Featured CPEC rapidly laying foundation for Pakistan’s industrial development

[Morpheus]

CPEC rapidly laying foundation for Pakistan’s industrial development
By
APP
-
November 8, 2020

BEIJING: The projects implemented under the China-Pakistan Economic Corridor (CPEC), are rapidly laying the foundation for Pakistan’s industrial development and will benefit industrial development in the country, China Radio International (CRI) Urdu commented on Sunday.

“The way in which the CPEC projects have been implemented over the past five years and the results that have emerged show that the purpose of building up CPEC is not to benefit certain areas, but to promote development in Pakistan,” the CRI Urdu said of the progress made in the construction of CPEC projects.
The Chinese Urdu media outlet stated that the infrastructure, construction of industries and the elimination of energy shortages will provide an environment for Pakistan according to its resources, which will also benefit the country’s citizens and guarantee a bright future.

In the past five years, CPEC projects have created 55,000 direct jobs in the road infrastructure sector, of which 48,000 have been created specifically for local Pakistanis.
According to a spokesman for the Chinese Ministry of Foreign Affairs, major projects with a direct investment of US $25 billion have been completed since the inception of CPEC. The projects completed under it are part of the Belt and Road Initiative (BRI).

As for the shipping of cargo, the trade began at the Gwadar port during the first six months of this year, through which up to 20,000 tonnes of goods were shipped to Afghanistan; the initiative also created jobs in the shipping sector.

“There was no doubt that these projects entailed infrastructure as well as energy supply, and job opportunities,” the CRI maintained.
According to the proposed two-gap model of economist Hollis B Channery, developing countries should introduce foreign investment and stimulate exports to boost their national economies. In this regard, CPEC has played an important role in the development of Pakistan.

The initiative has also addressed the issue of limited investment potential, insufficient foreign exchange savings and deficits in Pakistan, and has provided excellent quality for Pakistan’s economic growth.

Pakistan’s GDP growth rate is significant and it has created 70,000 jobs in Pakistan, the China-based Urdu service added.
Since its inception, CPEC has considered the elimination of energy shortages in Pakistan as an important sector for construction. Over a period of five years, energy projects under the CPEC framework added 3,340 MW of electricity to Pakistan in early April 2019, accounting for 11pc of the installed capacity in the country.

The shortage of electricity has been significantly reduced and in addition to power generation projects, China has built the Matiari-Lahore (an 878 km long, 660 kV) HVDC transmission line project in Pakistan – the second HVDC transmission line in the world to extend the life of the country’s power grid.

The construction of the corridor is progressing rapidly, significantly reducing Pakistan’s energy problem in the process. Improvement in the transportation infrastructure has laid the foundation for the industrial development of Pakistan. The next phase of the project focuses on industrial cooperation.

“Given the pace of the projects, their completion and results, it can be said that CPEC is undoubtedly a new impetus for the sustainable development of Pakistan,” the CRI added.

CPEC rapidly laying foundation for Pakistan’s industrial development: CRI Urdu

BEIJING: The projects implemented under the China-Pakistan Economic Corridor (CPEC), are rapidly laying the foundation for Pakistan’s industrial development and will benefit industrial development i

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[Baby Leone]

major projects with a direct investment of US $25 billion have been completed since the inception of CPEC

25 Billion in last 5 years must be 5 billion a year only for CPEC on avg but yearly data of Pakistan shows the FDI in Pakistan is on avg 2.5 billion in total for the last 5 years.

 

[Morpheus]

25 Billion in last 5 years must be 5 billion a year only for CPEC on avg but yearly data of Pakistan shows the FDI in Pakistan is on avg 2.5 billion in total for the last 5 years.

25billion are projects. The 2.5billion are FDI resulting from those completed project.

 

[Baby Leone]

25billion are projects. The 2.5billion are FDI resulting from those completed project.

these 2.5 billion are total per year its must be 25% of that due to CPEC. must be in 600 to 700 million range for CPEC.

BTW when you said 25 billion dollars projects has been completed than why you dont count them in those years FDI is beyond me.

 

[vi-va]

these 2.5 billion are total per year its must be 25% of that due to CPEC. must be in 600 to 700 million range for CPEC.

BTW when you said 25 billion dollars projects has been completed than why you dont count them in those years FDI is beyond me.

Bro, please take a second look at the wording.

It's $25 billion direct investment. Investment doesn't mean FDI, it can be any type of investment. FDI is foreign investment. That's the difference.

According to a spokesman for the Chinese Ministry of Foreign Affairs, major projects with a direct investment of US $25 billion have been completed since the inception of CPEC.

 

[Baby Leone]

Bro, please take a second look at the wording.

It's $25 billion direct investment. Investment doesn't mean FDI, it can be any type of investment. FDI is foreign investment. That's the difference.

if FDI is foreign why Chinese investment is not foreign to Pakistan.....i always smell something is fishy in Chinese investments.
i think the reason why FDI is not increasing its only because 90% or more of these so called 25 B USD from China are loans and not pure investments otherwise Pakistan's FDI would be skyrocketed, something pure logic which no one asking now.

