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

[Śakra]

And if only 10-15% of China's trade passes through this CPEC

If I had a billion dollars I would be a billionaire.

 

[dray]

Loans were offered @1.6% interest per annum, Few months back Nawaz Government decided to take up this rate to bring it at par with WorldBank rate, that is, 1%, with Chinese Government. I don't know about the result of that effort.
Repayment will be affected in 30 Year time period. Yea, it is a soft loan.

Not all loans are at 1.6%, different rates are applicable in different projects within the CPEC, and some of the rates are much higher. Besides, with the sovereign guarantee of ROI, the interest+ROI guarantee are going up to 32%-33% in some cases. We had detailed discussion with links etc. previously, if you want I can find and provide that thread to you.

 

[A_Poster]

1. Loans were offered @1.6% interest per annum, Few months back Nawaz Government decided to take up this rate to bring it at par with WorldBank rate, that is, 1%, with Chinese Government. I don't know about the result of that effort.
Repayment will be affected in 30 Year time period. Yea, it is a soft loan.

If you could get loan from WB at cheaper rate than you can from Chinese, than it is not a soft loan.

Even WB loans have very long repayment period, usually upward of 40 years.

Not all loans are at 1.6%, different rates are applicable in different projects within the CPEC, and some of the rates are much higher. Besides, with the sovereign guarantee of ROI, the interest+ROI guarantee are going up to 32%-33% in some cases. We had detailed discussion with links etc. previously, if you want I can find and provide that thread to you.

If it does not trouble you much, you should list that thread. I would like to read it from economic viewpoint.

PS: PDF has got banned in India. Though my ISP has a very faulty ban software, so if you refresh your browser, it gives you access to PDF.

 

[dray]

If it does not trouble you much, you should list that thread. I would like to read it from economic viewpoint.

https://defence.pk/threads/the-real-face-of-cpec-destroying-pakistani-industry.435931/

Check the entire thread...

 

[Alternative]

If I had a billion dollars I would be a billionaire.

It seem that you are not a billionnaire; CPEC with its potentail is a reality.
If you look at the map of region, you will notice that CPEC provide the shortest possible route to Russia to hot waters of Arabian Sea. Moreover, if India wanted to send a shipment to Russia, the shortest possible route in term of Cost and Time, is of course, through CPEC.
I will not be surprised that Russia will be a part in near future.
Iran wants to be a part of CPEC: Oil and Gas can be pumped through easily and efficiently to huge market of China.

CPEC makes a perfect business case.

Not all loans are at 1.6%, different rates are applicable in different projects within the CPEC, and some of the rates are much higher. Besides, with the sovereign guarantee of ROI, the interest+ROI guarantee are going up to 32%-33% in some cases. We had detailed discussion with links etc. previously, if you want I can find and provide that thread to you.

Thank you for your post.

Please bear in mind when a Lender provides a Loan (an interest bearing loan) then for the amount invested/given as a loan the the ROI is the interest rate agreed.

Other Scenario is where, two or more parties come together for a venture as partners; in this senario, ROI will be calculated on the basis of profitability earned from that venture.
Please don't mix up the two different things.

In addition to CPEC, there are many projects that are being done with different Chinese Companies and Banks.

If you could get loan from WB at cheaper rate than you can from Chinese, than it is not a soft loan.

Even WB loans have very long repayment period, usually upward of 40 years.




If it does not trouble you much, you should list that thread. I would like to read it from economic viewpoint.

PS: PDF has got banned in India. Though my ISP has a very faulty ban software, so if you refresh your browser, it gives you access to PDF.

World Bank Loans have lots and lots of strings, condition, milestone etc. are attached. And who in the World Bank has given us $ 40 Billion investment and ensured the means to repay it.
China came itself with the proposal. A God send, indeed.
As I said earlier, I don't have an update whether Nawaz Government was successful on rate reduction; even then, It will not cost a penny to Pakistan, but instead result in steady revenue streams.
You are correct about the tenure of world Bank Loan; +30 year tenure is not a bad one either.

 

[New World]

their objections are valid.
even new Commander Southern Command has already raised the questions.

 

[posedion]

China has a huge population to look after all they will only see their Interest and if anybody thinks otherwise good luck

 

[Alternative]

https://defence.pk/threads/the-real-face-of-cpec-destroying-pakistani-industry.435931/

Check the entire thread...

Just WOW...WOW....
Thread is started by 'somebozo', doing some justice to his name in that thread.

How would the CPEC would be destroying Pakistani industry: How Pipeline, Motorways, Railways, Road etc. would destroy Pakistani industries?
Originally Chinese came up with the "Corridor" proposal, that is, Pipeline, Pipeline, Motorways, Railways, Road, Gawader Port, etc... Nawaz Government wanted more; Power generations projects, orange train, industrial parks etc.
The Cost of loans (interest rate) for "Corridor" is from zero percent (Gawader Port) to 1.6% (if not 1%).

Other Commercial Project,that directly generate revenue and profits, if financing is in the form of Loan, still very competitive rates.

Impact of cheap imports from China has impacted the Pakistani local industry for decades now through the auspices of FTA, how CPEC is going to change that equation to worse? No where answered in the thread.

 

[dray]

Just WOW...WOW....
Thread is started by 'somebozo', doing some justice to his name in that thread.

How would the CPEC would be destroying Pakistani industry: How Pipeline, Motorways, Railways, Road etc. would destroy Pakistani industries?
Originally Chinese came up with the "Corridor" proposal, that is, Pipeline, Pipeline, Motorways, Railways, Road, Gawader Port, etc... Nawaz Government wanted more; Power generations projects, orange train, industrial parks etc.
The Cost of loans (interest rate) for "Corridor" is from zero percent (Gawader Port) to 1.6% (if not 1%).

Other Commercial Project,that directly generate revenue and profits, if financing is in the form of Loan, still very competitive rates.

Impact of cheap imports from China has impacted the Pakistani local industry for decades now through the auspices of FTA, how CPEC is going to change that equation to worse? No where answered in the thread.

Yes, wow! That thread was a good one with many pages of information, read that thread, you will get answers to all your queries.

 

[Alternative]

Yes, wow! That thread was a good one with many pages of information, read that thread, you will get answers to all your queries.

I don't have any question, that are needed to be answered on viability of CPEC.
CPEC is a WIN WIN WIN.............for PAKISTAN.