Just the CPEC Toll Income (Profit) Will be Three Times the Current Budget of Pakistan

[Clutch]

CPEC toll income to be ‘thrice the budget of Pakistan’

October 5, 2017pkow2017Leave a comment
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Irshad Salim — Only the toll income the China-Pakistan Economic Corridor (CPEC) route will generate– after the completion of the project by 2030, will be thrice the present (US$50 billion) national budget of Pakistan, and the distance between Jaboti deep sea port in Africa to Gwadar port in Balochistan will reduce to only 5 days. “That is the gateway to reach African markets for China that is heavily invested there,” said an official on Wednesday while highlighting a few aspects of the CPEC’s whopping revenue model based on its ge0-economic significance.



Zulfiqar Ali, director Board of Investment (BoI) while briefing the Lahore Economic Journalist Association (LEJA) in Lahore said that the national investment agency is targeting to increase foreign direct investment (FDI) to $250 billion for infrastructure development and other industrial activities by 2025, including joint industrial cooperation between Pakistan and China.

“It is on top of the business, economic, and employment creating activities of special economic zones (SEZs), and other industries.”

According to the official of the agency which runs a one-window operation for facilitating foreign investors seeking to do business in the country, Pakistan had already started development of seven Special Economic Zones (SEZs) with Chinese cooperation out of which three each were being established in Sindh and Punjab, and one in Khyber Pakhtunkhwa (KP).

“Furthermore, nine more Priority SEZs have also ben approved for Rashakai in KP, Dhabeji and Thatta in Sindh, Boston Economic Zones in Balochistan, Allama Iqbal SEZ, Faisalabad, Maqpoondas Northern Areas, Islamabad Capital Territory Model SEZ, Federal Government Industrial Park on Pakistan Steel land at Port Qasim, Mirpur Industrial Zone and Mohmand Marble City, Federally Administered Tribal Areas.”

While commenting that the CPEC is second chance for the industrial and economic development of Pakistan after 1960s industrialization drive, the BoI chief said, “The CPEC is as important for China as it is for Pakistan.”

China seeks to move many of its industries along the CPEC route and in the SEZs, to benefit from cheaper labor and shorter access (less than one-third) to the Middle East, Africa and beyond through Gwadar.

Ali added that through CPEC and Gwadar deep sea port, the distance between the Jaboti deep sea port of Africa will reduce to only 5 days. “That is the gateway to reach African markets for China that is heavily invested there,” he observed.

Moving ahead, he said the government’s recent efforts have resulted in a gradual increase in FDI. “The FDI in FY15 was only U$900 million, which increased to $2.3 billion in FY16 and further rose to $2.4 billion in FY17,” he said.

Replying to a question, the BOI director tried to dispel the general impression that the government was favoring Chinese investors (mostly state-owned companies) by giving them special concessions. “For the BoI and the government of Pakistan, every foreign investor is equal. Besides, same level of returns on investment is available to the local ones,” the BoI chief said to the economic journalists’ gathering.

Pakistan’s GDP is estimated to have grown by 5.28%, which is highest in the last ten years– GDP in absolute terms is now estimated to be higher than US$300 billion, owing mainly to the fast pace of the economic activity, particularly in the backdrop of investments being financed through the CPEC.

 

[Clutch]

CPEC toll income to be thrice the budget of Pakistan: BoI

Jawwad Rizvi
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LAHORE: Only the toll income generated by the route of China-Pakistan Economic Corridor (CPEC), after the completion of the project by 2030, will be three times of the national budget of Pakistan, an official said on Wednesday.

“It is on top of the business, economic, and employment creating activities of special economic zones (SEZs), and other industries,” Zulfiqar Ali, director Board of Investment (BoI) said while briefing Lahore Economic Journalist Association (LEJA) a local venue.

“The national investment agency is targeting to increase the foreign direct investment (FDI) to $250 billion for infrastructure development and other industrial activities by 2025, including joint industrial cooperation between Pakistan and China.”

Ali said that Pakistan had already started development of seven SEZs with Chinese cooperation out of which three each were being established in Sindh and Punjab and one in Khyber Pakhtunkhwa (KP).

