Featured China reluctant to approve $6b ML-I loan

[vi-va]

no ahmadi exile is ever loyal to Pakistan (you can't really blame them after what bhutto and moolahs did to their mazhab)

by the way express tribune is part of Lakson Group whose owner Iqbal Ali Lakhani son of a former (crooked) Senator Sultan Ali Lakhani is originally an indian maratha.

now he is more American than the Americans ( and owns McDonald's Pakistan).

oh nearly forgot to mention tribune partenership with a couple of American Papers

Damn, you know a lot.

 

[doorstar]

Damn, you know a lot.

not really, my "friend" mr. google is very helpful to me

 

[Indus Pakistan]

by the way express tribune is part of Lakson Group whose owner Iqbal Ali Lakhani son of a former (crooked) Senator Sultan Ali Lakhani is originally an indian maratha.

I agree with you there. Most of the media has roots in India and tends to be very apologetic to Indian interests. But why has nothing been done to fix this problem?

 

[Norwegian]

I agree with you there. Most of the media has roots in India and tends to be very apologetic to Indian interests. But why has nothing been done to fix this problem?

not really, my "friend" mr. google is very helpful to me

Damn, you know a lot.

Discussing ownership of this newspaper won't solve the problem of ever growing Pakistani debt running towards default
"Interest payments as a percentage of FBR taxes: In 2017, a mere four years ago, Pakistan’s total debt payment amounted to 39 percent of FBR taxes. Today, our total debt payment consumes 75 percent of FBR taxes.

Red alert: Based on the current trajectory, by 2025, our debt payments will swallow 100 percent of FBR taxes. By 2025, Pakistan will become totally dependent on bank and non-bank borrowing plus foreign aid. By 2025, we will have little or no money for six essential items: Defence (Rs1,300 billion); Development (Rs800 billion); Running of the civil government (Rs500 billion); Pensions (Rs500 billion); Grants (Rs900 billion); Subsidies (Rs200 billion). What about education (Rs900 billion)? What about health (Rs1,300 billion)?

Imagine: by 2025 our defence budget will be totally dependent on foreign aid. To be certain, foreign dependency “fosters underdevelopment in the dependent country; [and] a country’s adoption of policies tailored to the interest” of the lender. Imagine; our debt payments are now three times our defence budget."

Implosion: 2025

Interest payments as a percentage of FBR taxes: In 2017, a mere four years ago, Pakistan’s total debt payment amounted to 39 percent of FBR taxes. Today, our total debt payment consumes 75...

www.thenews.com.pk

 

[Path-Finder]

I like your signature, well summarized.

well, the ambassador showed his annoyance and that ought to be clear. all the PM has to do is visit CPEC projects and timely visit Beijing. but sadly a handful of advisors are dragging him elsewhere.

https://twitter.com/x/status/1390648290614652936

 

[Indus Pakistan]

Again what's the rationale behind Cpec

I think there was rationale for the CPEC. Still is, But it's question of gestation. It will take about 20-30 years before Pakistan is ready to fully grab the potential. It will need a that time for cultural and political evolution to get Pakistan ready.

The rational from Chinese POV will have been to lay the seeds. However after having laid a few they can see these are not going flower and give fruit anytime soon. The environment is not fertile. How do you explain that they have already sank $6 billion in rail project in a country with less people - Laos then Lahore city but are showing reluctance for £6 billion rail project in a country of 220 million?

By the way this also exposes the false garbage about British having plundered us. The British Empire built the entire rail network in what is now Pakistan running into at least 3000 miles in a land which had only 20 million population in 1880s.

Since the British left Pakistan has not built one mile of extra rail. Today just one line - ML-1 needs Chinese to finance and build it. Food for thought!

Discussing ownership of this newspaper won't solve the problem of ever growing Pakistani debt running towards default

We will stop discussing that if you think that will help in fixing the debt issue. Your just obfuscating now.

 

[El Sidd]

well, the ambassador showed his annoyance and that ought to clear. all the PM has to do is visit CPEC projects and timely visit Beijing. but sadly a handful of advisors are dragging him elsewhere.

https://twitter.com/x/status/1390648290614652936

It's not like PMLn is going to hold a concert in Beijing for CPC100.

PTI has a torrid history with CPEC case being KPK government and her attitude towards Chinese projects.

It is fair to assume that PTI has a certain mistrust with China despite PM categorically stating that the States economic future lies with China for strategic security.

 

[Indus Pakistan]

the ambassador showed his annoyance

How so. The ambassador's job is to keep sweet with all power groups in Pakistan. Comes 2023 Shebaz might be PM. Comes 2028 Bilawal Bhutto might be PM.

 

[Norwegian]

Since the British left Pakistan has not built one mile of extra rail. Today just one line - ML-1 needs Chinese to finance and build it. Food for thought!

