Pakistan Discovers the High Cost of Chinese Investment

[Ahmet Pasha]

CPEC and its fruits are contingent upon labors of Pakistanis. If the Pakistani people submit to shady agreements which are not even public and sit on their a$$es all day then they will only serve Chinese as their nokars. While they get the lion's share of economic/industrial development, Pakistan may become the back lot for Chinese workers who cannot find work in China(China has billion people alot are unemployed).

 

[Salman876]

Din't you "vote" to get this "new situation" ? So why not thrive ?

And here I am thinking that its imran khan job to help you overcome your problem.

I guess, his real job is to overcome the problem of the establishment. By which I naturally mean the pakistani public.

We voted for a person who promised to make a corruption free Pakistan (and this report is also a part of it). At least, we didn't voted for a religious terrorist who needs blood of minority to become PM and remain in power.

 

[Nityam]

Have you read the report? Or even the article that you just shared?

I just googled and i see so many Indian news sites spreading this. Also as i mentioned who the author is, i know it is 100% lie.

Maybe you can ask "honest" imran khan to make PUBLIC that report.

After all he himself had formed a nine-member committee headed by former chairman Securities and Exchange Commission of Pakistan (SECP) on August 7, 2019. The inquiry committee included the offices of eight organisations including Inter-Services Intelligence (ISI), Federal Investigation Agency (FIA) and SECP as members.

I have provided link to the pakistani media reports who broke this story.

 

[Salman876]

And here I am thinking that its imran khan job to help you overcome your problem.

Here you can see, Imran khan order inquiry for increased cost of electricity, which means he is working on the problem of common people.

 

[Nityam]

We voted for a person who promised to make a corruption free Pakistan (and this report is also a part of it). At least, we didn't voted for a religious terrorist who needs blood of minority to become PM and remain in power.

Lucky you.

How refreshing to hear a politician make a PROMISE of a corruption free pakistan. I bet no other pakistani politician though of this before.

Here you can see, Imran khan order inquiry for increased cost of electricity, which means he is working on the problem of common people.

Great.

Can you share the link for this report ?

After all if he is honest, there should be no problem in making this report public. Right ?

 

[Salman876]

Lucky you.

How refreshing to hear a politician make a PROMISE of a corruption free pakistan. I bet no other pakistani politician though of this before.



Great.

Can you share the link for this report ?

After all if he is honest, there should be no problem in making this report public. Right ?

I think promise of making a country corruption free is much better promise then a promise of making a country minority free.

 

[undercover JIX]

Ok. But what about this ?

".... overpayment of Rs. 376.71 billion (approximately $2.3 billion) to HSR and Rs. 106.93 billion (approximately $672 million) to PQEPCL..."

Will iron brother return them money ?



Imran khan also suggested chicken farming.

Wonderful.

So I guess its ok for the chinese to join the fun and make their own illegal profit too.

I can see that having handsome imran khan as PM has filled you guys with hope and energy.



"The Diplomat" is an american publication. A much respected one.

But sadly its not as reliable as the "Global times" published in china.

Din't you "vote" to get this "new situation" ? So why not thrive ?

And here I am thinking that its imran khan job to help you overcome your problem.

I guess, his real job is to overcome the problem of the establishment. By which I naturally mean the pakistani public.

Nitu, you claimed in other thread that you are only posting articles, which was a lie and here also you are behaving like a butt hurt pappu. what you are trying is not good, you will get your backside red, if we started to respond in your style.

We understand your problem and it has no cure, jumping around will make it worse.

 

[Nityam]

I think promise of making a country corruption free is much better promise then a promise of making a country minority free.

Hence, Lucky you.

Honest PM AND Iron brother. Kya baath hai. Sone pe suhana

Nitu, you claimed in other thread that you are only posting articles, which was a lie and here also you are behaving like a butt hurt pappu. what you are trying is not good, you will get your backside red, if we started to respond in your style.

We understand your problem and it has no cure, jumping around will make it worse.

I was having a conversation.

