Pakistan to seek debt restructuring of CPEC power projects

[Mk-313]

You need to Get your eyes examined. Let's agree to disagree. Whatever the case, for a extremely poor country like Pakistan where millions live below poverty line, to be paying "Dividends" on top of extremely expensive power prices is insulting and humiliating to 250 Millions people and is preposterous. China needs to CORRECT THESE UNJUSTIFIED INCLUSIONS AND CORRUPTIONS ASAP OR THEY CAN KISS GOODBYE TO CPEC PROJECT and suck on it.

It’s numbers dumbass not literature that “agree to disagree”. Is that what u say when someone tells you 2+2 isnt 5?

and a reasonable person wouldn’t come to a dumbass conclusion like that because .. 1 we don’t know what the actual investment is and what percentage this 1.5 billion accounts. And 2- idk about pakistan but in General dividend means a share of the PROFITS that means pakistan has have to have made money itself before the orignal lender is eligible for a dividend

IF I owe u $10 on a10% dividend then that means I have to have made $100 first before you are eligible to be paid that $10.

Now a real reasonable person would question what did pakistan did with the money it made? Did it saved enough to make its dividends to its lenders and investors?

 

[BoggedDown]

>> In addition to the $3 billion principal payments, the dividend payments also stand at $1.5 billion during the next three fiscal years. Against the inflows of $19 billion, the outflows of CPEC power projects are estimated over $31 billion on account of both dividend and the debt repayments over a period of 20 years


Total loan/invest of $19 B and after 20 years total payment is $31 B so interest/dividend = 31-19 = $12B for 20 years.

So somebody can calculate yearly interest/dividend from it easily.

Is it loan or investment? it depends how you look at it? But in the end, it is net outflow in foreign currency. Is it a good deal? I say yes, if you take the correct account of the situation during 2008-2016 when decision was made. During that time electricity crisis was acute of daily 15-20 hours blackout and due to terrorism no other dare to invest even $100. It is very easy to be smart ace and do after math when emergency is over but during panic situation one have to choose better one of available options and not wait for all time best offer. Just an example Jamsoro LNG power plat is ADB ( or WB?) for which negotiation started during 2012 but still in construction. Normally ADB or WB project are apparently cheaper but they take so long time and so many conditions attached that in the end they are not so cheap contrary to China speed projects.

Geopolitical or geo-economics point of view CPEC was master stroke against US hegemony and choking hold US had on Pakistan neck. After CPEC (and over all BRI) and Jarbe-Azab operation to liberate ex-FATA region Pakistan was able to turn the whole situation around. These two were the major milestones of recent history ((1990-2020) ) which provided a rare light of hope in doom and gloom environment from which nobody thought Pakistan would come out intact. In that sense CPEC is priceless for Pakistan as they say it in mastercard advertisement.