IMF asks govt to reopen CPEC deals

[my2cents]

It doesn’t matter bcaz he will name a successor who will happily lick usa arse forever. All of them are compromised so it doesn’t matter who is new coas…..they all usa slaves…..

I’m surprised China hasn’t wound up entire cpec and moved it to Afg or Iran……it would be faster and less corruption too

Why is China silent and not closing shop here despite knowing about these traitors??

China is getting to know Pakistan by getting its nose bloodied. It is matter of time before it exits for good. Friendship deeper than the sea ...ha ha ha.

 

[maithil]

What is so wrong in doing this? If Govt is losing billions to Chinese power companies and wants go renegotiate terms, should it not try ?

 

[Communism]

What is so wrong in doing this? If Govt is losing billions to Chinese power companies and wants go renegotiate terms, should it not try ?

Pretty much amounts to bribing/threatening Pakistan to either poke China in the eyes repeatedly or get no IMF relief.

Classic political IMF demands.

This is the classic MO of what happens after a regime change.

That's what makes it the first concrete proof that it was a regime change.

These companies are barely breaking even, so any "renegotiation" pretty much amounts to demanding that China give Pakistan free money.

 

[Cheepek]

Renegotiating awful deals will save Pakistan a lot of money, it's no news the Chinese have been fleecing Pakistan big time on these IPP projects, but looks like Pakistanis are ready to eat grass to keep their fat friend happy at their own expense.

Dated article with some numbers.

China, Pakistan power plant dispute at a breaking point - Asia Times

PESHAWAR – With China virtually halting the multi-billion dollar China-Pakistan Economic Corridor (CPEC) over differences in cost estimations and contractual disputes, the issue of overdue payments owed to Chinese independent power producers (IPPs) is near a breaking point. Media reports claim...

asiatimes.com

 

[Communism]

Renegotiating awful deals will save Pakistan a lot of money, it's no news the Chinese have been fleecing Pakistan big time on these IPP projects, but looks like Pakistanis are ready to eat grass to keep their fat friend happy at their own expense.

Dated article with some numbers.

China, Pakistan power plant dispute at a breaking point - Asia Times

PESHAWAR – With China virtually halting the multi-billion dollar China-Pakistan Economic Corridor (CPEC) over differences in cost estimations and contractual disputes, the issue of overdue payments owed to Chinese independent power producers (IPPs) is near a breaking point. Media reports claim...

asiatimes.com

Everyone keeps repeating that narrative, but if you dig down into it, it's a standard commercial contract with very favorable terms to Pakistan (when rated against standard commercial deals)

The narrative that these deals were "rip-offs" simply doesn't stand up to serious scrutiny.

Pakistan ordered more capacity than it could use, and now doesn't want to pay for it, it's pretty simple.

 

[Cheepek]

Everyone keeps repeating that narrative, but if you dig down into it, it's a standard commercial contract with very favorable terms to Pakistan (when rated against standard commercial deals)

The narrative that these deals were "rip-offs" simply doesn't stand up to serious scrutiny.

Pakistan ordered more capacity than it could use, and now doesn't want to pay for it, it's pretty simple.

Any report, audit or scrutiny by Pakistan government on Chinese IPPs that you claim those are "standard commercial contracts" with "very favourable terms"?

 

[etylo]

Renegotiating awful deals will save Pakistan a lot of money, it's no news the Chinese have been fleecing Pakistan big time on these IPP projects, but looks like Pakistanis are ready to eat grass to keep their fat friend happy at their own expense.

Dated article with some numbers.

China, Pakistan power plant dispute at a breaking point - Asia Times

PESHAWAR – With China virtually halting the multi-billion dollar China-Pakistan Economic Corridor (CPEC) over differences in cost estimations and contractual disputes, the issue of overdue payments owed to Chinese independent power producers (IPPs) is near a breaking point. Media reports claim...

asiatimes.com

Low IQ Indians try to get some brains next time try much harder to split and pit between Pakistan and China as you Indians are trying to do all the time, otherwise with your such intelligence it has nil effect.

 

[Communism]

Any report, audit or scrutiny by Pakistan government on Chinese IPPs that you claim those are "standard commercial contracts" with "very favourable terms"?