Is that banned in pdf now ?

I mean you come up with a new list of banned activities everyday so let me know if this violates the rules somehow.

 

[undercover JIX]

ucky you.

How refreshing to hear a politician make a PROMISE of a corruption free pakistan. I bet no other pakistani politician though of this before.

nitu, did you get you 15 Lakhs in your account????chai wala and his jumlas are readily available to shut your trap, so stop worrying about Pakistan, Handsom and iron brother......ask Modi chai wala to deposit money as promised.

Hence, Lucky you.

Honest PM AND Iron brother. Kya baath hai. Sone pe suhana



I was having a conversation.

Is that banned in pdf now ?

I mean you come up with a new list of banned activities everyday so let me know if this violates the rules somehow.

you need burnol or bag of ice teri to jali pari hai ....you are trolling not having convo.

 

[PradoTLC]

https://thediplomat.com/2020/05/pakistan-discovers-the-high-cost-of-chinese-investment/

Pakistan Discovers the High Cost of Chinese Investment

May 18, 2020

A new report sheds light on the true costs of the China-Pakistan Economic Corridor for Pakistan.

Pakistan’s desire to maintain strategic relations with China has resulted in the $62 billion China-Pakistan Economic Corridor (CPEC), a set of infrastructure projects, being mired in insufficient transparency.

But a Committee formed by Pakistani Prime Minister Imran Khan to examine the causes for the high cost of electricity to Pakistani consumers has lifted the lid on corruption involving Chinese private power producers in Pakistan.

The report reveals that the Huaneng Shandong Ruyi (Pak) Energy (HSR) or the Sahiwal and the Port Qasim Electric Power Company Limited (PQEPCL) coal plants under CPEC inflated their set-up costs.

For Pakistan’s citizens, who are always told how China is their most reliable friend in the world, it was a shock to discover that China does business mercilessly and unscrupulously.

Successive civilian governments and Pakistan’s military have looked upon China as their principal backer against India.

China’s consistent strategic support, including help with Pakistan’s nuclear program, is often held out by Pakistan’s military establishment favorably in contrast with the more conditional Pakistani alliance with the United States.

But it seems now that China is not in Pakistan to help its people but rather as a predatory economic actor.

The 278-page report by the “Committee for Power Sector Audit, Circular Debt Reservation, and Future RoadMap” listed malpractices to the tune of 100 billion Pakistani rupees ($625 million) in the independent power generating sector, with at least a third of it relating to Chinese projects.

CPEC Authority is currently chaired by Lt. General Asim Saleem Bajwa, who is also the Prime Minister’s Special Assistant on Information and Broadcasting — the Committee treaded softly in relation to the Chinese projects.

According to the committee’s report, “excess set-up costs of Rs. 32.46 billion (approximately $204 million) was allowed to the two coal-based [Chinese] plants due to misrepresentation by sponsors regarding [deductions for] the ‘Interest During Construction’ (IDC) as well as non-consideration of earlier completion of plants.”

The interest deduction was apparently allowed for 48 months whereas the plants were actually completed within 27-29 months leading to entitlement of an excess Return on Equity (RoE) of $27.4 million annually over the entire project life of 30 years in the case of the Sahiwal plant.

The estimated excess payment, keeping in mind the 6 percent annual rupee depreciation against the dollar, works out to a whopping Rs. 291.04 billion (approximately $1.8 billion).

The Chinese company HSR claimed IDC based on a long-term loan at the rate of LIBOR +4.5 percent for the length of the entire construction period, even though it borrowed no money during the first year of construction and used only short-term loans at substantially lower interest rates during the second year.

The magnitude of profiteering by the Chinese companies is incomprehensible. The two projects examined by the Pakistani experts’ Committee were worth $3.8 billion at the time of their launch. The Committee found overpayments of Rs. 483.64 billion, which amounts to $3 billion at current rates of exchange.

