Mushraff Worried by Pakistans $90 billion debt & CPEC debt interest

[salarsikander]

Total BS ; I have always said that I am a HINDU ; BJP supporter

Yet still ashamed of picking some paral champat type of Indian name. What a sore loser

 

[NakedLunch]

Yet still ashamed of picking some paral champat type of Indian name. What a sore loser

LOL!

 

[Stephen Cohen]

Yet still ashamed of picking some paral champat type of Indian name. What a sore loser

You are Obsessed with Non Issues ; I have already made my point

@salarsikander

https://www.thenews.com.pk/print/193213-Questions-on-CPEC

Questions on CPEC


Has there been a fruitful line of inquiry regarding the China-Pakistan Economic Corridor (CPEC)? This largely depends on the questions with which one initiates the inquiry.

Will CPEC be a game-changer for Pakistan? This drawing-room question is particularly useless to begin with. With so much uncertainty and so many variables beyond human control, no one except a clairvoyant can predict this with any confidence. It is just as pointless – if not downright silly – to take sides. There is not enough information available for one side to convince the other on the basis of analysis. Believers will continue to believe and sceptics will continue to doubt for reasons which have little to do with the intricacies of the initiative.

The following questions pertaining to the details of the deal are more useful: Under what conditions are the various components of the initiative being negotiated? What are the financial obligations and terms of repayment? What tax concessions are being offered? What are the revenue and capital cost projections of the various components? Who will bear the operating and maintenance costs?

Citizens responsible for the debt liabilities have a right to demand this information and expect it to be provided. What are the reasons for the secrecy? What is there to hide? The numbers that are filtering out in dribs and drabs on guaranteed rates of return are not particularly reassuring. The mere fact that information is not being fully shared is a major cause for doubt. People are naturally apprehensive in the absence of transparency.

It is good that the government has set up a CPEC website (https://cpec.gov.pk/). But at this time, it is only a list of projects with costs and timelines. The terms of financing and revenue projections are missing. In addition, the website suffers from an information overload. For example, it includes the Karachi Circular Railway, the Peshawar Mass Transit, the Quetta Mass Transit and the Lahore Orange Line Metro Train projects.

These are all plausible projects with individual justifications and may all involve Chinese funding. But what do they have to do with the corridor? It appears that various stakeholders are being appeased by including their pet projects under the CPEC umbrella.

The case with the power projects listed on the website is similar. Each might be justified but why is a wind farm in Bhambore lumped under CPEC? Wouldn’t it make more sense to treat them as independent projects with separate feasibility studies, as is the norm? The indiscriminate lumping together of everything happening in the country is another red flag regarding the coherence of the initiative.

It would help to strip out the core corridor investments and share details of their financing and cost-benefit projections. It is reasonable to expect that, barring unforeseen events, a functioning corridor would be beneficial for China. But what will be in it for Pakistan except collecting a toll on the transit trade? How much toll collection is being projected? What will Pakistan be exporting via the corridor given its grossly uncompetitive economy? Why would industrial estates succeed along the isolated corridor when they have failed in major locations like Peshawar and Quetta? How many permanent jobs are expected to be created? These are legitimate questions that need to be answered in order to build consensus and take citizens into confidence.

It is not enough for the government to expect the public to trust its judgement because governments in Pakistan have done nothing to earn that trust. Neither international agencies nor Pakistani citizens believe that successive governments have been forthcoming about facts. Such behaviour is not unique to Pakistan. After all, Bush and Blair lied to their citizens to invade Iraq.

In the absence of honest answers, those without vested interests in deal-making can only point to historical precedents and past evidence. Let’s consider the example of one of the most significant trade corridors of recent times: the Suez Canal. Was it a game-changer for the people of Egypt? Or, let’s take the examples of game-changers for Pakistan that were promised in the past – such as Thar Coal, Saindak and Reko Diq. Incidentally, all these projects were also based on Chinese involvement. Why did they not reap the desired impact? They certainly changed the game for those involved in the multiple transactions for the projects. But did they bring any benefits for the people of Pakistan or even the locals who lived near the project sites?

