Pakistan rethinks its role in Xi’s Belt and Road plan

[BHarwana]

Where is the fcking statement of the fcking honorable minister Abdul razak daud ... has he issued a rebuttal??

Yes he has partially retracted. If he had not the idiot would have gone home by now. Pakistan appointed him on economics and he is trying to serve media.

https://twitter.com/x/status/1039081330485731328

 

[Finer]

“The previous government did a bad job negotiating with China on CPEC — they didn’t do their homework correctly and didn’t negotiate correctly so they gave away a lot,” Abdul Razak Dawood, the Pakistani member of cabinet responsible for commerce, textiles, industry and investment, told the Financial Times.

“Chinese companies received tax breaks, many breaks and have an undue advantage in Pakistan; this is one of the things we’re looking at because it’s not fair that Pakistan companies should be disadvantaged,” he said.

Of course, China was bound to get tax breaks and many breaks. The government is not at fault especially since when you takeover Pakistan as PM to take Pakistan out of as failed nation back then. Those so-called Pakistani companies had opportunities to invest on CPEC for years didn't bother to invest at all. Nor did so-called overseas Pakistani with abundance of wealth accumulated over the years while their investment for the bungalows in Pakistan seems to have 'so-called effect' on the economy.

It was China that got the ball rolling. Any government would have agreed just to get out of the sinking ship. Any nation that invests major on the pipeline is bound to enjoy monopoly on the economy big time. It is natural since it is China that is laying platforms, not Pakistani companies who want free lunch.

We need CPEC to succeed so we can pay back and regain our control and our monopoly on the CPEC.

 

[Desert Fox]

“The previous government did a bad job negotiating with China on CPEC — they didn’t do their homework correctly and didn’t negotiate correctly so they gave away a lot,” Abdul Razak Dawood, the Pakistani member of cabinet responsible for commerce, textiles, industry and investment, told the Financial Times.

“Chinese companies received tax breaks, many breaks and have an undue advantage in Pakistan; this is one of the things we’re looking at because it’s not fair that Pakistan companies should be disadvantaged,” he said.

@Psychic @Nilgiri I remember we had a conversation about this.

We were right. Some parts of CPEC are certainly favorable to China and need to be re-negotiated.

 

[Psychic]

@Psychic @Nilgiri I remember we had a conversation about this.

We were right. Some parts of CPEC are certainly favorable to China and need to be re-negotiated.

Indeed.
Some people are saying they allowed them to open China towns here; Don't know it's true or not.

 

[Mamluk]

Some parts of CPEC are certainly favorable to China and need to be re-negotiated.

Let's not have a zero sum mentality.

Something favorable to China is not unfavorable to us by default.

 

[pzfz]

Let's not have a zero sum mentality.

Something favorable to China is not unfavorable to us by default.

This isn't complicated. Pak is no position to provide the capitol, skills, equipment, technology, or even manpower in order to implement the infrastructure requirements for CPEC. Pak industry, for which Dawood is shilling for, is not competitive neither home or abroad.

Besides, this foreign-induced influencing attempt has proven to be wrong and with mal-intent.

 

[Desert Fox]

Indeed.
Some people are saying they allowed them to open China towns here; Don't know it's true or not.

I believe there's one in Islamabad. There could be more, located in well secure upper class areas.

PS congrats on becoming senior member.

 

[Psychic]

I believe there's one in Islamabad. There could be more, located in well secure upper class areas.

Not yet ! Just restaurants or hotels.
Let's hope we preserve our heritage and national interest.
Chinese restaurants are popping up like mushrooms.

PS congrats on becoming senior member.

Thanks.
It took a while to become senior.

Yes he has partially retracted. If he had not the idiot would have gone home by now. Pakistan appointed him on economics and he is trying to serve media.

https://twitter.com/x/status/1039081330485731328

"Local industry is priority"
We talked about this as well.

 

[Desert Fox]

Let's not have a zero sum mentality.

Something favorable to China is not unfavorable to us by default.

If it's at the expense of Pakistan's interests than no.

Since when do we have faith in the deals negotiated by previous government whom we all know to be corrupt?

Pakistan's native industries are being wiped out because of cheap Chinese maal. If the Chinese are truly our allies they will understand if we renegotiate some parts of the deal, because what is good for Pakistan is also good for China by default .

Not yet ! Just restaurants or hotels.
Let's hope we preserve our heritage and national interest.
Chinese restaurants are popping up like mushrooms.

These are the effects of globalization. At some point this might result in native backlash because I've heard many of the Chinese behave arrogantly toward Pakistanis. There's even videos of such incidents.

This one is from Africa though:

http://www.thezimbabwenewslive.com/...-bosses-bash-african-workers-with-sticks.html

Thanks.
It took a while to become senior.

