‘Chinese companies need to explain how CPEC will benefit Pakistan’

[Devil Soul]

‘Chinese companies need to explain how CPEC will benefit Pakistan’
SALEEM SHAHID — UPDATED ABOUT 4 HOURS AGO
QUETTA: Chinese investors need to spell out how exactly Pakistan will benefit from the China-Pakistan Economic Corridor (CPEC), said political and military leaders at a seminar on Monday. They also stressed that the CPEC should not be politicised or made controversial.

The matter was taken up on the second day of a seminar on peace and prosperity in Balochistan organised by the non-governmental organisation, Devote Balochistan, and the University of Balochistan in cooperation with the provincial government.

Participants claimed that CPEC would be a game-changer for the country and would play an important role in the development of the province and Pakistan.

They said law and order in the province had improved but more efforts should be made to ensure that this improvement was permanent. Peace, they said, would create an investment-friendly environment in the province.

The seminar was attended by the Chief Minister of Balochistan, Nawab Sanaullah Zehri, federal ministers retired Gen Abdul Qadir Baloch and Jam Kamal Khan, Commander Southern Command Lt Gen Aamir Riaz, Pakistan Tehreek-i-Insaf’s Shafqat Mehmood and Sardar Yar Muhammad Rind, vice chancellors of the country’s leading universities, journalists and writers.

Chief of Army Staff Gen Raheel Sharif, Governor Muhammad Khan Achakzai, Senator Mushahid Hussain Syed and former chief minister Dr Malik Baloch are expected to attend the seminar on Tuesday.

Chief Minister Zehri said the country’s future was linked to a developed and prosperous Balochistan.

“Pakistan and Balochistan are essential for each other,” he said. “Balochistan is nothing without Pakistan. We started the journey of development together when our forefathers joined Pakistan.”

He offered to hold a dialogue with Baloch leaders living abroad. “They should return to Pakistan and join mainstream politics to serve the interest of their people,” he said, adding that his government was ready to resolve all issues.

Talking about the CPEC, the chief minister said the people of the country would benefit massively from the project.

“The entire world is engaged in an economic war. China also is boosting its economy. Their leaders are trying to ensure that their country is economically sound and they have succeeded in achieving their goals.”

According to Lt Gen Riaz, it is important to forget mistakes of the past for the country’s prosperity and development.

He said the Balochistan issue was complicated but “we have to resolve it by sitting together”.

“The issues and problems of Balochistan can be resolved by adopting a positive approach and mutual understanding,” he said.

Published in Dawn, February 2nd, 2016

 

[somebozo]

It will create a massive influx of manufacturing two day...whatever Pakistan currently exports to central Asia will take the shape of industry along the route..similarly what ever Chinese export to middle east and Africa will take the shape of industry along the route...as one of the key point of the corridor is to alleviate poverty in China;s own eastern region which are getting rife with terrorism..

Then is the potential of massive learning curve in electronics industry with the Chinese which can spur advancement of electronics in pakistan by light years.

 

[Muhammad Omar]

biggest benefit Pakistan Will get From CPEC

Energy Deficiency will Reduce to quiet Extent as China is Investing in Nuclear Solar Wind Coal Thar Dams
Every Province will be connected by Each other with Better Infrastructure
Our Railway Tracks will be Upgraded + New Railway lines + Upgrades of Stations
27 Economic Zones that will allow many Investors to come to Pakistan and Invest in those zones means more jobs
Our Export Items will take less time to reach Our Ports which we will have 2 of them

Overall our Economy will Flourish

 

[RescueRanger]

Chinese need to do no such thing. At this point Pakistan should be thankful someone is investing in the country! Choti Tind and Bari Tind at it again. Revenge of the CTBT.

 

[Mrc]

No they dont....pakistan need to figure out how to benfit from oppertunity....

Just like in early days of google when people were saying how they can make money from totally free service, google admin figured out a way, and now is biggest and most powerful company in the world... but all of its services to consumers are still free

 

[asquare]

Chinese need to do no such thing. At this point Pakistan should be thankful someone is investing in the country! Choti Tind and Bari Tind at it again. Revenge of the CTBT.

There's a pretty obvious benefit which I'm surprised no one is talking about, given that Pakistan has rising external debt. Future user fees (toll, port charges/taxes etc.) from CPEC can be securitised and used to generate funds domestically today. These sorts of securities backed with a sovereign guarantee can be used to borrow at cheaper rates than the international debt markets, particularly given Pakistan's ratings. I can't see how this would not be a win-win. The only thing that can come in the way of this being a success is that private markets aren't convinced that the CPEC will actually go through. But that too can be overcome with a proper communications strategy and being transparent about the project's status. Many countries have done this successfully.

