China and Pakistan sign 19 agreements worth $42 billion

[The SC]

If it's an investment, the income generated will straight go to china 100%

Investments in foreign countries abide by some rules, the country where the investments occur is eligible to some percentage of the profits, so Pakistan will also get its share. When all the invested capital is covered then the pure profit starts, and the host country gets to keep the assets as well as get its share of the pure profits. So it is always a win win situation.
This $ 42 billion investment is dedicated to the most important sector for development in Pakistan, i.e; the energy sector. Which means that this is a prelude to much more investments that will follow suite in a step by step procedure.

 

[Viper0011.]

This $ 42 billion investment is dedicated to the most important sector for development in Pakistan, i.e; the energy sector. Which means that this is a prelude to much more investments that will follow suite in a step by step procedure.

You are correct. I've been writing about this day for a long time now. The Chinese really want to invest around $ 150 Billion. But it'll happen in phases. Towards the end of the year 2017, the electric issue will almost be resolved as majority of the 19 electricity production related projects would've come online.
Next, the Chinese would really like to capitalize on the labor market of Pakistan as the older generation is growing in China. That's when you'll see Pakistan becoming a huge manufacturing hub as the Chinese companies will start to outsource (sub-contract) many manufacturing related industries. Plus, China wants Pakistan to become its major sports goods partner as well. That means over 500-800 million soccer balls to Chinese (ONLY) as just one example. Add billions earned in good and transportation related charges from Gawader to China (and later to Afghanistan and the Central Russian states). The future of Pakistan is very bright if the democratic government can remain in power and finish its term.
Also, Afghanistan is about to fall in love with Pakistan soon. That would form a much stronger trade bond between the two countries as majority of trade for Afghanistan will also go through Pakistan. That's pretty huge!!

 

[Viper0011.]

i would take this news with a grain of salt....there are no agreements but MOU's which means there is a common understanding on certain issues.....why would China (a close and great friend indeed) sign off on 42B without getting anything in return?. what has PK to offer?

I am assuming you have political issues here with the current government? Ever heard of the term "investments"? In which, one person or country invests into something and reaps the benefit. In my opinion, this trade agreement is probably the best thing ever happened to Pakistan. It'll change how Pakistan was known for. Huge opportunity for Pakistan to get ahead economically.
I've been writing about this for a long time and it finally happened!!! In 2018, the Chinese plan on investing another $ 50 billion or so. Total for investments includes over $ 150 billion investments by 2020.

 

[sathya]

Investments in foreign countries abide by some rules, the country where the investments occur is eligible to some percentage of the profits, so Pakistan will also get its share. When all the invested capital is covered then the pure profit starts, and the host country gets to keep the assets as well as get its share of the pure profits. So it is always a win win situation.
This $ 42 billion investment is dedicated to the most important sector for development in Pakistan, i.e; the energy sector. Which means that this is a prelude to much more investments that will follow suite in a step by step procedure.

Yeah Pakistan can tax and get some percentage

In energy sector I don't think they ll leave and give the asset to you...
Mere energy production itself is beneficial to your other industries..

However price of electricity you get may not fully controlled hereon out ..
Same story in every country... They give us loan and dictate the policies for us

 

[The SC]

Yeah Pakistan can tax and get some percentage

In energy sector I don't think they ll leave and give the asset to you...
Mere energy production itself is beneficial to your other industries..

However price of electricity you get may not fully controlled hereon out ..
Same story in every country... They give us loan and dictate the policies for us

It all depends on the contracts, these are investments, they are different than loans.

 

[Viper0011.]

Yeah Pakistan can tax and get some percentage
In energy sector I don't think they ll leave and give the asset to you...
Mere energy production itself is beneficial to your other industries..
However price of electricity you get may not fully controlled hereon out ..
Same story in every country... They give us loan and dictate the policies for us

It's no different than GE or IBM doing investments in India.....India reaps more benefits than anyone else. Not sure what was the core purpose behind your post suggest you seem disappointed.
When a foreign company "invests" into another country, they don't "leave and give the assets back", they run the company and sell it or keep it. Up to them. The local economy reaps the benefits. 40 billion dollar's worth of investment will create many million high paying jobs in civil engineering, energy and all, plus millions of low level job, supportive new schools, hospitals, roads, purchase of additional vehicles, planes and airports, etc, etc. All of which boosts Pakistan's economy to a level far beyond where it is today. In this case, China isn't "dictating" anything....its pure investment. They are cutting down their good and transportation network and time by a huge margin to West China through Gawader, plus allowing access to Central Asian ports. All of that means, they are just making sure Pakistan as a proxy / partner to China as more strategic control on China's interests and that it gets to a point economically that would grow Pakistan into a more modern, economically and militarily a stronger country.

 

[AZADPAKISTAN2009]

42 Billion is a high figure vs the type of projects which might total no more then 10-15 billion in cost

Don't see refineries created which are costly
Don't see Atomic power plants which might have costed 2-7 Billion figure alone
Don't see Airport construction that are costly
There is no major DAM Project investment


Most stuff are related to coal project , which should not cost more then 3 Billion

Just don't see how it all Totals to 43 Billion USD .. am I missing something



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1. Economic and Technical Cooperation Agreement (Trade agreement ....???Investment how)
2. Framework agreement for concessional loan (Consessional coal to China we sell it)
3. Minutes of 3rd JCC of China-Pakistan Economic Corridor (Not sure what this is ?)
4. MoU on outline of Long-Term CPEC Plan (Repeat of #3 different name)
5. MoU on capacity building for development of CPEC (Repeat of 3 and 4 )
6. Agreement on CPEC energy projects cooperation (Repeat of 3,4,5)
7. Loan for cross-border fiber-optic system (Ok .... ok this is good ... 2 Billion here)
8. MoU on surface mine in Thar Coal Field Block-II/ Engro-Thar Power Plant (800 Million here)
9. Agreement on Suki-Kinari Hydro Power Project (600 Million here)
10. Agreement on Muzaffargarh Coal Power Project (1.5 Billion here)
11. MOA on Coal Power Project at Qadarabad (300-400 Million here)
12. UEP Power Project EPC Framework Agreement (Sure 200 Million)
13. Quaid-e-Azam Solar Energy Park (100 Million to 800 Million)
14. Implement Agreement on Dawood Wind Farm (50 Million to 150 Million)
15. EPC Agreement on open pit mine in Thar Block I (Not sure what this is )
16. Coal supply contract for power plant in Thar Block I (Its our own coal ... don't understand)
17. MoU for thermal power assets in Pakistan (500 Millon to 1.5 Billion)
18. Agreement on Ruyi-Masood Textile Industrial Park (Sure may be 4 Billion if its state of art)
19. MoU on Coal Power Plant in Port Qasim (500 Million)
Published in The Express Tribune, November 9th, 2014.


Totals up to 12 Billion USD .. so how does it totals to 42 Billion Dollars?

Don't see new railways (Costs 3-4 Billion in revamp)
Don't see new airports (Cost 2 Billion / airport)
Don't see new Technology Companies setup
Dont see Major DAM hydro project (Cost 5 Billion etc)
Don't see Set up of refineraies (2 Billion each )
Don't see investment in Auto Sector (2-5 Billion market)
Don't see investment in SPARCO (1 Billion - 3 Billion possibility)
Don't see investment in Local Waste Management Project (1 Billion potential)

I am just trying to rationalize the number reported 42 Billion Dollars

 

[osama zafar]

great