Pakistan taps Chinese credit ($10b) for railway upgrade despite debt crisis

[hydrabadi_arab]

Ahsan Iqbal, Pakistan’s planning minister, said the ML1 upgrade was vital to keep trains running and an example of the transformative work that Chinese credit had made possible. “If we do not undertake this project, in a couple of years Pakistan will lose its railway logistics,” Iqbal told the Financial Times.

“The whole railway system will break down, this main line will break down. It will be very risky to run commercial operations on this track. It is no longer a choice. It is an imperative.” But critics said taking on more debt for the ML1 project was an example of the kind of bad borrowing decisions that had led Pakistan into successive economic crises in recent years. Pakistan’s foreign reserves have sunk to below $6bn, or equivalent to less than one month of imports. The government “is fooling the country”, said Zubair Khan, a former Pakistani commerce minister and IMF official, who argued Pakistan was closer to running out of reserves than officials acknowledged. “There are truths being hidden.”

Pakistan taps Chinese credit for railway upgrade despite debt crisis

Islamabad says $10bn revamp of colonial-era line is essential even as it faces risk of default and forex reserves plunge

www.ft.com

Pakistan have wasted billions of dollars on CPEC motorways without much benefits or return. Should have gone for ML1 first up. Railways are by far cheapest mode of transport goods and people. Instead we build nice motorways that are used by few, only contribuite to pollution and oil imports.

 

[Pranaayam]

CPEC was supposed to be a master stroke. The toll collections by 2020 would be enough for the debt to be paid. Now look at the situation of Pakistan and Sri lanka.If Pakistani leadership still haven't realized Chinese debt trap, no one can help.

 

[Hakikat ve Hikmet]

A beautiful project. It'll bring down fuel imports.....

"Officially" 70% of petrol is smuggled into Pak, probably from 100% sanctioned Iran. Make it to 100%...

 

[Imran Khan]

what about GB and AJK in this project

 

[ziaulislam]

Ahsan Iqbal, Pakistan’s planning minister, said the ML1 upgrade was vital to keep trains running and an example of the transformative work that Chinese credit had made possible. “If we do not undertake this project, in a couple of years Pakistan will lose its railway logistics,” Iqbal told the Financial Times.

“The whole railway system will break down, this main line will break down. It will be very risky to run commercial operations on this track. It is no longer a choice. It is an imperative.” But critics said taking on more debt for the ML1 project was an example of the kind of bad borrowing decisions that had led Pakistan into successive economic crises in recent years. Pakistan’s foreign reserves have sunk to below $6bn, or equivalent to less than one month of imports. The government “is fooling the country”, said Zubair Khan, a former Pakistani commerce minister and IMF official, who argued Pakistan was closer to running out of reserves than officials acknowledged. “There are truths being hidden.”

Pakistan taps Chinese credit for railway upgrade despite debt crisis

Islamabad says $10bn revamp of colonial-era line is essential even as it faces risk of default and forex reserves plunge

www.ft.com

Pakistan have wasted billions of dollars on CPEC motorways without much benefits or return. Should have gone for ML1 first up. Railways are by far cheapest mode of transport goods and people. Instead we build nice motorways that are used by few, only contribuite to pollution and oil imports.

Problem is it's not electricfied..
It's not meter gaged.

This means it's poorly planned and will be expensive again

 

[hydrabadi_arab]

Problem is it's not electricfied..
It's not meter gaged.

This means it's poorly planned and will be expensive again

Electrification will be a option after ML-1 is build because of change of routes etc And electrification require fixed route. So in future electrification of ML1 is very much on the cards.

 

[Menace2Society]

Waste of money. Money better spent on sewage system, healthcare and waste management. Invest in your people and they will be more productive and you won't need loans.

 

[ziaulislam]

Electrification will be a option after ML-1 is build because of change of routes etc And electrification require fixed route. So in future electrification of ML1 is very much on the cards.

Unless they electrify it from the start and buy electric locomotives under tot
It's waste of money and will be more debt

 

[Finer]

Waste of money. Money better spent on sewage system, healthcare and waste management. Invest in your people and they will be more productive and you won't need loans.

Those come as the result of thriving economy. Unfortunately, those necessities take backseat when you have no thriving economy and relying on loans to pay back with interest.

Ahsan Iqbal, Pakistan’s planning minister, said the ML1 upgrade was vital to keep trains running and an example of the transformative work that Chinese credit had made possible. “If we do not undertake this project, in a couple of years Pakistan will lose its railway logistics,” Iqbal told the Financial Times.

“The whole railway system will break down, this main line will break down. It will be very risky to run commercial operations on this track. It is no longer a choice. It is an imperative.” But critics said taking on more debt for the ML1 project was an example of the kind of bad borrowing decisions that had led Pakistan into successive economic crises in recent years. Pakistan’s foreign reserves have sunk to below $6bn, or equivalent to less than one month of imports. The government “is fooling the country”, said Zubair Khan, a former Pakistani commerce minister and IMF official, who argued Pakistan was closer to running out of reserves than officials acknowledged. “There are truths being hidden.”

Pakistan taps Chinese credit for railway upgrade despite debt crisis

Islamabad says $10bn revamp of colonial-era line is essential even as it faces risk of default and forex reserves plunge

www.ft.com

Pakistan have wasted billions of dollars on CPEC motorways without much benefits or return. Should have gone for ML1 first up. Railways are by far cheapest mode of transport goods and people. Instead we build nice motorways that are used by few, only contribuite to pollution and oil imports.

Pakistan needs CPEC motorways. Future will thanks on this project. But Pakistan cannot rely on single source so it is better to have more options for the future. More than that, we need kalabagh dam badly to resolve water and energy crises in the long run.

 

[Abdul Rehman Majeed]

what about GB and AJK in this project

No ROI

 

[khansaheeb]

Waste of money. Money better spent on sewage system, healthcare and waste management. Invest in your people and they will be more productive and you won't need loans.

What a sh!tty thought:-" Money better spent on sewage system, healthcare and waste management. "

 

[FuturePAF]

Ahsan Iqbal, Pakistan’s planning minister, said the ML1 upgrade was vital to keep trains running and an example of the transformative work that Chinese credit had made possible. “If we do not undertake this project, in a couple of years Pakistan will lose its railway logistics,” Iqbal told the Financial Times.

“The whole railway system will break down, this main line will break down. It will be very risky to run commercial operations on this track. It is no longer a choice. It is an imperative.” But critics said taking on more debt for the ML1 project was an example of the kind of bad borrowing decisions that had led Pakistan into successive economic crises in recent years. Pakistan’s foreign reserves have sunk to below $6bn, or equivalent to less than one month of imports. The government “is fooling the country”, said Zubair Khan, a former Pakistani commerce minister and IMF official, who argued Pakistan was closer to running out of reserves than officials acknowledged. “There are truths being hidden.”

Pakistan taps Chinese credit for railway upgrade despite debt crisis

Islamabad says $10bn revamp of colonial-era line is essential even as it faces risk of default and forex reserves plunge

www.ft.com

Pakistan have wasted billions of dollars on CPEC motorways without much benefits or return. Should have gone for ML1 first up. Railways are by far cheapest mode of transport goods and people. Instead we build nice motorways that are used by few, only contribuite to pollution and oil imports.

Pakistan Railways seems to be going bankrupt