CPEC Turns into a Chinese Albatross on Pakistan’s neck – Asia Sentinel

[Indus Pakistan]

for me it's Ignorance...

Living on the doorway of Europe you guy's don't quite know what real poverty means.

 

[HannibalBarca]

Living on the doorway of Europe you guy's don't quite know what real poverty means.

you right, I don't. and I thanks God for that.

 

[Indus Pakistan]

top 3 sins of Ibliss?

My top three - in no particular order.

Ignorance
Ignorance
Ignorance

 

[HannibalBarca]

My top three - in no particular order.

Ignorance
Ignorance
Ignorance

Well here mine... since it will be impolite to not share an answer I seek from others.

The first is Arrogance
then Come Jealousy
and Last hypocrisy

As for Ignorance... Maybe he ignored the true meaning of Allah decisions... Maybe. Too Arrogant to accept the truth... too jealous to share..; while doing the same right now...
you right.. Ignorance

 

[Canuck786]

Two flags always pop out (USA and INDIA) here at pdf reminding us how bad Chinese are being to Pakistan by way of CPEC's implementation. Thanks to think tanks from both these countries. We know you have always been very concerned about our prosperity and well being. Please accept our deepest gratitude in this regards.

AND NOW LEAVE US ALONE WITH THESE SUFFERINGS AS WE DON"T NEED YOUR SYMPATHY!

PLEASE

 

[Thanatos]

Its pleasure to watch small Indian minds trying to convince CPEC bad for Pakistan. I think this propaganda will continue. Have been following such post for years now, such posts are waste of time.

 

[Jackdaws]

So any chance Modi can confer Vir Chakra on Xi Jinping? He might deliver Pakistan on a plate to you that the Indian Army has failed in 70 years?

I don't want Pakistan delivered on a plate. I want Pakistan to prosper. Simply because I am pro-Indian, doesn't make me anti-Pakistan. I am not fond of either Governments - not in India, not in Pakistan. And certainly not in China. Earlier today I read that some Indian baby who was alive was declared dead and handed over to parents in a plastic bag. Also read that India is buying or making 6 nuke submarines. Stretched resources which should be applied to healthcare and education are being used to acquire weaponry. Of course my blood boils when I see 26/11. But it also boils when I see kids in a school massacred in Pakistan. If your CPEC brings sanity to the region - with its success or its failure - I would be glad.

 

[Indus Pakistan]

Well here mine... since it will be impolite to not share an answer I seek from others.

The first is Arrogance
then Come Jealousy
and Last hypocrisy

As for Ignorance... Maybe he ignored the true meaning of Allah decisions... Maybe. Too Arrogant to accept the truth... too jealous to share..; while doing the same right now...
you right.. Ignorance

This is what I want Pakistan to look like. I am sure you can recognise the city Mr Hannibal. And if Chinese can help so be it.

 

[war&peace]

I don't obfuscate.

The source is your PDF and the Pakistani replies to the discussion. Where they effectively rejoice that 500k jobs will go to Chinese and Pakistanis won't be hired. Because, in their own words, they say your citizens are not up to par to do the job. Not majority of you, not a minority of you not even one of you. The funniest part is they realize that you are paying China to give the jobs to Chinese workers.

https://defence.pk/pdf/threads/500-000-chinese-professionals-expected-in-gwadar-by-2023.524750/

First of all you have fabricated and added the lie...no where did it say that there will be no jobs for Pakistanis. 500k Chinese professionals means at 5 times more Pakistani professional and workers will get the jobs. Secondly, that's none of your business so get the fcuk out of here. We know how "concerned" you are for Pakistan. Though I'm sure your flags are not true.

 

[khanmubashir]

CPEC Turns into a Chinese Albatross on Pakistan’s neck – Asia Sentinel

On Nov. 24, a federal minister told Pakistan’s Senate that 91 percent of revenues to be generated from the US$62 billion Gwadar port and the China-Pakistan Economic Corridor that would transport the port’s imports would go to China.

Pakistan faces repaying US$16 billion in loans obtained from Chinese banks for its development, the free-trade zone surrounding it, and all communications infrastructure, at annual rates of more than 13 percent, inclusive of 7 percent insurance charges. The Pakistan government obviously has no answers on how it will repay the loan over the next 40 years out of the 9 percent of revenues the government will retain. China expects to recoup its own cost of development of the CPEC from the first four years of earnings.

