CPEC not responsible for Pakistan’s economic woes, says China

[Abdullah719]

XUZHOU: Worried over the ‘anti-CPEC’ campaign in Pakistan, China says the all-important international connectivity project is not to be blamed for the ongoing economic crisis in Islamabad.

“Loan repayments for the China-Pakistan Economic Corridor (CPEC) projects will start in the financial year 2023-24 when economic growth rate of Pakistan will be much higher than present (and then country will be in a better position to bear the financial liabilities),” Prof Sun Hongqi told a conference on CPEC here on Monday.

Prof Sun - who is adviser to the President on Pakistan Affairs - sought to negate the impression being spread by anti-CPEC campaigners that only Beijing will benefit from the regional connectivity projects.

“What will China gain from energy projects given priority in the first phase of CPEC as per desire of Islamabad other than helping our all-weather friend to overcome the electricity deficiency badly hitting its economy,” asked the scholar who also heads the Pakistan Study Centre at Jiangsu Normal University.

Mr An Qiguang who had served as a diplomat in Pakistan, announced that Chinese companies executing various CPEC projects would hire more Pakistani labour and mid-level managers.

He was responding to a suggestion given by Syed Muhammad Mehdi, a columnist from Pakistan, that for giving Pakistanis a sense of ownership of the CPEC, China should involve the local population in executing projects.

Jiangsu’s Deputy Secretary General Wang Zhizhong said that they would import more agriculture products from Pakistan to help reduce the trade imbalance between Islamabad and Beijing.

Chairman Chahbahar Free Trade-Industrial Zone Korsi Abol Rahim said that there was no rivalry between Gwadar and Chahbahar. He believed that the two ports would rather complement each other to the benefit of the entire region.

Later, multiple memorandums of understanding (MoUs) worth millions of dollars were signed between various Pakistani and Chinese business concerns.

Dr Amjad Abbas Magsi of the Punjab University called for removing trade imbalance between the two countries and demanded that Beijing approve the same trade agreement it had offered to Association of South East Asian Nations members at the earliest to remove the reservations of Pakistani businessmen about trade ties with China.

The two-day international moot was attended by academia, intelligentsia and businessmen from Pakistan, Iran, Malaysia, Thailand, Bangladesh and South Korea. Ms Mumtaz Zahra from Pakistan Embassy in China, and Jiangsu Communist Party Secretary Gene*ral Zhou Tiegen were also present.

https://www.dawn.com/news/1440784/cpec-not-responsible-for-pakistans-economic-woes-says-china

 

[gazza619]

a lot of anti Pakistan in the news these days some of which is also fake. The information ministry is hard work.

 

[Deewana Mastana]

Yes it isn't but it's the entire country that is responsible for the economic woes it finds itself in today by repeatedly electing those who did it.

 

[PakLFC]

IK will have to re set CPEC on his next visit to China. Nawaz seems to have agreed to everything in China's favour. At the moment Pak is getting the short side of the stick which needs to be corrected. When it comes to the success of CPEC China needs us much more.

 

[Napa]

“Loan repayments for the China-Pakistan Economic Corridor (CPEC) projects will start in the financial year 2023-24 when economic growth rate of Pakistan will be much higher than present (and then country will be in a better position to bear the financial liabilities),” Prof Sun Hongqi told a conference on CPEC here on Monday.

Why will the growth rate be higher? This is just more wishful thinking. Pakistan isn't getting the Western foreign investment that is required for the development of modern industries.

1) No country has developed modern industries with Chinese help.

2) China is so indifferent to Pakistan's economic plight that it actually imported Chinese labor into Pakistan for the CEPC projects. Its goal was maximum benefit for the Chinese.

3) CEPC at its core is the sale of a lot of Chinese infrastructure goods (mainly power plants and roads) to Pakistan on deferred payment terms. Why did Nawaz agree to buy this huge amount of Chinese stuff? Probably because he did not see any other options for getting foreign investment for infrastructure development.

“What will China gain from energy projects given priority in the first phase of CPEC as per desire of Islamabad other than helping our all-weather friend to overcome the electricity deficiency badly hitting its economy,” asked the scholar who also heads the Pakistan Study Centre at Jiangsu Normal University.

Anytime someone reminds you that they are an "all-weather friend", you should check your pocket to make sure your wallet hasn't been picked.

It is nice to have electricity in the summer in Karachi, but how will Pakistan pay for the Chinese power plant when the composition of its exports remains low-tech?

Mr An Qiguang who had served as a diplomat in Pakistan, announced that Chinese companies executing various CPEC projects would hire more Pakistani labour and mid-level managers.

He was responding to a suggestion given by Syed Muhammad Mehdi, a columnist from Pakistan, that for giving Pakistanis a sense of ownership of the CPEC, China should involve the local population in executing projects.

Why wasn't this done from the very beginning? Using Chinese labor for CEPC projects means that the payments to be made by Pakistan to China are even bigger.

Jiangsu’s Deputy Secretary General Wang Zhizhong said that they would import more agriculture products from Pakistan to help reduce the trade imbalance between Islamabad and Beijing.

This is how Europe treats Africa, as a economic colony that is a source of commodities and coffee. It is not worthy of the great human intellectual capital that Pakistan possesses.

 

[gazza619]

Only Pakistanis can pick up Pakistan. We need overseas Pakistanis to invest. As confidence grows, criminals start getting caught things will change.

 

[Zeeraq]

Pakistan to pay China $40b on $26.5b CPEC investments in 20 years

ISLAMABAD: Pakistan will pay $40 billion to China in 20 years in shape of repayments of debt and dividends on a $26.5 billion investment under flagship China-Pakistan Economic Corridor (CPEC), documents of the Ministry of Planning and Development reveal.

