'CPEC is a loan, not a giveaway from China,' says OICCI president

[AZ1]

Only we give AID - that's the truth

No you don't you give Aid to spread AIDS like terrorism all over the Asia.

 

[beijingwalker]

Why shoot the messenger rather than thinking about the actual message ?????

FYI, it's not a fake news irrespective of the publications who are just publishing the words of Mr. Bruno Olierhoek. He is neither an India or an American. Moreover, it's non other than Pakistan's own business community had selected his as the president of OICCI.

https://dailytimes.com.pk/192908/bruno-olierhoek-elected-president-oicci/



Well, it's a feel good reply for your partners, but the truth is, China is pumping in a whole lot of money in India as FDI's. Far greater than what they have actually invested in Pakistan till date.

Chinese investors returning to India

Tencent invests in India

Just couple of examples above.

But why are you simply trying to fool gullible Pakistani Awam ???? LOL

That only means we use the money to make more money, see the trade deficit you suffer from China.

 

[Advaitagrata]

International loans are not the same as personal loans

Irrelevant. There is a minimum interest which is set by the central bank called the repo rate. No bank can lend lower than that.

China makes huge money by flooding the Indian market and invests the money in Pakistan.

True. You make money in India and reinvest that in pakistan with good interest rate. You make money off both countries. Its a smart strategy.

 

[Rollno21]

China makes huge money by flooding the Indian market and invests the money in Pakistan.

That's not investment bro,stop fooling the Pakistanies it's a loan,when you invest you take the risk and don't get assured returns and I am not even including the charge you add as security

 

[Advaitagrata]

Why shoot the messenger rather than thinking about the actual message ?????

FYI, it's not a fake news irrespective of the publications who are just publishing the words of Mr. Bruno Olierhoek. He is neither an India or an American. Moreover, it's non other than Pakistan's own business community had selected his as the president of OICCI.

https://dailytimes.com.pk/192908/bruno-olierhoek-elected-president-oicci/



Well, it's a feel good reply for your partners, but the truth is, China is pumping in a whole lot of money in India as FDI's. Far greater than what they have actually invested in Pakistan till date.

Chinese investors returning to India

Tencent invests in India

Just couple of examples above.

But why are you simply trying to fool gullible Pakistani Awam ???? LOL

Also True.

Close to 600 Chinese companies planning to invest a total of about $85 billion in India in projects that will create an estimated 700,000 jobs in the country in next five years.

Of all the proposals, 42% is from China.

Read more at:
//economictimes.indiatimes.com/articleshow/61093929.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Hop along indian. You people are Fuc.king hypocrites with no class.

lol. I was supporting your views regarding free press. Don't you want Dawn to be shut down ?

That's not investment bro,stop fooling the Pakistanies it's a loan,when you invest you take the risk and don't get assured returns and I am not even including the charge you add as security

Its an investment for china.

They get their money back with interest.

They also get a warm water port and employment for chinese citizens and opportunity for chinese companies to build the infrastructure. Its a VERY sweet deal.

 

[Tom M]

That only means we use the money to make more money, see the trade deficit you suffer from China.

You know what, there was once a country too poverty stricken to the north of India, we were also too poor during that period. Then they opened their economy in 1979 an the products and service from U.S.A started to flood their markets, in return they got huge Investments from U.S.A and their allies, down the road the slowly reduced the gap of trade deficit and today they are one of the fastest growing economies in the world with trillions worth GDP.

This is called Business and I bet you ain't know the basics of business economics. Else you doing this stupid be bragging when you can't see that most Chinese companies who are investing in India are setting up their R&D units and manufacturing facilities as well.

Huawei Says Bengaluru Is Now Its Largest Overseas R&D Centre

Xiaomi founder Lei Jun: India is a bigger priority for us than China

India Beats China In Attracting Funds For Engineering R&D; Cisco Claims 9% Of Their Global Patents Are From India

Priorities will change, so does the business environment. Just wait and watch.

 

[Clutch]

'CPEC is a loan, not a giveaway from China,' says OICCI president

The money being poured in the power and transport infrastructure under the multi-billion-dollar China Pakistan Economic Corridor (CPEC) initiative will improve Pakistan’s competitiveness internationally and link it with more countries than it is doing business with at present. That will create a huge space for foreign direct investment in the country’s export industries.