Understandably gun-shy over the one-sidedness of China’s generosity, on Nov. 15 the Pakistani government turned down an offer of assistance by Beijing for construction of the US$14 billion Diamer-Bhasha Dam in Azad Kashmir and said it would remove the project from the CPEC. The cost of the dam project has zoomed from US$5 billion to US$14 billion, with international lenders linking serious conditions with the provision of funding.

Pakistan thus is just one of several nations, including Sri Lanka, to have discovered the exorbitant conditions China is attaching to its massive One Belt, One Road bid to

“The real issue will come when some of those countries, particularly in central Asia, have to pay back some of the loans that were acquired in the Belt and Road Initiative,” Steve Tsang of London’s School of Oriental and African Studies told the Voice of America radio network. “And most of those countries will have problems paying back those loans.”

Given past practice, Pakistan will either look to the West and particularly the International Monetary Fund for loans to re-pay Chinese loans – or it will rely on Beijing for soft loans to repay the CPEC loans, thus getting caught in a vicious cycle.

In addition, what is likely to cause a lot more damage to Pakistan’s potential earning is the tax concessions and tax holidays over 20 to 40 years that Pakistan has granted to contractors and sub-contractors associated with the Chinese state-run China Overseas Port Holding Company for imports of equipment, material, plant, appliances and accessories for port and special economic zone.

According to reports, the 923-hectare free zone, which is to include factories, logistics hubs, warehousing facilities and display centers, will all be exempt both from customs duties and from provincial and federal taxes.

On the contrary, no comparable tax breaks and incentives have been provided to Pakistan’s local companies. This is likely to naturally reduce the demand for made-in-Pakistan goods because these goods, compared to Chinese goods, will be much costlier.

Even outside the free-zones, the Chinese companies’ activity amounts to disguised looting of Pakistan’s natural resources. The reason for this looting, in part, is Pakistan’s own ill-preparedness to protect its interests and revenues.

For instance, Pakistan doesn’t have a regulatory framework to oversee the export of the country’s natural resources, for example marble, allowing the Chinese companies to bypass Pakistan’s processing industries, which could otherwise be a major contributor to the country’s fast-falling value-added exports.

According to a report by the State Bank of Pakistan, Marble and Marble Products, “China is the biggest importer of marble from Pakistan; however, the marble exported to China also includes semi-processed marble, which is then re-exported from China after value addition, which is hurting Pakistan’s marble industry to a significant extent.”

It isn’t surprising therefore that Pakistan’s share in bi-lateral trade with China stood at, in 2016, US$41.9 billion as against China’s share of almost US$ 17 billion. Pakistan’s exports to China have actually fallen in value while China’s exports have increased, raising concerns that the 1,300-km Karakoram Highway linking the port to the Chinese border is a one-way street.

Besides the fact that the Chinese companies are almost operating in Pakistan as if they were operating in China, another startling concern is that these companies are bringing in shiploads of Chinese workers, and thus only rarely form genuine partnerships with Pakistani companies. Consequently, there is little or no transfer of skills or technology, which is one reason why Pakistan cannot prevent the import of marble to China as China has the right technology to process marble while Pakistan doesn’t.

That Chinese companies are bringing in their own workers is an illustration of the internal logic of CPEC whereby China is not only expanding its industrial reach, establishing new markets but also re-locating its excess labor as well. This, according to Pakistani economist Farrukh Saleem, is how China’s labor problem connects with CPEC and Pakistan: “China produces 60 percent of the global cement output. [But] domestic demand has gone down sharply, and the CPC would have to cut roughly 390 million tonnes of cement capacity. And that would mean unemployed cement workers.” Hence the imperative of re-locating this excess labor to countries like to Pakistan.

Similarly, China’s metal smelting and rolling industry, which employs 3.63 million workers, has annual production of at 800 million tonnes as against domestic demand of 400 million tonnes, indicating the need for a sharp cut in the industry and relocation of the excess labor.

As such, by 2023, the city of Gwadar alone is expected to see 500,000 Chinese workers and professionals. Accordingly, the China Pak Investment Corporation (CPIC) announced last month a partnership with Top International Engineering Corporation (TIEC), a Chinese state-owned company, to develop China Pak Hills, the first Chinese built Master Community in Gwadar that will accommodate about 500,000 Chinese by 2023.