Out of $39.83 billion – to be precise – the debt repayments of energy and infrastructure projects amount to $28.43 billion. The rest of $11.4 billion will be paid in shape of dividends to the investors, showed the official estimates.

The figures are significantly lower than the projections made by some private institutions, primarily because the outflows have been worked out on the basis of only $26.5 billion investment.

This suggests that unlike the claims of $50 billion to $62 billion CPEC investment, the actual investment likely to remain half of the initially announced investment figures.

The only major project that can materialise in the next few years is $8.2 billion Mainline-I Project of Pakistan Railways. The mainline project cost has not been included in these estimates.

The Ministry of Finance has also shared these estimates with the International Monetary Fund (IMF) last month, confirmed a government spokesman on CPEC affairs. The country on an average will return $2 billion per annum to China.

These are the first comprehensive estimates of inflows that are based on under implementation projects and the outflows have been estimated on account of debt servicing of energy and infrastructure projects and dividends payments of power plants. CPEC portfolio currently comprises energy projects, being setup by private investors, and infrastructure schemes undertaken by the government.

The government loans of $5.9 billion have been signed at an interest rate ranging from 2% to as high as 5.2%. There are three government loans totaling $774 million that have been obtained at 5.2% rate.

The commercial loans for setting up power plants have been arranged at an interest rate of London Interbank Offered (Libor) plus 4.5%. However, it is the return on equity, which in some cases is as high as 34.2%, that will cause outflow of $11.3 billion.

CPEC inflows of the existing under implementation projects will dry in 2022-23 when the country will receive $26.5 billion, according to the Planning Ministry’s working. On the basis of these inflows, Pakistani authorities have estimated that the country will return $39.83 billion to Chinese firms.

“CPEC projects inflows will continue till 2030 on account of energy, infrastructure projects that will be based on pragmatic planning on their economic outlook and socio economic, agriculture and Gwadar projects,” said Hasan Daud Butt, official spokesman on CPEC affairs.

To a question, Hasan Daud said both the inflows and outflows have been prepared as per actual investment and are based on projects that are under implementations. He said the Planning Ministry has shared these estimates with the Ministry of Finance and they discussed it with the IMF.

The IMF and the United States have expressed concerns over CPEC debt without acknowledging the benefits of the investment that helped remove infrastructure and energy sector bottlenecks.

However, Pakistan can only sustain these repayments by enhancing its exports. In case the country still remains unable to increase exports despite removal of energy bottlenecks, it will be difficult to manage these repayments.

Assuming that Pakistan-IMF three-year relation will begin from fiscal year 2019-20, the country will repay $4.2 billion to China during this period on account of debt and dividend payments.

In the next fiscal year, Pakistan will return $1 billion to China that will reach to $1.9 billion during the last year of the IMF programme. The CPEC repayments will peak to $3.23 billion in 2025-26 and from that year it will start reducing and ending at $306 million in 2037-38, according to the documents.

Total inflows

The official statistics showed that CPEC inflows on account of 18 energy projects and 5 infrastructure projects that began in 2014-15 would end in 2022-23. Till last fiscal year, Pakistan has already received $11 billion worth of CPEC inflows.

For the current fiscal year, CPEC inflows have been estimated at $4.2 billion –which is the peak of the inflows. During the next four years, the inflows will amount to $4 billion, $3.73 billion, $2.53 billion and $1 billion in 2022-23.

Energy outflows

CPEC energy projects outflows have begun from this fiscal year that will continue till 2037-38. Against $2.4 billion Chinese investment in Kohala hydropower project, Pakistan will return $2.3 billion in loans and another $2 billion in dividend payments.

Pakistan will get $1.7 billion Chinese loan for Karot hydropower project and payback $2.1 billion in loan and another $700 million in dividend in 20 years. Against $1.7 billion Chinese investment in Suki Kinari power project, the country will return $2.1 billion in loan and $1.94 billion in dividends.

The Port Qasim hydropower project is established at a cost of $2.1 billion and the repayment of debt will amount to $2.1 billion in addition to $1.73 billion on account of dividends. The Sahiwal power plant, setup with an investment of $1.8 billion, will cause $2.14 billion debt repayment and $1.37 billion in dividends.

Against an investment of $2 billion in Hubco power plant, Pakistan will pay $1.8 billion in loan and another $1.5 billion in dividends to the investors. The Engro power generation project, being setup with $1.1 billion investment, will result into $770 million in loan repayment and $407 million in dividends.

The Gwadar power project to be setup at a cost of $435 million will lead to debt repayment of $368 million and $417 million in dividend payments. The Thar electricity power plant is being setup with $1.64 billion Chinese investment.

CPEC to help improve labour force in Pakistan: Mazari

The country will return $1.64 billion in loan and $749 million in dividend. In addition to that, five clean energy projects are being setup at a cost of $1.1 billion and their debt and dividend payments are far higher than the cost.

Infrastructure projects

Against a loan of $5.9 billion for five infrastructure projects, Pakistan will return $7.5 billion to the Chinese government over a period of 20 years. Against a loan of $1.3 billion for Karakoram Highway phase-II project, Pakistan will pay back $1.63 billion.

This is inclusive of $164.4 million debt that has been contracted at 5.2% rate. China has given a $2.8 billion loan for Sukkur-Multan motorway and the country will return $3.6 billion in 20 years. This loan also has an expensive component of $361.2 million that has been contracted at 5.2% rate.

