Pakistan rejects China debt trap theories

[Laozi]

Pakistan rejects China debt trap theories

profit.pakistantoday.com.pk/2020/05/22/pakistan-rejects-china-debt-trap-theories
Staff ReportMay 22, 2020

ISLAMABAD: Pakistan on Friday debunked the claims being projected about the so-called ‘heavy debt’ related to China-Pakistan Economic Corridor (CPEC), with the Foreign Office once again clarifying that total public debt involved with CPEC outlay was mere 10pc of the country’s overall debt.

“We have reiterated many times that our total public debt relating to CPEC projects is less than even 10pc of the total debt. Moreover, the public debt obtained from China has a maturity period of 20 years and the interest is 2.34pc. If grants are included, the interest value slides down to about two per cent,” said the Foreign Office spokesperson Aisha Farooqui, rejecting western propaganda over CPEC.

“The claims made by some of the commentators and public officials on Pakistan’s debt obligations relating to CPEC are contrary to facts,” she said, adding that CPEC, a long-term project, has helped address development gaps in energy, infrastructure, industrialization, and job creation.

“Pakistan and China are ‘all-weather strategic cooperative partners’. We are engaged in prompting peace, development and stability in the region based on the principles of mutual respect, mutual benefit, win-win cooperation and shared development. Our ties are based on deep mutual trust and understanding.”

Farooqui said that economic development and long-term prosperity of the people is our government’s top priority.

“CPEC, a flagship project of BRI, is a transformational project contributing positively and transparently to Pakistan’s national development. Pakistan believes that regional economic connectivity will provide a critical stimulus for creating broad-based growth across the region.”

The spokesperson said that Pakistan and China have several mechanisms to discuss matters of mutual interest. Both countries are regularly in touch to address those issues bilaterally.

https://profit.pakistantoday.com.pk/2020/05/22/pakistan-rejects-china-debt-trap-theories/

 

[Laozi]

“We have reiterated many times that our total public debt relating to CPEC projects is less than even 10pc of the total debt

Isn't attributing 10 percent of country's total public debt for a single program which happens to be totally controlled by a foreign power, quite adventurous.

 

[Rafi]

Isn't attributing 10 percent of country's total public debt for a single program which happens to be totally controlled by a foreign power, quite adventurous.

If my enemy does not like what I am doing, then whatever I am doing must be right. QED

 

[ARMalik]

Isn't attributing 10 percent of country's total public debt for a single program which happens to be totally controlled by a foreign power, quite adventurous.

Oh Wow, a little indian Lalu so concerned about Pakistan.

 

[Chakar The Great]

Lol Indians concerned about Pakistan, they ll never let Pakistan take a route that leads to progress and prosperity, they know very well that CPEC is game changer for the entire region, thus continuous propaganda for last 6 years.

 

[drumstick]

actually i'll be happy to see the debt rising, recently pm ik mentioned that pakistan need to take debt just to pay the interest on the original debt. Which is alarming situation for many, but for pakistan its business as usual.
i'll be much happier to see debt rising as much as to the GDP.

this is what is the real issue which makes pakistan weaker and weaker in rest of the world, there is no local sectors for rest of the world to invest. so money and influence do not come to pakistan. and pakistan remains in the same condition... or even goes down from where it is today.
it loses its friends fast, and so does its influence.

no OIC, no USA, no UN and nothing....

also if you read the news the decent power sector corruption scandal ....

The inquiry report revealed that the $1.7 billion power transmission line project of the China-Pakistan Economic Corridor (CPEC) was 234% expensive than a similar project in India with better technology.

The NTDC and State Grid Cooperation of China (SGCC) signed a cooperation agreement in April 2015 for development of 4,000MW, ±660 kV Matiari to Lahore High Voltage Direct Current (HVDC) Transmission Line. This project is included in the priority projects under the CPEC.

The report noted that the National Electric Power Regulatory Authority (Nepra), after the end of the proceeding, approved a total project cost of $1.7 billion in November 2016. Within the approved cost, $1 billion was approved for converter stations. Since the project was awarded under CPEC through government-to-government agreement, no bidding was carried out for the award of this project, according to the inquiry report.

However, a similar project was awarded in January 2017 in India through international competitive bidding at the time when Lahore-Matiari HVDC project approvals were given. The winning bidder was ABB from Zurich, the report points out. The Indian transmission line project is high in specification as well as length and is still cheaper by $360 million, according to the committee.

also more folks who are more interested in reading how pakistani government makes fool of its public read this,

https://in.news.yahoo.com/pakistanis-paying-high-cost-chinese-investment-wake-cpec-071012960.html

so im really really hopeful that the relationship goes on for another 3 to 4 years to see the real consequences on pakistani economy.