“To encourage exports you have to be competitive internationally. Many factors play a role. The government is working a lot on that. (Energy and transport projects under) CPEC will make Pakistan’s exports more competitive.

“Investments in special economic zones, railway, roads and ports will significantly cut export costs,” Mr Bruno Olierhoek, the president of the Overseas Investors Chamber of Commerce and Industry (OICCI) that represents nearly 200 foreign companies operating in Pakistan, noted in an interview with Dawn.

He was asked to comment on why foreign investors operating in Pakistan were focused on the domestic market alone and reluctant to invest in export industries.

“CPEC is a loan and Pakistan is using it for infrastructure and its energy issues. This is something that is (also) misunderstood abroad, that China is somehow giving money to Pakistan. It isn’t the case”, says Bruno Olierhoek

“Availability of energy and infrastructure upgrade will make it viable for others (foreign investors) to invest in new export opportunities. It will help create more export-oriented companies — also (to export goods) to china.

“Empty containers returning to China don’t make sense. The whole objective of CPEC is to not just create a road from China, but to improve competitiveness of the country and connect it with more countries than it is doing business with today. It is because of this possibility that CPEC is a game changer.”

But Mr Olierhoek cautioned that availability of energy and infrastructure upgrade wouldn’t automatically attract foreign private investment. “CPEC is good news (for Pakistan) but the government should also work hard on dismantling other barriers keeping foreign investors at bay.

“For example, perception on Pakistan tends to be more negative than the reality on ground. People overseas are still scared because of the perceived law and order situation although it is a different story once they are in the country.”

He conceded that foreign investors in the past have remained more market-centric because of energy and infrastructure bottlenecks and a “young, dynamic and big domestic. So domestic market has a lot of opportunities and a lot of investment is going there.”

He didn’t agree that foreign investors were waiting for China to take care of Pakistan’s energy and infrastructure shortages before they invested in the export industries.

“CPEC creates opportunity for everyone and it is a misperception that it is only for China. But still it is early days. Investment (in power and transport schemes) is done mostly by Chinese companies but like I said when you have infrastructure in place it opens opportunities for other investors as well.”

CPEC is not a giveaway from China, Mr Olierhoek said. “It is a loan to Pakistan and Pakistan is using it to increase its infrastructure and address its energy issues. This is something that is (also) misunderstood abroad that China is somehow giving money to Pakistan. It isn’t the case.

“Of course Chinese are negotiating good deals for their companies. So Pakistan should make sure these investments are used in its best interest.”

Foreign direct investment: Mr Olierhoek sought to dispel the impression that foreign firms operating in Pakistan aren’t investing in new Greenfield projects and pointed out that OICCI members had reinvested $2.2 billion from their profits in 2016, which was roughly the same as $2.6bn received by the country as FDI (including Chinese investment on CPEC related projects).

“The foreign companies already operating in Pakistan have positive sentiment and are investing here for the future. The size of reinvestment shows that we believe in Pakistan.

“Of course part of our reinvestment is for maintenance and small upgrades. But some of the money has also gone into new projects. OICCI member firms represent 14 different businesses sectors and they have invested in new projects across those sectors of the economy.”

He said foreign direct investment flowing into Pakistan was less 1pc of its GDP, lower than other regional countries like India and Bangladesh and required to be raised to at least 3pc of GDP.

“New investors look at (the) existing investors to see if they are reinvesting. This is something the government should use to attract foreign investment. The OICCI wants to speak on behalf of the country (to attract new companies). We have no agenda. We are objective.

“Investors always have a choice of investing in Pakistan, in neighbouring countries and elsewhere in the world. Reinvestments are a very strong signal of our belief in Pakistan.”

He urged the government to abolish the super tax that was levied for one year but now has been extended into its third year, pay tax refunds, solve post-devolution interprovincial issues, reduce corporate tax, facilitate legitimate repatriation of dividends (to foreign shareholders of companies).

“These are a few easy things that can be done. Businesses like consistency, predictability and transparency. The government can form a kind of federal council to work with the investors to improve ease of doing business ranking, and remove the impediments like multiplicity of (provincial and federal) regulations, higher tax burden on documented sectors, and so on, and attract new foreign investment.”

