Is CPEC the next East India company ?

[fanne]

Root cause of failed investments Hambantota
The key to take away here is to realise that China is no doubt a specialist in building infrastructure but it is primarily the responsibility of the loan-recipient country to conduct extensive project appraisal and feasibility studies.
One solid symptom of a weak business case is a lack of any Private-Public Partnership (PPP) based arrangements in project financing. If the primary funding of any infrastructure project involves only sovereign guarantees with no Special Purpose Vehicle (SPV) to isolate project-based cash flows, it is a ‘red flag’ that the business case is not market-driven and not lucrative enough for investors.

Unlike Hambantota, the CPEC project is spread all over the country and the Gwadar Port provides an ideal outlet for the landlocked countries of Central Asia which have expressed their willingness to use this port. Similarly, Russia has also evinced interest in reaching out to the world through this port. Being the architect of the CPEC, China is also surely going to benefit from the venture and Pakistan’s agreement to be part of it has also taken the relations between the two countries to a new level.

even pakistani people don't know on what terms loan has to be paid , there is confusion about even rate of interest .what are the terms on which it will be operated, who will dictate terms chinese or pakistanis ?

 

[Clutch]

By Dr Aynul Hassan

The writer is Former Director, Macroeconomic Policy and Development Division, United Nations.



PEOPLE have often raised concerns about the CPEC being the next East India Company. But, much to their dismay, they have been proven wrong time and again. We now live in a globalised world where the countries are interdependent to fulfil their needs. Gone are the days when the foreigners would step on a land for the sole purpose of invasion and colonisation. They don’t set up their military bases now in foreign lands, but they are rather interested in setting up their businesses overseas. The Belt and Road Initiative (BRI) is based on the win-win philosophy of Confucius.

With the successful execution of CPEC, both Pakistan and China are going to reshape the future of the economic world. China will have all that it needs at the moment to make its presence felt in every corner of the world; more seaports and direct routes to connect with different parts of the world, cutting down the shipping costs etc. Pakistan will see phenomenal growth in its infrastructure, energy and telecommunication sectors.

BRI bids to enhance regional connectivity and cooperation and to address the Infrastructural Gap of 68 countries across the Asia Pacific area and Central Asia and Eastern Europe. Thus, it has the potential to accelerate the economic growth. BRI has some of the largest infrastructure and investment projects in history, covering 65pc of the world’s population and 40pc of the global GDP as of 2017.

CPEC is a 3,218-km route, mainly consisting of, but not limited to, highways, railways, pipelines and energy projects. The project that had initially started off with a $46bn budget may now witness an increase which might take it to $75bn. Out of the total amount, a whopping $33bn will be for used for energy projects alone which will help Pakistan with its prevalent energy crises.

For China, its north-western landlocked region will become land and sea-linked through Kashgar, Gwadar and beyond. Its import cost of crude oil will decline significantly. More importantly, China’s further expansion of longterm trade with the West through Gwadar could be safe and secure as opposed to routes through the South China Sea or the Malacca Strait.

For many, CPEC is the gamechanger for Pakistan. Such are the expectations from the project on this side of the border. There is absolutely no doubt that it will help Pakistani traders get access to huge Chinese market that remains untapped to so many businesses in Pakistan.

With CPEC in place, one hopes that the large deposits of mineral resources will be extracted and made the most of. The tourism industry is also set to get a boost because of the opportunities that the CPEC brings with itself. Most of all, it will help create hundreds and thousands of jobs in Pakistan, resulting in significantly cutting down the problem of unemployment.

To implement CPEC in an optimal fashion, we need a development policy which ensures that peace, security and stability of the region are not compromised and there is scope for an averageeducated, healthy and disciplined workforce to perform duties on a mass scale. It should be ensured that the rule of law, accountability, meritocracy, transparency, good governance and business-friendly policies are in place for the successful execution of CPEC.

Once the aforementioned objectives are guaranteed, the work should be done to make the infrastructure better than ever because the CPEC will continue to play a critical role in the development of infrastructure across Pakistan.


Source: https://www.dawn.com/news/1409728

CPEC 2018 Summit: A policy for success

By Dr Aynul Hassan

In Dr Aynul Hassan's opinion, CPEC may well reshape the future.