 

[Pakistansdefender]

Isn't attributing 10 percent of country's total public debt for a single program which happens to be totally controlled by a foreign power, quite adventurous.

Totally controlled by foreign power how?
We use roads? We use electricity, we operate them on our own. We need them. 2013 was time when we were barely out of terrorism and we needed investment.
The government at that time wanted to win next elections badly so they did some bad deals. Some projects that's should be delayed etc. But overall the projects of motorways, the projects of power generations , other projects are going well and serving Pakistanis.
And criticising countries like America should come up with double the amount of investment and trust me all pakistani elite would give them preference over Chinese.
It's matter of who invest. They don't invest. And don't want China to do so.
Frankly I see thousands of anti China daily and educated people read them as they are in English. But by God, if it has a bit of an effect on pakistani. Pakistanis simply cannot hate Chinese. Even some bad incident doesn't create an all out hate for the community.
We do have a different kind of relationship sure.

 

[Laozi]

Totally controlled by foreign power how?
We use roads? We use electricity, we operate them on our own. We need them. 2013 was time when we were barely out of terrorism and we needed investment.
The government at that time wanted to win next elections badly so they did some bad deals. Some projects that's should be delayed etc. But overall the projects of motorways, the projects of power generations , other projects are going well and serving Pakistanis.
And criticising countries like America should come up with double the amount of investment and trust me all pakistani elite would give them preference over Chinese.
It's matter of who invest. They don't invest. And don't want China to do so.
Frankly I see thousands of anti China daily and educated people read them as they are in English. But by God, if it has a bit of an effect on pakistani. Pakistanis simply cannot hate Chinese. Even some bad incident doesn't create an all out hate for the community.
We do have a different kind of relationship sure.

You have your justification for Chinese Investments some of which are against your national interests. Those deals were worked out by your bureaucrats under your leaders.

I will give you a recent example on Indian government policy decision which you may not be aware of. In this time of Corona Pandemics when every country is looking for economic revival and would welcome any investment in their country, India has put a ban on automatic direct Chinese investment into our country. Indian government feels that Indian companies which have become temporarily weak because of lockdowns may be taken over by Chinese groups which are backed by its government at a very cheap current prices. Which will make China a beneficiary of Corona Pandemic which in fact was originated from China.

Leadership is judged in the time of crisis. If your country has made few wrong deals in the past then my view is that your present PM show courage and make amends. IK is a strong leader and a man of strong convictions. He should re-negotiate the "bad deals" in national interest withstanding all diplomatic and bureaucratic pressures.

 

[Rafi]

You have your justification for Chinese Investments some of which are against your national interests. Those deals were worked out by your bureaucrats under your leaders.

I will give you a recent example on Indian government policy decision which you may not be aware of. In this time of Corona Pandemics when every country is looking for economic revival and would welcome any investment in their country, India has put a ban on automatic direct Chinese investment into our country. Indian government feels that Indian companies which have become temporarily weak because of lockdowns may be taken over by Chinese groups which are backed by its government at a very cheap current prices. Which will make China a beneficiary of Corona Pandemic which in fact was originated from China.

Leadership is judged in the time of crisis. If your country has made few wrong deals in the past then my view is that your present PM show courage and make amends. IK is a strong leader and a man of strong convictions. He should re-negotiate the "bad deals" in national interest withstanding all diplomatic and bureaucratic pressures.

You are a typical injun, again if my enemy is unhappy then I must be doing something right.

 

[fisher1]

A spineless group of people who can't even speak a word against the people who want to modify the religion of Allah and oppressors of Muslims. We are supposed to believe them?

Really? I think Pakistan has been sold to China considering how they're worshipped. Only a master slave relationship makes you unable to criticise someone's wrongs because you're a slave.

I think Pakistan has a really different type of relationship with China. Maybe PMLN sold the country to them, i don't know. But we can't even produce our own power, we don't even own our ports. Beyond messed up this is and we're a sovereign country.

 

[Pakistansdefender]

You have your justification for Chinese Investments some of which are against your national interests. Those deals were worked out by your bureaucrats under your leaders.

I will give you a recent example on Indian government policy decision which you may not be aware of. In this time of Corona Pandemics when every country is looking for economic revival and would welcome any investment in their country, India has put a ban on automatic direct Chinese investment into our country. Indian government feels that Indian companies which have become temporarily weak because of lockdowns may be taken over by Chinese groups which are backed by its government at a very cheap current prices. Which will make China a beneficiary of Corona Pandemic which in fact was originated from China.

Leadership is judged in the time of crisis. If your country has made few wrong deals in the past then my view is that your present PM show courage and make amends. IK is a strong leader and a man of strong convictions. He should re-negotiate the "bad deals" in national interest withstanding all diplomatic and bureaucratic pressures.