Uncertain 2018: With elections approaching, Mr Olierhoek feared uncertainties to increase over the next several months. “…before the next elections the government will be focusing on voters in this transition period as opposed to decisions that have long-term impact (on the economy). That leads to a bit of uncertainty. But of course business goes on as usual.

“Overseas investors look at long-term perspective on the economy… and the long-term perspective is that Pakistan still has enormous potential in different business sectors. That explains why OICCI members are consistently more bullish than overall and 87pc of them say they would continue with their investment plans for 2018.”

https://www.dawn.com/

I already posted this ...here is the complete article with the proper title:

On foreign investments and an uncertain 2018


Nasir JamalUpdated March 19, 2018
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The money being poured in the power and transport infrastructure under the multi-billion-dollar China Pakistan Economic Corridor (CPEC) initiative will improve Pakistan’s competitiveness internationally and link it with more countries than it is doing business with at present. That will create a huge space for foreign direct investment in the country’s export industries.

“To encourage exports you have to be competitive internationally. Many factors play a role. The government is working a lot on that. (Energy and transport projects under) CPEC will make Pakistan’s exports more competitive.

“Investments in special economic zones, railway, roads and ports will significantly cut export costs,” Mr Bruno Olierhoek, the president of the Overseas Investors Chamber of Commerce and Industry (OICCI) that represents nearly 200 foreign companies operating in Pakistan, noted in an interview with Dawn.

He was asked to comment on why foreign investors operating in Pakistan were focused on the domestic market alone and reluctant to invest in export industries.

ARTICLE CONTINUES AFTER AD
“CPEC is a loan and Pakistan is using it for infrastructure and its energy issues. This is something that is (also) misunderstood abroad, that China is somehow giving money to Pakistan. It isn’t the case”, says Bruno Olierhoek

“Availability of energy and infrastructure upgrade will make it viable for others (foreign investors) to invest in new export opportunities. It will help create more export-oriented companies — also (to export goods) to china.

“Empty containers returning to China don’t make sense. The whole objective of CPEC is to not just create a road from china, but to improve competitiveness of the country and connect it with more countries than it is doing business with today. It is because of this possibility that CPEC is a game changer.”

But Mr Olierhoek cautioned that availability of energy and infrastructure upgrade wouldn’t automatically attract foreign private investment. “CPEC is good news (for Pakistan) but the government should also work hard on dismantling other barriers keeping foreign investors at bay.

“For example, perception on Pakistan tends to be more negative than the reality on ground. People overseas are still scared because of the perceived law and order situation although it is a different story once they are in the country.”

He conceded that foreign investors in the past have remained more market-centric because of energy and infrastructure bottlenecks and a “young, dynamic and big domestic. So domestic market has a lot of opportunities and a lot of investment is going there.”

He didn’t agree that foreign investors were waiting for China to take care of Pakistan’s energy and infrastructure shortages before they invested in the export industries.

“CPEC creates opportunity for everyone and it is a misperception that it is only for China. But still it is early days. Investment (in power and transport schemes) is done mostly by Chinese companies but like I said when you have infrastructure in place it opens opportunities for other investors as well.”

CPEC is not a giveaway from China, Mr Olierhoek said. “It is a loan to Pakistan and Pakistan is using it to increase its infrastructure and address its energy issues. This is something that is (also) misunderstood abroad that China is somehow giving money to Pakistan. It isn’t the case.

“Of course Chinese are negotiating good deals for their companies. So Pakistan should make sure these investments are used in its best interest.”

Foreign direct investment: Mr Olierhoek sought to dispel the impression that foreign firms operating in Pakistan aren’t investing in new Greenfield projects and pointed out that OICCI members had reinvested $2.2 billion from their profits in 2016, which was roughly the same as $2.6bn received by the country as FDI (including Chinese investment on CPEC related projects).

“The foreign companies already operating in Pakistan have positive sentiment and are investing here for the future. The size of reinvestment shows that we believe in Pakistan.

“Of course part of our reinvestment is for maintenance and small upgrades. But some of the money has also gone into new projects. OICCI member firms represent 14 different businesses sectors and they have invested in new projects across those sectors of the economy.”