For Orange Line metro project, the country received $1.6 billion loan including $203.3 million at 5.2% interest rate. It will return nearly $2 billion loan over a period of 20 years.

https://tribune.com.pk/story/1874661/2-pakistan-pay-china-40-billion-20-years/

 

[shaaik]

It's the mismanagement and plundering of resources on the part of people at the helm which has brought the country on the brink of bankruptcy.

 

[Lonewarrior]

ISLAMABAD: Pakistan will pay $40 billion to China in 20 years in shape of repayments of debt and dividends on a $26.5 billion investment under flagship China-Pakistan Economic Corridor (CPEC), documents of the Ministry of Planning and Development reveal.


https://tribune.com.pk/story/1874661/2-pakistan-pay-china-40-billion-20-years/

Chinese embassy clarifies false report on CPEC debt

The Embassy of China in Pakistan has taken note of a recent report by a Pakistani journalist, in which he claimed that Pakistan will repay $40 billion debt to China under China-Pakistan Economic Corridor (CPEC).

https://nation.com.pk/29-Dec-2018/report-regarding-pak-s-40bn-debt-under-cpec-termed-false

 

[ILcricket]

Pakistan to pay China $40b on $26.5b CPEC investments in 20 years . [MENTION=103382]Zeeraq[/MENTION] , that is not going to happen , is it ?

 

[Lonewarrior]

Pakistan to pay China $40b on $26.5b CPEC investments in 20 years . [MENTION=103382]Zeeraq[/MENTION] , that is not going to happen , is it ?

https://nation.com.pk/29-Dec-2018/report-regarding-pak-s-40bn-debt-under-cpec-termed-false

 

[MenInG]

ISLAMABAD: The Chinese Embassy on Wednesday emphatically warned the US against meddling in Pak-China ties and the China-Pakistan Economic Corri*dor (CPEC).

This was stated in an unusually strongly-worded rejoinder to allegations levelled by US diplomat Ambassador Alice Wells in her speech at a think-tank in Islamabad.

“We would be more than glad to see the US develop its relationship with Pakistan, but we strongly oppose the US interference in China-Pakistan relations and the CPEC.… we have to make our position clear and reject the negative propaganda by the US. We must not let the truth be distorted and the lies run wild,” the embassy said in a statement.

Ambassador Wells, who was on a four-day visit to Pakistan, told a select gathering of academics and civil society representatives that CPEC projects lacked transparency and suffered from corruption.

She claimed that Chinese financing of CPEC projects through loans was adding to Pakistan’s debt burden.

US told to let Pakistanis decide whether or not CPEC suits them instead of judging by itself

“The comments hold nothing new,” the embassy said and reminded that both China and Pakistan have repeatedly rejected similar insinuations in the past.

“However, the US side still ignores the facts and is obsessed with the story it made for the CPEC,” it added.

Noting that China “puts Pakistani people’s interests first” in CPEC projects, the embassy underscored that China and Pakistan staunchly adhere to “principles of mutual consultation and cooperation” for shared benefits.

The embassy asked the US to let people of Pakistan decide whether or not CPEC suited them instead of judging by itself. It said the 32 CPEC early harvest projects completed over past five years have significantly improved local transportation infrastructure and power supply, created over 75,000 jobs directly and contributed up to two per cent of Pakistan’s GDP growth in Pakistan.

“It shows that CPEC is playing an important role in boosting Pakistan’s socioeconomic development and improving people’s livelihood,” the embassy asserted.

The statement said that China and Pakistan deliberate on projects and jointly implement them. Chinese companies undertaking projects in Pakistan, it further said, comply with local laws and regulations, enjoy international reputation, strictly follow the market-oriented and internationally-accepted business model, and adopt state of art technology and strict environmental protection standards.

Rejecting allegations of sleaze, the embassy said the entire process for the award of contracts was “open and transparent and was in line with international norm” and there was an ongoing engagement with relevant accountability agencies of Pakistan. “It is agreed that CPEC is clean,” it maintained.

Criticizing the US use of sanctions “blacklisting this and that country”, the embassy said the US did this not for protecting global economy, but for serving its own political goals.

Countering the debt burden claim, the embassy said that not only the Americans are “bad in mathematics”, but their “intentions are worse”. It explained that as per State Bank of Pakistan, the total foreign debt of Pakistan is 110 billion US dollars out of which CPEC’s share is about $5.8 billion or 5.3 per cent of the total foreign debt. CPEC repayments, it said, would commence from 2021 and would be payable over 20-25 years with an interest rate of approximately 2%. The annual repayment, it said, would be approximately $300 million, which would not be a burden for Pakistan.

“China will not make unreasonable demands on Pakistan,” it added.

About cost escalation of the ML-1 project, the embassy said that although the initial design review was successful, the project has not yet been approved as yet. The cost of the project will be adjusted according to the actual condition and the needs of Pakistan once it is finalised. “After finalizing the design of the project, we would initiate bidding in accordance with international practice. This is a completely normal business practice,” it said.

“We also want to advise the US that when you accuse China-Pakistan relations, you should first look back at what have you done to Pakistan, and think about how much contribution have you made for Pakistan,” the statement said, urging the US to bring cash and funds, promote win-win cooperation on the basis of mutual respect, fairness, and justice, rather than acting as a world policeman, spreading rumours and trying to spoil China-Pakistan relations.

https://www.dawn.com/news/1529992/beijing-warns-washington-against-efforts-to-spoil-pak-china-ties

 

[Bigboii]

https://youtu.be/EvXROXiIpvQ
It's a pretty liberal channel and it covered bri well would recommend to watch if someone is struggling to understand bri and cpec

 

[Bigboii]

Pretty scary situation for Pakistan if you choose to believe this channel (they are mostly unbiased as long as it's not against republicans

 

[Greenstorm]

Pretty scary situation for Pakistan if you choose to believe this channel (they are mostly unbiased as long as it's not against republicans

There is nothing unbiased about these vox type channels. They are used as propaganda medium. Title of this video is enough to know where they are coming from not to mention the sly/alarmist background music.
Watch DW's documentary on OBOR, they are not even subtle about their bitterness.

