Pakistan discloses borrowing from China

[vi-va]

That sounds very good.
China seems to have been building a lot of infrastructure (power plants included) in CPEC, so in a few years, China should be able to transfer some of its industries to Pakistan. With infrastructure, it is much easier to transfer industries.
That's what China does when it develops its own economy.


It is still in the stage of infrastructure construction, and there is no benefit for the time being.
On the domestic forum, I see that Huawei already has a branch company in Pakistan.



The development of any country is gradual. Before developing the industry, there is a lot of preparatory work to be done. Most Chinese investors prefer to invest in developed countries rather than developing countries because of currency instability (asset depreciation risk), social instability or unfriendly investment environment(lack of infra, discrimination against Foreign Investment, etc.) in many developing countries.
It is impossible for China to give you infrastructure free of charge, because our country is not a rich developed country at present. Moreover, compared with those Westerners who are totally indifferent to Pakistan's development, the Chinese wanna helped you find a way to develop your economy(of course, it's also good for us), I don't think it's a debt trap. It's just a long-term plan.

**
No offence. I'd like to conclude by adding some of my own ideas.
There are too many people have no idea of economic development. Just like the slogan put forward by Indians before, in five years to become a developed country, which is absolutely impossible. Many Indian think that high-profit industries can emerge without foundation.

However, the truth is that those who have successfully developed into developed countries have generally experienced capital accumulation for decades or even centuries.
The current situation in Pakistan is very bad, just as it was before the founding of New China. It's better not to expect any high-return investment to make your country a developed country soon. Not even China can do that.

China has achieved the present middle-end industry from the previous low-end industry, through a lot of R&D costs. But while the Chinese were still engaged in low-end industries, China had almost no infrastructure problems. Not to mention education, policy, and public order.
Perhaps from the chart, you can only see China's sudden fast economic growth in the past decade. But you may not know that China has done a lot of preparations earlier, which has no economic benefit at that time.

Without stable leadership(a strong gov), long-term planning is almost impossible. In western style democracy, short term election dominate domestic policy, which tends to spending the current money instead of saving and long-term investment.

Western countries looted every countries on earth in 19th century to achieve industrialization. Western media just don't want people understand the cold truth.

Most people don't know what China sacrificed in Chairman Mao's era to achieve industrialization. In stead, Chairman Mao was demonize by western media for decades and people buy it. In this regards, Chinese knew the world much more than the world knew China.

Basically, no sacrifices no industrialization for developing countries.

If you don't want to sacrifice 1-2 generations, take a loan.

If you don't want to take a loan, then the nation must have the courage and determination to sacrifice 1-2 generations. There is no other way around, my dear Pakistan friends.

Totally agree with you but my fellow citizens are just trash talker and no work. A common phrase used in Pakistan for such people is Firing from Mouth (Moonh ki firing). In past we borrowed money which were used on undevelopmental expenditure that's why we fall behind although we were far ahead of time in 60 and early 70. But Nationalization of institutions really destroyed our backbone from which we never recovered and plus last 2 decade we really lost it in every front. But now Pakistani are eager to change themself and so we are trying. It will be hard but i see good future after 10 years.

Basically, no sacrifices no industrialization for developing countries.

How about just say NO to that rich guy and enjoy your hand to mouth existence for the rest of your life?

Being poor or rich is relative, 30 years ago China was poorer than Pakistan, what do you think it takes for China to get her today's position? Getting as much foreign loans and investments as possible and for decades relentlessly focusing on infrastructure building. No initial investments, no future fruits, simply put, no pain, no gain.

Basically, no sacrifices no industrialization for developing countries.

 

[Sine Nomine]

It is not investment, China doesn't want to expose itself to the financial risk, it is lending pakistan the money in the form of loans which are then paid to the chinese companies and workforce working on CPEC projects, 90% of this money goes back to china but in the mean time a project is constructed and pakistan gets indebted. So this is NOT at all chinese investment, it is loan and only loan.