He said foreign direct investment flowing into Pakistan was less 1pc of its GDP, lower than other regional countries like India and Bangladesh and required to be raised to at least 3pc of GDP.

“New investors look at (the) existing investors to see if they are reinvesting. This is something the government should use to attract foreign investment. The OICCI wants to speak on behalf of the country (to attract new companies). We have no agenda. We are objective.

“Investors always have a choice of investing in Pakistan, in neighbouring countries and elsewhere in the world. Reinvestments are a very strong signal of our belief in Pakistan.”

He urged the government to abolish the super tax that was levied for one year but now has been extended into its third year, pay tax refunds, solve post-devolution interprovincial issues, reduce corporate tax, facilitate legitimate repatriation of dividends (to foreign shareholders of companies).

“These are a few easy things that can be done. Businesses like consistency, predictability and transparency. The government can form a kind of federal council to work with the investors to improve ease of doing business ranking, and remove the impediments like multiplicity of (provincial and federal) regulations, higher tax burden on documented sectors, and so on, and attract new foreign investment.”

Uncertain 2018: With elections approaching, Mr Olierhoek feared uncertainties to increase over the next several months. “…before the next elections the government will be focusing on voters in this transition period as opposed to decisions that have long-term impact (on the economy). That leads to a bit of uncertainty. But of course business goes on as usual.

“Overseas investors look at long-term perspective on the economy… and the long-term perspective is that Pakistan still has enormous potential in different business sectors. That explains why OICCI members are consistently more bullish than overall and 87pc of them say they would continue with their investment plans for 2018.”

It was posted on March 19th:
https://defence.pk/pdf/threads/on-f...n-2018-foreign-investors-take-on-cpec.549283/

Published in Dawn, The Business and Finance Weekly, March 19th, 2018

 

[xyxmt]

What is the interest rate on this "loan" ?

The chinese has a sweet thing going with pakistan. Its just a matter of time when pakistan would be unable to pay this loan and then will have to part with the port itself like it happened with Sri Lanka.

Have to give credit to the chinese for playing the game well.

9% plus 15% royalties as long as loan are not fully paid.
Pakistan is definitely going bankrupt now, start arranging for celebration parties

 

[takeitwithyou]

I got it after Fucking you bitch

Can't be possible, I'm not into it, I'm not your preferred age of Nine or younger.

 

[Advaitagrata]

9% plus 15% royalties as long as loan are not fully paid.
Pakistan is definitely going bankrupt now, start arranging for celebration parties

Good for the chinese.

pakistan is already bankrupt, you just haven't realized it. Anyway, how is it good news for me ? a bankrupt pakistan controlled by china is not any better than a bankrupt pakistan controlled by your army.

Its just more of the same $hit.

Can't be possible, I'm not into it, I'm not your preferred age of Nine or younger.

EPIC

 

[AZ1]

Good for the chinese.

pakistan is already bankrupt, you just haven't realized it. Anyway, how is it good news for me ? a bankrupt pakistan controlled by china is not any better than a bankrupt pakistan controlled by your army.

Its just more of the same $hit.



EPIC

Yeah that's why Pakistan is more happier than India lol and still progressing. Pakistan is night mare for indians and they just want to be in Pakistan. Indians here on this forum is very much example of that and not only here in every pakistani community forums, chat room etc you will find indians and you hardly find 1-2 pakistani on indian social communities.

 

[Advaitagrata]

Yeah that's why Pakistan is more happier than India lol and still progressing. Pakistan is night mare for indians and they just want to be in Pakistan. Indians here on this forum is very much example of that and not only here in every pakistani community forums, chat room etc you will find indians and you hardly find 1-2 pakistani on indian social communities.

Its the very definition of "Ignorance is Bliss".

 

[Lucky Breeze]

CPEC Finance
Concessionary loans
Approximately $11 billion worth of infrastructure projects being developed by the Pakistani government will be financed at an interest rate of 1.6%, after Pakistan successfully lobbied the Chinese government to reduce interest rates from an initial 3%. Loans will be dispersed by the Exim Bank of China, China Development Bank, and the ICBC. For comparison, loans for previous Pakistani infrastructure projects financed by the World Bank carried an interest rate between 5% and 8.5%, while interest rates on market loans approach 12%.

