CPEC Financing: Is Pakistan Being Ripped Off By China?

[Srinivas]

Every one knows china is following debt trap strategy with higher interest rates and inflated numbers in estimating investment amount.

Riazhaq is showing his manipulation skills with his own stats.

 

[SHAH820]

Advancing CPEC by stealth

well if you use DAWN reports which dies just after fews of it release so man no one can help with this

Another feather in Pakistan's cap thanks to CPEC


https://www.dawn.com/news/1346347/current-account-deficit-touches-record-121bn

lol account defecit have nothing to do with CEPEC which not even completed yet and yet it have helped us to grow at 5%+ rate

Every one knows china is following debt trap strategy with higher interest rates and inflated numbers in estimating investment amount.

Riazhaq is showing his manipulation skills with his own stats.

looks like riaz is just showing what ministry of planing said long time ago

 

[AUz]

Pakistan's growth rate has touched 5.3% on 2005-06 base year.

Which means that at 2010-11 base year (that india's economic stats are based on)...our growth rate is probably already 6% and above.

And again, that's when CPEC is not even 20% complete and is in its very early stages.

But yeah China is killing Pakistan with CPEC

 

[OnlyTheTruth]

well if you use DAWN reports which dies just after fews of it release so man no one can help with this

lol account defecit have nothing to do with CEPEC which not even completed yet and yet it have helped us to grow at 5%+ rate


looks like riaz is just showing what ministry of planing said long time ago View attachment 412910

Balance of trade(BoT) is a major component of current account deficit. Considering the favourable oil prices and reduced commodity prices, and improved remittance inflows Pakistan's CAD should not nosedive at such alarming levels.

Primary reason for it is you are importing beyond your means. The Chinese are making you import the costly equipments for the so called shady CPEC projects from them paying with their loaned money. You are spiralling into a debt trap.

And i am also confident that a significant chunk of loan has been used to fill the coffers of your dirty politicians.

It's a win win for us, enjoying the great show of implosion of Pakistan economy.

 

[SHAH820]

Balance of trade(BoT) is a major component of current account deficit. Considering the favourable oil prices and reduced commodity prices, and improved remittance inflows Pakistan's CAD should not nosedive at such alarming levels.

Primary reason for it is you are importing beyond your means. The Chinese are making you import the costly equipments for the so called shady CPEC projects from them paying with their loaned money. You are spiralling into a debt trap.

And i am also confident that a significant chunk of loan has been used to fill the coffers of your dirty politicians.

It's a win win for us, enjoying the great show of implosion of Pakistan economy.

current account deficit is cause by shutting down of textile industries increasing duties on trade not by using machinery from CPEC which eventually befitting by reducing the time to built some thing yes corruption is done in this regard but CPEC is solving worst problem in pakistan "electricity crisis" most of the machinery imported in pakistan by china are done through private companies not through government (gov project using chinese machinery is all due to corruption yep thats can be a reason for samll portion for account deficit ) but its all due to shutting of biggest export market of pakistan "textile industry" and decrease in tax payers and corruption

for CPEC leading us to bankruptcy is not more then a hoax
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-3#post-9676690
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-3#post-9676701
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-4#post-9677839
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-5#post-9678063
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-5#post-9678614
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-6#post-9683917
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-6#post-9684592
most of the question have been answered

 

[OnlyTheTruth]

current account deficit is cause by shutting down of textile industries increasing duties on trade not by using machinery from CPEC which eventually befitting by reducing the time to built some thing yes corruption is done in this regard but CPEC is solving worst problem in pakistan "electricity crisis" most of the machinery imported in pakistan by china are done through private companies not through government (gov project using chinese machinery is all due to corruption yep thats can be a reason for samll portion for account deficit ) but its all due to shutting of biggest export market of pakistan "textile industry" and decrease in tax payers and corruption

for CPEC leading us to bankruptcy is not more then a hoax
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-3#post-9676690
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-3#post-9676701
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-4#post-9677839
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-5#post-9678063
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-5#post-9678614
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-6#post-9683917
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-6#post-9684592
most of the question have been answered

You might want to read this, if you haven't already:
http://herald.dawn.com/news/1153812
Btw my views regarding burgeoning import bill resulting from costly CPEC equipment was echoed by your FinMin during your budget presentation.