“Furthermore, nine more Priority SEZs have also ben approved for Rashakai KP, Dhabeji Thatta, Boston Economic Zones Balochistan, Allama Iqbal SEZ, Faisalabad, Maqpoondas Northern Are3as, Islamabad Capital Territory Model SEZ, Federal Government Industrial Park on Pakistan Steel land at Port Qasim, Mirpur Industrial Zone and Mohmand Marble City, Federally Administered Tribal Areas,” he said.

The BoI chief said CPEC is the second chance for the industrial and economic development of Pakistan after 1960s industrialisation drive. “The CPEC is as important for China as it is for Pakistan,” he saoid.

Ali added that through CPEC and Gwadar deep sea port, the distance between the Jaboti deep sea port of Africa will reduce to only 5 days. “That is the gateway to reach African markets for China that is heavily invested there,” he observed.

Moving ahead, he said the government’s recent efforts have resulted in a gradual increase in FDI. “The FDI in FY15 was only U$900 million, which increased to $2.3 billion in FY16 and further rose to $2.4 billion in FY17,” he said adding it was encouraging as the steps taken by the government were paying off in shape of FDI.

He told the journalists that as an outcome of government’s negotiation with the Chinese, early harvesting projects of energy sector had already started adding into the national grid. “It is expected that there will be no power outages in 2018 and by 2020 maximum energy will be added into the national grid by 2020,” Ali said.

Replying to a question, the BOI director dispelled the impression that the government was favouring Chinese investors by giving them special concessions. “For the BoI and the government of Pakistan, every foreign investor is equal. Besides, same level of returns on investment is available to the local ones,” he added.

 

[ghauri05]

I read somewhere that China will make the roads and collect the tax too...is that right???does Pak has some share in it or not?what's the arrangement between Pak and china govts???

Can someone explain???

 

[khansaheeb]

Viewing CPEC as a revenue generator via tolls is a cheap Wadera view of the project. This was used to get the Waderas on board to agreeing the project. The long term goal is to establish intermediary trade and industries between strategic countries and markets for conversion from raw materials to desired products and to create gravitational links to attract and connect industries and regional entities for trade, with CPEC at its centre, so that Pakistan can become a global economy with sound Industrial, technology and education base to compete in the global economy.

I read somewhere that China will make the roads and collect the tax too...is that right???does Pak has some share in it or not?what's the arrangement between Pak and china govts???

Can someone explain???

China has made investments and of course is going to expect returns. The soft payments will be made by Pakistan with beneficial terms. It's win win for Pakistan and China.

 

[SHAH820]

I read somewhere that China will make the roads and collect the tax too...is that right???does Pak has some share in it or not?what's the arrangement between Pak and china govts???

Can someone explain???

just some indian propaganda
toll charges will be collected by pakistan even any foreign company want to start business in pakistan they need to align with a pakistani company about 30% share goes to pak company

 

[ghauri05]

China has made investments and of course is going to expect returns. The soft payments will be made by Pakistan with beneficial terms. It's win win for Pakistan and China.

I couldn't understand it..Pak has to pay..but from where???that's my question???will it be toll collected given to china??

China has made investments and of course is going to expect returns. The soft payments will be made by Pakistan with beneficial terms. It's win win for Pakistan and China.

I couldn't understand it..Pak has to pay..but from where???that's my question???will it be toll collected given to china??

 

[haidian]

Pakisan can simply pays back the loan with the toll fee, the toll money will go to Pakistan government. How can Cihnaa collect taxes in Pakistan? That sounds crazy.

 

[khansaheeb]

I couldn't understand it..Pak has to pay..but from where???that's my question???will it be toll collected given to china??


I couldn't understand it..Pak has to pay..but from where???that's my question???will it be toll collected given to china??

Pakistan has to repay the loans, so , indirectly yes, Pakistan will pay China back with some of the money collected by the tolls. But it is upto Pakistan how it fulfils its debt obligations.

 

[Hakikat ve Hikmet]

It's the idea first and foremost!!!! And, the wheels of ideas will be churning out products at an exponential rate as the this humongous trade route settles in!!!! There's almost nothing to lose and everything to gain here!!! How Bahtiyar of Pak!!!

 

[ghauri05]

China has made investments and of course is going to expect returns. The soft payments will be made by Pakistan with beneficial terms. It's win win for Pakistan and China.

