Pakistan, China to speed up ML-1, SEZs implementation

[FuturePAF]

Lol... Here goes the anxious bellows of 'fear China'.

Actually it is a fair question. These loans need to be paid back regardless of if they increase exports. Unless there is a guarantee of a certain amount of exports to payback these loans (shared risk shared reward), then the nation needs to know because in another 5-10 years we will be back struggling to pay back the loans if we haven’t grown exports in tat amount of time. I’m sure China doesn’t want Pakistan coming back to them, asking to have some of the debt written off/“restructured”, so having a plan is both sides interests.

We need to learn from the last time around and commit to making the SEZs work.

I’m not against the loans, I just think the we need an ironclad game plan. The moser time both nations waste, the more india grows with western FDI, that could have been attracted to Pakistan and made CPEC more successful.

 

[Dalit]

ISLAMABAD: Pakistan and China have agreed to fast-track work on the implementation of main line (ML-1) railway project and special economic zones (SEZs).

An agreement in this regard was reached between Minister for Planning and Development Ahsan Iqbal and National Development and Reform Commission (NDRC) Chairman Zheng Shanjie during a meeting held in Beijing on Tuesday, according to a press release.

The planning minister is on a four-day official visit to China to commemorate 10 years of China-Pakistan Economic Corridor (CPEC). During his visit, the minister co-chaired a special Joint Cooperation Committee (JCC) meeting with the NDRC vice chairman, besides holding several meetings with key Chinese officials.

During a one-on-one meeting with the NDRC chairman, the minister conveyed felicitations of Prime Minister Shehbaz Sharif to Mr Shanjie on assuming his new role and assured him of full support in smooth implementation of CPEC projects.

The NDRC chairman offered to share Chinese expertise and knowledge to enhance Pakistan’s export earnings and accelerate SEZs development.

Both sides decided to hold regular meetings of joint working groups (JWGs) to review ongoing cooperation under the CPEC framework and work closely for the next phase which is much wider in scope and focuses more on industrialisation, agriculture, science and technology and socio-economic development.

PM Shehbaz has already reiterated his full commitment to complete the CPEC projects and in this regard he visited China when he took charge as the prime minister.

Recalling the launch of CPEC a decade ago, the planning minister noted that the development of the corridor had been a remarkable journey. He remarked that since 2013, the relevant institutions from the two sides worked as one team and successfully implemented key energy and physical infrastructure projects, laying a strong foundation for the next phase of CPEC.

The NDRC chairman remarked that China and Pakistan were good friends and partners, adding that despite the vicissitudes of global politics, the two countries have always stood together and extended complete support to each other.

He also appreciated the key role played by Ahsan Iqbal in the development of CPEC. Out of 12 JCC meetings, nine have been co-chaired by Mr Iqbal

Pakistan, China to speed up ML-1, SEZs implementation

Chinese official offers expertise to enhance Pakistan’s export earnings.

www.dawn.com

This is just one thing I like about Ahsan Iqbal. Credit is due here. He is very keen and active to further CPEC. Whether it is due to personal greed is another debate.

 

[FuturePAF]

I don't know if it is due to better communication or real proficiency but PML do seem to show meaningful progress in CPEC projects compared to PTI.

They really launched many of these projects, their political future depends on making the projects successful, considering how much debt has been taken on.

 

[Communism]

Actually it is a fair question. These loans need to be paid back regardless of if they increase exports. Unless there is a guarantee of a certain amount of exports to payback these loans (shared risk shared reward), then the nation needs to now be cause in another 5-10 years we will be back struggling to pay back the loans. We need to learn from the last time around and commit to making the SEZs work.

I’m not against the loans, I just think the we need an ironclad game plan.

The cause of Pakistan's Debt "Crisis" is simply due to the Pakistani Government refusing to balance their budget and also refusing to balance the current account.


Every time the loans from the past have increased the current account, the Pakistani Government simply spends way more than the increase on giveaways.


Pakistan has literally never paid back any of their IMF or World Bank loans for its entire history outside of grants from the U.S. or others.


