india really shaken and stirred because of CPEC

[randomradio]

India recorded a government debt equivalent to 69.50 percent of the country's Gross Domestic Product in 2016. Government Debt to GDP in India averaged 73.42 percent from 1991 until 2016, reaching an all time high of 84.20 percent in 2003 and a record low of 66 percent in 1996.

http://www.tradingeconomics.com/india/government-debt-to-gdp

It's not a lot for India. India is growing a lot faster and generating tax revenues at twice the rate. Not to mention, most of India's debt is generated within India itself.

BTW the loan to GDP ratio for Pakistan is almost same at 68% of GDP...

No. You need to look at completely different numbers.

There's no point looking at public debt because CPEC is within the corporate sector and SoEs. Your total debt, public, private and particularly external debt will grow.

When you take so much external debt, then you need to find a way to generate USD within your economy. Or else you won't be able to pay it back. And if you can't pay it back, you will have to borrow from WB or IMF to pay it back. So you will end up taking more debt to pay back your previous debt.

https://tribune.com.pk/story/1311803/pakistans-external-debt-rises-faster-foreign-currency-earnings/

Your forex supplies will become severely constrained after China starts dumping their goods into Pakistan through CPEC. You already have a deficit with them and that will only get worse, while repayment will only increase.

View attachment 398830

in you face mate!

http://www.firstpost.com/world/indi...for-70-years-says-lending-report-2581900.html

Nothing special. India takes loans for infrastructure projects, not debt servicing.

It means we take loans for revenue generation. India is growing fast enough that any kind of international debt with moderately high interest is easily payable and still generates profits. If you can take debt at 8% interest and invest it to generate 15%, then why won't you take debt? You are making a 7% profit using someone else's money.

Pakistan takes loans for debt servicing, ie, pay back old debt with new debt.

 

[frankenstein-2]

y

Are you honestly expecting us to believe your retarded indianonic above when it is the eternal policy of your race and nation to destroy the Pakistani race and nation??????????...................believing what you wrote above is like a Jew believing a Nazi talking rubbish about the Americans in WW2.....

Our relationship with CHINA is above discussion. It will not be compromised or argued. It is set in stone. Especially when speaking to a member of our enemy race.

Thanks to China, Pakistan still exists today. Our brotherhood with China is bond that can never be broken or understood by outsiders/foreigners.

I think your mind is filled with so much of patriotism that you cannot think logically.I think your laugh is blanket that you put on your logical thinking.
This report has been created by FPCII,an institute in pakistan.Still you think that it is made by india.
This Article was in Financial Express(please google it ,if it is not banned there)
Brother i respect your thinking about china ,but be aware making dragon your friend can burn your entire pakistan.

 

[randomradio]

India recorded a government debt equivalent to 69.50 percent of the country's Gross Domestic Product in 2016. Government Debt to GDP in India averaged 73.42 percent from 1991 until 2016, reaching an all time high of 84.20 percent in 2003 and a record low of 66 percent in 1996.

http://www.tradingeconomics.com/india/government-debt-to-gdp

BTW the loan to GDP ratio for Pakistan is almost same at 68% of GDP...

View attachment 398830

in you face mate!

http://www.firstpost.com/world/indi...for-70-years-says-lending-report-2581900.html

https://tribune.com.pk/story/134341...erves-pakistan-gets-4-6b-fresh-foreign-loans/
In order to offset declining foreign currency reserves and meet external debt obligations, Pakistan obtained fresh foreign loans worth $4.6 billion over the past seven months, including $1.9 billion from China alone.

The foreign economic assistance stood at $4.57 billion between July and January of this fiscal year, according to the data compiled by the Ministry of Finance and Economic Affairs. These included borrowings amounting to $2.3 billion for budgetary and balance of payments support – areas that do not offer return on investments and make it difficult to repay loans without resorting to additional borrowings.

https://propakistani.pk/2017/01/03/pakistans-external-debt-will-soon-cross-staggering-75-billion/
During the past three-odd years, the current government has taken $25 billion in foreign loans. Out of the $25 billion, $11.95 billion was used to pay off other loans.