You and I know that no one has any actual incentive to say that.

It takes simple logic.

First we have to take the "Risk Free Rate" for the Sovereign of Pakistan.

Pakistan Interest Rate - 2022 Data - 1992-2021 Historical - 2023 Forecast - Calendar

The State Bank of Pakistan hiked its key policy interest rate by 150 basis points to 13.75% during its May 23rd meeting, to preserve price and foreign exchange stability amid a sharp devaluation of the rupee. The monetary policy committee reiterated that external pressures remain elevated, and...

tradingeconomics.com

Then we see if the interest rate on the loan that Pakistan took to do these projects was significantly higher than the "Risk Free Rate" or not.

If it is not, then it is very favorable terms.

 

[denel]

Renegotiating awful deals will save Pakistan a lot of money, it's no news the Chinese have been fleecing Pakistan big time on these IPP projects, but looks like Pakistanis are ready to eat grass to keep their fat friend happy at their own expense.

Dated article with some numbers.

China, Pakistan power plant dispute at a breaking point - Asia Times

PESHAWAR – With China virtually halting the multi-billion dollar China-Pakistan Economic Corridor (CPEC) over differences in cost estimations and contractual disputes, the issue of overdue payments owed to Chinese independent power producers (IPPs) is near a breaking point. Media reports claim...

asiatimes.com

It is no surprise; we saw it first hand here with Transnet with costs being inflated 3-4x actual price - with 75% going to kickbacks.

 

[313ghazi]

Win win in my eyes.

If they renegotiate the Patwaris and thier lumbar 1 cheer leaders get jootay from the Chinese and if they don't they can't borrow to embezel and it brings thier govt down faster.

 

[Madni Bappa]

Patwario!

I don't know why you PTIans blaming them??

Asal game to haramzadey Beghairat Bajwey ne dali hai.

 

[Gripen9]

TBH, this isn't that illogical.

We have been leaking money in capacity payments and surcharges for years now to these power projects, and that is the reason we cannot bring the circular debt down.

It should also be highlighted who negotiated and approved these projects?

 

[LakeHawk180]

Pretty much amounts to bribing/threatening Pakistan to either poke China in the eyes repeatedly or get no IMF relief.

Classic political IMF demands.

This is the classic MO of what happens after a regime change.

That's what makes it the first concrete proof that it was a regime change.

These companies are barely breaking even, so any "renegotiation" pretty much amounts to demanding that China give Pakistan free money.

They are literally asking you(Pakistan) to stand up for yourself and to stop being so submissive. You got the short end of the deal based on an objective assessment by the IMF. They are doing you a solid by requesting that you renegotiate terms.

Also that “deeper than the ocean” friend China should understand the predicament you’re in. IMF demands are now public domain. Last time I checked there were tons of fluent English speakers within the Chinese administration.

 

[Communism]

They are literally asking you(Pakistan) to stand up for yourself and to stop being so submissive. You got the short end of the deal based on an objective assessment by the IMF. They are doing you a solid by requesting that you renegotiate terms.

Also that “deeper than the ocean” friend China should understand the predicament you’re in. IMF demands are now public domain. Last time I checked there were tons of fluent English speakers within the Chinese administration.

This is the curse of the fact that most of the news consumers of the world are economically illiterate.

The narrative that these deals are on bad terms is simply objectively false if one has even the most basic knowledge of economics.

This is a concerted effort by the U.S. to get every country in the world to selectively default on Chinese loans so that those countries will never have the option of getting Chinese loans in the future to compete with Western loans.

This narrative is incredibly corrosive to the body politic of every country it has been deployed onto so far, while hiding the loans that western countries have given to countries, always at higher rates and worse loan conditions.

It's basically projection to make sure that countries never default on Western loans.

The horrendous results of this strategy have already played out in Africa, where due to Western pressure on these countries to selectively default on Chinese loans, now none of these countries can get any loans to continue operating properly any longer.

 

[Jango]

It should also be highlighted who negotiated and approved these projects?

Shhhhhhh....jamhuriat jhatray main ajati hai