PEOPLE have often raised concerns about the CPEC being the next East India Company. But, much to their dismay, they have been proven wrong time and again. We now live in a globalised world where the countries are interdependent to fulfil their needs. Gone are the days when the foreigners would step on a land for the sole purpose of invasion and colonisation. They don’t set up their military bases now in foreign lands, but they are rather interested in setting up their businesses overseas. The Belt and Road Initiative (BRI) is based on the win-win philosophy of Confucius.

With the successful execution of CPEC, both Pakistan and China are going to reshape the future of the economic world. China will have all that it needs at the moment to make its presence felt in every corner of the world; more seaports and direct routes to connect with different parts of the world, cutting down the shipping costs etc. Pakistan will see phenomenal growth in its infrastructure, energy and telecommunication sectors.

BRI bids to enhance regional connectivity and cooperation and to address the Infrastructural Gap of 68 countries across the Asia Pacific area and Central Asia and Eastern Europe. Thus, it has the potential to accelerate the economic growth. BRI has some of the largest infrastructure and investment projects in history, covering 65pc of the world’s population and 40pc of the global GDP as of 2017.

CPEC is a 3,218-km route, mainly consisting of, but not limited to, highways, railways, pipelines and energy projects. The project that had initially started off with a $46bn budget may now witness an increase which might take it to $75bn. Out of the total amount, a whopping $33bn will be for used for energy projects alone which will help Pakistan with its prevalent energy crises.

For China, its north-western landlocked region will become land and sea-linked through Kashgar, Gwadar and beyond. Its import cost of crude oil will decline significantly. More importantly, China’s further expansion of longterm trade with the West through Gwadar could be safe and secure as opposed to routes through the South China Sea or the Malacca Strait.

For many, CPEC is the gamechanger for Pakistan. Such are the expectations from the project on this side of the border. There is absolutely no doubt that it will help Pakistani traders get access to huge Chinese market that remains untapped to so many businesses in Pakistan.

With CPEC in place, one hopes that the large deposits of mineral resources will be extracted and made the most of. The tourism industry is also set to get a boost because of the opportunities that the CPEC brings with itself. Most of all, it will help create hundreds and thousands of jobs in Pakistan, resulting in significantly cutting down the problem of unemployment.

To implement CPEC in an optimal fashion, we need a development policy which ensures that peace, security and stability of the region are not compromised and there is scope for an average educated, healthy and disciplined workforce to perform duties on a mass scale. It should be ensured that the rule of law, accountability, meritocracy, transparency, good governance and business-friendly policies are in place for the successful execution of CPEC.

Once the aforementioned objectives are guaranteed, the work should be done to make the infrastructure better than ever because the CPEC will continue to play a critical role in the development of infrastructure across Pakistan.

The writer is Former Director, Macroeconomic Policy and Development Division, United Nations.

This article is part of the CPEC 2018 summit supplement. To read more from the supplement, visit the archive.

 

[AZ1]

India was beating drum you cam search on youtube etc that they have chabahar this and that crap and now they left nothing but tears in their eye.

 

[Zhukov]

Yes it is!!. It will colonize Whole of Subcontinent Thwart the Delhi Government. After a failed Rebellion they will transfer crown of Delhi to Beijing and whole Subcontinent will come under direct Rule of Beijing for next 200 years.
Now move on with your life

 

[xyx007]

even pakistani people don't know on what terms loan has to be paid , there is confusion about even rate of interest .what are the terms on which it will be operated, who will dictate terms chinese or pakistanis ?

It is a pay as you earn arrangement. CPEC is supposed to earn over 5 billion dollars year a year in the initial stage rising up and up with increasing economic activities in the two countries.I Don't know why Indians are so worried about Pakistan or cpec, if Pakistan becomes debt ridden then it will be Pakistanis loss, if it gets profit from cpec then it's our gain, India has nothing to lose or gain so why care, work on your future before nosing at others future

 

[fanne]

India was beating drum you cam search on youtube etc that they have chabahar this and that crap and now they left nothing but tears in their eye.

they are running operating the chahbahar . what tears you are talking ?