The attempt to turn such questioning into issues of patriotism or of maligning our best friends strengthens the impression that all is not aboveboard. These are the standard tactics of those who wish to divert discussion from facts and stifle inquiries through intimidation. Under normal circumstances, citizens would be within their rights to examine the track record of Chinese investments in other countries like Sri Lanka (Google Hambantota) or prior deals with Pakistan such as the railway locomotives. In all such cases, the Chinese are not to blame – ‘buyers beware’ is rule of the market. The concern is with those negotiating the deals on our behalf and the question remains the same: Do you trust them? If so, on what basis?

Given the lack of transparency and the historical evidence, the following outcomes appear likely: For better or for worse, the CPEC momentum is unstoppable. It will be beneficial for the Chinese economy. It will generate toll revenues for Pakistan which may be more or less than the operating costs depending upon contractual terms, much as for the Lahore-Islamabad motorway.

Without inclusiveness, the economic gains of CPEC might be outweighed by political stresses. The corridor will definitely change the fortunes of a few thousand individuals in Pakistan. It is unlikely to be a game-changer for the Pakistani people – just as the Suez Canal did not alter the fate of the Egyptians. On the other hand, this could be the mother of all miracles. Let us bow our heads and pray while the untethered camel wanders into Kashgar.

The writer is a fellow at the Consortium for Development Policy Research in Lahore.

 

[Robinhood Pandey]

So the fk is ur problem mate ?

Mind your own fking bsuiness. Seriously. Can guy not grow mentally, even with so much money and clout youre still stuck in Dehati aurat mentality \. ANd now Indian hindus will suggest what is good for pakistan.

Plz pass on the same advice to your own countrymen when they poke their noses in our internal matters.

https://defence.pk/pdf/threads/yogi-adityanath-to-be-new-uttar-pradesh-chief-minister.484271/

Right from the page one.

 

[Pak.one]

As per your quote, 35billion$ in IPP mode - in which government has agreed to buy energy in long term..
Leaving aside the facts regarding exact amount, how much were the private players being offered.
Though out of context, is it on par with local private players?
Does Pakistani grid support such rapid increase?
Will govt pay interest for power plant infra( which means Pakistan owns it) or pays interest to China.

Has govt of China or Pak divulged info about interest rates?


Do you mean your current govt sold itself to China?

There are two new transmission lines also build one from mutiyari to Lahore and second from mutiyari to faisalabad which will connect all the new power stations with major cities on the way both will have 650 KV DC transmission lines

 

[Stephen Cohen]

Right from the page one

As they say " Tum Karo to Chamatkar ; hum karey to B****kar "

 

[AZADPAKISTAN2009]

K well enough .. folks ok Indian folks have concern , point taken but we are moving ahead with CPEC as we need to fix power crisis and water shortages

 

[wiseone2]

If it was for musharaf... he will kick the chinese out and surrender pak to americans...

Biggest disappointment of my life has been musharaf...

He never explained how he bought flats in central london and villas in dubai on a generals salary... did he?? I may have missed that

I am not a fan of Musharraf. Corruption is not something I associate with him
How much do flats in central london and villas in dubai cost ??

 

[AZADPAKISTAN2009]

All paid for , as he is ex Head of state


Back to the CPEC topic , if you have problem with Heart and Chest , you go to hospital to get treated for heart and chest problem

You don't go and buy fancy Nike shoes and get soft socks cough cough million dollar rafale


Similarly if we got a Power / Energy & Water problem , we will do what is needed to fix the issue and not go making shopping malls or cinema

90% of CPEC focus in relation to Pakistan is Power / Energy crisis and water problems across the country

 

[Incog_nito]

I think Pakistan can't bring those $200 Billions from Swiss Banks. So, is there any way to out from this $94 Billion loan.