I think they might have changed it but it used to be that if one hit the thousand post mark one became a senior member.

 

[Psychic]

These are the effects of globalization. At some point this might result in native backlash because I've heard many of the Chinese behave arrogantly toward Pakistanis. There's even videos of such incidents.

This one is from Africa though:

Yes it happened a couple of times.
Depends on who is at the receiving end...unfortunately some Pakistanis worship foreign @rse; they won't even defend themselves.

I think they might have changed it but it used to be that if one hit the thousand post mark one became a senior member.

Now it's 2000

 

[kmc_chacko]

I think Govt of Pakistan should not indulge in altering agreements signed by previous Govt instead it should work around those agreement and get its requirements fulfilled.

Isn't this unnecessary discussions on already executed agreements on CPEC, will not hamper the image of Government, as Investors might rethink about commitment on the investment due to unfavorable terms. Will not they restore to threaten to with withdraw or blackmail of filing suit at court for loss as they know Govt of Pakistan is not economically capable to dictate them ? this has happened in past, isn't it ?

 

[Foxtrot Delta]

Whatever pakistan government decides we as pakistaniz will support it. CPEC or no CPEC. Pakistan First!

 

[Indus Pakistan]

Pakistan's native industries are being wiped out because of cheap Chinese maal.

Honestly, you might consider this harsh but Pakistan has no real industry. What industry? A mafia operating as 'industry' under the patronage of the state which offers licences and restrictions that allow this racket to go as 'industry'. Why is Chinese 'maal' cheaper? Why is Pakistan 'maal' not on sale in Middle East, Africa, Europe and Asia? Why? Has somebody tied our 'industry' with cuffs?

Our so called industry is just fat cat money making licensees who are protected by the government. Under this protection they have the 200 million hostage market and supply them with shoddy products at high prices with terible customer service. But outside this bubble of protection - on the global market place they are exposed. They struggle to sell anything because global buyers are not going to buy shoddy products at high prices. Thus the abysmal export figures for Pakistan. Even Bangladesh exports more.

To place it in perspect the entire Pakistani industry, traders, farmers, service providers from pool of 200 million earn the country about $20 billion. This figure is about same as remitances from abroad at $20 billion. This means the entire ecnomy of Pakistan just produces the same as ex-pat workers. Think about that.

 

[maximuswarrior]

Renegotiating terms is not a problem at all.

CPEC will go-ahead no matter what. No one can stop this project. I think CPEC will now become even bigger than it already is.

 

[Quwa]

Honestly, you might consider this harsh but Pakistan has no real industry. What industry? A mafia operating as 'industry' under the patronage of the state which offers licences and restrictions that allow this racket to go as 'industry'. Why is Chinese 'maal' cheaper? Why is Pakistan 'maal' not on sale in Middle East, Africa, Europe and Asia? Why? Has somebody tied our 'industry' with cuffs?

Our so called industry is just fat cat money making licensees who are protected by the government. Under this protection they have the 200 million hostage market and supply them with shoddy products at high prices with terible customer service. But outside this bubble of protection - on the global market place they are exposed. They struggle to sell anything because global buyers are not going to buy shoddy products at high prices. Thus the abysmal export figures for Pakistan. Even Bangladesh exports more.

To place it in perspect the entire Pakistani industry, traders, farmers, service providers from pool of 200 million earn the country about $20 billion. This figure is about same as remitances from abroad at $20 billion. This means the entire ecnomy of Pakistan just produces the same as ex-pat workers. Think about that.

That's true to an extent, but hammering the local market with imports and killing the incentive to produce domestic alternatives is not the solution either. I agree, there are severe rent-seeking and shady issues with our companies, but you're not going to encourage the growth of positive suppliers by basically leaving the market to foreign firms. For example, it takes time for a domestic company to gather capital (esp. as a Pakistani business) to invest in the necessary machinery and, in turn, it takes time to scale that across enough buyers to lower the overhead costs (and the pricing). But these businesses can't scale if the market has opted for Chinese goods.

There are positive players who have been affected by CPEC (in the wrong way). E.g. DESCON was complaining about Chinese companies getting tax break benefits unavailable to them and local companies.

Moreover, while the fiscal side is costly, the gov't picking a cheaper import is a way to balance the fiscal books at the cost of macroeconomic disadvantage. By selecting the Chinese, not only are they spending the fiscal budget, but are tapping into ForEx reserves, which the Chinese companies stretched thin by importing their own machinery, materials and labour. Had they spent on Pakistani companies, the investment would have immediately triggered that investment effect by providing valuable economic activity to our companies, enabling them to scale what existing overheads they have and lower their costs.