 

[Winchester]

Rubbish headline by Dawn

 

[somebozo]

biggest benefit Pakistan Will get From CPEC

Energy Deficiency will Reduce to quiet Extent as China is Investing in Nuclear Solar Wind Coal Thar Dams
Every Province will be connected by Each other with Better Infrastructure
Our Railway Tracks will be Upgraded + New Railway lines + Upgrades of Stations
27 Economic Zones that will allow many Investors to come to Pakistan and Invest in those zones means more jobs
Our Export Items will take less time to reach Our Ports which we will have 2 of them

Overall our Economy will Flourish

Altafu extortion will end as Karachi importance as port city will fade into absys..Altafu actions for three decades have ensured that his goons will not be welcome anywhere else in Pakistan..

 

[hacker J]

1).pakistan has excellent oppertunity to increase its exports ten folds not only to china but also with europe middle east
2)they can actuly send their products in global markets by joint production with chinese firms. but at the same time they have to find a way to not to get dwarfed by chinese firms in terms of quality and cheap products as china already has a lot more developed indrustrial base
3)pakistan has to ustilize the imports facility by china to develop itself but it can also result in SSI loosing local markets and pak indigenious market floded with chinese products thats gona cost pak its foreign deposits
4) pak has to overcome the loans as quickly as possible and strenghten its own stock market to boost economy
5) It is like a necessary evil but pak has to make sure CPEC proves to be more than just a trade route within pakistan

 

[barbarosa]

I have suggested to the govt of China in my previous post to come and select the suitable route for you.
What is suitable route?
Which reduce the distance between Kashghar and Gawadar port.
Which would far from populated cities of Pakistan but linked with them by Motorways and express ways.
If eastern route can linked with India,( which is depends on Pak India relation) the western route can linked with Iran and Afghanistan easily.

 

[Abingdonboy]

Then is the potential of massive learning curve in electronics industry with the Chinese which can spur advancement of electronics in pakistan by light years.

I have no doubt that CPEC is benefical to Pakistan in a lot of ways (primarily in highly capital intensive infrastrucutre devlopment) but I don't see how China flooding the Pakistani market with its cheap electronic good will help local industries in Pakistan. If anything CPEC will simply crush local small scale competitors to Chinese goods.

 

[The Sandman]

wow what a bakwas title i agree wid @RescueRanger that we should be thankful to them that finally sm1 is investing in PAK but no we've to show attitude instead it's our GOV who should explain these things imo

 

[somebozo]

I have no doubt that CPEC is benefical to Pakistan in a lot of ways (primarily in highly capital intensive infrastrucutre devlopment) but I don't see how China flooding the Pakistani market with its cheap electronic good will help local industries in Pakistan. If anything CPEC will simply crush local small scale competitors to Chinese goods.

Not necessary true..when consider that our local industry is enjoying protectionist measures to churn out sub-standard goods of 1970's era..some Chinese competition may be good..they will be forced to shape up or ship out...Check the entry of Haier in Pakistan market..they setup up a local plant..and made the market more competitive for Dawlence and PEL to churn out quality goods...and also attracted western names like Electrolux to have local JV..while completely collapsing imported brands like LG and Samsung...the net result is that we saw more local production and improved quality to the mark of imports..thereby reducing imports and spurring jobs..

 

[Abingdonboy]

Not necessary true..when consider that our local industry is enjoying protectionist measures to churn out sub-standard goods of 1970's era..some Chinese competition may be good..they will be forced to shape up or ship out...

Competition is one thing but these Chinese firms will play dirty- they will flood your market and engage in predatroy pricing. Once the local competitors are take care of and they enjoy a monopoly they will raise their prices and the end in the end the consumer will still be no better off.

 

[Nilgiri]

Simple question: How many skilled (formal) jobs is Pakistan currently creating on the ground every year...and what is being done on the ground to increase whatever that current number is by several magnitudes in the coming years (especially in light of declining literacy rate).

That will be the crux of whether such investment is actually absorbed efficiently or whether CPEC will in the long run just be creating a diabetic economic bubble...and one who's loans need to be serviced on top of what exists today.

Also how much of the CPEC MOUs actually materialise into solid greenfield GFCF on the ground...rather than just stay ink on paper also has to be seen.

But putting onus on China to explain is pretty stupid, the onus is on Pakistan to take the football passed to them, in whichever manner or intent it was.....and convert it to a touchdown/goal.