 

[danger007]

Well , I inmal compare one thing

Infrastructure, water, electricity is abundent in all these countries (USA, Japan and even India )

Infact if we look at top developed countries

China, USA, Japan , France, Germany , Korea , Sweden , Holland etc all have issue of water and power resolved long time ago


A day has 24 hours , and if 12 hours are load sheding , then 50% of day has been wasted from a company prespective why would anyone setup a office in such location?

If power issue remains for 365 days you can easily see productivity goes down the washers from a Business prespective as developed countries run 3 Shifts a day to maintain production levels

That is why

• Power / Energy / Water mega projects/ Nuclear plants need of time

Note: Civilian School/ Hospitals can still improve with local federal budget provided the provincial government is working honestly . Also we can see Metro projects have successfully been completed with federal budget

you should look into Solar energy.. Solar irradiation levels in pakistan high.. you have good scope to tap these energy without any damage to the environment.. You should be careful while selecting panels...China produces tier 3 quality panels to tier 1.. If you install tier 1 panels, your project productivity will be high.. if you install tier 3, then the loan will become nightmare..Taking loans isn't wrong, but the terms and conditions matters.. Even though china is friendly country to you... they care about chinese first then pak..

 

[SHAH820]

I think Pakistan can't bring those $200 Billions from Swiss Banks. So, is there any way to out from this $94 Billion loan.

All paid for , as he is ex Head of state


Back to the CPEC topic , if you have problem with Heart and Chest , you go to hospital to get treated for hear and chest problem

You don't go and buy fancy Nike shoes and get soft socks


Similarly if we got a Power / Energy & Water problem , we will do what is needed to fix the issue and not go start buying goods

As they say " Tum Karo to Chamatkar ; hum karey to B****kar "

Plz pass on the same advice to your own countrymen when they poke their noses in our internal matters.

https://defence.pk/pdf/threads/yogi-adityanath-to-be-new-uttar-pradesh-chief-minister.484271/

Right from the page one.

You are Obsessed with Non Issues ; I have already made my point

@salarsikander

https://www.thenews.com.pk/print/193213-Questions-on-CPEC

Questions on CPEC


Has there been a fruitful line of inquiry regarding the China-Pakistan Economic Corridor (CPEC)? This largely depends on the questions with which one initiates the inquiry.

Will CPEC be a game-changer for Pakistan? This drawing-room question is particularly useless to begin with. With so much uncertainty and so many variables beyond human control, no one except a clairvoyant can predict this with any confidence. It is just as pointless – if not downright silly – to take sides. There is not enough information available for one side to convince the other on the basis of analysis. Believers will continue to believe and sceptics will continue to doubt for reasons which have little to do with the intricacies of the initiative.

The following questions pertaining to the details of the deal are more useful: Under what conditions are the various components of the initiative being negotiated? What are the financial obligations and terms of repayment? What tax concessions are being offered? What are the revenue and capital cost projections of the various components? Who will bear the operating and maintenance costs?

Citizens responsible for the debt liabilities have a right to demand this information and expect it to be provided. What are the reasons for the secrecy? What is there to hide? The numbers that are filtering out in dribs and drabs on guaranteed rates of return are not particularly reassuring. The mere fact that information is not being fully shared is a major cause for doubt. People are naturally apprehensive in the absence of transparency.

It is good that the government has set up a CPEC website (https://cpec.gov.pk/). But at this time, it is only a list of projects with costs and timelines. The terms of financing and revenue projections are missing. In addition, the website suffers from an information overload. For example, it includes the Karachi Circular Railway, the Peshawar Mass Transit, the Quetta Mass Transit and the Lahore Orange Line Metro Train projects.

These are all plausible projects with individual justifications and may all involve Chinese funding. But what do they have to do with the corridor? It appears that various stakeholders are being appeased by including their pet projects under the CPEC umbrella.

