Govt mulls treating CPEC funds as FDI

[Jungibaaz]

I don't support this, it probably serves no purpose than political gain and making figures look better.
CPEC is important to us, but misrepresenting it doesn't do it or us any good

 

[Aqsa Mateen]

humara eik dost bht bara capital mulk ha bhai

 

[ajpirzada]

interesting...

does anyone know how are imports of machinery (related to CPEC) treated? Chinese companies buy the machinery using Chinese money and then bring the machinery in Pakistan. no money flows out but machinery comes in.

 

[SBD-3]

Project based financing is also a loan and not FDI unless the project is giving out equity.

Almost all financing from China for Pakistan is on commercial loan terms and not in lieu of equity. I think your Government is buckling under Imran Khan's pressure and trying to fudge figures to stave off public pressure.

Most of the firms contribute their equity by borrowing from banks. I mean If Chinese enterprises are sitting on heaps of free cashflows, they would bring in money out of their pockets but would Shanghai Electric somehow bring 9 Billion Dollars for KE out of its corporate vaults? The equity of Chinese would be predominantly provided by Chinese Banks.