CPEC Value Rises to $55 Billion after new Chinese Investment

[haidian]

China bet big on CPEC, now there's no turning back.

 

[as1mz]

Keep it coming

http://todayinpakistan.com/cpec-55-billion-project/

 

[Srinivas]

The investments are increasing on paper. Do they get the same returns or they want more leverage on Pakistan's resources?

 

[Devil Soul]

CPEC investment soars to $55bn after new Chinese loan
November 23, 2016, 9:53 pm
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The government has secured an additional $8.5 billion of investment from Beijing as part of the countries' joint energy, transport and infrastructure plan, Federal Minister Ahsan Iqbal said on Wednesday.

That is on top of the $46-billion China-Pakistan Economic Corridor (CPEC) project, which focuses on road building and energy infrastructure to end chronic power shortages in Pakistan and to link China's landlocked north-west with the deep-water port Gwadar on the Arabian Sea.

Some $4.5 billion of the additional investment will be spent on upgrading tracks and signaling on railway line from Karachi to Peshawar and increase the speed on the line to 160km per hour from the current 60-80kph, Ahsan told Reuters in an interview.

Another $4 billion will go toward an LNG terminal and transmission line, he added. "This has now all been approved, so this is an additional $8.5 billion to the $46 billion we had already, so we are now close to $55 billion," Ahsan said.

The International Monetary Fund said in June that repayments and profit repatriation from large-scale investments such as CPEC could add to Pakistan's medium- and long-term risks, predicting that the country's gross external financing needs would rise to $15.1 billion in 2018/2019 from $11.4 billion in the current financial year.

But Ahsan said those risks would be countered by the economic boost the investment would give to industries such as steel, construction and engineering, pushing future annual growth to above six per cent.

In July the IMF upped its forecast for growth in Pakistan to five per cent from 4.7 per cent in the fiscal year to June 2017, citing China's investment plans.

"As the economy grows, our capacity to undertake the responsibilities of repayments also improves. What really matters is that all of that investment is going into productive sectors," Ahsan said.

Under CPEC, a number of new economic zones will be created along the corridor. Pakistan hopes that some industry will relocate from China, due to cheaper wages and production costs, Ahsan said.

"Our preferred mode is joint ventures, because that will give a stake to both Pakistani and Chinese enterprises so now our government is actively promoting business-to-business links," he added.
http://nation.com.pk/business/23-No...xtra-8-5bn-chinese-investments-in-rail-energy

 

[Qutb-ud-din Aybak]

 

[Hyde]

To be honest with you,

Technically China has started naming or Pakistan has been insisting on naming every single project as part of CPEC for no reason. It gives them a sense of security perhaps.

The Gwadar-Nawabshah LNG terminal was to be financed by China anyway, they had already committed to it. The only thing is, instead of calling it a foreign "Chinese" investment they will now consider it as part of CPEC. The pipeline project, cost, timeline, everything remains as it is

 

[Star Expedition]

The investments are increasing on paper. Do they get the same returns or they want more leverage on Pakistan's resources?

Indian elites are very cautiously, that makes them almost never fail, also less succeed.

 

[ChTahir]

We Proudly Getting Better Investment banking analyst position.Better Worked out great and we are looking forward. Pakistan Zindabad

 

[lonelyman]

Sir Chinese are shrewd business men in addition to being our sincere friends. They know that even USD 200 billiion is peanuts in comparison to the return on investment they get and also the benefits of having a strong and healthy ally and friend in the region where two large bullies are pairing up to bite the tail of the dragon. Plus there is no shame in doing business that's mutually beneficial. There is nothing like an HSR to travel from city to city for distances between 300-600 kms

Right on, a strong and prosperous Pakistan is in China best interests

 

[DJ_Viper]

I foresee Pakistan will be developed very quickly in the same effort of China trying to develop Western China.

There is talk of creating 29 industrial zones along the corridor of CPEC and some 21 energy and mineral extraction zones something like that

So even just few medium to large scale industries are established, we are talling about billions of dollars worth of investment. I am sure this is where our other economic partners such as Turkey, UAE, Saudi Arabia, US and Germany will jump in

Sir, I've read various assessments on this CPEC program. Almost every Western economic powerhouse is interested in this, and the growth potential of Pakistan. An article in the times magazine has a one pager on this not too long ago, it said that in the next ten years, there will be about 4-6 cities that would look like "new Dubai's", along with over 20-30 business / manufacturing districts across Pakistan supporting business and trade activity.

This article also mentioned that Pakistan would be in the top 16 economies before 2030. By looking at the speed at which the work is getting done, I'd probably guess that this would happen by 2025. Thanks

 

[SMC]

Now CPEC needs a loan to buy 1.2 billion heartburn medicines for our bharati friends. Then I will be happy.

 

[Hassan Guy]

Barely half the amount needed to replenish burnol stocks in India

 

[Talwar e Pakistan]

It isnt 55; didnt they also increase it by like 27 billion for the construction of 2 dams?

 

[Clutch]

Sir, I've read various assessments on this CPEC program. Almost every Western economic powerhouse is interested in this, and the growth potential of Pakistan. An article in the times magazine has a one pager on this not too long ago, it said that in the next ten years, there will be about 4-6 cities that would look like "new Dubai's", along with over 20-30 business / manufacturing districts across Pakistan supporting business and trade activity.

This article also mentioned that Pakistan would be in the top 16 economies before 2030. By looking at the speed at which the work is getting done, I'd probably guess that this would happen by 2025. Thanks

I like the enthusiasm and share most of it with you. But, some concerns of mine that can potentially dampen those forecasts are:
1. Continued corruption,
2. Poor law and order,
3. Political instability, and
4. Weak judicial system.

If those fundamentals are not addressed sooner than later, then CPEC may never reach the rosy future we are painting! And to be honest, I don't see any of those concerns being addressed currently.

Just my 2 cents.

 

[DJ_Viper]

I like the enthusiasm and share most of it with you. But, some concerns of mine that can potentially dampen those forecasts are:
1. Continued corruption,
2. Poor law and order,
3. Political instability, and
4. Weak judicial system.

If those fundamentals are not addressed sooner than later, then CPEC may never reach the rosy future we are painting! And to be honest, I don't see any of those concerns being addressed currently.

Just my 2 cents.

Sir, at this point in time, even the Americans would give you the same bullet points you've mentioned , depends on who you ask and about which leader. The same bullet points are a part of every society at some level, some more, some less. At the end of the day, a nation's economic and institutional system has to go on with democratic values. That is what takes a country forward. I've read a lot of people on here who apparently think Pakistan should be ruled by the same military who has ruled it for like 50 years? So that's fine if people think that way. But today, there is not a single country on the face of this planet who grew due to a military's efforts, period. Literally, not even one country which has become an economic power house due to dictatorship.

What that tells you is, that corruption and everything else you brought up, are legit concerns, but you have to allow the system to fix itself. Plus, the law is the most supreme thing. A country is made for its people, not a small population for its military or political elite. The law and the people rule, overtime, the system starts to function and it fixed 80-90% of these. You can never fix anything 100% as that's impossible. Thanks