The case with the power projects listed on the website is similar. Each might be justified but why is a wind farm in Bhambore lumped under CPEC? Wouldn’t it make more sense to treat them as independent projects with separate feasibility studies, as is the norm? The indiscriminate lumping together of everything happening in the country is another red flag regarding the coherence of the initiative.

It would help to strip out the core corridor investments and share details of their financing and cost-benefit projections. It is reasonable to expect that, barring unforeseen events, a functioning corridor would be beneficial for China. But what will be in it for Pakistan except collecting a toll on the transit trade? How much toll collection is being projected? What will Pakistan be exporting via the corridor given its grossly uncompetitive economy? Why would industrial estates succeed along the isolated corridor when they have failed in major locations like Peshawar and Quetta? How many permanent jobs are expected to be created? These are legitimate questions that need to be answered in order to build consensus and take citizens into confidence.

It is not enough for the government to expect the public to trust its judgement because governments in Pakistan have done nothing to earn that trust. Neither international agencies nor Pakistani citizens believe that successive governments have been forthcoming about facts. Such behaviour is not unique to Pakistan. After all, Bush and Blair lied to their citizens to invade Iraq.

In the absence of honest answers, those without vested interests in deal-making can only point to historical precedents and past evidence. Let’s consider the example of one of the most significant trade corridors of recent times: the Suez Canal. Was it a game-changer for the people of Egypt? Or, let’s take the examples of game-changers for Pakistan that were promised in the past – such as Thar Coal, Saindak and Reko Diq. Incidentally, all these projects were also based on Chinese involvement. Why did they not reap the desired impact? They certainly changed the game for those involved in the multiple transactions for the projects. But did they bring any benefits for the people of Pakistan or even the locals who lived near the project sites?

The attempt to turn such questioning into issues of patriotism or of maligning our best friends strengthens the impression that all is not aboveboard. These are the standard tactics of those who wish to divert discussion from facts and stifle inquiries through intimidation. Under normal circumstances, citizens would be within their rights to examine the track record of Chinese investments in other countries like Sri Lanka (Google Hambantota) or prior deals with Pakistan such as the railway locomotives. In all such cases, the Chinese are not to blame – ‘buyers beware’ is rule of the market. The concern is with those negotiating the deals on our behalf and the question remains the same: Do you trust them? If so, on what basis?

Given the lack of transparency and the historical evidence, the following outcomes appear likely: For better or for worse, the CPEC momentum is unstoppable. It will be beneficial for the Chinese economy. It will generate toll revenues for Pakistan which may be more or less than the operating costs depending upon contractual terms, much as for the Lahore-Islamabad motorway.

Without inclusiveness, the economic gains of CPEC might be outweighed by political stresses. The corridor will definitely change the fortunes of a few thousand individuals in Pakistan. It is unlikely to be a game-changer for the Pakistani people – just as the Suez Canal did not alter the fate of the Egyptians. On the other hand, this could be the mother of all miracles. Let us bow our heads and pray while the untethered camel wanders into Kashgar.

The writer is a fellow at the Consortium for Development Policy Research in Lahore.

Seems some one is sold off to china

https://www.thenews.com.pk/print/193212-The-economy

The economy


Capital suggestion



Pakistan’s internal economy is rupee denominated and our external economy is dollar denominated. Pakistan’s external economy comprises the entire stream of dollar inflows and dollar outflows. Here’s the record on imports or dollar outflows: Our imports have gone up from $35 billion a year five years ago to nearly $45 billion a year. That’s an increase of 28 percent in five years.

Red alert: Our exports – or dollar inflows – have gone down from $25 billion a year five years ago to $20 billion a year. That’s a decrease of 20 percent in five years. And on top of all that, dollars coming back to Pakistan from Pakistanis working abroad are also trending downwards. No wonder our current account deficit – which is the sum of all dollar inflows and outflows – deteriorated by over 90 percent during the first seven months of the current fiscal year (compared to the same period last year).