PTI/Imran Khan's false narrative has infected the body politic, and this will be a massive problem for Pakistan going forwards and stunt development as it already has.


The Pakistani Military Establishment's propaganda campaign to support their gambit with PTI/Imran Khan to get free money from the U.S. has now put a yoke on all future development initiatives.

 

[FuturePAF]

The cause of Pakistan's Debt "Crisis" is simply due to the Pakistani Government refusing to balance their budget and also refusing to balance the current account.


Every time the loans from the past have increased the current account, the Pakistani Government simply spends way more than the increase on giveaways.


Pakistan has literally never paid back any of their IMF or World Bank loans for its entire history outside of grants from the U.S..

I don’t disagree. While the blame is theirs, they also have domestic demand increasing exponentially, due to population growth and global inflation.

The economy needs new engines of growth to keep up, while the government needs to slow down the growth of its spending and rebalance to only its vital needs, at least for some time.

Increase in Real FDI at least 3-5% of GDP per year (not just loans), integration in global supply chains, a better skilled workforce through educational reforms and a lower cost of living through agricultural and housing reforms are four vital engines of growth.

Rebuilding ML-1 similar to India’s dedicated freight corridors is also very important as enough people aren’t willing to move on mass to Karachi (near the port) to work in factories. Building it to the level of India’s DFC would also make it easier to integrate to their rail network, when Pakistan tries to attract freight for long term regional economic ventures in exchange for international geo-strategic moves.

 

[Communism]

I don’t disagree. While the blame is theirs, they also have domestic demand increasing exponentially, due to population growth and global inflation.

The economy needs new engines of growth to keep up, while the government needs to slow down the growth of its spending and rebalance to only its vital needs, at least for some time.

Increase in Real FDI at least 3-5% of GDP per year (not just loans), integration in global supply chains, a better skilled workforce through educational reforms and a lower cost of living through agricultural and housing reforms are four vital engines of growth.

Rebuilding ML-1 similar to India’s dedicated freight corridors is also very important as people aren’t willing to move on mass to Karachi (near the port) to work in factories.

No, you just listed a raft of (additional) subsidies towards the end.


Cost of living needs to go up to balance the current account.


Subsidies to inherently unproductive sectors need to be reduced.


Strict population control needs to happen immediately to have any chance of having anything other than mass famines happen.

 

[FuturePAF]

No, you just listed a raft of (additional) subsidies towards the end.


Cost of living needs to go up to balance the current account.


Subsidies to inherently unproductive sectors need to be reduced.


Strict population control needs to happen immediately to have any chance of having anything other than mass famines happen.

Strict population control is only going to work through investment in education and increased female labor force participation pushing the age of marriage and first child birth upwards. More investment in healthcare will also reduce infant mortality, decreasing the number of birth as people become more confident more of their children will reach adulthood.

I agree subsidizing unproductive sectors needs to be cut, with the funds going to productive sectors (so loans don’t have to be taken out to achieve them) and education and healthcare.

Cost of living needs to go up? I don’t mean subsidizing oil but lowering housing costs with more apartments and efficient building techniques. Also by raising agricultural productivity though lowering domestic food costs. People should pay for what they consume, so prices reflect the consumption.

I’m not sure if you’re saying increased educational spending or investing in farms is increased subsides, but even if it is, it’s more of an investment. Taking money out of unproductive industries and putting them into productive uses, that pay off in 5-10 years, as students get educated or farm yields increase, is how every country has done it.

 

[TheSolution]

How can CPEC be used as a safe, reliable and effective trading route if Talirats and their BLA boy lovers are regularly self-exploding in the vicinity?

 

[Communism]

Strict population control is only going to work through investment in education and increased female labor force participation pushing the age of marriage and first child birth upwards. More investment in healthcare will also reduce infant mortality, decreasing the number of birth as people become more confident more of their children will reach adulthood.

I agree subsidizing unproductive sectors needs to be cut, with the funds going to productive sectors (so loans don’t have to be taken out to achieve them) and education and healthcare.

