Pakistan Discovers the High Cost of Chinese Investment

[Beast]

I also said it is not as "respectable" as the "Global Times"

Surely you agree that "Global times" is the most respectable publication in the whole world, Right ? now we all know this to be true. But how can I "prove" that ? Only the chinese govt. can do that with a mere statement claiming it to be so.

Why are you arguing about something I have AGREED with you ? ... it does come across as desperate and insecure.

Now don't start posting pictures of Shanghai city. lol.

Don't avoid my inquiry. Do u agree what the article u post is BS? Based on your agreement. It shall be a "yes', right?

 

[Cookie Monster]

Let me correct you.

NO ONE has been "caught" in this corruption. So far its only an ALLEGATION.

You see, 'honest' imran khan has not yet made the report public. So go easy on the applause.

Listen up troll...I don't care for this political party or that...I don't give a shit about IK or the previous political parties...what I care about is the good of the ppl. If IK catches corruption and does his part to fix things...good. If not then I would be criticizing him just as I'm criticizing those before him.

So u see there is nothing to correct...bcuz I didn't bother to read what u listed...nor am I going to bother to read what u r going to say further. Bcuz u r here with an agenda...u don't give a shit about corruption and how it effects the average person in Pakistan...ur agenda is to malign CPEC. Know this troll...CPEC will continue...and there's nothing u can do about it except cry. So carry on crying...open as many threads as u need..to vent...nothing will stop CPEC.

The Diplomat is a very reputed publication. Globally.

But you are free to read "Global times".

Yup just as reputed and credible as Foreign Policy journalist Lara Seligman right?

 

[Nityam]

Don't avoid my inquiry. Do u agree what the article u post is BS? Based on your agreement. It shall be a "yes', right?

If I though the article was BS why would I post it ?

Are you saying that only BS get posted on pdf ?

Listen up troll...I don't care for this political party or that...I don't give a shit about IK or the previous political parties...what I care about is the good of the ppl. If IK catches corruption and does his part to fix things...good. If not then I would be criticizing him just as I'm criticizing those before him.

So u see there is nothing to correct...bcuz I didn't bother to read what u listed...nor am I going to bother to read what u r going to say further. Bcuz u r here with an agenda...u don't give a shit about corruption and how it effects the average person in Pakistan...ur agenda is to malign CPEC. Know this troll...CPEC will continue...and there's nothing u can do about it except cry. So carry on crying...open as many threads as u need..to vent...nothing will stop CPEC.

I really don't care for your personal politics or choices. If you need to discuss that with someone , find someone who is interested in you.

Also everybody in the world has their own agenda. Only the insane go around without any agenda, blabbering nonsense.

Finally, the BULK of the CPEC investment HAS ALREADY BEEN DONE. And you economy has SHRUNK in the last two years.

So I really don't have to malign the CPEC, its already a disaster. I am just posting an article that says that.

 

[nahtanbob]

Diplomat is not respected. It is just another media tool under CIA to attack all foes of USA. It needed to lie about the globe is cube. They will do it without hesitation.

chinese government is all an angel of truth and virtue
i have one word "coronavirus"

 

[Beast]

If I though the article was BS why would I post it ?

Are you saying that only BS get posted on pdf ?

Looks like some are quick to forget the answer they give just moment ago...

Din't I just AGREE with you ?

Why so Insecure ? chor ke dadi mei tinka

PDF don't allow BS but sometimes, some members want to test the system. A great example now.

 

[Nityam]

Looks like some are quick to forget the answer they give just moment ago...

What answer is that ?

PDF don't allow BS but sometimes, some members want to test the system. A great example now.

Which is why we see a lot of articles by Global Times in pdf.

 

[Cookie Monster]

If I though the article was BS why would I post it ?

Are you saying that only BS get posted on pdf ?

I really don't care for your personal politics or choices. If you need to discuss that with someone , find someone who is interested in you.

Also everybody in the world has their own agenda. Only the insane go around without any agenda, blabbering nonsense.

Finally, the BULK of the CPEC investment HAS ALREADY BEEN DONE. And you economy has SHRUNK in the last two years.

So I really don't have to malign the CPEC, its already a disaster. I am just posting an article that says that.

Ur pea brain doesn't understand that the bulk of the project that's done...is only the building of infrastructure like roads, railways, power generation projects, etc. All of that required money...most of which came through Chinese loans(under the CPEC umbrella). Hence the SPENDING...it takes time before all that spending can yield results.

I'm so glad to see how u r hurting over CPEC. It gives me much joy.