This includes overpayment of Rs. 376.71 billion (approximately $2.3 billion) to HSR and Rs. 106.93 billion (approximately $672 million) to PQEPCL on account of excess set-up cost, excess return due to excess set-up cost in 30 years, and excess return due to miscalculation in Internal Rate of Return (IRR).

In its report, the Committee recommended that Rs. 32.46 billion (approximately $204 million) be deducted from the project cost of PQEPCL and HSR; the return payment formula be corrected to reflect actual construction time; and Tariff of PQEPCL and HSR be adjusted accordingly.

Under the current formula, in two years of operation, HSR has already recovered 71.18 percent of its original equity invested whereas PQEPCL has recovered 32.46 percent of its original equity in the first year of operation.

This is over and above the profits that the companies would have made without subterfuge. Imagine the return the Chinese will generate on the $62 billion CPEC projects. These numbers are way too large to have been missed as oversight or malfeasance of individuals within the companies and their Pakistani counterparts.

Sri Lankan and Maldives governments suggests that these overpayments are generated with the complicity of leaders in the Pakistan government and the loot shared by all parties.

Pakistan’s economy has been teetering on the verge of bankruptcy for some time and the COVID-19 pandemic has made the situation even worse.

Instead of reforming their country’s policies, Pakistan’s leaders, once again, sought debt restructuring and waivers on account of the pandemic, just as they previously sought international assistance as a reward for fighting terrorism.

But expecting the international community to repeatedly bail Pakistan out from one economic crisis after the other is unrealistic. Massive military expenditure, deep rooted corruption, and lack of accountability are at the heart of Pakistan’s perennial and ever widening gulf between revenue and expenditure.

Now, it seems, Chinese investments have become a new liability. The International Monetary Fund (IMF) has been pushing Pakistan’s officials to raise taxes and power tariffs, effectively asking the Pakistani public to foot the bill for China’s rapacious practices.

The United States and Western financial institutions should not help Pakistan’s ruling elites in their own and China’s predatory behavior. The people of Pakistan deserve better.

tell us.. how does an indian media who has zero credibility zero journalist of repute and quality on the ground in Pakistan come up with this?


also no mention of the horrible corruption deals relating done by Nawaz gov.. why?.. is becos he was your ally so no negative articles are to be published?

Also concerning our economy go look at yours...OUCH!


watch and weep

 

[Salman876]

Hence, Lucky you.

Honest PM AND Iron brother. Kya baath hai. Sone pe suhana



I was having a conversation.

Is that banned in pdf now ?

I mean you come up with a new list of banned activities everyday so let me know if this violates the rules somehow.

Don't worry much about economy of Pakistan. Just read this to have a glimpse of economic situation of India. https://timesofindia.indiatimes.com...g-a-dead-dog-in-jaipur/videoshow/75864167.cms

 

[PradoTLC]

View attachment 634614

The Author is Hussain Haqqani, enough said.

i know... he is a clown the indians use often

he has less credibility than indians

"The Diplomat" is an american publication. A much respected one.

in your head... sure.

 

[Nityam]

nitu, did you get you 15 Lakhs in your account????chai wala and his jumlas are readily available to shut your trap, so stop worrying about Pakistan, Handsom and iron brother......ask Modi chai wala to deposit money as promised.

you need burnol or bag of ice teri to jali pari hai ....you are trolling not having convo.

This is really confusing.

Calling imran khan "honest" is trolling ?

calling china "iron brother" is trolling ?

Next you will tell me calling imran khan "handsome" is trolling too

 

[PradoTLC]

whty a gangu is worried about Pakistan..... Better care about your shitty country.... We are good!!!

he is as worried about us as we are we are worried about those gang raping murder thugs of the indian army 44 of them that were blown away in to a million pieces.

 

[undercover JIX]

This is really confusing.

Calling imran khan "honest" is trolling ?

calling china "iron brother" is trolling ?

Next you will tell me calling imran khan "handsome" is trolling too

just talk about your promised 15 lakhs, leave poor Pakistan, its not your standard being a Supa Powa deshwasi.