‘CPEC could become another East India Company’ IF interests not protected

[Mujahid Memon]

Welcome to 21st century colonialism.

 

[Indo-Pak]

Interesting part is that China didn't invest in CPEC, they gave loan to Pakistan at fairly high rates and astronomically high ROI guarantee for infrastructure that will be primarily used by China, so whether the project succeeds or fails, China will earn its profits at the cost of Pakistan who is bearing all the investment risks.

What Pakistan will gain from it is not confirmed though, because the earnings from transit fees will go in servicing the loans, and the intangible benefits of better transit can only be realized if Pakistan develops enough manufacturing capabilities, which is more unlikely now given the fact that Chinese goods will flood Pakistani markets even more through CPEC, thereby killing the local industries further.

But it can be said without an iota of doubt that China will have extraordinary level of leverage over Pakistan through CPEC, Pakistan has taken huge loans from China at high rates and even higher (obscenely) ROI guarantees to develop a project for which they have only one primary client, China!! China can literally control Pakistan by controlling the use of that project, thereby effectively controlling the amount of transit fee that Pakistan can earn, but the interest and ROI burden for Pakistan remains constant....if I were a businessman, I would have been too uncomfortable to be in such a business deal.

@thesolar65 @PARIKRAMA @Spectre @Sky lord @Joe Shearer @scorpionx @hellfire @Levina @Nilgiri

Exactly This is what I wanted to say... U framed it perfectly

People in the power will wholeheartedly support them .
Like a Pak member said in here ,Most of the assets of PA 's Generals are in Pakistan .And CPEC is their new landscape .

The answer lies in your post itself .
Weapons can purchase from anywhere . Nor we asked them for aid .
But Chinese are investing in your core area with heavy interest .
Some thing we wont allow at any case in our nation

My dear friend, China is not investing, They are giving Pakistan loan, same money they are taking back for making roads. Its Chinese labor, Chinese firm....

It Fail or Pass China will milk Pakistani Taxpayer money, ... @Rain Man has framed it perfectly

 

[fitpOsitive]

This project is basically part of the Chinese New Silk route project and Pakistan will also benefit from it coz of its strategic location.

My opinion is that all these countries who are now showing interest in joining the CPEC project are doing it only to jeopardise or sabotage this project and nothing else.

If you can't stop it, become a part of it, to sabotage it.

Well it's only my opinion, can be wrong.

I guess the main project is called OBOR?

 

[Irfan Baloch]

Coming from the so called Pakistani lawmakers who rigged their way into the offices while keeping their entire wealth abroad, their words are a joke.

I'll take such statements seriously when it comes from a true leader who has all of his stakes and wealth inside the country.

they are butthurt because there is no cut or commission for them.. if they get anything for themselves they will praise it

 

[Hakikat ve Hikmet]

Dont worry. Nobody even listens to them. Things are progressing as planned. Nonetheless China aint here to occupy land or something, its their cargo that ll be moving on the roads, railways and ships here.

For the last thousands of years Chinese didn't or couldn't conquer other countries, rather they built a wall to isolate themselves. Will Pak be an exception???? good luck with that!!!

 

[Trisonics]

CPEC for all the hype should have started attracting healthy FDI into Pakistan by now. On the contrary countries traditionally investing in Pakistan seem to be leaving in a hurry. Power generated is useless if it cannot be transmitted effectively and correctly billed, a more comprehensive up-gradation of power delivery should have been planned.

Reliance solely on CPEC is very dangerous. There is very little news on emerging industrial projects with Pakistan. Traditionally strong industries like textiles are losing ground rapidly.

The success of CPEC solely depends on how Pakistan can diversify resources, pay it's loans back and be more affirmative with China while nurturing several other industries. The economy and it's growth only looks healthy now because of the money inflow and all the construction activities but once it's all done will the real test begin. With other sources of FDI drying out, Pakistan's critical step should be to attract more FDI around CPEC which surprisingly should have been easier if global tenders were called while supporting local industries.

The most worrisome factor being the hush-hush around CPEC. Given the South Asia has a terrible enemy withing itself called corruption, the suppressed information around CPEC is not confidence inspiring.

Whatever the outcome, hopefully, this is a learning chapter for other countries to emulate or discard in a hurry. Overall, not very confidence inspiring and has all the characteristics of another E India Company.

With almost all countries that had traditionally invested in Pakistan now pulling out their investments, China has increased its FDI as part of the China-Pakistan Economic Corridor (CPEC).