 

[Nityam]

Ur pea brain doesn't understand that the bulk of the project that's done...is only the building of infrastructure like roads, railways, power generation projects, etc. All of that required money...most of which came through Chinese loans(under the CPEC umbrella). Hence the SPENDING...it takes time before all that spending can yield results.

I'm so glad to see how u r hurting over CPEC. It gives me much joy.

Isn't that what I just said ?

As for showing result, it is already showing fantastic profits for the chinese company. Which is what the article is highlighting.

And those profits runs into BILLIONS of $.

And that is money flowing OUT of pakistan and INTO china. I can't wait to see the future. Can you ?

 

[Beast]

What answer is that ?



Which is why we see a lot of articles by Global Times in pdf.

Flip flop flip flop flip flop....

Don't anyhow agree if u can't handle it.

 

[Cookie Monster]

Isn't that what I just said ?

As for showing result, it is already showing fantastic profits for the chinese company. Which is what the article is highlighting.

And those profits runs into BILLIONS of $.

And that is money flowing OUT of pakistan and INTO china. I can't wait to see the future. Can you ?

I can't wait to see the future as well...if history has shown anything...
...it's that self proclaimed "experts" from our east that have constantly been predicting the doom of Pak since it's birth...have been wrong...every single time. Pakistan will be just fine...worry about ur own country son.

 

[Imad.Khan]

Maybe you can ask "honest" imran khan to make PUBLIC that report.

After all he himself had formed a nine-member committee headed by former chairman Securities and Exchange Commission of Pakistan (SECP) on August 7, 2019. The inquiry committee included the offices of eight organisations including Inter-Services Intelligence (ISI), Federal Investigation Agency (FIA) and SECP as members.

I have provided link to the pakistani media reports who broke this story.

But you didnt read the Pakistani media report, did you? Anyways we Pakistanis know whats it about and who did the corruption.

 

[Nityam]

I can't wait to see the future as well...if history has shown anything...
...it's that self proclaimed "experts" from our east that have constantly been predicting the doom of Pak since it's birth...have been wrong...every single time. Pakistan will be just fine...worry about ur own country son.

I continue to assure you that I am not "worried". I am just here to post an article.

Also this article was about FACTS published in a Report by your own commission. Not "opinions" of "experts".

But you didnt read the Pakistani media report, did you? Anyways we Pakistanis know whats it about and who did the corruption.

But I did. Enough to read between the lines. Did you ?

Better still, have you asked your "honest" PM to make the report public ? Why the delay ?

 

[Cookie Monster]

I continue to assure you that I am not "worried". I am just here to post an article.

Also this article was about FACTS published in a Report by your own commission. Not "opinions" of "experts".

My God u r dumb...the opinion I mentioned was the one u reached about "seeing the future disastrous results of CPEC"...now tell me...are future predictions to be taken as FACT?

And u r clearly worried and hurt...why else would u be taking the time away from ur busy call center life to open threads about another country? U see me opening threads about India's projects? Nope...bcuz I do not care. Why not make better use of ur spare time and build a toilet for ur family?

 

[Nityam]

My God u r dumb...the opinion I mentioned was the one u reached about "seeing the future disastrous results of CPEC"...now tell me...are future predictions to be taken as FACT?

And u r clearly worried and hurt...why else would u be taking the time away from ur busy call center life to open threads about another country? U see me opening threads about India's projects? Nope...bcuz I do not care. Why not make better use of ur spare time and build a toilet for ur family?

LOL. I never predicted the "future". I only mentioned that PRESENT and the PAST of your economy SHRINKING for the last two years despite the BULK of the CPEC "investment" being made.

The present where more than 3 billion $ is flowing OUTSIDE pakistan into China as part of illegal Profits.

Unlike you, I only deal in Facts.

Why I do what I do is my business. Do I tell you how to live your life ? lol.

 

[Saleet]

https://thediplomat.com/2020/05/pakistan-discovers-the-high-cost-of-chinese-investment/

Pakistan Discovers the High Cost of Chinese Investment

May 18, 2020

A new report sheds light on the true costs of the China-Pakistan Economic Corridor for Pakistan.

Pakistan’s desire to maintain strategic relations with China has resulted in the $62 billion China-Pakistan Economic Corridor (CPEC), a set of infrastructure projects, being mired in insufficient transparency.

But a Committee formed by Pakistani Prime Minister Imran Khan to examine the causes for the high cost of electricity to Pakistani consumers has lifted the lid on corruption involving Chinese private power producers in Pakistan.