Cost of living needs to go up? I don’t mean subsidizing oil but lowering housing costs with more apartments and efficient building techniques. Also by raising agricultural productivity though lowering domestic food costs. People should pay for what they consume, so prices reflect the consumption.

I’m not sure if you’re saying increased educational spending or investing in farms is increased subsides, but even if it is, it’s more of an investment. Taking money out of unproductive industries and putting them into productive uses, that pay off in 5-10 years, as students get educated or farm yields increase, is how every country has done it.

I'm saying that there is zero chance that Pakistan can productively employ even it's current population in any realistic scenario.


Any additional population needs to be reduced so that education cost can be reduced as well as being able to focus the education cost on fewer people so as to produce higher quality.


More investment in healthcare will only result in more children being born.


This is the case in all non-secular muslim countries.


Cost of food needs to be raised to at least the international price, or higher if you want to subsidize agriculture.


Housing cost needs to be cut through taxes on 2nd houses/homes, thus lowering speculation and therefore deflating the ponzi scheme.


Housing should not be directly subsidized in any way shape or form, as it's inherently unproductive.


This will also free up capital to be used on productive ventures instead.


Any deviation from washington consensus-y policies require a higher level of state capacity (in IMF jargon), aka, more government competence to produce a result better than a washington consensus-y policy.

 

[ARMalik]

China continues to support the Dictators and human rights abusers of Pakistan. It is disgraceful but then China is a dictatorship and that is why no one respects China.

 

[FuturePAF]

I'm saying that there is zero chance that Pakistan can productively employ even it's current population in any realistic scenario.


Any additional population needs to be reduced so that education cost can be reduced as well as being able to focus the education cost on fewer people so as to produce higher quality.


More investment in healthcare will only result in more children being born.


This is the case in all non-secular muslim countries.


Cost of food needs to be raised to at least the international price, or higher if you want to subsidize agriculture.


Housing cost needs to be cut through taxes on 2nd houses/homes, thus lowering speculation and therefore deflating the ponzi scheme.


Housing should not be directly subsidized in any way shape or form, as it's inherently unproductive.


This will also free up capital to be used on productive ventures instead.


Any deviation from washington consensus-y policies require a higher level of state capacity (in IMF jargon), aka, more government competence to produce a result better than a washington consensus-y policy.

That’s the thing, the government doesn’t have the capacity to neither control population nor increase investments. Hence they need a plan to attract FDI and employ as many people as possible. The SEZ help with both employment and raising some tax revenue from incomes.

Pakistan need to orient itself to being the throughput factory of the world the way China has been doing for the last 40 years.

If China’s population is set to decrease form 1.4 billion to 1.2 Billion in the next 30-40 years, while India is going to go to 1.7 billion, China could benefit from a Pakistan with 300-400 million people in 30-40 years time, if it is well integrated into their supply chains and labor costs are relatively lower.

The income tax revenue will fund education and healthcare, while agriculture needs redonda that incentivize reinvestment or new FDI, as is being planned with the GCC, which will hopefully be the model which can be expanded with investment from overseas Pakistanis.

Modern apartment oriented housing will absorb labor, help increase the skills of our labor force if done right, and make more efficient use of resources, as well as provide an outlet for our industrial output.

Housing should not be subsidized, but the right incentives need to be in place to make more efficient use of our resources.

With increased female labor force participation, the birth rate will come down. The sooner this starts the sooner the birth rate will come down.

How can CPEC be used as a safe, reliable and effective trading route if Talirats and their BLA boy lovers are regularly self-exploding in the vicinity?

They want global recognition and investment. They want to live it up too, and the world would stand to benefit from a decrease in opiate smuggling coming out for there, as well as an Afghanistan that is incentivized to keep any groups residing there in check.

Mullah Omar’s son recently met MBS, so they seem to trying to get themselves into the Saudi Vision 2030 diversification plans. And for that they will needs to be on good behavior.

The upclass of the Talibs have gotten use to life in places like Doha, and with their potential mineral wealth, they could live like the GCC countries.

So the region is shifting to focusing on economics, and the Talibs want to join in.