Almost half of the total FDI that Pakistan received in the last fiscal year originated from China alone. FDI from China amounted to $593.9 million in 2015-16, which is up 131.3% from 2014-15 and constitutes 46.3% of the total FDI Pakistan received over the entire fiscal year.
http://tribune.com.pk/story/1146075/2015-16-china-helps-fdi-pakistan-surges-38-8/

 

[shah1398]

For the last thousands of years Chinese didn't or couldn't conquer other countries, rather they built a wall to isolate themselves. Will Pak be an exception???? good luck with that!!!

Good point Sir. If China had such ambitions then they wud have already showed such intentions by now. The episode of South China sea may be seen one such step but is it really so? Nonetheless we arent the only one in this mega project as we are just one part of one road one belt initiative.

CPEC for all the hype should have started attracting healthy FDI into Pakistan by now. On the contrary countries traditionally investing in Pakistan seem to be leaving in a hurry.

With many countries showing their desire to join CPEC esp Afghanistan, KSA, Iran etc the most recent ones, how do U think they wud be joining this project? U dont just start getting fruit from a plant U planted about a year ago. Those plants who ll give U fruit for longer time, bear fruit lil late. Nonetheless I wud not shatter your balloon of delusions here so yeah u can carry on with what U think. Good Luck.

 

[hacker J]

CPEC can really be a gamechanger for pakistan as belived by most of the popuation no doubt it has some negative points as well but as long as pak people , government keep their heads up ryt on the progress of nation it is gonna blossom well but the moment they start moving money in their pockets or they start approving chinease bills just to remain in power not only the economy will suffer but the common man s life will become poorer, with so many loans and ending home grown products and indrustry pak might feel squzed below every growing debt and eventually can end up being bankrupt. which would be the worst possible outcome

 

[jha]

Politically motivated statements from Senators. Getting such big investment/loan, when no one else is willing, is a big achievement. Slowly but surely, its impact will come out in open.

 

[Wet Shirt Contest]

Coming from Pakistani law makers, this is serious matters.

Unfortunately, people have very naive views on china.

 

[monitor]

DID Russian take over India ?? instead of all dependence on russian hardwares ?? did USA take over Pakistan in last 50 years ?? did U.S take over india bcz India remained a big recipient of U.S aid ?? if your Ans is BIG NO then don't worry About Chinese investments in Pakistan...

Russia don't share border with India same as US don't border with Pakistan. But China have border with Pakistan and to secure it's silk route she will take every steps.

 

[Syed Taha Wajahat]

hahaha look at the source

 

[Nilgiri]

Do give a link to all this discussion about CPEC

Its all over the forum bro heh. Just search for CPEC.

What I was talking about was the similar loans of 24 billion or so that BD has now signed with China. You can find that flooding the BD subforum now.

People don't qualitatively analyse the difference between loans and FDI unfortunately.

Check this page of conversation to understand what I mean:

https://defence.pk/threads/baf-jets...sident-xi-on-his-visit-to-dhaka.455586/page-7

Interesting part is that China didn't invest in CPEC, they gave loan to Pakistan at fairly high rates and astronomically high ROI guarantee for infrastructure that will be primarily used by China, so whether the project succeeds or fails, China will earn its profits at the cost of Pakistan who is bearing all the investment risks.

What Pakistan will gain from it is not confirmed though, because the earnings from transit fees will go in servicing the loans, and the intangible benefits of better transit can only be realized if Pakistan develops enough manufacturing capabilities, which is more unlikely now given the fact that Chinese goods will flood Pakistani markets even more through CPEC, thereby killing the local industries further.

But it can be said without an iota of doubt that China will have extraordinary level of leverage over Pakistan through CPEC, Pakistan has taken huge loans from China at high rates and even higher (obscenely) ROI guarantees to develop a project for which they have only one primary client, China!! China can literally control Pakistan by controlling the use of that project, thereby effectively controlling the amount of transit fee that Pakistan can earn, but the interest and ROI burden for Pakistan remains constant....if I were a businessman, I would have been too uncomfortable to be in such a business deal.

@thesolar65 @PARIKRAMA @Spectre @Sky lord @Joe Shearer @scorpionx @hellfire @Levina @Nilgiri

Same issue being repeated with BD. BD at least has higher GCF so has better chance of weather the repayments by leveraging those if things turn sour. Pakistan I am truly concerned about (GCF has been at around 15% for a good decade or more - about half of where it should have been). But am willing to be proven wrong. I will wait and see, I have discussed with the most skeptical and most fantastical of PDF minds on it....the whole spectrum has been covered for me, so I have little else to talk about it now

 

[Śakra]

high ROI guarantee for infrastructure

That too by the government!

 

[Lotus_stalk]

No wonder mughals lost power in India... losing power in a country in which you are minority can be brutal... Loss of India was so shocking that, still people live in past... To add to the shock India supports Israel and USA...

Last mughal descendant was forced to apologize..