The report reveals that the Huaneng Shandong Ruyi (Pak) Energy (HSR) or the Sahiwal and the Port Qasim Electric Power Company Limited (PQEPCL) coal plants under CPEC inflated their set-up costs.

For Pakistan’s citizens, who are always told how China is their most reliable friend in the world, it was a shock to discover that China does business mercilessly and unscrupulously.

Successive civilian governments and Pakistan’s military have looked upon China as their principal backer against India.

China’s consistent strategic support, including help with Pakistan’s nuclear program, is often held out by Pakistan’s military establishment favorably in contrast with the more conditional Pakistani alliance with the United States.

But it seems now that China is not in Pakistan to help its people but rather as a predatory economic actor.

The 278-page report by the “Committee for Power Sector Audit, Circular Debt Reservation, and Future RoadMap” listed malpractices to the tune of 100 billion Pakistani rupees ($625 million) in the independent power generating sector, with at least a third of it relating to Chinese projects.

CPEC Authority is currently chaired by Lt. General Asim Saleem Bajwa, who is also the Prime Minister’s Special Assistant on Information and Broadcasting — the Committee treaded softly in relation to the Chinese projects.

According to the committee’s report, “excess set-up costs of Rs. 32.46 billion (approximately $204 million) was allowed to the two coal-based [Chinese] plants due to misrepresentation by sponsors regarding [deductions for] the ‘Interest During Construction’ (IDC) as well as non-consideration of earlier completion of plants.”

The interest deduction was apparently allowed for 48 months whereas the plants were actually completed within 27-29 months leading to entitlement of an excess Return on Equity (RoE) of $27.4 million annually over the entire project life of 30 years in the case of the Sahiwal plant.

The estimated excess payment, keeping in mind the 6 percent annual rupee depreciation against the dollar, works out to a whopping Rs. 291.04 billion (approximately $1.8 billion).

The Chinese company HSR claimed IDC based on a long-term loan at the rate of LIBOR +4.5 percent for the length of the entire construction period, even though it borrowed no money during the first year of construction and used only short-term loans at substantially lower interest rates during the second year.

The magnitude of profiteering by the Chinese companies is incomprehensible. The two projects examined by the Pakistani experts’ Committee were worth $3.8 billion at the time of their launch. The Committee found overpayments of Rs. 483.64 billion, which amounts to $3 billion at current rates of exchange.

This includes overpayment of Rs. 376.71 billion (approximately $2.3 billion) to HSR and Rs. 106.93 billion (approximately $672 million) to PQEPCL on account of excess set-up cost, excess return due to excess set-up cost in 30 years, and excess return due to miscalculation in Internal Rate of Return (IRR).

In its report, the Committee recommended that Rs. 32.46 billion (approximately $204 million) be deducted from the project cost of PQEPCL and HSR; the return payment formula be corrected to reflect actual construction time; and Tariff of PQEPCL and HSR be adjusted accordingly.

Under the current formula, in two years of operation, HSR has already recovered 71.18 percent of its original equity invested whereas PQEPCL has recovered 32.46 percent of its original equity in the first year of operation.

This is over and above the profits that the companies would have made without subterfuge. Imagine the return the Chinese will generate on the $62 billion CPEC projects. These numbers are way too large to have been missed as oversight or malfeasance of individuals within the companies and their Pakistani counterparts.

Sri Lankan and Maldives governments suggests that these overpayments are generated with the complicity of leaders in the Pakistan government and the loot shared by all parties.

Pakistan’s economy has been teetering on the verge of bankruptcy for some time and the COVID-19 pandemic has made the situation even worse.

Instead of reforming their country’s policies, Pakistan’s leaders, once again, sought debt restructuring and waivers on account of the pandemic, just as they previously sought international assistance as a reward for fighting terrorism.

But expecting the international community to repeatedly bail Pakistan out from one economic crisis after the other is unrealistic. Massive military expenditure, deep rooted corruption, and lack of accountability are at the heart of Pakistan’s perennial and ever widening gulf between revenue and expenditure.

Now, it seems, Chinese investments have become a new liability. The International Monetary Fund (IMF) has been pushing Pakistan’s officials to raise taxes and power tariffs, effectively asking the Pakistani public to foot the bill for China’s rapacious practices.

The United States and Western financial institutions should not help Pakistan’s ruling elites in their own and China’s predatory behavior. The people of Pakistan deserve better.

"A liar's biggest punishment in this world is that even his truth is rejected." -Imam Ali (AS)