1 what is our national interest. And certainly an Indian cannot tell us our national interest. Let's be honest there.
2.yes I have seen gimmicks of carona. Half the time I hear coverage of pakistani carona statistics on Indian media rather then Indian one. And also I see those poor migrants and the humanitarian crisis of hunger that has unfolded in front of our eyes. Anyone can feel their agony without any religion.
3. It was only imran khan that ordered ipp investigations. There are atleast 20 ipps, only 2 or 3 are Chinese ones.
It would shake a person with sanity of how bad those deals are for Pakistan. We are paying capacity charges in dollars and without even using their electricity. And the ipps are earning despite recovery thrice the amount spend on making power plant and additional profits. They thrive in every situation.
Well no one dared touch them. They are our burucrait, our politician, our land Lords.
The inquiry was ordered.
In Islamabad a news was released that due to china's insistence the inquiry was called off. This is fake news. China stake is lowest in terms of power plants. 3 and they are new. Government is going to privatise in 3 to 4 months. Government have received bids but which are due to open in march. But delayed due to carona.
2 months are given by the government to renegotiate the deals and solve the issues. Government and ipps are talking and trying to solve issues in a meaningful way.
And we would see in 2 months where the negotiations go. 2 months is not a long time. If this is done, it would be huge for Pakistan. Pakistan has very large amount of energy. And sukhi kinari, dasu and mehman, gulpur, and karot dam plus 2 nuclear power plans would add atleast 10kmw energy to our national. All we need is cheap energy so people consume more because we would have surplus in 3 years and we can't export it to India. And Afghanistan I think don't need. Iran already gives us in bordering areas so definitely they don't need.
We have energy. We only had bad past deals and may be news ones that if renegotiated would make electricity cheap which would make Pakistanis consume it more. And ofcourse help our exporters.

 

[Dalit]

China Pak relations are here to stay. Our economy our rules.

actually i'll be happy to see the debt rising, recently pm ik mentioned that pakistan need to take debt just to pay the interest on the original debt. Which is alarming situation for many, but for pakistan its business as usual.
i'll be much happier to see debt rising as much as to the GDP.

this is what is the real issue which makes pakistan weaker and weaker in rest of the world, there is no local sectors for rest of the world to invest. so money and influence do not come to pakistan. and pakistan remains in the same condition... or even goes down from where it is today.
it loses its friends fast, and so does its influence.

no OIC, no USA, no UN and nothing....

also if you read the news the decent power sector corruption scandal ....

The inquiry report revealed that the $1.7 billion power transmission line project of the China-Pakistan Economic Corridor (CPEC) was 234% expensive than a similar project in India with better technology.

The NTDC and State Grid Cooperation of China (SGCC) signed a cooperation agreement in April 2015 for development of 4,000MW, ±660 kV Matiari to Lahore High Voltage Direct Current (HVDC) Transmission Line. This project is included in the priority projects under the CPEC.

The report noted that the National Electric Power Regulatory Authority (Nepra), after the end of the proceeding, approved a total project cost of $1.7 billion in November 2016. Within the approved cost, $1 billion was approved for converter stations. Since the project was awarded under CPEC through government-to-government agreement, no bidding was carried out for the award of this project, according to the inquiry report.

However, a similar project was awarded in January 2017 in India through international competitive bidding at the time when Lahore-Matiari HVDC project approvals were given. The winning bidder was ABB from Zurich, the report points out. The Indian transmission line project is high in specification as well as length and is still cheaper by $360 million, according to the committee.

also more folks who are more interested in reading how pakistani government makes fool of its public read this,

https://in.news.yahoo.com/pakistanis-paying-high-cost-chinese-investment-wake-cpec-071012960.html

so im really really hopeful that the relationship goes on for another 3 to 4 years to see the real consequences on pakistani economy.

Keep enjoying man. I don't understand why Indian media and US deep state is so upset and worried about Pak economy. According to your wise words Pak economy will be non-existent in a few years LOL Let's enjoy the moment and stop worrying.

 

[Arulmozhi Varman]

If my enemy does not like what I am doing, then whatever I am doing must be right. QED

So if the enemy praises a project you are working on, will you stop working seeing whatever you are doing is wrong?

"Wow CPEC is gung ho great"

 

[Dalit]

So if the enemy praises a project you are working on, will you stop working seeing whatever you are doing is wrong?

"Wow CPEC is gung ho great"

Special enemy you are. Worrying about your enemy is the first I have seen.

 

[Arulmozhi Varman]

Special enemy you are. Worrying about your enemy is the first I have seen.

I didn't worry. Just checking the logic of some Pakistanis here.