Therefore, with Pakistan all set to take a deep plunge into ‘Chinese communism’ and create many mini-Chinas in Pakistan, hopes of reaping the benefits out of the ambitious project have largely been misplaced and a result of misguided and misperceived policy of the Pakistan government.

But Pakistan has little to no strength in its economy to refuse the Chinese capital. With its foreign exchange reserves standing at US$19 billion and with its external debts standing at US$78 billion, there appears little to no choice for Pakistan other than to jump on the Chinese bandwagon. Still, it all depends upon what Pakistan can extract out of its partnership with the Chinese. So far, however, it is the Chinese who seem perfectly placed to benefit both strategically and economically.

Salman Rafi Sheikh (kingsalmanrafi@gmail.com) is a Pakistani academic and long-time contributor to Asia Sentinel

https://www.asiasentinel.com/econ-business/cpec-chinese-albatross-pakistan-neck/

Local labor costs would be far less then. Ringing in workers form China I hayvd visited cpec sites except for high skill technical manpower rest r local
As for agreement the way we r dealing with USA today wouldn't have been defined in those mysterious agreement we signed with em back in 2001
There is alot of propaganda also from both sides with vested interests
The truth is somewhere in between but here is the ground reality after the trade starts and it's become lucrative if original agreement doesn't suit us we can renegotiate terms otherwise if we can make it unworkable for USA forces in Afghanistan it won't be that tough to make it so for Chinese businesses in our own territories and Chinese r smart enough to know that

 

[HannibalBarca]

This is what I want Pakistan to look like. I am sure you can recognise the city Mr Hannibal. And if Chinese can help so be it.

Shall anyone be granted their wish...
As for the city... let's hope it's not a mirage...

 

[BHarwana]

I think you missed the OP. Chinese goods will become cheaper and could/would kill the local industries. moreover China will be sending its own workforce.

Chinese work force is coming only for CPEC not for working in Pakistani factories and it is coming to work on projects which are already employed by Chinese companies. Pakistani companies are hiring their own work force plus it has created a huge industry for translators in Pakistan. If you know mandarin Urdu and English all three they will abduct you from your house. CPEC is not just opening a trade route but the development is massive there are many housing societies and markets that have started to develop near the port many hotels are buying land there. Just imagine a second Karachi being born in Balochistan with a totally different market.

 

[war&peace]

So yes to China no to open pooping champions

thoroughly enjoyed. I think they hold championships

This is what I want Pakistan to look like. I am sure you can recognise the city Mr Hannibal. And if Chinese can help so be it.

I think we already have far better looking cities than this. You should have selected a better example.

 

[Jackdaws]

thoroughly enjoyed. I think they hold championships

I guess you are about to find out soon enough that it is a Chinese trait as well. Indians use toilets if they actually have access to one - Chinese have no such qualms.


https://www.vice.com/en_uk/article/gqnzxj/are-chinese-tourists-the-worst-tourists-in-the-world

There was a report of a Chinese making his kid poop in the middle of an aisle in an airplane.

https://www.dailystar.co.uk/news/la...-underground-China-Shanghai-Metro-tube-Line-2


And 500,000 of them are gonna be in Gwadar. Go on AliExpress and order the masks.

 

[BHarwana]

Why Foreign exchange which is coming to Pakistan is not increasing her Foreign reserves

Because in Pakistan people don't keep dollars in banks but money inflow has increased every since the land trade started in the area. Pakistan was importing 100 MW electricity from Iran for Gwadar now the demand has doubled so you can assess sometime back it was just an empty piece of land and now it is utilizing 400 plus MW electricity. thet 400 MW electricity is giving Pakistan tax already. every thing is going to pay in this deal China has cheap route and Pakistan get a New city. Pakistan will also tax the economic zones being developed by China and that is 15% first it was only Gwadar now they are developing economic zones all around country. The investment that is coming in from Chinese private sector will dwarf the investment of Gwadar.

On local industry what ever is coming into Pakistan from China is not being made in Pakistan and labor in Pakistan is cheaper than China the only thing which was hurting Pakistan was energy with CPEC most investment is being done in energy sector and this will solve a major problem plus Pakistan is developing many coal power projects.