313ghazi
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I am not trolling or such just asking Pakistani friends on PDF that how can CPEC actually help Pakistan. As far as I know,
1. The Chinese workers working on the projects and raw materials for the same are coming from China.
2. It is a bilateral corridor hence Chinese products will flood into Pakistani markets and minimal will be sent to China as Pakistan doesn’t have a manufacturing industry to that level.
3. 62 Billion dollar loan is being given to Pakistan by China including an amount as investment, that amount is being spent by Pakistan on Chinese workers and raw materials hence all the money is returning to China and Pakistan is getting free loans.
I’m just curious so don’t curse me pls.
1. I believe most of the workers are Pakistan, but I suspect most of the experts are Chinese. I doubt raw materials are coming from China (apart from steel) but a lot of the machinery will be coming from China.
2. CPEC is more than a corridor. Full details of the projects and progress can be seen here. http://cpec.gov.pk/progress-update
The idea is that through development of infrastructure, establishment of SEZ's, ending the power deficit, we'll create the physical environment required to help industry flourish in Pakistan. The transit of goods to and through Pakistan is only a very small part of this project. The hope is to attract foreign investors to setup manufacturing and other industry in Pakistan and also encourage local companies to compete with them. Note i used the word hope - i'll touch on that later on in this post.
3. The biggest winner of CPEC is China - this is the same for all OBOR projects. They turn cash into loans which will be returned making a profit. They also create jobs and investment opportunities abroad for their companies and skilled workers. Eventually they generate easy access to export markets for their own products. That doesn't mean the partners in these projects are set to lose; but they have no garunatee of a win. Pakistan must utilise the infrastructure and opportunity created by CPEC and we will win massively, if we don't we will lose.
CPEC will work if Chinese buy Pakistani products
But the CPEC projects are structured to pay Chinese companies and workers for their services
The only problem is that Pakistani populace will be paying the bills unless Chinese government decides to take a haircut on the loans
If infrastructure is a criteria for success Saudi Arabia will be world class industrial power
100% agree. As i was saying to @HostileInsurgent Pakistan must work to take advantage of the infrastructure developed to actually see any benefits. A few years ago our textile industry was shutting down because power outages were making doing business unaffordable. Today it's back in boom.
We have a power surplus now, What's the benefit of a power surplus though? Nothing really, not unless we can increase our industrial output to take advantage of it.
Similarly we have an FTA with China, but do we really benefit if our goods aren't able to penetrate the Chinese market? The opportunity is there though, it's up to our businesses to take advantage of them.
Ultimately a saying comes to mind... you can take a horse to water, but you can't make it drink.
The Pakistani horse has taken out quite a loan to get access to water, it is thirsty, but will it drink?