Mujahid Memon
SENIOR MEMBER
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Interesting part is that China didn't invest in CPEC, they gave loan to Pakistan at fairly high rates and astronomically high ROI guarantee for infrastructure that will be primarily used by China, so whether the project succeeds or fails, China will earn its profits at the cost of Pakistan who is bearing all the investment risks.
What Pakistan will gain from it is not confirmed though, because the earnings from transit fees will go in servicing the loans, and the intangible benefits of better transit can only be realized if Pakistan develops enough manufacturing capabilities, which is more unlikely now given the fact that Chinese goods will flood Pakistani markets even more through CPEC, thereby killing the local industries further.
But it can be said without an iota of doubt that China will have extraordinary level of leverage over Pakistan through CPEC, Pakistan has taken huge loans from China at high rates and even higher (obscenely) ROI guarantees to develop a project for which they have only one primary client, China!! China can literally control Pakistan by controlling the use of that project, thereby effectively controlling the amount of transit fee that Pakistan can earn, but the interest and ROI burden for Pakistan remains constant....if I were a businessman, I would have been too uncomfortable to be in such a business deal.
@thesolar65 @PARIKRAMA @Spectre @Sky lord @Joe Shearer @scorpionx @hellfire @Levina @Nilgiri
People in the power will wholeheartedly support them .
Like a Pak member said in here ,Most of the assets of PA 's Generals are in Pakistan .And CPEC is their new landscape .
The answer lies in your post itself .
Weapons can purchase from anywhere . Nor we asked them for aid .
But Chinese are investing in your core area with heavy interest .
Some thing we wont allow at any case in our nation
I guess the main project is called OBOR?This project is basically part of the Chinese New Silk route project and Pakistan will also benefit from it coz of its strategic location.
My opinion is that all these countries who are now showing interest in joining the CPEC project are doing it only to jeopardise or sabotage this project and nothing else.
If you can't stop it, become a part of it, to sabotage it.
Well it's only my opinion, can be wrong.
they are butthurt because there is no cut or commission for them.. if they get anything for themselves they will praise itComing from the so called Pakistani lawmakers who rigged their way into the offices while keeping their entire wealth abroad, their words are a joke.
I'll take such statements seriously when it comes from a true leader who has all of his stakes and wealth inside the country.
For the last thousands of years Chinese didn't or couldn't conquer other countries, rather they built a wall to isolate themselves. Will Pak be an exception???? good luck with that!!!Dont worry. Nobody even listens to them. Things are progressing as planned. Nonetheless China aint here to occupy land or something, its their cargo that ll be moving on the roads, railways and ships here.
With almost all countries that had traditionally invested in Pakistan now pulling out their investments, China has increased its FDI as part of the China-Pakistan Economic Corridor (CPEC).
Almost half of the total FDI that Pakistan received in the last fiscal year originated from China alone. FDI from China amounted to $593.9 million in 2015-16, which is up 131.3% from 2014-15 and constitutes 46.3% of the total FDI Pakistan received over the entire fiscal year.
http://tribune.com.pk/story/1146075/2015-16-china-helps-fdi-pakistan-surges-38-8/
For the last thousands of years Chinese didn't or couldn't conquer other countries, rather they built a wall to isolate themselves. Will Pak be an exception???? good luck with that!!!
CPEC for all the hype should have started attracting healthy FDI into Pakistan by now. On the contrary countries traditionally investing in Pakistan seem to be leaving in a hurry.
Coming from Pakistani law makers, this is serious matters.
Russia don't share border with India same as US don't border with Pakistan. But China have border with Pakistan and to secure it's silk route she will take every steps.DID Russian take over India ?? instead of all dependence on russian hardwares ?? did USA take over Pakistan in last 50 years ?? did U.S take over india bcz India remained a big recipient of U.S aid ?? if your Ans is BIG NO then don't worry About Chinese investments in Pakistan...
New Recruit
Do give a link to all this discussion about CPEC
Interesting part is that China didn't invest in CPEC, they gave loan to Pakistan at fairly high rates and astronomically high ROI guarantee for infrastructure that will be primarily used by China, so whether the project succeeds or fails, China will earn its profits at the cost of Pakistan who is bearing all the investment risks.
What Pakistan will gain from it is not confirmed though, because the earnings from transit fees will go in servicing the loans, and the intangible benefits of better transit can only be realized if Pakistan develops enough manufacturing capabilities, which is more unlikely now given the fact that Chinese goods will flood Pakistani markets even more through CPEC, thereby killing the local industries further.
But it can be said without an iota of doubt that China will have extraordinary level of leverage over Pakistan through CPEC, Pakistan has taken huge loans from China at high rates and even higher (obscenely) ROI guarantees to develop a project for which they have only one primary client, China!! China can literally control Pakistan by controlling the use of that project, thereby effectively controlling the amount of transit fee that Pakistan can earn, but the interest and ROI burden for Pakistan remains constant....if I were a businessman, I would have been too uncomfortable to be in such a business deal.
@thesolar65 @PARIKRAMA @Spectre @Sky lord @Joe Shearer @scorpionx @hellfire @Levina @Nilgiri
high ROI guarantee for infrastructure