 

[Mamoon]

CPEC is dead under PTI.

 

[troodon]

I thought CPEC is great for Pakistan and Indians are jealous of it.

Pakistan needs to be patient. Fruits will bare in the future.

 

[kk1992]

CPEC is dead under PTI.

It would be alive under PML-N and PPP because some how magically USA would not put pressure on Pakistan or blackmail by puttingPakistan on FATF blacklist.

The genius have spoken so it must be true.

 

[kk1992]

Pakistan won't stop CPEC, it may be slowed down but Pakistan won't stop this project regardless whoever is in government.

 

[Bigboii]

Pakistan won't stop CPEC, it may be slowed down but Pakistan won't stop this project regardless whoever is in government.

They are legally bound too and lot of the work is done by Chinese companies not the bureacracy so even the slowing down part is a bit suspect

 

[Greenstorm]

Pakistan won't stop CPEC, it may be slowed down but Pakistan won't stop this project regardless whoever is in government.

Most of the road infrastructure has already been completed. I used to travel via Mansehra-Abbottabad-Haripur road which was notorious for many accidents that used to take place on this narrow but extremely busy road in a mountainous area(part of the Karakorum highway). Now Hazara motorway (project under CPEC) not only saves many hours of travel but is also relatively much safe and comfortable to travel on.
Take a look.

CPEC is rapidly changing Pakistan for the better.

 

[Abdullah719]

Imran rejects CPEC’s criticism as ‘nonsense’

WASHINGTON: Prime Minister Imran Khan has rejected the criticism of the China-Pakistan Economic Corridor (CPEC) as ‘nonsense,” insisting that the project “is really helping” the country.

In an interview to a US news channel CNBC, shown on Wednesday night, Mr Khan also urged US President Donald Trump and the United Nations to mediate between Pakistan and India over Kashmir.

“When the Chinese came to help us with this Belt and Road Initiative (BRI) and CPEC, we were really at the rock bottom,” said the prime minister when the interviewer, Hadley Gamble, asked if the project was a debt-trap for Pakistan.

“So, we are really grateful to the Chinese that they came and rescued us,” he added.

“They came and pumped in, not just they gave us loans – and the loans, by the way are barely five or six percent of the total portfolio,” said Mr Khan, rejecting the suggestion that the CPEC was a debt-trap. “This is nonsense.”

The Chinese, he said, actually helped Pakistan with investment and because of them the country now “has an opportunity to attract foreign investment”.

The prime minister explained that his government was now creating special economic zones to attract investment. “We just opened two and we are opening more where we are giving special concessions to industries,” he said.

Mr Khan said the CPEC was “beyond BRI as China was also helping Pakistan in technology transfer. They are especially helping us in agriculture because Chinese technology (can boost) development (in this sector) much better than Pakistan’s as “our productivity is very low”.

The CPEC, he said, was also teaching Pakistanis the skills they needed to benefit from the CPEC projects. “They are building skill centers in Pakistan. So, they are helping us and we are grateful,” the prime minister said.

Spoiler

Earlier this week, senior US diplomat Alice Wells once again urged Pakistan to rethink its wholeheartedly embrace of China’s economic initiative. Speaking at a think-tank in Islamabad, she alleged that there was no transparency in the CPEC projects, and warned that the country’s debt burden was growing due to the Chinese financing.

Both Chinese and Pakistani officials have rejected the US criticism as misleading but the prime minister’s remarks further cemented the impression that Islamabad remains committed to the CPEC.

The prime minister spoke with CNBC in Davos, Switzerland, where he was attending the annual summit conference of the World Economic Forum.

When the interviewer asked how useful could the US president be in settling the Kashmir dispute, Mr Khan said: “I can’t say what would be the outcome but for me it is important to try my best because Kashmir is a far more serious problem than people realise.”

“This is serious because there are two nuclear-armed countries,” the prime minister said. “That’s why I want President Trump, head of the most powerful country in the world — he should intervene right now. United Nations, or President Trump through the UN at least.”

Mr Khan explained that the possibility of an India-Pakistan conflict had increased because “India has been taken over by an extremist ideology, which is called Hindutva or the RSS.”

The prime minister said that the founding fathers of RSS were “inspired by the Nazis” and the Nazi concept of “racial purity” and “believed in ethnic cleansing, of Muslims.”

Mr Khan said that the ideology which was responsible for the assassination of Mahatma Gandhi and the group that was declared a terrorist organisation three times by previous Indian governments had now taken over India.

Responding to another question, he said the people of Kashmir, through a referendum could decide whichever country they wanted to join.

“Now, that disputed territory has been annexed by India, and, they are trying to change the demography of (the) people of Kashmir, which according to the fourth Geneva Convention is a war crime,” he added.

The prime minister also expressed concern about ongoing protests in India over a controversial citizenship bill passed last December that many say is set to disproportionately affect Muslims.

https://www.dawn.com/news/1530199/imran-rejects-cpecs-criticism-as-nonsense

 

[uberkoen]

I'm confused. What economic woes are the Chinese talking about? I thought our economy was prospering as per the junooni's on this forum

 

[Abdullah719]

I'm confused. What economic woes are the Chinese talking about? I thought our economy was prospering as per the junooni's on this forum

The article in the OP is from Oct 2018, a couple of months after PTI took over.

