar is leased for 40 years as of now and chinese have all rights on port.. no fees for Pakistan as per my understanding... power plants are also chinese companies, chinese engineers and chinese maintenance... but pakistan has to payback at 18% interest rate... i am not sure what pakistan will gain...

local businesses will thrive.. enterpreneurs will bloom in SMEs mostly... those will generate taxes.. but wil they offset the loss and compensate for 18% annual interest rate ?? Big question.

and NO, there might not be any major exports from pakistan except mangoes.
 
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Well it will stimulate the economy; property prices will soar, investments and revenues will pour in, massive development of infrastructure, and much more. Just a couple weeks ago, CPEC was expanded by 26 Billion dollars.

It would be much easier to manufacture goods and export them; this will positively stimulate our Industry and all sectors linked with it including agriculture. Demand will be high, forcing production to increase.

It will have profound global effects. There will be a trade shift from South East Asia to Gwadar and will make Pakistan one of the highlights in International trade.

The Government has estimated that CPEC will add 2% to our economic growth.

ISLAMABAD - The government would start 18 power projects under China Pakistan Economic Corridor (CPEC) worth of over $27 billion, which would produce 13880 megawatts of electricity in the country. There are 18 power projects under the CPEC having total estimated cost of $27.083 billion, according to the official documents.

http://nation.com.pk/business/18-Jul-2015/18-projects-under-cpec-to-generate-13-880mw
Power projects are now at 53 Billion dollars
 
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- What does Pakistan gain from it apart from transit fees ?

Infrastructure.
Power supply.

- Is the term "game changer" being used without being backed by concrete facts and figures ?

As far as i think . Answer is "NO" ..
i will discuss only one aspect. that is power production. leaving exports, Pakistani industry due to power cuts is unable to even serve nation. So most of "item's" are imported which create burden on foreign reserves. Pakistan will be able to remove that burden if our industry become able to even just satisfy nation's needs. which we can do with consistent power supply.

One thing that people usually do not understand is that it is NOT just a road network, there is a lot more to it then that.

Agricultural Products. Fruits, vegetables, and others. from which (i think) 40-50% didn't make to export market due to lack of Dry and Cold storage's, processing units, and road infrastructure.

Gwadar is leased for 40 years as of now and chinese have all rights on port.

We leased it to Singapore. We took it back from them. they didn't fulfill there promise of modernizing gawadar port.

Now we leasied it to Chinese. God Forbids, We can take it back if needed.

Power projects are now at 53 Billion dollars

sir i need more information on this. please elaborate. also provide sources.

The Government has estimated that CPEC will add 2% to our economic growth.

2018 onward.
 
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CPEC is truly a unique case.

CPEC is being financed by China and Chinese private sector in form of Direct Investments and Loans.

Pakistan is in no position to assure high rate of Interest or High profits to Chinese.

Therefore the onus is on China to make this project viable to get its money back.

But the dichotomy is that China is known for killing other nations Industries and creating jobs only for Chinese citizens

OR

There could be a different game plan altogether

Chinese will only build the Gwadar Port, CPEC's roads and pipelines infra as a part of their future Defence Strategy.

Chinese will not be looking at the economic viability of CPEC but look at it purely as Defence expenditure

ONLY TIME WILL TELL
 
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Ok I have been reading about CPEC and its impact on Pakistan and the region. Now can someone please correct me if I am wrong, from a nutshell it looks like a well oiled transit route which China will use to egress and ingress its products easily to the outside world and Pakistan.

Some quick questions.

- What does Pakistan gain from it apart from transit fees ?

- Is the term "game changer" being used without being backed by concrete facts and figures ?

- What is the main Pakistani export to China that is currently not being undertaken using the current road networks

/Peace


_______________________________________

http://www.dawn.com/news/1236949




I will summaries it to you in lehman terms. When you create "mutual inter dependency" with a global power, you are only set to gain from it. Economic, trade, strategist, geopolitical, what not.

You Afghans should be asking, wheather you want to be part of this CPEC , integrate yourself via Pakistan to the world biggest market and economy, or you are happy to import your pan-parags from India via Charbahar?
 
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Well, most of it is energy projects. It has been established that energy deficit shaves off 1-2% from the GDP. On completion of these projects, the GDP of Pakistan will subsequently rise to 6-6.5% which is a significant pace. Other than that, availability of energy will provide investors with the confidence that their businesses will be able to function uninterrupted. On top of this, the tax-free region of Gawadar will also be an attractive place to set up businesses, especially for start-ups and small businesses. This is apart from the connectivity infrastructure being built across the country. Businesses will able to source materials and manpower from other cities more easily which improves productivity. I also read that several industrial and science parks are being constructed along major routes. This would provide ample office and resources for any company.
These points I have noted are related to Pakistan and it alone. I have not taken into consideration foreign investment as a response to these developments. Those factors can be explored by someone who has a better idea of the international market; the companies who are making good revenue and are looking to expand into new emerging markets.

Lets also not forget Fiber optics which you guys can to charge a fee for China's Internet traffic.
Afghanistan will gain by connecting to CPEC, in addition to connecting directly to China via Badakhshan.

All in all I see more positives because connectivity has a positive impact on the economy.

/Peace

Infrastructure.
Power supply.

As far as i think . Answer is "NO" ..
i will discuss only one aspect. that is power production. leaving exports, Pakistani industry due to power cuts is unable to even serve nation. So most of "item's" are imported which create burden on foreign reserves. Pakistan will be able to remove that burden if our industry become able to even just satisfy nation's needs. which we can do with consistent power supply.




2018 onward.

Yes my first thoughts were also better Infra in terms of roads, railways networks and of course fiber optics.

I will summaries it to you in lehman terms. When you create "mutual inter dependency" with a global power, you are only set to gain from it. Economic, trade, strategist, geopolitical, what not.

You Afghans should be asking, wheather you want to be part of this CPEC , integrate yourself via Pakistan to the world biggest market and economy, or you are happy to import your pan-parags from India via Charbahar?

I consider you a troll and frankly not interested in any comments from you. Please don't bother!
 
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