It is a pay as you earn arrangement. CPEC is supposed to earn over 5 billion dollars year a year in the initial stage rising up and up with increasing economic activities in the two countries.I Don't know why Indians are so worried about Pakistan or cpec, if Pakistan becomes debt ridden then it will be Pakistanis loss, if it gets profit from cpec then it's our gain, India has nothing to lose or gain so why care, work on your future before nosing at others future

this is only for knowledg's sake ,
don't be impatient give and take information if you can .
earning five billion dollars from cpec per annum is huge sum .

 

[AZ1]

they are running operating the chahbahar . what tears you are talking ?



this is only for knowledg's sake ,
don't be impatient give and take information if you can .
earning five billion dollars from cpec per annum is huge sum .

yeah and doing wonders for India. Tell me when the next wheat shipment going to afghanistan? hawa nikal gaye baloon se.

 

[fanne]

yeah and doing wonders for India. Tell me when the next wheat shipment going to afghanistan? hawa nikal gaye baloon se.

is there any need to announce to the world when a shipment of wheat is going to afghanistan ? it is regular business .

 

[nang2]

Whoever asks such a question has no clue what East Indian Company was.

 

[fanne]

Whoever asks such a question has no clue what East Indian Company was.

enlighten us .

 

[xyx007]

they are running operating the chahbahar . what tears you are talking ?



this is only for knowledg's sake ,
don't be impatient give and take information if you can .
earning five billion dollars from cpec per annum is huge sum .

Trump scrapped the Iran nuclear deal signed by his predecessor Barack Obama. The 2015 deal with Iran ended its economic isolation from the rest of the world. India has committed more than $500 million to develop the strategically located Iranian port of Chabahar, This project, which is already facing delays, could become a sticking point against India for the US, if New Delhi furthers investments in it.
Whatever India decides to do vis-à-vis Iran it will be caught between a rock and a hard place. If it follows the US lead and draws away from Iran, it will leave a hole that China, and by association Pakistan, will be only too happy to fill. Already feeling encircled by China's growing influence in the region - especially with Nepal, Sri Lanka and the Maldives - India will not want to lose what little edge it has in maintaining some sort of geopolitical balance. Already, anticipating Trump pulling out of the nuclear deal, Iran shocked India by inviting Pakistan and China to participate in developing the Chabahar port. This is the story about Indian tears. India once tried to isolate Pakistan from the world and look yourself where are you standing .

 

[xyxmt]

I dot get it, I am confused, this is a riddle i cannot put my head around

why are Hindu Indians worried about Muslim Pakistan and keep warning us; First Directly and when we did not pay attention; then thru Lallu Khair; then John Barhamputra and God know who else will they use in the future

 

[fanne]

I dot get it, I am confused, this is a riddle i cannot put my head around

why are Hindu Indians worried about Muslim Pakistan and keep warning us; First Directly and when we did not pay attention; then thru Lallu Khair; then John Barhamputra and God know who else will they use in the future

appreciate your dard , but here it is discussion forum , come out of your protection and discuss things with open hearts .

 

[BATMAN]

Screw you Dr Aynul Hassan

 

[fanne]

Trump scrapped the Iran nuclear deal signed by his predecessor Barack Obama. The 2015 deal with Iran ended its economic isolation from the rest of the world. India has committed more than $500 million to develop the strategically located Iranian port of Chabahar, This project, which is already facing delays, could become a sticking point against India for the US, if New Delhi furthers investments in it.
Whatever India decides to do vis-à-vis Iran it will be caught between a rock and a hard place. If it follows the US lead and draws away from Iran, it will leave a hole that China, and by association Pakistan, will be only too happy to fill. Already feeling encircled by China's growing influence in the region - especially with Nepal, Sri Lanka and the Maldives - India will not want to lose what little edge it has in maintaining some sort of geopolitical balance. Already, anticipating Trump pulling out of the nuclear deal, Iran shocked India by inviting Pakistan and China to participate in developing the Chabahar port. This is the story about Indian tears. India once tried to isolate Pakistan from the world and look yourself where are you standing .

india is maintaining and operating chahbahar don't you know ?