 

[Mamoon]

I'm confused. What economic woes are the Chinese talking about? I thought our economy was prospering as per the junooni's on this forum

The Chinese knew that this is the most corrupt government in Pakistan history. They warned us but we didn’t listen.

Thank you Transparency International.

 

[OffDrive]

Beijing calling the shots to Pakistan over CPEC

Critics argue that the worst aspect of the terms is how little it might benefit the locals

After a lull of more than a year, the second phase of the US$62 billion China-Pakistan Economic Corridor (CPEC) was initiated at the turn of 2019.

The first phase was largely dedicated to setting up infrastructure and power projects in 2014-2018. The next will focus on industries, agriculture and trade.

In this regard, the second phase will include nine Special Economic Zones (SEZs) across Pakistan, with the National Vocational and Technical Training Commission (NAVTTC) identifying and mapping different industries in each SEZ.

Prime Minister Imran Khan will inaugurate the Allama Iqbal Industrial City in Punjab’s SEZ on January 3.

The escalation of activity on CPEC projects comes after the incumbent Pakistan Tehrik-e-Insaf (PTI) government had started its tenure in August 2018 with skepticism about Islamabad’s agreements with
Beijing.

Asia Times reported at the time that the government was looking for a rejig of the CPEC agreements, which had been shared with China, during Foreign Minister Wang Yi’s visit to Islamabad and Imran
Khan’s visit to Beijing in 2018.

In a Financial Times interview with the Prime Minister’s Advisor on Commerce, Industry and Investment, Abdul Razak Dawood, he expressed the government’s desire to put CPEC “on hold” while the terms were renegotiated.

It caused major embarrassment to Khan and his team during his November 2018 visit to Beijing, government officials revealed. A year later, in October 2019, Khan arrived in Beijing seeking China’s support on Kashmir and the looming blacklisting at the hands of counter-terror watchdog Financial Action Task Force (FATF), the government formally agreed to the terms laid out by China for the second phase of the CPEC.

“Instead of reviewing the terms of the first phase of the CPEC, Beijing has actually enforced its will on the second phase as well. There have been no changes in the execution of the projects and the road map for the corridor. In fact, China has explicitly expressed displeasure of the lack of activity over the past year and a half,” revealed a senior diplomat.

Immediately after Khan’s visit to Beijing, Wang Zhiqing, China’s Chief Planner of the Ministry of Transport, arrived in Islamabad to sign a Memorandum of Understanding (MoU) with the Pakistani Minister for Communications Murad Saeed, regarding the transport infrastructure of the second phase of the economic corridor.

The China-Pakistan Economic Corridor Authority (CPECA) was formally unveiled in October 2019. Officials further reveal that Pakistan’s dillydallying over the second phase of the CPEC was also due to the $6 billion bailout that Islamabad agreed with the International Monetary Fund (IMF) in July 2019.

The terms require Islamabad to return $21.8 billion in commercial loans and $7.75 billion in bilateral debt to Beijing over the next three years.

After it became clear that Islamabad will continue to pursue the CPEC, with its existing terms, a war of words ensued between United States Assistant Secretary Alice Wells and the Chinese Foreign Ministry’s spokesperson Geng Shuang in November. Washington dubbed the China-Pakistan Economic Corridor a “debt trap.”

Analysts maintain that Pakistan Foreign Minister Shah Mehmood Qureshi’s public rebuke to Wells’ statement underlines that the PTI government knows it cannot afford to offend Beijing again.

“The US and China are engaged in their own strategic battles and trade wars. Washington is objecting to CPEC purely based on its regional interests. Islamabad should worry about its own interests and check if CPEC projects in Pakistan are based on competitive global prices,” said the PTI government’s former spokesperson on economy and energy, Farrukh Saleem.

“As things stand, around 75% of CPEC projects are power plants. We must compare the power plants with the cost of similar projects in Bangladesh and India. In the two biggest plants, the one in Sahiwal and the other in Port Qasim (Karachi), it costs $1.4-1.5 million per megawatt. The Jamshoro Coal Power Project supported by the Asian Development Bank (ADB) is costing $0.8 million per megawatt,” he
added.

Officials revealed that in addition to the CPEC power projects being economically more expensive for Pakistan, Beijing has the entirety of a similarly skewed plan laid out. This is further reflected in Islamabad following through with the original documents underlining the long-term CPEC plan.

This implies that Beijing continues to have a stranglehold over the projects and the SEZs, with enhanced nationwide surveillance also highlighted in the roadmap.

Meanwhile, many critics argue that the worst aspect of the terms is how little it might benefit the locals – especially those in the marginalized and volatile province of Balochistan.

“The Belt and Road Initiative, with CPEC as its flagship, is based on infrastructure and energy projects, aimed at enhancing trade through this particular route. It isn’t a humanitarian intervention designed to benefit the masses. All those who perceive it that way should correct themselves,” says Senator Anwar-ul-Haq Kakar, the former spokesperson of the Balochistan government.

https://www.asiatimes.com/2020/01/article/beijing-calling-the-shots-to-pakistan-over-cpec/

 

[WebGuru]

In one news thread here we are being told how CPEC is dying under current govt to make USA happy.

In another news it's being discussed that Beijing calling the shots to Pakistan over CPEC.

 

[Cpt. Rishwat]

Wow. This is really more informative and relevant than the thread about Harry and Meghan? global political posturing wins over real human stories I guess.

 

[Romali_rotti]

Are you for realll ?? No way, you mean China invests all the money, does all the work, and they dont control the shots ??? Wow this is a shock...

 

[JaDed]

Pakistan is one country which irrespective of what incorrect steps it takes always ends up in right places at right time, USA and China fighting over having influence in Pakistan currently.

