Pak Govt puts major CPEC power project on hold

[Kyle Sun]

Pakistan has gotten loans and investments from other countries.

In the view of the bad security conditions and poor infrastructure of Pakistan, I don't think any other country would invest tons of money in Pakistan as China does. it's really sad that Pakistan people think China does this for some ulterior motive.

 

[Cookie Monster]

yeah,maybe 1 % of China brute oil import may imported through Pakistan to China Xinjiang,which does not matter that much.

That's during peace time. Most of western China isn't as developed or populated as eastern China and therefore it doesn't make much sense to import oil to Xinjiang and then to eastern China all by road. I say again what I said in my previous his route(CPEC) will prove beneficial in case of a BLOCKADE of sea routes by China's foes. In case ur sea routes are blocked, China will still be able to import oil through CPEC.

As far as I understand,China is doing you guys favor and your gov know it well.
Do not take it granted!Just like we do not take Pakistani bros freindship as granted as well.

Pakistan values China's friendship. However most of CPEC projects are done with LOANS...
It's not an investment nor a handout of money...
...and loans are exactly that loans...which means they have to be paid back with interest.

Guys we need to focus on economy development.
You think you can not repay the loans if you use it to build a power generationplant?If so,which means you are not suitable to run the plant.
I never heared that a power plant or a dam hydro plant can lose money in long term.
Chine Three Goerge Dam making dozen of billions USD per year.

Right obviously that's why loans are taken for infrastructure development(if a country can't afford to develop infrastructure on its own)...the aim is that it will generate enough money in the long run and with that the loans can be paid back.

However in this case the power plant project that is being cancelled is deemed UNNECESSARY at the moment(according to the article). The article states that there are already enough projects for power generation underway, which will meet the needs going forward. So this one would've only generated excess power(more than needed)...which isn't a bad thing. It just comes down to prioritization at the moment. The priority right now is to cut the excessive spending, reduce imports and increase exports...bcuz Pak's foreign reserves are critically low and the economy has been in a dire situation.

If u had a lot of credit card balance u had to pay...and u already had a car to go to and from work...would it make sense for u to get a second car? The situation with this power plant is the same...there isn't a need for it now bcuz the power generation would be enough to meet the needs with other projects underway.

 

[RealNapster]

30% as highest return rate for 30 years,do not be ridiculious!
100% net benifits per year is high return rate.

Again, 18-30% rate of return is on annual basis. Not 30 years. Means in 4-5 years your companiese recover the amount they invested ans then its all profit.

 

[Cookie Monster]

In the view of the bad security conditions and poor infrastructure of Pakistan, I don't think any other country would invest tons of money in Pakistan as China does. it's really sad that Pakistan people think China does this for some ulterior motive.

Who is saying that China is doing it for ulterior motives?

As for other countries not investing...yeah it's true that they haven't done that in such a large sum as China has and for that Pakistan is thankful.

I was just replying to him since he said that Pak should ask other countries to invest...so I told him that other countries are investing and giving loans.

 

[Adam WANG SHANGHAI MEGA]

Ecactly. “Normal business” with “normal interest rate” and abnormally high “rate of return”.

I see no special treatment here. If chinese were treating us slecial they would have offered all loans on interest rates as low as 1%. But we dont see that , do we ? Means normal business, no brotherhood.

Do you even know how high interst rate is in CHINA as loans? 5.5 % to7 % to individuals and 7 to 9 % per year for companies at least my freind !!
and in private sectors,as high as 12% to 24 % per year!!

 

[RealNapster]

I start to understand why Pakistan is not favored by international investments if yiu are really a typical pakistabi bro.......

I dont claim to be a “different version” of Pakistani. Typical one. And you asked the reason why Pakistan was nit preffered by imvestors ? Well, maybe because we were in the middle of a Fuc*ing war for last 18 years.

 

[Cookie Monster]

China is never going to import more than 5% of its oil via CPEC .

READ before replying...I wrote a specific condition in there.

IN CASE OF A BLOCKADE OF SEA ROUTES FOR CHINA TO IMPORT OIL, CHINA CAN USE CPEC AND CONTINUE IMPORTING UNHINDERED.