In fact Pakistan has been going in reverse gear since British left the country in 1947. Colonial laws are worsened, bureaucrats and judges even more corrupted. Nothing is functioning in Pakistan right now except the military institutions which the British left behind.

 

[Falcon26]

China reluctant to approve $6b ML-I loan
Express concern over Pakistan’s growing debt


Shahbaz Rana May 08, 2021

File photo

ISLAMABAD:
Expressing concern over Pakistan’s growing debt, China has shown reluctance to approve $6 billion loan for the Mainline-I (ML-I) railway track -- the single largest project under the China-Pakistan Economic Corridor -- according to the record of a meeting and senior Pakistani officials.
The construction of ML-1 project in three phases had been approved by the Executive Committee of National Economic Council (Ecnec) in its meeting held in August last year. The actual cost of the project was $9bn initially, including equity amount of the government of Pakistan. But later, it was reduced gradually to $6.8bn.
“Beijing conveyed its concerns during a meeting held on March 30 to discuss financing modalities of the project,” the officials added.
Moreover, the officials said China also termed the total project cost of $6.8 billion at the lower side, which Islamabad is now willing to increase further by 15% or $1 billion.
The sources said that in the last meeting, Chinese authorities were wary of Pakistan’s ability to service its debt. The concerns have now also been reflected in the meeting records.

“The Chinese side have sought clarification regarding the possibility of raising further debt by Pakistan during currency of the IMF programme. The Pakistani side clarified that debt situation is being monitored and there is no restriction under the programme to raise debt for viable projects,” Deputy Chairman Planning Commission Dr Jehanzeb Khan told The Express Tribune while responding to a question.
The Chinese sides also showed its reservations over restrictions imposed by Group 20 nations and the International Monetary Fund which, in Beijing’s view, could undermine the ML-1 project, according to discussions that take took place in the last ML-I Financing Committee meeting held on March 30th.
“The Chinese side expressed concerns about Pakistan’s debts, including IMF’s requirements for the Pakistani government to avail loans and about the impact of restrictions under the G-20 Debt Servicing Suspension Initiative (DSSI) on the financing of the ML-I project,” showed a correspondence between Pakistan and China.
Pakistan’s public debt has jumped to 87.2% of the Gross Domestic Product at the end of the last fiscal year and the country is consuming over 60% of tax revenues in debt servicing. It was 72.5% of the GDP when the PML-N tenure ended about three years ago.
Pakistan has also availed the G-20 temporary debt relief worth $3.5 billion from July 2020 through December 2021 which, according to Beijing, was a signal of weakening debt repayment capacity.
“However, Pakistani authorities tried to remove the reservations shown by their Chinese counterpart,” the officials told The Express Tribune.

The Pakistani side stated that the IMF has not imposed any restriction on loans for the ML-I project and that country’s foreign debt was largely under control and the government has the ability to repay the debts, according to the documents.
The Pakistani side held that the implementation of the ML-I project would bring multiple benefits to Pakistan Railways, in addition to improving the financial situation of the company.
The ML-I project includes dualization and upgrading of the 1,872km railway track from Peshawar to Karachi and is a major milestone for the second phase of CPEC and its construction is facing a delay of over three years.
The government has planned to complete the ML-I project in various packages, spanning over almost 10 years and aimed at spreading the loan over a longer period due to concerns expressed by the IMF.
China also highlighted the dilapidated financial condition of Pakistan Railways that do not allow it to take $6 billion new debt on its books.
The negotiations to secure the loan have been going on for the last over one year but so far no conclusion has been reached. The project is facing delays of over three years against the original schedule agreed between the two countries.
In a meeting held on March 30, Pakistan again expected that the loan currency would be a combination of RMB and the US dollar, covering 85% of the project cost, with an interest rate comparable to the infrastructure project under CPEC and promised that the Pakistani government would provide guarantees.
The share of each currency has not been indicated in the revised term sheet. China wants to give the $6 billion loan in RMB, as it competes with global dominance of the US dollar.

“Pakistan has not yet accepted the Chinese stance of getting a mix of commercial and concessionary loans,” said the sources. Both the sides have not converged on the loan payback period. China has proposed 15 to 20-year payback period, including a five-year grace period.
Pakistan has asked for a 25-year repayment period, including a 10-year grace period.
The Chinese ambassador to Pakistan, Nong Rong, on Friday met with Minister for Planning Asad Umar and discussed matters related to bilateral relations and projects under the CPEC and the upcoming Joint Cooperation Committee meeting, according to a Planning Ministry handout.
But the handout was silent on the the 10th JCC meeting date, which Pakistan has been trying to hold since October last year.
The sources said that Asad Umar pointed that a deal on ML-I was important to showcase the JCC as a successful event. The sources added China was reluctant to hold the JCC until it is assured that CPEC is fully back on track.
Both the sides have now agreed that a joint roadmap to push forward the ML-I project implementation that will entail confirming financial terms, launching bidding process and concluding the commercial contract, will be finalised.
---
Amazing Chinese strategy. First put Pakistan in debt trap under CPEC and then stop further loans because Pakistan can't pay previous loans

@Horus @waz @beijingwalker @Beast @ziaulislam @Patriot forever @Indus Pakistan @Del @Dual Wielder @Joe Shearer @jamahir @Verve @koolio @Mav3rick @Muhammad Omar

In the future provide a link. There’s no excuse to post an article without the source being linked.