 

[MRSN]

Pakistan is one country which irrespective of what incorrect steps it takes always ends up in right places at right time, USA and China fighting over having influence in Pakistan currently.

not really. We have lost 70k innocent lives and thousands of injuries, infrastructure being destroyed and lack of tourism in the 2006-17 era. All because we decided to be ally of US forces on war against terror. training Afghan Mujahedin remains to be biggest mistake of Pak and it came back to harm us badly. This is why Pak doesn't trust US anymore.

 

[Abdullah719]

FO defends CPEC after Alice Wells' criticism

ISLAMABAD: The Fore*ign Office (FO) on Friday said that China-Pakistan Econo*mic Corridor (CPEC) was transparently contributing to national development and issues in the execution of the project were bilaterally addressed by Beijing and Islamabad through existing mechanisms.

The statement was issued after senior US diplomat for South and Central Asia Amb*assador Alice Wells rep*eated her criticism of China’s Belt and Road Ini*tiative (BRI) and its flagship CPEC project. The FO statement, however, did not say that it was a rejoinder to what Amb Wells said at her online media briefing about CPEC.

Spoiler

“The economic development and long-term prosperity of the people is our government’s top priority. The CPEC, a flagship project of BRI, is a transformational project contributing positively and transparently to Pakistan’s national development,” the FO said.

“Pakistan believes that regional economic connectivity will provide a critical stimulus for creating broad-based growth across the region,” it added.

The FO said that CPEC projects had helped ******tan address energy shortages and develop infrastructure, industrial base and create jobs.

At her media briefing, Amb Wells said that the US was concerned about CPEC projects because of “lack of transparency”, and the “unfair rates” of profits guaranteed to the Chinese firms that were executing these projects.

She said the US calls on “China to offer transparent relief from BRI’s predatory loans that countries are suffering from to emerge on stable footing”.

The FO clarified that Pakistan’s total public debt relating to CPEC projects was less than 10 per cent of the total debt burden. More*over, it said, the CPEC loans from China had a maturity period of 20 years and the interest was 2.34pc. There*fore, the claims about the bur*den of Chinese debt on Pak*istan’s economy were “con*trary to facts”, the FO said.

The statement said that Pakistan and China had instituted various mechanisms to address issues that arise in the execution of the projects and they often address those matters bilaterally.

“Pakistan and China are ‘All-Weather Strategic Cooperative Partners’. We are engaged in prompting peace, development and stability in the region based on principles of mutual respect, mutual benefit, win-win cooperation and shared development,” the statement emphasised.

“Our ties are based on deep mutual trust and understanding,” it further said.

https://www.dawn.com/news/1559080/fo-defends-cpec-after-alice-wells-criticism

 

[MenInG]

The coronavirus pandemic has affected all aspects of Pakistani society, but sports have been particularly badly hit. Most sporting events have either been canceled or postponed since March when the government imposed nationwide restrictions to contain the disease.

Pakistan's sports officials and athletes, however, are hopeful that the sector's eventual recovery can be hastened with help from the China-Pakistan Economic Corridor (CPEC).

"In Pakistan, athletics, gymnastics, racket sports, ice and water sports are not given much attention and are considered unconventional sports because cricket is the only game which people know and love to play, due to which other sports are greatly neglected," Nasrullah Rana, director of Punjab Sports Board, told Xinhua.

"Unfortunately there are a lack of champions in Pakistan because, despite the country boasting immensely talented sportspeople, they are not given the right direction, support and encouragement."

Rana said that Pakistan is keen to tap into China's athletic and infrastructural excellence, with assistance from Chinese coaches, fitness experts and sportspeople.

"During the pandemic, many people have realized how fitness is important for human health because the people who were physically active and had a good immune system defeated the disease in a much better and quicker way than those who were leading unhealthy lifestyles," said Rana.

"I can foresee an interest for gymnastics and athletics among Pakistanis after the pandemic because during the last few months we have observed that followers of online fitness experts and athletes have greatly increased on social media."

One of the ways in which China is already helping is by offering sports-science scholarships to Pakistani students.

As a resident of a remote part of the country's eastern Punjab province, Rana Muhammad Ashraf has seen big changes in his life since beginning his scholarship at Beijing Sport University.

"I'm doing my PHD in sports science from Beijing Sport University, I did not have enough resources to support my dream of higher education in sports in Pakistan, and China gave me an opportunity to fulfill it.

"I was amazed when I joined the university because of the quality of education and vast sports labs they have in China, whereas in Pakistan we have neither of those things."

The youngster added that, thanks to his experiences in China, he now has dozens of ideas to promote sports in his hometown when he returns.

Pakistani officials have also expressed their desire to tap the potential of the CPEC.

Earlier this year, Fehmida Mirza, president of the country's sports board, said that Pakistan plans to invite Chinese sports experts to upgrade facilities before the start of the South Asian Games next year as a part of a "sports diplomacy" to bring both nations closer together.

"Through sports diplomacy, Pakistan and China can start exchange programs for athletes and coaches. These initiatives should be incorporated into CPEC Phase-II. These initiatives will further enhance people-to-people relations of both countries," she said.

Pakistan has a lot of raw talent in the field of sports, but due to a lack of patronage much of it gets wasted and fails to earn the recognition it deserves－both nationally and globally. It's hoped the CPEC can change that pattern.

Farhan Ayub, a self-taught sportsman who has broken 21 Guinness World Records in obscure categories such as helicopter spins and balloon bursting, says he is keen to perform in China to gain more exposure for his feats.