Saudi Crown Prince Holds Annual Meet With Senior Officials on Hajj Trip

The Saudi Press Agency reported on Thursday that Mohammed bin Salman held the annual meeting with presidents and foreign officials who performed Hajj this year.

www.afintl.com

 

[Communism]

That’s the thing, the government doesn’t have the capacity to neither control population nor increase investments. Hence they need a plan to attract FDI and employ as many people as possible. The SEZ help with both employment and raising some tax revenue from incomes.

Pakistan need to orient itself to being the throughput factory of the world the way China has been doing for the last 40 years.

The income tax revenue will fund education and healthcare, while agriculture needs redonda that incentivize reinvestment or new FDI, as is being planned with the GCC, which will hopefully be the model which can be expanded with investment from overseas Pakistanis.

Modern apartment oriented housing will absorb labor, help increase the skills of our labor force if done right, and make more efficient use of resources, as well as provide an outlet for our industrial output.

Housing should not be subsidized, but the right incentives need to be in place to make more efficient use of our resources.

With increased female labor force participation, the birth rate will come down. The sooner this starts the sooner the birth rate will come down.

The reason why countries subsidize housing or command the building of more housing or incentivize the building of more housing is for exactly 1 purpose.


It is to print more money.


Subsidizing employment of people to build houses means paying people to do unproductive labor, aka increase imports/consumption.


That is literally one of the reasons why Imran Khan has bankrupted the country faster than any leader in Pakistani history.


The reason why China deliberately did a housing boom is because China has enormous savings and needed to print money to fight hyper-deflation, so they simply did a housing boom to print the money and inject it into the economy.

 

[FuturePAF]

The reason why countries subsidize housing or command the building of more housing or incentivize the building of more housing is for exactly 1 purpose.


It is to print more money.


Subsidizing employment of people to build houses means paying people to do unproductive labor, aka increase imports/consumption.


That is literally one of the reasons why Imran Khan has bankrupted the country faster than any leader in Pakistani history.


The reason why China deliberately did a housing boom is because China has enormous savings and needed to print money to fight hyper-deflation, so they simply did a housing boom to print the money and inject it into the economy.

I’m not saying subsidies for housing. I’m saying private companies should build apartment buildings using more cost effective modular construction.

The government needs to do better city planning. In fact, I think property taxes need to go up to raise the tax revenue we need. Property taxes will disincentivize over building of useless housing Leiden don’t plan to live in or keep empty.

The property taxes can help pay off some of the debt, invest into the infrastructure needed to support export earning industries and pay for better education.

We can also “re-zone” single family housing neighborhoods, so home owners have an incentive to demolish their holes and tune them into apartments buildings (up to 5 storeys).

 

[Communism]

I’m not saying subsidies for housing. I’m saying private companies should build apartment buildings using more cost effective modular construction.

The government needs to do better city planning. In fact, I think property taxes need to go up to raise the tax revenue we need. Property taxes will disincentivize over building of useless housing Leiden don’t plan to live in or keep empty.

The property taxes can help pay off some of the debt, invest into the infrastructure needed to support export earning industries and pay for better education.

I am wary about property taxes on the first house, since you will hurt alot of poor people.


There needs to be some way to "means test" the housing tax.

 

[FuturePAF]

I am wary about property taxes on the first house, since you will hurt alot of poor people.


There needs to be some way to "means test" the housing tax.

I agree, people living hand to mouth shouldn’t have to pay too much. But if they pay into the systems they will be more inclined to push for the money to be spend on education. Also when people know their money is being spend on government schools, they will feel their kids should go to the schools and the schools should be as good as possible. In many American localities 65-70% of property taxes goes to fund education. Property taxes can be used in Pakistan to help pay off some of the debt, with some going to education. But over time less should be spent on other issues like infrastructure, and more should be spent on education. Education and literacy will help Pakistani workers become more productive but also know their rights and be able to LEGALLY standup for themselves.

Property tax is also a key way to bring about real democracy. “No Taxation without Representation” was phrase from the American revolution and still rings out today.