Summing up, Pakistan’s total debt (local and foreign) had increased by $55 billion in the three-odd years of the current govt. Loans from the Chinese institutions are separate thing altogether and more details regarding those are still incoming.

https://tribune.com.pk/story/122915...s-external-debt-likely-swell-110b-four-years/
Pakistan’s external debt is projected to grow to a whopping $110 billion within four years and it will need over $22 billion a year just to meet external payment requirements, posing a serious threat to the country’s solvency.

 

[PAKISTANFOREVER]

y

I think your mind is filled with so much of patriotism that you cannot think logically.I think your laugh is blanket that you put on your logical thinking.
This report has been created by FPCII,an institute in pakistan.Still you think that it is made by india.
This Article was in Financial Express(please google it ,if it is not banned there)
Brother i respect your thinking about china ,but be aware making dragon your friend can burn your entire pakistan.

More indianonics on display here. China wants to burn Pakistan yet they helped Pakistan become a nuclear weapons state with the ability to now produce thermonuclear weapons:

http://isis-online.org/isis-reports...nuclear-weapons-time-for-pakistan-to-rever/12

The retardation on display here is astounding.......

The ONLY REAL enemy that Pakistan has is the indian nation and race. If they had the ability, we would have been burnt decades ago.

 

[N.Siddiqui]

It's not a lot for India. India is growing a lot faster and generating tax revenues at twice the rate. Not to mention, most of India's debt is generated within India itself.



No. You need to look at completely different numbers.

There's no point looking at public debt because CPEC is within the corporate sector and SoEs. Your total debt, public, private and particularly external debt will grow.

When you take so much external debt, then you need to find a way to generate USD within your economy. Or else you won't be able to pay it back. And if you can't pay it back, you will have to borrow from WB or IMF to pay it back. So you will end up taking more debt to pay back your previous debt.

https://tribune.com.pk/story/1311803/pakistans-external-debt-rises-faster-foreign-currency-earnings/

Your forex supplies will become severely constrained after China starts dumping their goods into Pakistan through CPEC. You already have a deficit with them and that will only get worse, while repayment will only increase.



Nothing special. India takes loans for infrastructure projects, not debt servicing.

It means we take loans for revenue generation. India is growing fast enough that any kind of international debt with moderately high interest is easily payable and still generates profits. If you can take debt at 8% interest and invest it to generate 15%, then why won't you take debt? You are making a 7% profit using someone else's money.

Pakistan takes loans for debt servicing, ie, pay back old debt with new debt.

I am talking about the foreign external debt and not local borrowing which is now 485 billion USD for India, for Pakistan foreign debt is around 73 billion USD.

With $485 billion external debt, can India weather currency storm?

Read more at:

http://economictimes.indiatimes.com...ather-currency-storm/articleshow/53017673.cms



Also.....

But the three key ratings agencies — Moody’s, Standard & Poor’s and Fitch — have not upgraded India, contending that the government needs to do more. In November, Moody’s refused to upgrade India, and said the economic initiatives of Mr Modi’s government are yet to produce results, NDTV said.

Among the issues the rating agencies have red-flagged are India’s high debt-to-gross domestic product (GDP) ratio and bad assets of its banks. The agencies argue that the debt-GDP ratio, at 69 per cent, is on the higher side and acts as a deterrent to private investment.

India still has a BBB rating. China’s rating has been upgraded to AA,...

https://www.dawn.com/news/1332518


And here is the real news....
India is borrowing more and more to pay its existing loans, and that could wreck development dreams....

https://scroll.in/article/818686/in...loans-and-that-could-wreck-development-dreams

So what you have written about Pakistan debt servicing is true for India as well, Pakistan floats a lot of SUKUK Islamic bond and also taken a loan say at 2.0% interest rate to pay a loan at 4% interest rate.


