Kabira
BANNED
- Joined
- Jul 12, 2014
- Messages
- 14,383
- Reaction score
- -20
- Country
- Location
power plants loan isnt for pakistan but for companies who operate them. am i righ?
Right.
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
power plants loan isnt for pakistan but for companies who operate them. am i righ?
For the first 40 years, 90 percent of all the revenue from Gwadar port and the SEZ will go to the Chinese operator. How much revenue do you think Gwadar port and the SEZ is going to generate for Pakistan to make 10-15 Billion dollar at least !
Gwadar port will have to generate a profit of 100 Billion dollars every year, for Pakistani government to get 10 Billion dollars . Just for reference, the Port of Shanghai and the Port of Singapore, the world's most busiest ports, make a profit of 1-1.5 Billion dollars a year
Channel tunnel generates an annual profit of 750million-1 Billion dollars. Total toll tax collected from trucks in all of Germany is roughly 3 Billion dollars.
Once again just how much traffic are you guys expecting on CPEC, and just how much toll do you plan on charging them, to be able to pay as much as 5 Billion dollars in a year!
EASY TO BORROW DIFFICULT TO REPAY
Borrowing must be for productive purpose- not for ego boosting effort.Country can be held for ransom. DO NOT EXPECT MODI to help out Pakistan during debt crisis
Let Me Just Give One Example The Trade Between China and UAE Is Going To Reach $80 Billion in Two Years.Just 10% Of That Trade Routed Through Gwadar Would Mean $8 Billion.Now Imagine How Much Traffic We Can Expect From Everyone.
When Mentioning Channel Tunnel You Have Completely Ignored The Scale Of China's Trade With Gulf,Africa and Europe
Oh Bhai, do you undertand the meaning of bilateral trade right? Seller sells, and the buyer pays the money, where does Pakistan come in this 80 billion dollar equation.
Even if we assume that, all of the UAE-China bilateral trade does go through Gwadar as early as 2022, how much revenue do you think Pakistan Is going to get? The 80 billion dollar claimed transaction is between the buyer and the seller, not the transit country. Even if we assume that Pakistan charges as high as 10 percent on all the UAE-CHina bilateral trade as transit fees, that is only 8 billion dollars. OF that 8 Billion dollars, the Chinese operator of the Gwadar Port get's 90 percent, that's 6.5 billion dollars going to the Chinese company, and that leaves a meagre 1.5 billion dollars for the PAkistani exchequer.
And that 1.5 billion dollar revenue, mind you, is the best case scenario( not gonna happen in real life), where all of UAE-China trade goes through Gwadar( Dubai port to ping pong khelne ke liya banaya hai UAE walo ne), and if PAkistan charges an exorbitant 10 per cent on all the trade passing through its port.
Fact of the matter is that Gwadar port is going to see very little transit, and of the very little revenue this very little transit will generate, 90 per cent will go to the Chinese company that will be operating the Gwadar port for the next 40 years! PAkistan will get a whole lot of nothing, a whole lot of unserviceable debt, and Nawaz will get another 5 year of term out of it, and that's it.
Having wet dreams and jumping on conclusions...Absolutely Delusional. !!!EASY TO BORROW DIFFICULT TO REPAY
Borrowing must be for productive purpose- not for ego boosting effort.Country can be held for ransom. DO NOT EXPECT MODI to help out Pakistan during debt crisis
For the first 40 years, 90 percent of all the revenue from Gwadar port and the SEZ will go to the Chinese operator.
If 4 million could not become rich with such a huge volume of trade how will 200 million benefit, road transport is the most expensive form of transportation and its profit ratio would be less.
New Recruit
I stopped reading after this bullsh!t statement. Prove to me how you got to this number. Also, tell me what other deals are in the pipes that you have included in the number, including additional investments by other countries and expanding flow of trade and traffic. If you can't provide a full analysis, keep your personal opinions to yourself and learn from others, vs. indulging into conversations that are way above your level.
Ok, then why is the Indian expressways being constructed that you people are spreading so much hoopla about? Some of you even say the new Indian highway that is being built to connect India, is like a competition to the CPEC rofl. So if this is such a money wasting initiative, why is India doing this internally herself??
Like I just told your friend countryman, instead of writing bullsh!t on here, how about you either learn from others who know a thing or two about these subjects, or, if you just have to spread hatred and negativity, you keep it to yourself and not get called out by people like me? That's one way to keep your personal respect intact by one trying to reason on the subject, vs. trying to sound like a total idiot.