 

[SHAH820]

You might want to read this, if you haven't already:
http://herald.dawn.com/news/1153812
Btw my views regarding burgeoning import bill resulting from costly CPEC equipment was echoed by your FinMin during your budget presentation.

lol its saying what i was saying most of our export falls due to bad management shutting of textile industries(not mentioned in the article directly but indirectly) its about 50% of the textile industry have shuts down only few brands are their, gov not doing anything to increase the export or competitiveness of our goods etc etc just like in 1998-1999 when debt were about 87% of our gdp when growth rate was about only 1-2% when we have about 7 billion export but if you remember musharraff was able to solve these issues in just 7 years debt was reduced to only 36% gdp growth to 8%+ etc etc and same applies in bhutto era its not the first time pakistan faces these problem and its was not the only time they were solved with in few years but this time we have bigger projects that can solve most of our problem

 

[wiseone2]

current account deficit is cause by shutting down of textile industries increasing duties on trade not by using machinery from CPEC which eventually befitting by reducing the time to built some thing yes corruption is done in this regard but CPEC is solving worst problem in pakistan "electricity crisis" most of the machinery imported in pakistan by china are done through private companies not through government (gov project using chinese machinery is all due to corruption yep thats can be a reason for samll portion for account deficit ) but its all due to shutting of biggest export market of pakistan "textile industry" and decrease in tax payers and corruption

for CPEC leading us to bankruptcy is not more then a hoax
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-3#post-9676690
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-3#post-9676701
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-4#post-9677839
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-5#post-9678063
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-5#post-9678614
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-6#post-9683917
https://defence.pk/pdf/threads/is-p...cy-imf-alarm-bells.507267/page-6#post-9684592
most of the question have been answered

Since textiles is most important industry shouldn't people be worried about this ?

 

[SHAH820]

Since textiles is most important industry shouldn't people be worried about this ?

thats why we are trying to get rid of these baboons

 

[volatile]

In business there is no assured returns ,if you have given assured returns it not business anymore

Then there is no return , World moves around return take an example of FDI in India ,are they serving Indians or there own ?

 

[aakash_2410]

Pakistan's growth rate has touched 5.3% on 2005-06 base year.

Which means that at 2010-11 base year (that india's economic stats are based on)...our growth rate is probably already 6% and above.

And again, that's when CPEC is not even 20% complete and is in its very early stages.

But yeah China is killing Pakistan with CPEC

Lol are you serious? Changing the base year will increase the growth rate?

So, your current growth rate is being compared to 2005-06 base year and you think if your base year was 2010-11 (When economy was bigger than it was in 2005-06) you will have get a higher growth rate? LOOL

 

[Samlee]

Quote1: The china is giving loans to pakistan at a lower rate ,great well done.


Quote2: chinese companies borrow from chinese banks at commercial rates.

Simple question, If chinese companies take huge cut in profit from projects then how does pakistan plan to repay the loan?
Either the projects must make super profit (but chines take major cut) or pakistan need to pay interest from else where that is from normal tax collection. Which means pakistan economy should grow to increase tax collection, if it does not the it will be in deep problem. So what is the rate of growth that pakistan is targeting?

You See Unlike Your Farmers Who Borrow Money and Then Waste It On Marriages and Festivals We Plan On Investing It On Infrastructure and Energy Which Will Help Us Regain 2% GDP Growth Which We Lose Due To Power Deficit.

Extra Production=Extra Export=Extra Earnings

 

[Indus Pakistan]

Couple of things here to note.

1. China is not going "rip off" Pakistan. I say this not because I think China is a saint but because I know they are smart. Pakistan is important to China in a geo-strategic sense and is only one of few countries that are inside Chinese "close circle". For a few billion dollars to wreck a stategic allies economy which would send Pak into a tailspin would be suicidal thing to do for Beijing. China for it's own strategic strength needs Pakistan as a strong, prosperous country, that it can trade with, build military alliance with and have a long term strategic alliance with. Do you chop a apple tree for short term benefit or do you nurture it to gain fruit year after year?


