Is Pakistan overselling CPEC?

[Kiss_of_the_Dragon]

Ahh roads and railways like British colonials?
You are building them because you are goIng to use them, you are trying to change Pakistani administration and culture to make it a Chinese province.
Yes buying Pakistani agricultural lands, textiles and resources and building them roads and buildings in return. Basically sucking every thing from the region and impose Chinese rules and culture add to that creating animosity between countries in South Asia.

Chinese bluff has been exposed by the dawn report.

Srilanka sold their airport and are paying debts, Tajikistan sold their thousands of acres in debt and now its is Pakistani turn.

There are many examples in Africa as well.

Before CPEC event, I remember few year ago, Indian trolls like to make fun of Pakistan by asking why China invest everywhere except Pakistan which China's all weather friend maybe because Pakistan is a terror harbored country.

Now China massively invest into Pakistan to create this CPEC, Indian became so frenzy and wished to take back what they had said, first they cried that this corridor bypass their claimed territory and to vent their frustration, they played Dalai Lama card, boycott OBOR and cozy with Japan for they liberty corridor in order to get China's attention but all their desperate attempt had failed, they're playing the "fear" card by labelling China as new colony mindset that will make Pakistan slave...you can google by type some key words such "China colony", you will set a ton of Indian media is crying desperately about CPEC.

And because India know CPEC is a great threat to their supremacy in South Asia so they will do everything to make CPEC fail and cast Pakistan back into the dark age...that's epic fail attempt.

 

[Tom99]

And because India know CPEC is a great threat to their supremacy in South Asia so they will do everything to make CPEC fail and cast Pakistan back into the dark age...that's epic fail attempt.

That is right. Indians is not afraid this projects failure but its success. The Indians knows once this project become operational it will transform Pakistan's future for the better. This is why the Indian people, media and government keep smearing it, attacking it and trying to stop it.

Things are already looking brighter for Pakistan. MSCI is upgrading Pakistan from a Frontier Markets to Emerging Markets.

https://tribune.com.pk/story/1410811/pakistan-upgraded-msci-emerging-markets-index/

 

[S.Y.A]

This has been discussed many times with countless links here, nowadays I don't come to this forum much...kind of lost touch. and only a handful of Indians engage in this forum now; otherwise we could have given you tons of links. However, you can check these:

https://www.dawn.com/news/1194014

https://www.thenews.com.pk/print/129000-The-CPEC

http://aaj.tv/2016/02/translating-cpec-into-a-game-changer/

this news report suggests otherwise:

https://www.dawn.com/news/1313992

"CPEC’s second component, ie infrastructure, is to be financed through government-to-government loans amounting to $15bn. As announced, these loans would be concessional with 2pc interest to be repaid over a 20- to 25-year period. This amount’s debt servicing would be the Pakistan government’s obligation. Debt-servicing payments would rise by $910 million annually on account of CPEC loans (assuming a 20-year tenor). Going by these calculations, we can surmise that the additional burden on the external account should not exceed $3.5bn annually on a staggered basis depending on the project completion schedule."

 

[Max]

Government will not provide electricity to feeders with high losses.

but Govt have to buy certain amount of electricity (agreed in contracts) from Chinese anyways. they will keep accumulating circular debt whether they supply to looser feeders or not.. No? in my opinion best way to get rid of govt run failed distributors is privatization as soon as possible.

 

[dray]

this news report suggests otherwise:

https://www.dawn.com/news/1313992

"CPEC’s second component, ie infrastructure, is to be financed through government-to-government loans amounting to $15bn. As announced, these loans would be concessional with 2pc interest to be repaid over a 20- to 25-year period. This amount’s debt servicing would be the Pakistan government’s obligation. Debt-servicing payments would rise by $910 million annually on account of CPEC loans (assuming a 20-year tenor). Going by these calculations, we can surmise that the additional burden on the external account should not exceed $3.5bn annually on a staggered basis depending on the project completion schedule."

Don't do selective reading, there are many projects within CPEC with higher interest rates, and add to that the sovereign guarantee of 18% ROI your government is providing, and then calculate it. Your own media is reporting interest+ROI gurantee to be at 33% to 37% in many projects. Do check..

 

[Kabira]

Don't do selective reading, there are many projects within CPEC with higher interest rates, and add to that the sovereign guarantee of 18% ROI your government is providing, and then calculate it. Your own media is reporting interest+ROI gurantee to be at 33% to 37% in many projects. Do check..

You are confusing with energy projects which are IPP and not loans. And yes Pakistan have provided grantee to buy all electricity produced by power plants at certain rate. As long as Pakistan buy electricity return rate is guaranteed.

but Govt have to buy certain amount of electricity (agreed in contracts) from Chinese anyways. they will keep accumulating circular debt whether they supply to looser feeders or not.. No? in my opinion best way to get rid of govt run failed distributors is privatization as soon as possible.

Government will shut down furnace oi plants which generate expensive electricity. Try to curb line losses by not distributing much electricity to feeders with low recovery rate. No one will buy Peshawar disco or Hyderabad Disco because losses are huge. And privatisation of money making discos in punjab doesn't make sense.

 

[Max]

You are confusing with energy projects which are IPP and not loans. And yes Pakistan have provided grantee to buy all electricity produced by power plants at certain rate. As long as Pakistan buy electricity return rate is guaranteed.



Government will shut down furnace oi plants which generate expensive electricity. Try to curb line losses by not distributing much electricity to feeders with low recovery rate. No one will buy Peshawar disco or Hyderabad Disco because losses are huge. And privatisation of money making discos in punjab doesn't make sense.

So in short you are saying we can deal with situation without any problem? i was referring to failed distributors all over Pakistan not specifically in Punjab.