CPEC investment pushed from $55b to $62b

[Kabira]

KARACHI:

China has approved additional financing for infrastructure projects in Pakistan under the China-Pakistan Economic Corridor (CPEC), taking the investment volume to $62 billion from $55 billion, announced Sindh Governor Mohammad Zubair on Wednesday.

“New investment has been approved for projects in various sectors including [establishment of] industrial zones,” said Zubair while speaking at a conference on “Infrastructure demand and financing” organised by credit rating agencies Pacra (Pakistan) and Dagong (China).

“We are also in talks to place the Karachi Circular Railway under the CPEC banner,” he said.

China has been increasing investment in Pakistan’s infrastructure and power projects since it unveiled CPEC programme worth $46 billion in 2015.

The volume of investment was pushed to $55 billion when Federal Minister of Planning, Development and Reform Ahsan Iqbal, Federal Minister of Railways Khawaja Saad Rafique and chief ministers of provinces visited China about three months ago.

“This [$62 billion investment] is good news. People will bear fruits of the investment,” remarked Zubair, who is an active member of Prime Minister Nawaz Sharif’s core economic team.

A major chunk of the multibillion-dollar investment, $34 billion, is going into electricity production and distribution.

According to Zubair, other countries are keen to become part of CPEC projects. They may become part of the project by investing in industrial zones, he said.

Additionally, CPEC projects also have huge indirect benefits as well. “Information technology firms from across the globe have arrived in Pakistan as each and every project under China’s investment would require IT assistance.”

Zubair added China had become one of the world’s economic superpowers by investing in huge infrastructure projects like highways, railways, power production and gas pipelines at home.

“We are doing exactly the same thing. CPEC will create massive economic momentum in Pakistan,” he said.
https://tribune.com.pk/story/1381733/cpec-investment-pushed-55b-62b/

 

[Mo12]

Great news from Pakistan.

 

[Clutch]

It will go beyond 100 billion after 2018. The change is going to bigger than most pundits realize. It will be largest "Marshal plan" in history by a huge margin.

 

[Sully3]

eventually it will be a 100 billion investment. the chinese are testing the waters they are just trying to secure infrastructure at the moment once thats done you will see part 2 of CPEC which will be the industrialisation age of paksitan.

 

[Hyde]

eventually it will be a 100 billion investment. the chinese are testing the waters they are just trying to secure infrastructure at the moment once thats done you will see part 2 of CPEC which will be the industrialisation age of paksitan.

that's peanuts actually... by the time CPEC's power and infrastructure network is operational, you will see the economy of Pakistan rising too. Strong economy means greater level of co-operation between both nations and will lead to inception of new projects.

The bilateral relationships are on-going they just don't end up with certain projects. Whether they brand new projects under the flag of CPEC or treat them as foreign investment, the bottom line is, you are likely to see plenty of investment from the Chinese in the coming years

 

[Dark-Destroyer]

meant to say, loan..

right???

Source to your claim? Otherwise silence is the best option when got nothing informative to say....

 

[Shotgunner51]

that's peanuts actually... by the time CPEC's power and infrastructure network is operational, you will see the economy of Pakistan rising too. Strong economy means greater level of co-operation between both nations and will lead to inception of new projects.

The bilateral relationships are on-going they just don't end up with certain projects. Whether they brand new projects under the flag of CPEC or treat them as foreign investment, they bottom line is, you are likely to see plenty of investment from the Chinese in the coming years

Agree, infrastructure is foundation which once done, superstructure follows, that means industrial sector (manufacturing), services, perhaps even agricultural sector, will grow. By department, the first wave is led by the state doing the big ticket infra projects, cos back in China infra is a SOE business, then comes the private sector investments which will be very diversified. Recently a hotel chain asks me about the prospect of CPEC, local tax law and where to find talents etc, planning on a visit soon, and they are just an example. I think maybe some Pak bros can start investment consultancy business in CPEC, should be good.

 

[Dark-Destroyer]

55 billion dollar was loan so it added to 62 million.

so what does mean?

let me know...

Source mate what I said in the first post provide your source for the additional $7 billion don't ask me what it means your telling me its loans so provide evidence to your claim

 

[Incog_nito]

Till 2030 it will reach to $200-300 Billions.

 

[Finer]

And it is just beginning. Pretty soon, it is going to be International hub which should put Pakistan literally on the global map.

 

[SorryNotSorry]

What stops Pakistan from spending this money over the span of 30 years on infrastructure, rather than paying it back to China with interest?

 

[Kabira]

What stops Pakistan from spending this money over the span of 30 years on infrastructure, rather than paying it back to China with interest?

I don't know what you mean. Pakistan doesn't get money directly from China. They hire contractors and pay them.

 

[SorryNotSorry]

I don't know what you mean. Pakistan doesn't get money directly from China. They hire contractors and pay them.

But the loans that China provides through Chinese banks for profit means end of the day Pakistan pays more money than it should. Am I right? Couldn't Pakistan have bypassed this by stretching out the infrastructure projects till 2030. But i guess that would mean development would have been much slower.

 

[Kabira]

But the loans that China provides through Chinese banks for profit means end of the day Pakistan pays more money than it should. Am I right? Couldn't Pakistan have bypassed this by stretching out the infrastructure projects till 2030. But i guess that would mean development would have been much slower.

Not all are loans. Most of projects are on BOT, IPP basis, like motorways and power projects.

 

[Genesis]

What stops Pakistan from spending this money over the span of 30 years on infrastructure, rather than paying it back to China with interest?

It's like this, with this infrastructure deal, Pakistan economy will greatly benefit. a percentage of 62 billion is far less than even a small percentage increase of total GDP.

Oh yea, there's also the better living conditions, and all that, but that's not really a priority for anybody, is it.