2. Having looked at CPEC few things have become apparent to me. I always felt it difficult to comprehend exactly how Gwadar would act as a port for China. The location is too far from mainland China and given the huge distance only high quality rail link would offer any chance of this happening - even at lower levels. I now understand that CPEC is not about finding a alternative route to the Arabian Sea that gives competition to the sea route through the Straits of Malaca. The real intention behind CPEC appears to be a Chinese effort to bring Pakistan into Chinese economic engines influence. That is it is a way for Chinese to enter Pakistan's economy and drive standards up which has win win effect for both Pak and China. In other words Pakistan has to open up to China and learn to walk the walk Chinese style. This will requite culltutal change inside Pakistan.

The full details of CPEC are in the link below. It's important to note that lot of sensitive details are left out and Chinese are subtle with teir language but you can read in between the lines what they want and what they expect of Pakistan. As long as Pakistan plays ball there is no chance of Pakistan losing. Indeed it will come out better even while it has to surrender some space to Chinese wishes and habits. Pakistan will by definition have to chill with Islamic rhetoric and move gently toward secularism without openly saying so.

I see nothing wrong with this. I see similarities in how America brought poor European countries into it's arc of influence (resulting in significant US influence and culture permeating ) after WW2. Here I am thinking of Greece, Spain, Italy etc and I would even include Turkey in this category. These countries gave space to US and in return were assured entry into American economic/military order which assured kiving standards and military security through NATO. Presently countries like Poland etc are getting the same benefits from Uncle Sam.Economc investment/trade is normally linked with military agreements entailing opening of US military bases under NATO architecture. Turkey has also been recipient of this and we know NATO has bases in Turkey.

In the same way I see CPEC as a vehicle for Chinese economic ingress into Pakistan which will tie Pakistan economically within the Chinese arc. This down the road will mature into full spectrum economic, military (expect Chinese bases ) and social relationship. For instance Chinese see Baloch coast as a place for Chinese holiday makers to visit as they do for instance Antalya in Turkey. Presumably full scale resorts that cater for Chinese holiday makers including drinks, food and other pursuits will be needed further down the road. It's all exciting stuff and I see Pakistan changing over the decades.

In short CPEC appears to be way for Chinese to move into Pakistan and help Pak economy on a road to development using Chinese technology and skills that they have learned in the miracle that country has witnessed in last 3 decades. CPEC will harvest the potential Pakistan has that at the moment lies latent. CPEC is not aboy funneling Chinese trade through Pakistan but switching on and turboboosting Pak trade and economy which has lied dormant all this time.

https://www.dawn.com/news/1333101/exclusive-cpec-master-plan-revealed

@Sinopakfriend @Chinese Bamboo @Chinese @KediKesenFare

 

[Mo12]

Its obvious China is making big profits from Pakistan, however China is taking big risk in Pakistan, so is demanding higher risk rated return.

just dissapointed that China isnt developing pakistan labour force, by using chinese labour

 

[RiazHaq]

How #China beats #India hollow in trade and dominates #Indian homes, #markets #economy #trade http://economictimes.indiatimes.com/news/economy/foreign-trade/china-dominates-indian-homes-markets-and-economy-as-trade-deficit-widens/articleshow/59611452.cms … via @economictimes

China seems to be grabbing most of it (solar panels). “The US and Europe are taking measures to protect themselves against Chinese dumping. We (Indians) have instead offered them a direct train to the Indian market. The government must ring fence Indian firms to allow them to grow,” says Chaudhary.





Miles away in Delhi, Rakesh Kumar Yadav shows you another Chinese-flavoured world. He is the president of the Federation of Sadar Bazar Traders Association. The umbrella platform for The umbrella platform for 83 other associations with 35,000 wholesale traders does business worth over Rs 3,000 crore annually and employs at least 100,000 people directly and indirectly.





About a decade back, the traders often used to source products — toys, plastic buckets, idols of Indian gods, among others — from domestic manufacturers. In toys alone, Yadav knows many Indian manufacturers who employed 500-plus people and were their suppliers. “They have all shut down and now import from China. Cheaper and better Chinese imports have wiped out the domestic industry,” says Yadav.

On the border, India is trying to ward off Chinese aggression. In the cold Himalayan plateau, temperatures have shot up as an old political rivalry heats up. India and China are sparring over the Doklam tri-boundary area (the third country being Bhutan), near Chicken’s Neck which connects India’s north-eastern states to the rest of the country. Shrill calls for a boycott of Chinese goods are getting louder, with the Rashtriya Swayamsevak Sangh (RSS) and its affiliate, the Swadeshi Jagran Manch, ..