Also CPEC has nothing to do with dumping of Chinese products....It is mostly about energy corridors for china, developing undeveloped Xinjiang China, connectivity through Gwadar, SCS sea is mired in disputes, China needed another shorter route to warm waters.

Most of China investment in Pakistan is in energy and infra sector, of the 57 billion USD projected. Also it will attract about 150 billion of more investment according to economists.


CPEC set to attract $150b investment
https://tribune.com.pk/story/1181580/megaproject-cpec-set-attract-150b-investment/

 

[MadDog]

India is in a self destructive mode. Hindutva is causing a demise of their society. On twitter and facebook, I have talked to many Indian muslims who have become disenchanted and disgruntled. The longer Hindutva ideology dominates the policy discourse in India, the better for us. We are witnessing a more polarized India.

 

[randomradio]

I am talking about the foreign external debt and not local borrowing which is now 485 billion USD for India, for Pakistan foreign debt is around 73 billion USD.

With $485 billion external debt, can India weather currency storm?

Read more at:

http://economictimes.indiatimes.com...ather-currency-storm/articleshow/53017673.cms



Also.....

But the three key ratings agencies — Moody’s, Standard & Poor’s and Fitch — have not upgraded India, contending that the government needs to do more. In November, Moody’s refused to upgrade India, and said the economic initiatives of Mr Modi’s government are yet to produce results, NDTV said.

Among the issues the rating agencies have red-flagged are India’s high debt-to-gross domestic product (GDP) ratio and bad assets of its banks. The agencies argue that the debt-GDP ratio, at 69 per cent, is on the higher side and acts as a deterrent to private investment.

India still has a BBB rating. China’s rating has been upgraded to AA,...

https://www.dawn.com/news/1332518


And here is the real news....
India is borrowing more and more to pay its existing loans, and that could wreck development dreams....

https://scroll.in/article/818686/in...loans-and-that-could-wreck-development-dreams

So what you have written about Pakistan debt servicing is true for India as well, Pakistan floats a lot of SUKUK Islamic bond and also taken a loan say at 2.0% interest rate to pay a loan at 4% interest rate.


Also CPEC has nothing to do with dumping of Chinese products....It is mostly about energy corridors for china, developing undeveloped Xinjiang China, connectivity through Gwadar, SCS sea is mired in disputes, China needed another shorter route to warm waters.

Most of China investment in Pakistan is in energy and infra sector, of the 57 billion USD projected. Also it will attract about 150 billion of more investment according to economists.


CPEC set to attract $150b investment
https://tribune.com.pk/story/1181580/megaproject-cpec-set-attract-150b-investment/

You are making bad comparisons. India takes short term debt for debt servicing, which is done globally, and the entire amount is paid back when revenue is generated within the same quarter or the same year.

In the link you provided, in July 2016, India's external debt was $485B.
http://economictimes.indiatimes.com...ather-currency-storm/articleshow/53017673.cms

But by the end of the financial year, it became $456B.
http://pib.nic.in/newsite/PrintRelease.aspx?relid=160360

So, at 19%, the overall debt situation is stable for India. Let's not forget that more than 30% of the external debt is in Indian Rupees.

Otoh, CPEC's loans are yet to be calculated. Even without CPEC, Pakistan's ratio is 25%.

India's rating is pretty normal due to the low per capita income. Pakistan's is very low in fact, at B.

CPEC is about forcing open Pakistan's market to China. Don't forget you already have an FTA with them. Now you are getting a direct trade route. As for energy, CPEC cannot substitute sea routes for energy. The pipeline can only supply 1M bbd of oil, China can get far more guaranteed supplies from Russia instead. And China's oil requirements may actually decrease after 2030 because of cheap solar electricity and electric vehicles.

The issue for China is, the population in Xinjiang is very small and cannot afford the kind of infrastructure that China wants to build in the region. That's where Pakistan's market comes into the picture.