Red alert: Our foreign exchange reserves – built up largely by high interest rate loans – are falling; and falling fast. Over the past few months, reserves have fallen from around $19 billion to a current level of under $17 billion. If the trend continues – especially when international oil prices have doubled over the past year – we would be forced to go back to the IMF by early-2018.

Yes, the China-Pakistan Economic Corridor (CPEC) is now being presented as the panacea – a solution to all our difficulties including falling exports and declining foreign exchange reserves. Red alert: Assuming that some $35 billion of Chinese loans is utilised for energy projects, Pakistan’s annual financing burden will go up to $5.3 billion a year plus an insurance premium of $2 billion upfront.

Pakistan’s external, dollar-denominated economy is moving from bad to worse. Yes, the State Bank of Pakistan (SBP) has now moved in to bring some stability to the worsening external, dollar-denominated economy by imposing a 100 percent cash margin for imports of 404 non-essential, non-oil import items. What that means is that the Government of Pakistan has no policy remedy and the SBP has therefore jumped in with an administrative measure. History has it that administrative measures work – if they do – only over the short term.

Rewind back to early-2013 when foreign exchange reserves had started falling like nine pins-and within a few months we had to rush to the IMF for a 36-month, $6.4 billion Extended Fund Facility (EFF). Red alert: We are back to where we were in early-2013 with one big difference – our external debt servicing load is now twice as heavy. Imagine: over the next 14 months Pakistan must pay back $6.5 billion in principal plus interest.

To be certain, our march back to yet another IMF rescue package has begun. The external sector of our economy is weakening by the day. Yes, the Economic Coordination Committee (ECC) of the cabinet has shown “concern over the widening of the current account deficit” but the government lacks either the capacity or the will-or both-to turn the tide via a policy response. Yes, the SBP held a meeting with the heads of all major banks in the country to “improve their capacity to control money laundering” in the amount of $10 billion a year but that’s the farthest that the SBP is willing to go.

The writer is a columnist based in Islamabad.

When we see Pakistan going on a Self destructive path ; It is our Duty to warn you

We cannot just stay silent

also remember those power projects,economic zones,oil,gas and other trade of china,africa,turkey,tajikistan,iran,uae,saudi arabia,europe

 

[AZADPAKISTAN2009]

To me the power crisis resolution and water issue is enough to consider the project a massive success
[Nuclear power, Coal power, Hydral power , transmission lines] etc ...

• All the other stuff is regional trade and other benefits tied to project (Bonus)
• Obviously the China-Pakistan cooperation in business , education and trade is a deep rooted cooperative bond between two nations
  
• The roads, the business and ports (All plus Cherry on top )

I do see positive done by Nawaz Sharif on CPEC matter he has hit 9.5 / 10 when it comes to Strategic projects

The execution on such projects has been superb by all his team


Similarly Pakistan Army and Soldiers have also committed for success of the project on all front 100% satisfied

 

[salarsikander]

You are Obsessed with Non Issues ; I have already made my point

LOL. all indian including you Paral Chmapat is Obsessed with Land of gods of Pakistan. I know now. But trust me your GODs who are us know better than you. So feel free to dine and swim in Cow piss pool and worship us.

You are Obsessed with Non Issues ; I have already made my point

LOL. all indian including you Paral Chmapat is Obsessed with Land of gods of Pakistan. I know now. But trust me your GODs who are us know better than you. So feel free to dine and swim in Cow piss pool and worship us.

Plz pass on the same advice to your own countrymen when they poke their noses in our internal matters.

https://defence.pk/pdf/threads/yogi-adityanath-to-be-new-uttar-pradesh-chief-minister.484271/

Right from the page one.

Why should I ? If i see stinky Indian poking their nose I'll bash them

 

[Stephen Cohen]

LOL. all indian including you Paral Chmapat is Obsessed with Land of gods of Pakistan. I know now. But trust me your GODs who are us know better than you. So feel free to dine and swim in Cow piss pool and worship us.