I couldn't understand it..Pak has to pay..but from where???that's my question???will it be toll collected given to china??

 

[haidian]

Think like this, toll fee is the least amount of revenue that CPEC generates, the business opportunities and industries come with this corridor wiill be massive. Don't only have your sight on this toll money.

 

[-blitzkrieg-]

CPEC toll income to be ‘thrice the budget of Pakistan’

October 5, 2017pkow2017Leave a comment
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Irshad Salim — Only the toll income the China-Pakistan Economic Corridor (CPEC) route will generate– after the completion of the project by 2030, will be thrice the present (US$50 billion) national budget of Pakistan, and the distance between Jaboti deep sea port in Africa to Gwadar port in Balochistan will reduce to only 5 days. “That is the gateway to reach African markets for China that is heavily invested there,” said an official on Wednesday while highlighting a few aspects of the CPEC’s whopping revenue model based on its ge0-economic significance.



Zulfiqar Ali, director Board of Investment (BoI) while briefing the Lahore Economic Journalist Association (LEJA) in Lahore said that the national investment agency is targeting to increase foreign direct investment (FDI) to $250 billion for infrastructure development and other industrial activities by 2025, including joint industrial cooperation between Pakistan and China.

“It is on top of the business, economic, and employment creating activities of special economic zones (SEZs), and other industries.”

According to the official of the agency which runs a one-window operation for facilitating foreign investors seeking to do business in the country, Pakistan had already started development of seven Special Economic Zones (SEZs) with Chinese cooperation out of which three each were being established in Sindh and Punjab, and one in Khyber Pakhtunkhwa (KP).

“Furthermore, nine more Priority SEZs have also ben approved for Rashakai in KP, Dhabeji and Thatta in Sindh, Boston Economic Zones in Balochistan, Allama Iqbal SEZ, Faisalabad, Maqpoondas Northern Areas, Islamabad Capital Territory Model SEZ, Federal Government Industrial Park on Pakistan Steel land at Port Qasim, Mirpur Industrial Zone and Mohmand Marble City, Federally Administered Tribal Areas.”

While commenting that the CPEC is second chance for the industrial and economic development of Pakistan after 1960s industrialization drive, the BoI chief said, “The CPEC is as important for China as it is for Pakistan.”

China seeks to move many of its industries along the CPEC route and in the SEZs, to benefit from cheaper labor and shorter access (less than one-third) to the Middle East, Africa and beyond through Gwadar.

Ali added that through CPEC and Gwadar deep sea port, the distance between the Jaboti deep sea port of Africa will reduce to only 5 days. “That is the gateway to reach African markets for China that is heavily invested there,” he observed.

Moving ahead, he said the government’s recent efforts have resulted in a gradual increase in FDI. “The FDI in FY15 was only U$900 million, which increased to $2.3 billion in FY16 and further rose to $2.4 billion in FY17,” he said.

Replying to a question, the BOI director tried to dispel the general impression that the government was favoring Chinese investors (mostly state-owned companies) by giving them special concessions. “For the BoI and the government of Pakistan, every foreign investor is equal. Besides, same level of returns on investment is available to the local ones,” the BoI chief said to the economic journalists’ gathering.

Pakistan’s GDP is estimated to have grown by 5.28%, which is highest in the last ten years– GDP in absolute terms is now estimated to be higher than US$300 billion, owing mainly to the fast pace of the economic activity, particularly in the backdrop of investments being financed through the CPEC.

Dose it take into account the rail link or not because thats yet to be achieved. Overall its relative to how fast the economy of the western province picks up.
And Pakistan will be a loser if they just sit and take toll.Pakistan needs to start exploring the possibilities.One of them is working with Chinese to send Pakistani skilled labor to the western province to work and live there, buy property and do business there and maybe something like sister universities in Pakistan and Xinjiang where students and teachers come back and forth or something like develop a joint fund for promoting tourism in the area.

 

[Clutch]

Dose it take into account the rail link or not because thats yet to be achieved. Overall its relative to how fast the economy of the western province picks up.
And Pakistan will be a loser if they just sit and take toll.Pakistan needs to start exploring the possibilities.One of them is working with Chinese to send Pakistani skilled labor to the western province to work and live there, buy property and do business there and maybe something like sister universities in Pakistan and Xinjiang where students and teachers come back and forth or something like develop a joint fund for promoting tourism in the area.