What's special about CPEC is, the Chinese are in a win-win position, whereas for Pakistan, only the Pakistanis can make CPEC successful, or bust. China is basically guaranteed to get back all the money the banks will loan out, and the Chinese companies with exclusive rights also get assured profits from the Pakistani govt even if their venture fails. So the companies have to be highly profitable for CPEC to work, 18% and above, which means the Chinese will happily charge exorbitant amounts to make greater profits. This will raise the overall cost of goods and services in Pakistan thereby making the Chinese goods more competitive.

CPEC interest rates are too high.

 

[N.Siddiqui]

You are making bad comparisons. India takes short term debt for debt servicing, which is done globally, and the entire amount is paid back when revenue is generated within the same quarter or the same year.

In the link you provided, in July 2016, India's external debt was $485B.
http://economictimes.indiatimes.com...ather-currency-storm/articleshow/53017673.cms

But by the end of the financial year, it became $456B.
http://pib.nic.in/newsite/PrintRelease.aspx?relid=160360

So, at 19%, the overall debt situation is stable for India. Let's not forget that more than 30% of the external debt is in Indian Rupees.

Otoh, CPEC's loans are yet to be calculated. Even without CPEC, Pakistan's ratio is 25%.

India's rating is pretty normal due to the low per capita income. Pakistan's is very low in fact, at B.

CPEC is about forcing open Pakistan's market to China. Don't forget you already have an FTA with them. Now you are getting a direct trade route. As for energy, CPEC cannot substitute sea routes for energy. The pipeline can only supply 1M bbd of oil, China can get far more guaranteed supplies from Russia instead. And China's oil requirements may actually decrease after 2030 because of cheap solar electricity and electric vehicles.

The issue for China is, the population in Xinjiang is very small and cannot afford the kind of infrastructure that China wants to build in the region. That's where Pakistan's market comes into the picture.

What's special about CPEC is, the Chinese are in a win-win position, whereas for Pakistan, only the Pakistanis can make CPEC successful, or bust. China is basically guaranteed to get back all the money the banks will loan out, and the Chinese companies with exclusive rights also get assured profits from the Pakistani govt even if their venture fails. So the companies have to be highly profitable for CPEC to work, 18% and above, which means the Chinese will happily charge exorbitant amounts to make greater profits. This will raise the overall cost of goods and services in Pakistan thereby making the Chinese goods more competitive.

CPEC interest rates are too high.

Pakistan's Moody's rating is B3....
Moody's: Pakistan's B3 rating reflects strengthening growth, progress on structural reforms...

https://www.moodys.com/research/Moo...ning-growth-progress-on-structural--PR_347953

Read also....

The international credit-rating organisation "Standard and Poor's" improved Pakistan's long-term credit rating from B-Negative to 'B' with stable outlook.

In a report released on Monday, Standard and Poor's also lauded Pakistan's continuous improvement in governance under the current government.

https://www.dawn.com/news/1293424/standard-and-poors-upgrades-pakistans-long-term-credit-to-b


As for the CPEC investment and its additional benefits or burden...read this.

In November, Iqbal – who is heading the investment plans in Pakistan – said that about $11 billion of the loans have been allocated to infrastructure projects at about 2% with payback in 20 years, along with a five-year grace period.



The rest, he said, had been earmarked for generating electricity, with about 11,000 megawatts expected to be added by 2018 to end the country’s chronic power outages.

Pakistan’s government debt-to-GDP level is estimated to have risen to 66.1% last year from 64.2% in 2013, according to the International Monetary Fund.

THE EXPRESS TRIBUNE > BUSINESS
Minister confident Pakistan can pay back Chinese loans
By APP
Published: February 1, 2017
57SHARES
SHARE TWEET EMAIL
NEW YORK: Planning, Development and Reform Minister Ahsan Iqbal has said that Pakistan will be able to handle repayment of Chinese soft loans to the government and businesses, which are part of more than $50 billion projects under the China-Pakistan Economic Corridor (CPEC).

“6 to 7% economic growth leaves Pakistan in a very comfortable position,” Iqbal said in an interview with The Wall Street Journal published on Monday.