"I am from a very poor family. My father died when I was just 2 months old. I had no financial support. I supported myself, did ordinary jobs. Plus, I continued my studies and trained myself," said Ayub, who added that during a recent trip on a China-funded Orange Line metro train, the thought struck him that sports could also benefit from the CPEC cooperation.

"I am of the view that the China-Pakistan friendship is already very strong and it could get stronger," said Ayub.

"The CPEC is not just for the business community－I see it as an opportunity for sportspeople. Chinese athletes could come here and vice versa. So the CPEC could become a huge opportunity for sportspeople."

Sports in Pakistan do not enjoy the same commercial clout as they do in China. However, experts believe that the two countries could conduct a "CPEC Games" to promote sports in Pakistan and help get the country's athletes gain more recognition and financial independence.

http://www.china.org.cn/sports/2020-12/28/content_77056751.htm?f=pad&a=true

 

[OMB]

No compromise on CPEC, China ties, says FM Qureshi


ISLAMABAD: The US is conveying a message to Pakistan to cut ties with China through various means, Foreign Minister Shah Mehmood Qureshi said Friday when asked about how Washington is exerting pressure on Islamabad.

While speaking to Geo News, the foreign minister said Pakistan has its own interests and would like to strengthen ties with the US as well.

“This is not a zero-sum game and if we are a friend of China, it doesn't mean we are not friends with the US,” he said, adding that China has never asked them to break ties with the US.

When pressed on how China is actually pressuring Islamabad, he said: “No one says this directly there are ways to communicate such things through double meaning phrases," he said.

“A China containment policy is underway at the global level. China is a rising power right now and possibly can overtake the US in the next few years. So there are fears in the West," he said.

On the China-Pakistan Economic Corridor (CPEC), Qureshi said, “whether anyone likes it or not, CPEC is our need. It is our economic corridor for energy and trade. It has to reach its logical end.”

US pressure can not change Pak-China ties, says PM Imran Khan in interview with Chinese media
He said that the CPEC will move ahead at all costs and no pressure will overwhelm Pakistan.

“There are hurdles being created and that is why we have made arrangements for the security to ensure the safety of the project. There are elements that can damage it. Indian and other forces are scared of its success.”

Afghan situation
Expressing concerns over the worsening Afghan situation and Taliban’s advances towards the capital, the foreign minister said Pakistan wants peace and stability there and doesn't want to see Kabul being attacked and captured.

He also advised the Afghan government to show flexibility in its attitude and sit down with the Taliban to sort its issues.

He said that the Taliban had long been demanding the withdrawal [of foreign forces], which is underway and will be completed soon.

Qureshi noted that both the Taliban and [President] Ashraf Ghani and his fellows are Afghans and they have to decide about their own future.

As far as Pakistan is concerned, he said, Islamabad is playing a constructive role and will continue to do so. “We are neither interfering in their affairs, nor do we have any intention to get involved.”

“Pakistan has no favourite in Afghanistan and to project this perception that we are supporting one group or another is completely wrong,” he stressed.

On a question about Islamabad’s worries about the Pakistani Taliban gaining ground in areas under the influence of the Afghan Taliban, he said, “If there's a vacuum in Afghanistan, such negative forces take benefit of it and space will be available for terrorist networks. And in such a scenario, will increase our concerns.”

The top Pakistani diplomat said they are doing whatever they can and added “we have enhanced our border management with fencing and troops deployment.”

While responding to an Opposition leader’s statement that Pakistan should enhance its diplomatic outreach, Qureshi said, “We are in constant contact with regional countries and taking them into confidence. I have had discussions on the Afghan situation with Iranian, Chinese, Tajikistan and Russian foreign ministers.”

https://www.geo.tv/latest/358194-us-is-pressuring-pakistan-to-cut-china-ties-says-fm-qureshi

 

[King_Kohli]

Asad asks Shehbaz to keep CPEC out of politics

ISLAMABAD:
Minister for Planning, Development and Special Initiatives Asad Umar on Saturday asked Pakistan Muslim League-Nawaz (PML-N) President Shehbaz Sharif to keep the national project of China-Pakistan Economic Corridor (CPEC) away from his politics.

In his tweet, the planning minister said Prime Minister Imran Khan’s government was committed to taking the mega project to new heights.

“Building industrial zones, new working groups for agriculture, science & technology & information technology, significantly accelerating work on western alignment, expanding the scope of Gwadar all show PMIK[Prime Minister Imran Khan] government commitment to CPEC,” he added.

https://tribune.com.pk/story/2314569/asad-asks-shehbaz-to-keep-cpec-out-of-politics

 

[Last Monetarist]

https://www.theguardian.com/environment/2021/aug/20/water-protests-in-pakistan-erupt-against-chinas-belt-and-road-plan

Protests have erupted in Pakistan’s port city Gwadar against a severe shortage of water and electricity and threats to livelihoods blamed on the Chinese. It is part of a growing backlash against China’s multibillion-dollar belt and road projects in the country.

This week, demonstrators including fishers and other local workers blocked the roads in Gwadar, a coastal town in Balochistan. They burned tyres, chanted slogans, and shut down the city, to demand water and electricity and a stop to Chinese trawlers illegally fishing in the nearby waters and then taking the fish to China. Two people were injured when the authorities cracked down on the protesters.

“It has been more than a month, we have been protesting and rallying against the Chinese trawlers, shortage of water and electricity. The government never paid heed to our demands, and we had to observe a complete shutdown strike and we were attacked by the district administration,” said Faiz Nigori, a local political worker.

The protests were part of a growing discontent with China’s presence in Gwadar, whose port is an integral part of the China-Pakistan Economic Corridor project (CPEC), in which China has invested billions in infrastructure projects in Pakistan.

