CPEC investment pushed from $55b to $62b

[SabzShaheen]

by Dawood Rehman | Published on April 16, 2017

ISLAMABAD – China has again hiked its investment in the China Pakistan Economic Corridor (CPEC) to $62 billion from $55 billion, media reports suggested.

China’s initial investment for CPEC in Pakistan was $46 billion in 2015; that number has been steadily going up with increasing investments required in Pakistan’s infrastructure and power projects. A major chunk of the multibillion-dollar investment, $34 billion, is going into electricity production and distribution.

Now, the additional financing is for infrastructure projects and industrial zones in Pakistan under CPEC. The volume of China’s investment in Pakistan would be significantly higher than $62 billion if its private sector investment is also counted.

“This [$62 billion investment] is good news. People will reap dividends of the investment… CPEC will create massive economic momentum in Pakistan,” said Sindh Governor Mohammad Zubair, a member of Prime Minister Nawaz Sharif’s core economic team.

International credit rating agency Moody’s has expressed confidence that projects being implemented under the CPEC umbrella would help boost Pakistan’s economy. In its latest reports, it has predicted that CPEC would fuel growth and the country is likely to achieve the GDP growth rate of five percent during current financial year.

In fact, a number of countries, spread over five continents, have expressed their keen interest to become a partner of Pakistan in CPEC-related projects and programmes.

Last month, Prime Minister Nawaz Sharif said at least 52 countries are willing to join China-Pakistan Economic Corridor (CPEC).

https://en.dailypakistan.com.pk/headline/china-raises-cpec-investment-to-62billion/

CPEC investment exceeds $62 billion: Sindh governor
By Usman Hanif - April 12, 2017

Chinese authorities have approved additional amount for China-Pakistan Economic Corridor (CPEC) reaching the total amount of the economic corridor more than $62 billion, Sindh Governor Mohammad Zubair said on Wednesday.

The investment is approved for different projects of construction, energy and establishment of industrial zones. It includes $34 billion of for energy projects in Pakistan, governor Sindh said while speaking at a conference on “Infrastructure demand and financing” organised by credit rating agencies Pacra (Pakistan) and Dagong (China).

The meeting was attended by Dagong Chairman Guan Jianzhong and former finance secretary Dr Waqar Masood Khan, former Chief Executive Engro Corporation Ali Ansari, Chief Economist of Bank Alflah Dr Mushtaq Ali Khan, renowned economist Shabbar Zaidi and others.

“Due to excellent governance and economic policies of the federal government, the country has started getting results,” the governor said. By end of this year, GDP growth will reach 5 per cent and the government’s target is six to seven per cent, he added.

The fiscal deficit of the country has decreased from 8.6 to 4 per cent. Infrastructure, law and order and provision of basic necessities to the public are a priority of the government.

Initially, CPEC was started with $46 billion in 2015 and then gradually the Chinese authorities have been increasing the volume.

Previously, 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, China increased the volume to $55 billion.

https://profit.pakistantoday.com.pk/2017/04/12/cpec-investment-exceeds-62-billion-sindh-governor/

 

[Kabira]

There many projects which are not part of CPEC but Chinese are investing. Like 2x1100 MW nuclear power plants in Karachi which will cost $10 billion.

 

[My-Analogous]

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.

For a single country called Pakistan. Our economy will be roaring and in few years we will in very good shape

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.

I think Pakistan can easily pay 2.8 Billion dollar in next 25 years with soft interest of just 2%. This is a clue for your, now dig up rest of investments issues and who gonna pay them

by Dawood Rehman | Published on April 16, 2017

ISLAMABAD – China has again hiked its investment in the China Pakistan Economic Corridor (CPEC) to $62 billion from $55 billion, media reports suggested.

China’s initial investment for CPEC in Pakistan was $46 billion in 2015; that number has been steadily going up with increasing investments required in Pakistan’s infrastructure and power projects. A major chunk of the multibillion-dollar investment, $34 billion, is going into electricity production and distribution.

Now, the additional financing is for infrastructure projects and industrial zones in Pakistan under CPEC. The volume of China’s investment in Pakistan would be significantly higher than $62 billion if its private sector investment is also counted.

“This [$62 billion investment] is good news. People will reap dividends of the investment… CPEC will create massive economic momentum in Pakistan,” said Sindh Governor Mohammad Zubair, a member of Prime Minister Nawaz Sharif’s core economic team.

International credit rating agency Moody’s has expressed confidence that projects being implemented under the CPEC umbrella would help boost Pakistan’s economy. In its latest reports, it has predicted that CPEC would fuel growth and the country is likely to achieve the GDP growth rate of five percent during current financial year.

In fact, a number of countries, spread over five continents, have expressed their keen interest to become a partner of Pakistan in CPEC-related projects and programmes.

Last month, Prime Minister Nawaz Sharif said at least 52 countries are willing to join China-Pakistan Economic Corridor (CPEC).

https://en.dailypakistan.com.pk/headline/china-raises-cpec-investment-to-62billion/

CPEC investment exceeds $62 billion: Sindh governor
By Usman Hanif - April 12, 2017

Chinese authorities have approved additional amount for China-Pakistan Economic Corridor (CPEC) reaching the total amount of the economic corridor more than $62 billion, Sindh Governor Mohammad Zubair said on Wednesday.

The investment is approved for different projects of construction, energy and establishment of industrial zones. It includes $34 billion of for energy projects in Pakistan, governor Sindh said while speaking at a conference on “Infrastructure demand and financing” organised by credit rating agencies Pacra (Pakistan) and Dagong (China).

The meeting was attended by Dagong Chairman Guan Jianzhong and former finance secretary Dr Waqar Masood Khan, former Chief Executive Engro Corporation Ali Ansari, Chief Economist of Bank Alflah Dr Mushtaq Ali Khan, renowned economist Shabbar Zaidi and others.

“Due to excellent governance and economic policies of the federal government, the country has started getting results,” the governor said. By end of this year, GDP growth will reach 5 per cent and the government’s target is six to seven per cent, he added.

The fiscal deficit of the country has decreased from 8.6 to 4 per cent. Infrastructure, law and order and provision of basic necessities to the public are a priority of the government.

Initially, CPEC was started with $46 billion in 2015 and then gradually the Chinese authorities have been increasing the volume.

Previously, 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, China increased the volume to $55 billion.

https://profit.pakistantoday.com.pk/2017/04/12/cpec-investment-exceeds-62-billion-sindh-governor/

It is time we readdress our strategy on Industries and give free holidays of 10years to tools and Machine manufacturing plants and asked them to invest in Pakistan and if they did under CPEC plan then they can export it to anywhere in the world without tax and they have to pay only 2.5% to local sales.

 

[Skies]

There should be one mini Sillicon valley and one mini Dubai in that area.