“The bulk of investment coming into CPEC is through private sector investment, foreign-direct-investment, therefore it will not disturb our debt-to-gross domestic product ratio.

https://tribune.com.pk/story/1313175/minister-confident-pakistan-can-pay-back-chinese-loans/



about $11 billion of the loans have been allocated to infrastructure projects at about 2% with payback in 20 years,...

this above factual position is important...



@randomradio Standard and Poor (S&P) recently retained India's credit rating to BBB- which is the lowest investment grade rating. S&P cited the following main reasons -

• They doubted Government's ability to reduce subsidies. The last government spent annually about $41 billion in subsidies (15% of total government spending) and the current budget aims to cut it by about $6 billion. S&P doesn't seem to believe this will happen, they specifically worried about the state electricity boards (see here to get an idea The mess in state electricity boards gets deeper)
• They believe the government will find it difficult to raise extra revenue (see here for a small discussion on how difficult it is to raise revenue through income tax Kingshuk Bandyopadhyay's answer to Macroeconomics: Why does India have lower income tax rates than US, UK and Canada? )
• Overall size of of the Government's borrowing at about 70% of GDP is high and India has much lower per capita income than other peer group countries.

As far as ability of Government of India's ability to raise money is concerned the ratings are not that important. Less than 4% of current outstanding government debt is held by foreign investors and RBI is planning to raise this to 5% - India to Allow Foreign Investors to Buy More Government Debt . Despite the low rating there is ample demand for Government of India bonds within foreign institutional investors currently, but the interest rates surely will be lower with better credit ratings. Domestically there is sufficient demand for these bonds.

The low credit rating has two other impacts -

• The interest rate Indian private sector faces in international capital markets is arguably higher due to low credit rating of sovereign bonds. So funding costs for the private sector will reduce if credit rating of sovereign bonds improve.
• RBI is trying to internationalise the Rupee just like the Chinese central bank. If this works then Indian companies at some point will be able to borrow in Rupee denominated bonds from international capital markets - presumably at a rate lower than they face in domestic market. Chinese companies already do that (called dim sum bonds - Dim sum bond ) but Indian Rupee is not yet there. A low credit rating makes the task of internationalising the Rupee harder.

 

[frankenstein-2]

More indianonics on display here. China wants to burn Pakistan yet they helped Pakistan become a nuclear weapons state with the ability to now produce thermonuclear weapons:



The retardation on display here is astounding.......

The ONLY REAL enemy that Pakistan has is the indian nation and race. If they had the ability, we would have been burnt decades ago.

That's the real problem you believe india is your enemy.yet India has given you most favored nation's status.
There will be more chinese than balochis in coming years. Don't you get it .. China is your real enemy.

 

[Fledgingwings]

India dont need a reason to have issues with pakistan.Just saying PAKISTAN is enough for them.

 

[randomradio]

Pakistan's Moody's rating is B3....
Moody's: Pakistan's B3 rating reflects strengthening growth, progress on structural reforms...

https://www.moodys.com/research/Moo...ning-growth-progress-on-structural--PR_347953

Read also....

The international credit-rating organisation "Standard and Poor's" improved Pakistan's long-term credit rating from B-Negative to 'B' with stable outlook.

In a report released on Monday, Standard and Poor's also lauded Pakistan's continuous improvement in governance under the current government.

https://www.dawn.com/news/1293424/standard-and-poors-upgrades-pakistans-long-term-credit-to-b


As for the CPEC investment and its additional benefits or burden...read this.

In November, Iqbal – who is heading the investment plans in Pakistan – said that about $11 billion of the loans have been allocated to infrastructure projects at about 2% with payback in 20 years, along with a five-year grace period.



The rest, he said, had been earmarked for generating electricity, with about 11,000 megawatts expected to be added by 2018 to end the country’s chronic power outages.

Pakistan’s government debt-to-GDP level is estimated to have risen to 66.1% last year from 64.2% in 2013, according to the International Monetary Fund.

