pakistan economy to face severe crises over chinese loan

[IceCold]

If whats said in the op is true,its really bad for Pakistan.i wish its not true theough.

Pakistanies should try to look at the actual truth instead of blindly saying these are paid articles..there is nothing wrong in verifying.
As my math teacher used to say numbers dont lie....

Numbers dont lie but they can always be manipulated to suit a certain flavor.

 

[xyxmt]

My Only Concern is why are Indian warning us, shouldnt this be a hush hush issue for Indians, "hehe let them get trapped" kindda hush hush

 

[BHarwana]

What I heard that Pakistani economy is booming despite terror attacks and is continuing to grow.

 

[Tamilnadu]

Numbers dont lie but they can always be manipulated to suit a certain flavor.

Thats true,but we dont see any numbers from the people who dont see anything wrong in these transactions.

 

[Maler]

Add to this that out of total $46 billion, instead going to Pakistani economy at least $30 billion will go back to China directly in the form of machinery & material procurement, manpower cost and insurance cost.

"The annual financing burden for these eight projects will be around $2 billion, plus an insurance premium of $650 million. And assuming that the entire amount of $35 billion is utilised for energy projects the annual financing burden shall go up to $5.3 billion plus an insurance premium of $2 billion (Budget 2016-17 allocated a total amount of $1.1 billion as 'mark-up on foreign debt')."

Which is not the case most money will go to infrastructure and other state sponsored nuclear energy projects and dams, so the Annual burden of these projects will amount to 2.650 billion$ for a 12.5 billion$ loan designed to salivate other foreign investors..

I don't know why are you not considering nuclear & hydro power projects as energy projects!!! Can you please elaborate plz!! As for as I understand $35 billion is marked for energy projects.

2nd A loan is a loan, you have to pay back the base amount and interest on base amount and it does not matter for what you are using this loaned money i.e. in energy or infrastructure project!!!!

 

[neem456]

India took loan from japan for bullet train at 0.1% to be paid over 50 years from the date of effect.
And here we see pakistan taking chinese loan at 6.21% + 20% profit in return. Plus contract awarded to only chinese companies.

hmmm lucky chinese, such a tempting deal

 

[Yaseen1]

I think instead of paying interest we should offer share of profit earned in proportion to their contribution until loan is paid back

 

[Providence]

Numbers dont lie but they can always be manipulated to suit a certain flavor.

Numbers don't lie. But stats might. Stats include bunch of numbers and derive causality from some correlation with certain variables which is where the catch lies. However, numbers don't.

Eg. If the equation Asset = Liability + Equity where A = 40; E = 5. Solving it means the liability is 35. There is no lie in it. Since liability is pretty high ie 35/5 = 7 ie the firm is highly leveraged, then saying something about it's share price movement can depend on opinion basis how analyst want to overplay/downplay industry trends.

All having said and done, I truly want some esteemed member here to do some real number crunching with some real macro economic numbers to prove that CPEC is gonna work. Just pure numbers without any rhetoric or tangential comments.

Thank You.

@Slav Defence @waz @Side-Winder @dsr478

 

[maximuswarrior]

so nothing serious to worry about?

Not so much worries as when you take loans from let's suppose the WB and IMF which genuinely burden the economy and add insane debt. Not as worrisome as when you take aid from the US to deliver on promises you cannot deliver.

I want to hear these freakin' liberals scream with the same veracity when Pakistan takes loans from the WB and IMF. You won't hear them. I have heard and read stuff by liberals regarding IMF and WB loans being good for Pakistan. Try figuring that one out.

We know where this anti-China and CPEC propaganda stems from. It is not sincere.

Guess what. These libtards can keep writing as much as they like. Pakistan will cooperate with China in all matters concerned. For the record, CPEC is just the beginning. This anti-China minority is so tiny that they are basically irrelevant. These laughable content writers might please a few haters here and there, but it has zero impact as far as CPEC and China Pakistan relations go.

 

[Sliver]

the numbers sound incredible. are the numbers even correct? are they verified? any official documents to show the feasibility studies that must have been done prior to the inking of the deals?

 

[Great Sachin]

CPEC is for China not for Pakistan....Pakistan will have to wait for 100 yrs before collecting any toll from CPEC....before that they will just pay interest to China...

 

[ABCharlie]

My Only Concern is why are Indian warning us, shouldnt this be a hush hush issue for Indians, "hehe let them get trapped" kindda hush hush

Exactly. Whenever I see Indians fretting about Pakistan's well-being, my concerns about it are laid to rest. For their real motives and concerns, just glance through their local media and you'll know the real causes of pain.

 

[RoadRunner401]

Special interest groups that have been building power producing plants for Pakistan on Paper for years, are concerned about losing the gravy train and for that obvious reason people are creating hurdles in this and stirring up a storm in a glass of water

we have energy shortage and that's costing Pakistan billions in lost revenue, one small example, Industries are running on one to two shifts instead of three because we don't have reliable power supply.

That also means bigger players (foreign Investors) will shy away from investing in Pakistan as cost power shut down could be in 100s of 1000s of dollars of lost production per hour of shut down not to mention damage to plant machinery,

 

[maximuswarrior]

Exactly. Whenever I see Indians fretting about Pakistan's well-being, my concerns about it are laid to rest. For their real motives and concerns, just glance through their local media and you'll know the real causes of pain.

It is very comforting indeed. Let them write whilst we enjoy the results on the ground.

Special interest groups that have been building power producing plants for Pakistan on Paper for years, are concerned about losing the gravy train and for that obvious reason people are creating hurdles in this and stirring up a storm in a glass of water

we have energy shortage and that's costing Pakistan billions in lost revenue, one small example, Industries are running on one to two shifts instead of three because we don't have reliable power supply.

That also means bigger players (foreign Investors) will shy away from investing in Pakistan as cost power shut down could be in 100s of 1000s of dollars of lost production per hour of shut down not to mention damage to plant machinery,

Every sane person understands the enormous benefits coupled with CPEC. Of course, CPEC is a two way street. Pakistan and China are both set to benefit from this massive venture. Not to even mention the long term massive infrastructure and energy benefits for Pakistan. These libtards should try naming a single country willing to invest on such a scale in Pakistan. Could these libtards name a single country willing to build such massive infrastructure in Pakistan? We couldn't give a hoot about whether the Chinese use their own labor force or one from Mars. Heck, I say it is splendid. At least they have the experience and know how. At least they won't resort to mass corruption. At least things will get done in an orderly fashion and timely manner. A country that likes to call itself an ally of Pakistan can merely hand out military and economic aid which doesn't even reach its intended recipients. We know where that money ends up eventually.

These libtards only know how to screw things up. They have no solutions. It is a good thing these libtards don't have any decision making power in Pakistan as far as CPEC is concerned.

 

[illusion8]

the numbers sound incredible. are the numbers even correct? are they verified? any official documents to show the feasibility studies that must have been done prior to the inking of the deals?

Probably fake numbers, the Libor rate's been hovering around 1-2% and accepting infrastructure loans at 6.2% is foolishness. Even the profit share %age of <20% is high but understandable. The 7% annual premium on insurance seems unreasonable.