 

[RealNapster]

However in this case the power plant project that is being cancelled is deemed UNNECESSARY at the moment(according to the article). The article states that there are already enough projects for power generation underway, which will meet the needs going forward. So this one would've only generated excess power(more than needed)...which isn't a bad thing. It just comes down to prioritization at the moment. The priority right now is to cut the excessive spending, reduce imports and increase exports...bcuz Pak's foreign reserves are critically low and the economy has been in a dire situation

Thats nit the point. The point is , how the hell did you say NO to your chinese masters

 

[Kyle Sun]

Pakistan ain’t africa dude. We dont need your “aids”. We want business.

With all due respect, Pakistan is not a place of business if you are talking about real business.
Our policy is pure and simple. We invest so much money, not for getting paid back economically, but we can have a strong friend Pakistan which can help each other.
That said, I do respect your decision.

 

[RealNapster]

Do you even know how high interst rate is in CHINA as loans? 5.5 % to7 % to individuals and 7 to 9 % per year for companies at least my freind !!
and in private sectors,as high as 12% to 24 % per year!!

Ever heard the term “corporate loans” ??

Thank you

 

[Cookie Monster]

Thats nit the point. The point is , how the hell did you say NO to your chinese masters

Ignore the trolling bro...don't stoop to their level. I for one am happy that PTI is making efforts to reduce spending and avoiding taking unnecessary loans. Previous governments used to spend without a care(with every intent to fill their pockets) and when they would run out, they would simply get loans again not giving a sh*t that such a strategy would fast become unsustainable. It's refreshing to see a change.

 

[Adam WANG SHANGHAI MEGA]

That's during peace time. Most of western China isn't as developed or populated as eastern China and therefore it doesn't make much sense to import oil to Xinjiang and then to eastern China all by road. I say again what I said in my previous his route(CPEC) will prove beneficial in case of a BLOCKADE of sea routes by China's foes. In case ur sea routes are blocked, China will still be able to import oil through CPEC.

Pakistan values China's friendship. However most of CPEC projects are done with LOANS...
It's not an investment nor a handout of money...
...and loans are exactly that loans...which means they have to be paid back with interest.

Right obviously that's why loans are taken for infrastructure development(if a country can't afford to develop infrastructure on its own)...the aim is that it will generate enough money in the long run and with that the loans can be paid back.

However in this case the power plant project that is being cancelled is deemed UNNECESSARY at the moment(according to the article). The article states that there are already enough projects for power generation underway, which will meet the needs going forward. So this one would've only generated excess power(more than needed)...which isn't a bad thing. It just comes down to prioritization at the moment. The priority right now is to cut the excessive spending, reduce imports and increase exports...bcuz Pak's foreign reserves are critically low and the economy has been in a dire situation.

If u had a lot of credit card balance u had to pay...and u already had a car to go to and from work...would it make sense for u to get a second car? The situation with this power plant is the same...there isn't a need for it now bcuz the power generation would be enough to meet the needs with other projects underway.

It is your former government refused China to take most of the projects ownership! We want to be the owners of most of the projects we funded but your gov denied it and insist on loans,another option is free aid which we do not do,otherwise China communist party will lose its position in CHINA!

 

[Cookie Monster]

With all due respect, Pakistan is not a place of business if you are talking about real business.
Our policy is pure and simple. We invest so much money, not for getting paid back economically, but we can have a strong friend Pakistan which can help each other.
That said, I do respect your decision.

There is a lot to gain by cooperation between the two countries...not just economically but also strategically.

 

[Kyle Sun]

Again, 18-30% rate of return is on annual basis. Not 30 years. Means in 4-5 years your companiese recover the amount they invested ans then its all profit.

It is not a ridiculous rate if you put the risk of investing so much money in a country of bad security conditions into perspective.

 

[RealNapster]

With all due respect, Pakistan is not a place of business if you are talking about real business.
Our policy is pure and simple. We invest so much money, not for getting paid back economically, but we can have a strong friend Pakistan which can help each other.
That said, I do respect your decision.

56 billion dollars. 11 billion dollar of government and corporate loan, other are IPP’s and investments by private companies. Private companies actions are based on financial studies , not on sentiments. If it were so, Jack ma would have many technology centres and innovation centers and businesses in Pakistan. But we see none. Why? Because he dont see the market worth it and also ,he is not driven bysentiments. Just like any other chinese company