Summary
1. CPEC program is big win for Pakistan . But it could be better deal for Pakistan
a. if Pakistan would have lend loan on lesser interest rate.
b. If Pakistani worker would have worked instead of chinies
c. If Pakistai company would have got contract instead of Chinese..
its like China lend 1 Crore to Pakistan, and took 30 Lakhs for Chinese worked, 30 Lakhs for Chinese contract company, 30 Lakhs for something else, and interest on 1 Cr as well
Yes it could Have been a Better deal for Pakistan .... Any deal have more room for sweet deal ... !
but given the scenarios ... it is indeed a good deal ...
A- The Interest rate as i mentioned above are still better thn the open market rates (5-7%) and given the Credit Rating of Pakistan
B: thr are not as much chinese as you are expecting ... the Chinese would be mostly the High level Engineer, Project management and Planning, Financial Control and Budgeting ... From Site Managers to QA / QC/ Safety staff will be a joint mix as any one below would be Pakistan and one needs to communicate with those urdu speakings ... so is most if not all foremen would be Pakistani ... I Work in Italian Infrastructure Company .... Yes the Director is Italian so the CFO .. but BDM is Local .. Engineering is a Multi National Mix and Considering a HUGE number of Pakistan Labour we have more Pakistani Foreman and Surveyors and other staff thn other nationalities .. which are on Pro-Rata basis .... I have Also worked in an MNC Automobile Company in Pakistan .. from Highlevel 20-40 guys and add a 40-50 Permanent Technical Staff & 60-80 Temporary Deputed Staff ... everyone else (2,500+) are Pakistani .. !
C. You are right that giving the contract to Pakistani Companies would indeed be beneficial .. but thr are no free meals ... China is Not handing Over Pakistan 51 Billion Dollar to see it down the gutter ... it is giving it to Chines as Well as Chinese & Pakistan Consortiums, in order to get the job done . ! Also the Chinese need more business and hence will surely look into thr own Benefit .. how do u thing the Other nations BOT projects work ... Japan would make the high Rail system it self .. and thn Operate & later Transfer after the ROI ... so unless one have to use thr own cash to make the Deals SUPER Sweet else you will have to Pick what a Win / Win situation.
So ... No its not like China lend 1 crore and 30+30+30 (Something else ?? lol) ...
It is Like Pakistan have ZERO Money & ZERO Infrastructure (in those areas as of now) .. China Will give Soft Loan (ofcourse with some strings) and after 5-10-15 (whatever the time span is) years
Pakistan will have a Port, A Road & Railway Network, Enough Electricity to meet its demand & thn based on the Returns from the Electric Consumer, Port Users and Road & Railway Network will pay back the Loan AND Interest ...
Take this deal out & gawadar is still a fish harbour .. Balochistan is still 20 years behind, & Pakistan is still struggling with its electricity Woes which in its own cost 2-2.5% of GDP every year and will nto only let it go forward but backward !
So it is Not Honey Sweet ... but Still it is Sugar sweet and some sweet is better thn nothing or worst Salt !
now Yes i agree .. the Govt (corruption) can still fudge it up .. but this the basic Idea and it is not as Bad as your are believed to think off !!!! Cheers !