 

[Baz2020]

I just don't wan't gwader to become a chinese colony, other than that, chinese investment is welcome.

Oh , I also want pakistanis to get out of wheat and sugar and exporting clothese. Use your brains to invent something.

 

[Laozi]

if FDI is foreign why Chinese investment is not foreign to Pakistan.....i always smell something is fishy in Chinese investments.

Chinese government intentions are pretty clear. It wants CPEC to succeed as it is strategic to its interest. Investment in CPEC is more of a defense expenditure for China,

Therefore Chinese are mainly using their own manufacturing capacities to build CPEC. Most of the payment are going back to Chinese firms and nothing is added in Pakistan foreign reserves.

If Chinese had made arrangement with earlier PLM (N) government to treat expenses under CPEC as loan to your country then it might create financial burden on your economy in future,

 

[not_two]

if FDI is foreign why Chinese investment is not foreign to Pakistan.....i always smell something is fishy in Chinese investments.
i think the reason why FDI is not increasing its only because 90% or more of these so called 25 B USD from China are loans and not pure investments otherwise Pakistan's FDI would be skyrocketed, something pure logic which no one asking now.

It seems apart from basic building material everything is from China ..That's what happens when financing and executing agencies are same , money rotates within China without benefiting reserves and in future it will adversely affect reserves when they will take profit or loan interest in US $$

 

[Patriot forever]

if FDI is foreign why Chinese investment is not foreign to Pakistan.....i always smell something is fishy in Chinese investments.
i think the reason why FDI is not increasing its only because 90% or more of these so called 25 B USD from China are loans and not pure investments otherwise Pakistan's FDI would be skyrocketed, something pure logic which no one asking now.

That is absolutely true. Most of the CPEC is loans, but it is not a bad thing at all. It only becomes a burden if projects offer limited financial benefits, that way they only end up as white elephants Take an example of orange line from a financial perspective, not only do the government has to pay back the 2 billion loan and interest on it from its own pocket, but also has to pay around 80 billion in subsidized to run it.

China gave Pakistan a credit card and the royal wife (Plmn) used it to buy Gucci and Prada handbags and shoes to show off how wealthy she is. Husband (establishment/Pakistan) didn't like he so gave her divorce. Now husband is married again with all the debt and his second wife (PTI) has nothing to show for it except bad debt. The illiterates in the town (voters) are saying how wealthy Pakistan was when with the first wife, and is only begging for relief since he married again. Only his second wife family knows how hard she is trying to get her family/husband out of the water.

Some of the folks are now whispering in his ears to make up with his first wife, sad state of affairs

 

[Sidacca]

25 Billion in last 5 years must be 5 billion a year only for CPEC on avg but yearly data of Pakistan shows the FDI in Pakistan is on avg 2.5 billion in total for the last 5 years.

Project financing is not that much simple. Projects are gradually financed depending upon completion rate and funding requirements. The funding structure is extremely complicated and finance released on basis of pre set financial model.

 

[Patriot forever]

Project financing is not that much simple. Projects are gradually financed depending upon completion rate and funding requirements. The funding structure is extremely complicated and finance released on basis of pre set financial model.

Part true, but loans are not Foreign Direct Investment. The FDI component by definition is a small part of this 25 billion.
On top of it most of these loans were kept off the book, one of the important demands of IMF was to bring these transaction on record and present them a transparent picture. I think they adjusted this amount in sovereign guarantee, but this caused a significant increase in our debt.

 

[Sidacca]

Part true, but loans are not Foreign Direct Investment. The FDI component by definition is a small part of this 25 billion.
On top of it most of these loans were kept off the book, one of the important demands of IMF was to bring these transaction on record and present them a transparent picture. I think they adjusted this amount in sovereign guarantee, but this caused a significant increase in our debt.

Where did I say that loans are FDI....??

 

[Patriot forever]

Where did I say that loans are FDI....??

Bro I was saying that in support of your argument, in the context of the thread. Wasn't contradicting your comment.

 

[Black.Mamba]

China gave Pakistan a credit card and the royal wife (Plmn) used it to buy Gucci and Prada handbags and shoes to show off how wealthy she is. Husband (establishment/Pakistan) didn't like he so gave her divorce. Now husband is married again with all the debt and his second wife (PTI) has nothing to show for it except bad debt. The illiterates in the town (voters) are saying how wealthy Pakistan was when with the first wife, and is only begging for relief since he married again. Only his second wife family knows how hard she is trying to get her family/husband out of the water.

Some of the folks are now whispering in his ears to make up with his first wife, sad state of affairs

With this analogy; first wife later went on to disclose her actual illicit relationships (Modi G), the reason she got a divorce in the first place as the loyalties were never with the husband.