Yes I agree... also as the article speaks to the fact that the toll is just one aspect of this...

 

[My-Analogous]

CPEC toll income to be ‘thrice the budget of Pakistan’

October 5, 2017pkow2017Leave a comment
Share this on WhatsApp

Irshad Salim — Only the toll income the China-Pakistan Economic Corridor (CPEC) route will generate– after the completion of the project by 2030, will be thrice the present (US$50 billion) national budget of Pakistan, and the distance between Jaboti deep sea port in Africa to Gwadar port in Balochistan will reduce to only 5 days. “That is the gateway to reach African markets for China that is heavily invested there,” said an official on Wednesday while highlighting a few aspects of the CPEC’s whopping revenue model based on its ge0-economic significance.



Zulfiqar Ali, director Board of Investment (BoI) while briefing the Lahore Economic Journalist Association (LEJA) in Lahore said that the national investment agency is targeting to increase foreign direct investment (FDI) to $250 billion for infrastructure development and other industrial activities by 2025, including joint industrial cooperation between Pakistan and China.

“It is on top of the business, economic, and employment creating activities of special economic zones (SEZs), and other industries.”

According to the official of the agency which runs a one-window operation for facilitating foreign investors seeking to do business in the country, Pakistan had already started development of seven Special Economic Zones (SEZs) with Chinese cooperation out of which three each were being established in Sindh and Punjab, and one in Khyber Pakhtunkhwa (KP).

“Furthermore, nine more Priority SEZs have also ben approved for Rashakai in KP, Dhabeji and Thatta in Sindh, Boston Economic Zones in Balochistan, Allama Iqbal SEZ, Faisalabad, Maqpoondas Northern Areas, Islamabad Capital Territory Model SEZ, Federal Government Industrial Park on Pakistan Steel land at Port Qasim, Mirpur Industrial Zone and Mohmand Marble City, Federally Administered Tribal Areas.”

While commenting that the CPEC is second chance for the industrial and economic development of Pakistan after 1960s industrialization drive, the BoI chief said, “The CPEC is as important for China as it is for Pakistan.”

China seeks to move many of its industries along the CPEC route and in the SEZs, to benefit from cheaper labor and shorter access (less than one-third) to the Middle East, Africa and beyond through Gwadar.

Ali added that through CPEC and Gwadar deep sea port, the distance between the Jaboti deep sea port of Africa will reduce to only 5 days. “That is the gateway to reach African markets for China that is heavily invested there,” he observed.

Moving ahead, he said the government’s recent efforts have resulted in a gradual increase in FDI. “The FDI in FY15 was only U$900 million, which increased to $2.3 billion in FY16 and further rose to $2.4 billion in FY17,” he said.

Replying to a question, the BOI director tried to dispel the general impression that the government was favoring Chinese investors (mostly state-owned companies) by giving them special concessions. “For the BoI and the government of Pakistan, every foreign investor is equal. Besides, same level of returns on investment is available to the local ones,” the BoI chief said to the economic journalists’ gathering.

Pakistan’s GDP is estimated to have grown by 5.28%, which is highest in the last ten years– GDP in absolute terms is now estimated to be higher than US$300 billion, owing mainly to the fast pace of the economic activity, particularly in the backdrop of investments being financed through the CPEC.

Pakistan is about to become gateway of Asia

 

[BetterPakistan]

I read somewhere that China will make the roads and collect the tax too...is that right???does Pak has some share in it or not?what's the arrangement between Pak and china govts???

Can someone explain???

Brother China is not making the roads they are just funding it by giving a loan which equals to 70-80% of the road cost and the rest is being funded by Pakistani government itself. After some years Pakistan will pay back these loans to China. This is the game.

Neither China nor any other financing partner own the roads. The roads are owned by Pakistani government and the toll will be collected by Pakistan nor anyone else. Everyone needs to understand that China is doing this for their country first and than for Pakistan & South Asia.

The toll includes Pakistan motorway toll, Gwadar Port clearance toll, Entering Pakistan territory toll, leaving Pakistani territory toll etc. Its is a pretty big game if played effectively. It will make Pakistan the transit route for Asia.