In case of investment the liability will be on china, but in case of loan the liability is on pakistan. That is the difference between investment and loan. For example if the project fails then pakistan still has to pay the money because it was financed through a loan but if it was financed through an investment then pakistan would not have to pay anything and china would bear all financial losses itself. Now you see how smart chinese are.

Bulls eye,fanboys gonna burn

LOL, is that what you understood after reading the very first line of the above article ???

ISLAMABAD: Pakistan, for the first time, fully disclosed the debt taken from China which stood at $6.5 billion for the current fiscal year alone, equal to three-fourths of the $8.6 billion worth of total loans that Islamabad received in the past 10 months.

You are no where near Economic Ingenuity of Bharwana,please for your own safety refrain from teaching him

Qarza qarza hota he chahey wo imf se ho ya china se

Fanboys have hard time getting that.

 

[maithil]

Slowly details are coming out. Be prepared for many Hambantotas in Pakistan.

 

[aziqbal]

Chinas loan accounts for 20% of our national debt yet produces 80% of our infrastructure

who else should we trust IMF or Paris Club? NO thanks

 

[nahtanbob]

Without stable leadership(a strong gov), long-term planning is almost impossible. In western style democracy, short term election dominate domestic policy, which tends to spending the current money instead of saving and long-term investment.

Western countries looted every countries on earth in 19th century to achieve industrialization. Western media just don't want people understand the cold truth.

Most people don't know what China sacrificed in Chairman Mao's era to achieve industrialization. In stead, Chairman Mao was demonize by western media for decades and people buy it. In this regards, Chinese knew the world much more than the world knew China.

Basically, no sacrifices no industrialization for developing countries.

If you don't want to sacrifice 1-2 generations, take a loan.

If you don't want to take a loan, then the nation must have the courage and determination to sacrifice 1-2 generations. There is no other way around, my dear Pakistan friends.


Basically, no sacrifices no industrialization for developing countries.

the basic critique of democracy is right

which country did Russia or Japan or USA or Canada or Sweden or Germany loot to achieve industrialization ?
UK, France, Portugal and Spain looted the 3rd world. You can add Italy, Netherlands and Belgium to the mix since they had one colonial possession. It did not even help Spain or Portugal.

It is possible social reforms under Mao helped China in the 1990s. All the heavy industry was garbage. It had to be completely rebuilt during the 1990s

Your advice to Pakistan won't work because they are determined to wage proxy wars against neighbors - one of whom is 7 times larger

 

[vi-va]

the basic critique of democracy is right

which country did Russia or Japan or USA or Canada or Sweden or Germany loot to achieve industrialization ?
UK, France, Portugal and Spain looted the 3rd world. You can add Italy, Netherlands and Belgium to the mix since they had one colonial possession. It did not even help Spain or Portugal.

It is possible social reforms under Mao helped China in the 1990s. All the heavy industry was garbage. It had to be completely rebuilt during the 1990s

Your advice to Pakistan won't work because they are determined to wage proxy wars against neighbors - one of whom is 7 times larger

The first wave of industrialization benefited from colonization, especially British, France.

Russia and China use same methodology to achieve industrialization, which is heavily depends on saving. Both countries put all the resource to push the country forward and sacrificed 1-2 generation, including my parents. They work extremely hard and return is very limited. Russia has much more resource per capita than China, it helps a lot.

USA did colonized several countries, such as Philippine, but I agree it's not the reason USA achieved industrialization. USA benefited a lot from the European migrations, with skill and knowledge. USA also benefited a lot from the safety environment(protected by 2 oceans) and unlimited resources. Canada is similar.

I already mentioned Japan previously. Japan also saved a lot and occupied Korea peninsula and part of China.

Germany didn't benefit from colonization much, but Germany did benefit from the colonization system indirectly. France and British did the job, and Germany exchange good with them and built their own industry.