You have no idea of international fiancial knowledge.Roadways are meant to connect small towns and not countries, also understand that pakistan is taking a loan and it is not an investment, you would have to return the money with interest and if you fail to pay then china gets to own the places china has provided loan for.
New Recruit
You have no idea of international fiancial knowledge.
Stop BS .
Haha.Atleast I have better financial knowledge than your FM, who takes loan and adds it to the forex reserves.
ISLAMABAD:
Pakistan’s debt and other repayments on China’s “Belt and Road” initiative will peak at around $5 billion in 2022, but will be more than offset by transit fees charged on the new transport corridor, says the Pakistan government’s chief economist.
China has pledged to invest up to $57 billion in Pakistan’s rail, road and energy infrastructure through its vast modern-day “Silk Road” network of trade routes linking Asia with Europe and Africa.
Officials expect a huge uptick in trade between the two nations once Pakistan’s Arabian Sea port of Gwadar is functional and work on motorways is finished allowing goods to cross the Himalayas to and from China’s western Xinjiang province.
The China-Pakistan Economic Corridor (CPEC), a flagship “Belt and Road” project, has been credited with helping revive Pakistan’s sluggish economy, but investors have raised concerns that Pakistan’s currency could come under severe pressure once debt repayments begin and Chinese firms start taking profits home.
China says Silk Road plan is not tied to presidency
Nadeem Javaid, who advises Prime Minister Nawaz Sharif’s government and works closely on the CPEC programme, told Reuters that such fears are misplaced as Islamabad would earn vast fees from charging vehicles moving goods from and to China.
Javaid said the Gwadar-Xinjiang corridor should be operational from June next year, and Pakistan expects up to 4% of global trade to pass through it by 2020.
“The kind of toll tax, rental fees that the Pakistani system will gain is roughly $6-$8 billion a year,” Javaid, chief economist at the planning ministry, said in an interview. “By 2020, I expect we will get this much momentum.”
He said China has huge incentives to transport oil and other goods bound for its western regions through Pakistan as the Gwadar-Xinjiang corridor shaves some 9,500 miles (15,000 km) off other traditional routes.
It doesn’t take long to imagine the savings on the many millions of litres of fuel, he said.
Investors are watching Pakistan’s ballooning current account deficit, which widened by more than 160% to $6.1 billion in the nine months to March, largely due to imports of machinery for big CPEC projects.
Javaid said debt repayments and profit repatriation from CPEC projects will begin in 2019, totalling about $1.5-$1.9 billion, and rising to $3-$3.5 billion by the following year.
“It would be low in the beginning, and in 2022 it will peak at around $5 billion – not more than that,” said the chief economist, adding that the government does not think it likely that Pakistan will face a balance of payments crisis.
The last such crisis in 2013 saw Islamabad turn to the International Monetary Fund for help.
Javaid said the CPEC should boost economic growth, which he expects to hit 5.2% in 2016-17. Exports should also pick up once CPEC power projects totalling 7,000 megawatts come online and reduce the often crippling energy shortages.
Deepening political and military ties between Pakistan and China have helped closer financial integration, too, with Chinese companies starting to buy Pakistani firms and land.
Javaid said the two countries have also discussed using a currency swap agreement between their central banks to create a mechanism to avoid any third currency in international transactions.
“If some mechanism is going to be finalised on that, it will work as a buffer or a cushion that’s going to basically avoid or prevent any kind of default that could happen in unforeseen circumstances.”
But he added, “It’s only a contingency arrangement in case something bad happens.”
https://tribune.com.pk/story/1406335/pakistans-repayments-cpec-peak-5b-2022-chief-economist/
He said China has huge incentives to transport oil and other goods bound for its western regions through Pakistan as the Gwadar-Xinjiang corridor shaves some 9,500 miles (15,000 km) off other traditional routes.
It doesn’t take long to imagine the savings on the many millions of litres of fuel, he said.
New Recruit
Haha.
Is that your media tell you ?
How could you believe these stupid nonsence?
China has a huge trade surplus ,which makes forex reserve keep increasing rapidly ,and China government try any best to invest all across the world in order to keep the wealth valuable.
OBOR and AIIB are both part of these efforts .
I find India media is right in the way of the enhancement of the intellectual level of Indian people.