THE EXPRESS TRIBUNE > BUSINESS
Minister confident Pakistan can pay back Chinese loans
By APP
Published: February 1, 2017
57SHARES
SHARE TWEET EMAIL
NEW YORK: Planning, Development and Reform Minister Ahsan Iqbal has said that Pakistan will be able to handle repayment of Chinese soft loans to the government and businesses, which are part of more than $50 billion projects under the China-Pakistan Economic Corridor (CPEC).

“6 to 7% economic growth leaves Pakistan in a very comfortable position,” Iqbal said in an interview with The Wall Street Journal published on Monday.

“The bulk of investment coming into CPEC is through private sector investment, foreign-direct-investment, therefore it will not disturb our debt-to-gross domestic product ratio.

https://tribune.com.pk/story/1313175/minister-confident-pakistan-can-pay-back-chinese-loans/



about $11 billion of the loans have been allocated to infrastructure projects at about 2% with payback in 20 years,...

this above factual position is important...



@randomradio Standard and Poor (S&P) recently retained India's credit rating to BBB- which is the lowest investment grade rating. S&P cited the following main reasons -

• They doubted Government's ability to reduce subsidies. The last government spent annually about $41 billion in subsidies (15% of total government spending) and the current budget aims to cut it by about $6 billion. S&P doesn't seem to believe this will happen, they specifically worried about the state electricity boards (see here to get an idea The mess in state electricity boards gets deeper)
• They believe the government will find it difficult to raise extra revenue (see here for a small discussion on how difficult it is to raise revenue through income tax Kingshuk Bandyopadhyay's answer to Macroeconomics: Why does India have lower income tax rates than US, UK and Canada? )
• Overall size of of the Government's borrowing at about 70% of GDP is high and India has much lower per capita income than other peer group countries.

As far as ability of Government of India's ability to raise money is concerned the ratings are not that important. Less than 4% of current outstanding government debt is held by foreign investors and RBI is planning to raise this to 5% - India to Allow Foreign Investors to Buy More Government Debt . Despite the low rating there is ample demand for Government of India bonds within foreign institutional investors currently, but the interest rates surely will be lower with better credit ratings. Domestically there is sufficient demand for these bonds.

The low credit rating has two other impacts -

• The interest rate Indian private sector faces in international capital markets is arguably higher due to low credit rating of sovereign bonds. So funding costs for the private sector will reduce if credit rating of sovereign bonds improve.
• RBI is trying to internationalise the Rupee just like the Chinese central bank. If this works then Indian companies at some point will be able to borrow in Rupee denominated bonds from international capital markets - presumably at a rate lower than they face in domestic market. Chinese companies already do that (called dim sum bonds - Dim sum bond ) but Indian Rupee is not yet there. A low credit rating makes the task of internationalising the Rupee harder.

CPEC loan repayments are dependent on the fact that growth will cross well into 6% and approach 7%. Do you know how difficult that is? Basically, you have to succeed in order to repay your loans, not like you can repay your loans in current conditions.

And the success of CPEC depends heavily on a stable security environment. Pakistan doesn't even have a stable political environment let alone security.

BBB is much higher than B3 or B.

So Pakistan's rating is basically Junk.

The Quora post you quoted is from 2015, when India was climbing out of recession. It is now ancient since India has improved in leaps and bounds since Modi came to power.

Anyway, CPEC isn't about India. As mentioned, repayments are dependent on growth that is not guaranteed. Anybody will tell you CPEC loans are massive and interest rates are equally massive. For example, even the smallest loans are 2% with 5 years moratorium, while most of them are between 4 and 8%.

Otoh, the smallest loans that India has taken for DMIC comes at 0.1% interest with 15 years moratorium. Even the highest loans for other projects around the country are 0.3% with a 10 year moratorium. In fact, some of Japan's older loans at 1.3 and 1.4% were seen as very high. It's basically free money for India. We will make a huge profit even if the govt or company puts all the money into a savings account.

 

[MultaniGuy]

Insh'Allah Pakistan will rise.