The loan money would be used to finance projects which are planned and executed by the Pakistani government. Portions of the approximately $6.6 billion Karachi–Lahore Motorway are already under construction. The $2.9 billion phase which will connect the city of Multan to the city of Sukkur over a distance of 392 kilometres has also been approved,with 90% of costs to be financed by the Chinese government at concessionary interest rates, while the remaining 10% is to be financed by the Public Sector Development Programme of the Pakistani government. In May 2016, the $2.9 billion loan were given final approvals required prior to disbursement of the funds were given by the Government of the People's Republic of China on May 4, 2016, and will be concessionary loans with an interest rate of 2.0%. The National Highway Authority of Pakistan reported that contractors arrived on site soon after the loan received final approval.

The China Development Bank will finance the $920 million towards the cost of reconstruction of the 487 kilometer portion of the Karakoram Highway between Burhan and Raikot. An addition $1.26 billion will be lent by the China Exim Bank for the construction of the Havelian to Thakot portion of this 487 kilometer stretch of roadway, to be dispersed as low-interest rate concessionary loans.

$7 billion of the planned $8.2 billion overhaul of the Main Line 1 railway is to be financed by concessionary loans, which extended by China's state owned banks.

The long-planned 27.1 km long $1.6 billion Orange Line of the Lahore Metro is regarded as a commercial project, and does not qualify for the Exim Bank's 1.6% interest rate. It will instead by financed at a 2.4% interest rate after China agreed to reduce interest rates from an originally planned rate of 3.4%.

The $44 million Pakistan-China Fiber Optic Project, a 820 km long fibre optic wire connecting Pakistan and China, will be constructed using concessionary loans at an interest rate of 2%, rather than the 1.6% rate applied to other projects.

Interest-free loans
The government of China in August 2015 announced that concessionary loans for several projects in Gwadar totalling $757 million would be converted 0% interest loans. The projects which are now to financed by the 0% interest loans include: the construction of the $140 million East Bay Expressway project, installation of breakwaters in Gwadar which will cost $130 million, a $360 million coal power plant in Gwadar, a $27 million project to dredge berths in Gwadar harbour, and a $100 million 300-bed hospital in Gwadar.Pakistan will only repay the principle on these loans.

In September 2015, the government of China also announced that the $230 million Gwadar International Airport project would no longer be financed by loans, but would instead be constructed by grants which the government of Pakistan will not be required to repay.

Private consortia
$15.5 billion worth of energy projects are to be constructed by joint Chinese-Pakistani firms, rather than by the governments of either China or Pakistan. The Exim Bank of China will finance those investments at 5–6% interest rates, while the government of Pakistan will be contractually obliged to purchase electricity from those firms at pre-negotiated rates.

As an example, the 1,223MW Balloki Power Plant does not fall under the concessionary loan rate of 1.6%, as the project is not being developed by the Pakistani government. Instead, it is considered to be a private sector investment as its construction will be undertaken by a consortium of Harbin Electric and Habib Rafiq Limited after they successfully bid against international competitors. Chinese state-owned banks will provide loans to the consortium that are subsidised by the Chinese government. In the case of the Balloki Power Plant, state-owned banks will finance the project at an interest rate of 5%, while the Pakistani government will purchase electricity at the lowest bid rate of 7.973 cents per unit.

Its the very definition of "Ignorance is Bliss".

May be we are a victim of ignorance but surely you are the victim of false knowledge.

 

[monitor]

I hope this statement will be eye opening for those who were date dreaming China give some free lunch for his all weather friend. China going to take away 90 billion dollar by investing 50-62 billion dollar. Out of 50-62 billion dollar very small percentage actually entered Pakistani economy as most of the heavy equipment for power plant coming from abroad . What Pakistan getting a infrastructure for investment. If Pakistan failed to attracts investment then CPEC could turn bad for Pakistan.

 

[Advaitagrata]

May be we are a victim of ignorance but surely you are the victim of false knowledge.

Let me tell you again, NO BANK can give loans that is lower than the Repo rate. It would mean a LOSS to the bank.

ANY chinese loan has to be above their own repo rate.