 

[Indus Pakistan]

It is fair to assume that PTI has a certain mistrust with China despite PM categorically stating that the States economic future lies with China for strategic security.

The PM as consistently touted the Chinese on every forum. Local and global. What you want him to do? Become a athiest member of CCP to please you?

 

[Norwegian]

It's not like PMLn is going to hold a concert in Beijing for CPC100.

PTI has a torrid history with CPEC case being KPK government and her attitude towards Chinese projects.

It is fair to assume that PTI has a certain mistrust with China despite PM categorically stating that the States economic future lies with China for strategic security.

It is shocking to hear somewhat reasonable comment from you. Software update?

 

[Muhammad Omar]

Which news should we believe


Railway project sent to Chinese bank for approval of $6bn loan


The Chinese government has sent Pakistan’s first modern railways’ infrastructure project — Main Line-1 (ML-1) — to the Exim Bank of China for approval of a $6 billion loan after all technical, administrative and other issues have finally been resolved, paving the way for launching civil work on this scheme within this year.

“The latest on the $6.8 billion ML-1 project is that a finance committee comprising Chinese officials has sent the case related to $6 billion loan approval of the project to Exim Bank. Since the remaining $800 million will be provided by the government of Pakistan as equity, the total $6.8 billion will be spent on completion of the entire rail-related infrastructure, mainly the line, fencing, civil works etc,” Pakistan Railways Federal Secretary / Railway Board Chairman Dr Habibur Rehman Gillani said while talking to Dawn on Tuesday.

“We appreciate our Chinese counterparts for taking the ML-1, a project to be executed under the China-Pakistan Economic Corridor (CPEC), seriously by resolving various issues in consultation with senior Pakistani officials concerned,” Mr Gillani added.


The construction of ML-1 project in three phases had been approved by the Executive Committee of National Economic Council (Ecnec) in its meeting held in August last year. The actual cost of the project was initially $9bn, including equity amount of the government of Pakistan. But later, it was reduced gradually to $6.8bn.

“The cost was reduced since money included / allocated earlier for train sets / rolling stock etc was not needed during completion period of the project,” the chairman explained. When the project will reach nearing completion, another project proposal regarding procurement of train sets / rolling stock etc would be prepared and approved separately, he maintained.

Mr Gillani said once the loan was approved by the Exim bank, the project would be sent to respective Chinese ministries dealing with the railways and planning / development related matters. This whole process would take a couple of months, after which the ministry would be able to initiate the international bidding / tendering process for execution of the project.

The project would have upgrade of ML-1 from Karachi to Peshawar and Taxila to Havelian (1,872km), laying of new track with improved sub grade for 160km/per hour, rehabilitation and construction of bridges, provision of modern signalling and telecom systems, conversion of level crossings into underpasses/flyovers, fencing of track, establishment of dry port near Havelian and upgrade of Walton Training Academy (Lahore).


It will create 24,000 direct (20,000 local labour/technical experts and 4,000 Chinese experts) jobs and reduce travel time from Karachi to Lahore from 18 to 10 hours

 

[Norwegian]

How so. The ambassador's job is to keep sweet with all power groups in Pakistan. Comes 2023 Shebaz might be PM. Comes 2028 Bilawal Bhutto might be PM.

So the Chinese are expecting Dildo Bilawal as PM?

In the future provide a link. There’s no excuse to post an article without the source being linked.

It is linked. Click on writers name

Shahbaz Rana, Author at The Express Tribune

tribune.com.pk

China reluctant to approve $6b ML-I loan | The Express Tribune

Expressing concern over Pakistan’s growing debt, China has shown reluctance to approve $6b loan for the ML-I railway track - the largest project under CPEC.

tribune.com.pk

 

[Indus Pakistan]

In fact Pakistan has been going in reverse gear since British left the country in 1947. Colonial laws are worsened, bureaucrats and judges even more corrupted. Nothing is functioning in Pakistan right now except the military institutions which the British left behind.

Intoto it has not. Everytime I go to Pakistan my eyes tell me the country has leaped forward. I went in 2015 and then last year again. I could even then see the differance. Leave alone the differance from when I went first to Pakistan in 1989. Then it was stone age by comparison.

My angst is it could have been Italy or Turkey by now. It has so much potential. Such beauty. The potential and where it is is the tragedy. India by comparison will always be a aboriginal overpopulated, overblown then it has been sold in the west.