Pakistan has so much potential.

CPEC will just make Pakistan even better.

 

[Śakra]

Pakistan’s external debt is projected to grow to a whopping $110 billion within four years and it will need over $22 billion a year just to meet external payment requirements, posing a serious threat to the country’s solvency.

If this is true pakistan will most likely default in the near future. What would happen if they default?

 

[abhishekgoel80]

Regarding CPEC it is a good infrastructure project but not a game changer at all.
Question is how the CPEC will boost economy.
It comprises mainly of roads and power projects. On first glance it seems it will be a great booster but devils are in details.

Important questions my Pakistani friends need to think is:
1) Why would Pakistan need China for road and coal based power project why can't they do it using printing more Pakistani rupee (internal debts)?
2) What is the additional addition to economy a road and power plant will do?

My take on these two questions is
1) Pakistan was not confident that they had resources(technically qualified manpower for these projects) and using model of external debt appealed to them. They on evaluation find it much better. Now its not an investment as the returns on investments are not guaranteed. The moment a minimum return is guaranteed its a debt. Using external agency with an unlimited upside will motivate them to complete the project fast and run it efficiently.

2) Economical benefits:Now the question on return "4% of world trade will pass through it" is a farce comment. Roads are Costliest mode of transport vs Sea and rails CPEC cannot match the cost by ocean. The length of route from UAE->gwadar->Xinjiang-> Beijing/Shangjai/Gonzahu/hongkong is roughly equal to the sea route from UAE->Beijing/Shangjai/Gonzahu/hongkong (vary on basis of geography as south east china is closer by sea route) and cost by sea is 20% of the cost by road and 40% of cost by train. Also the logistics of changing the mode of transportation increment the cost. Oil refinery are at the east coast of China. Infact 80% of chinese population is in the 20% of the area in the east china. This route will be used to exporting chinese goods from Xinjiang and Tibet to Africa/Pakistan and Mideast. I cannot see Xinjiang and Tibet importing anything from Africa and Mideast asia economically.

India and Russia will not join CPEC. (Not for political reason but on economics alone)
India share huge boundary with China why would it go through Pakistan. ndia is connected through Sikkim and Uttarakhand and Himachal (these area dont have a disputed territory). Indian wants a route to accross Pakistan that is to access central Asia. For that since Pakistan is unwilling they are using Iran and other option they are addressing is to settle border disputes with China and use China to interact with central asian countries but since China is more pressed on OBOR they are unwilling to settle border disputes and are blackmailing India. India on other hand has decided to shun than initiative so the main choice left is Iran.
On similar lines Russia if needs access to Arabian sea it can go through Iraq iran other country in middle east. It can go to Mediterranean and then use Suez canal too. similarly

How can Pakistan benefit?
CPEC will create an infrastructure in Pakistan. It will have power and world class road across the length of country.
a) Power produced can be used to give boost to new industry.
Problem to address: cost of Power and investment in new industry and investment in human resources.

b) Road will help in boosting internal trade and local economy. Pakistan can collect toll from the goods passing through it.
Problem: Trade needs to be increased for proper road utilization. For internal trade toll is an inefficiency (though a contributor to GDP) as per one news Chinese company may be exempted for a period. Though my take is the goods movement would be limited and most of it would be export to Pakistan.

So my conclusion is CPEC though a catalyst is an incremental addition to Pakistani economy needs to be handle carefully to make it a success as the cost of electricity is higher than China and India and Pakistan has to upgrade its industry and man power to extract benefits out of it. Otherwise it can be "Bandar ke Gale mein moti ki mala"

 

[mirage]

I call it Ilahi help!!! Even with a meager $20b in your treasury, mortal enemies at all corners of your borders and fighting life-and-death proxy wars 24/7 you have volunteered to secure Hijaz and Haremain!!! Allah-u Azimushshan rewards this spirit of sacrifice even under overwhelming odds!!!

goodevening , no Ilahi help for iraq and afganistan ????