Under the project, Pakistan surrendered Gwadar port to a Chinese-backed multinational corporation for a lease of 40 years. It is part of China’s mammoth belt and road initiative, which stretches across 70 countries to give China a clear trade route from east Asia to Europe.

The Pakistan government accepted China’s investment in the hope it would help boost the country’s ailing economy. But Balochistan is home to a long-running violent insurgency, and China’s presence in Gwadar has been the cause of much social unrest and led to great anti-Chinese sentiment.

It has also given a fillip to Baloch militant insurgent groups, who have carried out terrorist attacks in protest at CPEC projects. However, there are signs that resentment at belt and road is growing across the country. Nine Chinese workers were killed last month when a vehicle laden with explosives and driven by a suicide attacker rammed a convoy heading out to work on the Dasu dam, another flagship CPEC project.

China’s ambassador to Pakistan was also targeted in a terrorist attack on his hotel in April, though he was not hurt.

China is not to blame for the power and water shortages that have plagued Gwadar in recent weeks. Balochistan is Pakistan’s most undeveloped and most neglected region, and Gwadar is not connected to the national grid. It had instead relied on power from neighbouring Iran, but that has slowed to a trickle in recent weeks. Water has also become scarce after a dam dried up.

However, locals said they had been promised that China’s investment in Gwadar would mean development for the area, including the establishment of a coal-fired power station to provide much-needed electricity.

Yet, in the years since China was granted a lease on Gwadar port, no work has begun on any such projects and instead locals say that China’s presence is undermining their livelihoods and creating local food shortages by allowing Chinese fishing boats to illegally fish in Pakistan’s waters around the port.

Nigori said that when the Chinese started developing the Gwadar port, Pakistani officials claimed that the port city would become the Singapore of Pakistan. “But today, we don’t have water, electricity and Chinese trawlers are illegally fishing at our coast. We just want our basic rights,” he said.

Mir Sher Baz Khetran, a senior research fellow at the Institute of Strategic Studies Islamabad, said such protests could prove very destabilising for China’s presence in Pakistan. “If there is no trickle-down of development projects under CPEC, it will strengthen the insurgents’ narrative of exploitation of resources of Balochistan,” he said.

Last month, Pakistan detained five Chinese trawlers on suspicion of illegal fishing not far from Gwadar port. Khudadad Waju, the president of Fisherfolk Alliance Gwadar, said it had sent a team of local fishers to examine the caught fish and they confirmed that “the fish were caught near Gwadar”.

However, Chinese authorities denied that the detained Chinese trawlers were illegally fishing and claimed instead that they were sheltering from a storm.

Akbar Askani, the minister for fisheries for the Balochistan state government, alleged that the central government, which has close ties with China, was granting Chinese vessels licences to fish in the seas around Gwadar, despite the cost to the local community.

 

[mazkhan]

There are huge issues being swept under the carpet by pak military with regards to cpec baloch and fata tribesmen .

Now india and nds are more or less gone in Afghanistan, it will be difficult for the military to play the raw narrative and say the baloch and ttp rebels are Indian agents.

 

[Major]

Slow pace of work on CPEC irks Chinese companies

ISLAMABAD: A Senate panel on Thursday expressed concern over the slow pace of development on the China-Pakistan Economic Corridor (CPEC) and dissatisfaction being expressed by the Chinese companies over the negligible progress over the past three years.

While presiding over the Senate Standing Committee on Planning and Development, its Chairman Saleem Mandviwalla said the Chinese were not satisfied with the pace of work on CPEC and no progress on the portfolio was seen during the last three years. “They are crying”, said Mr Mandviwalla, adding the “Chinese ambassador has complained to me that you have destroyed CPEC and no work was done in the past three years,” he said.

Special Assistant to the Prime Minister on CPEC Affairs Khalid Mansoor also endorsed Mr Mandviwalla saying the Chinese companies were not satisfied with the government’s institutions and their pace of work. He said he himself was not satisfied with the progress of work on Gwadar Airport and assured the panel that things were now on recovery mode.

Mr Mansoor, who recently joined the government after it removed former CPEC Authority chief Asim Saleem Bajwa, briefed the committee on the issues faced by the investors in terms of compliance with investment and agreement of CPEC – Phase 1 Power Projects. These included payment issues of independent power projects (IPPs), long outstanding overdues, establishment of revolving account for automatic payments and increase in withholding tax (WHT) on sponsors’ dividends post investment to 25pc from 7.5pc.

Adviser assures Senate panel things are now in recovery mode

He said the authorities now plan to set up a investment facilitation centre to offer One Window Operation to all Chinese investors. He said 135 Chinese companies were operating in Pakistan on CPEC and other projects and top priority was now to revive the confidence of those working on CPEC.

On the financial and physical progress of all major CPEC projects, the committee was informed that 21 projects of $15.7bn were completed. Of this, 10 were power projects of 5,320MW and HVDC transmission line amounting to $9.6bn, five infrastructure — Roads, Mass Transit and Optical Fibre amounting to $5.8bn, two projects relating to Gwadar Port and Free Zone and City Master Plan amounting to $300 million, four Social Economic Development amounting to $140m. A total of 31 projects amounting to $9.3bn are under implementation and 36 projects worth $28.4bn are under consideration.

Mr Mandviwalla expressed resentment that proposals and recommendations of the committee on various development projects at provincial and federal level were not considered by the Planning Ministry for inclusion in PSDP.

Planning Minister Asad Umar said the final approval of the PSDP projects was given by the National Economic Council (NEC). “The NEC approval is final,” he added, explaining that March 31 next year would be the last date for any project to be taken to the NEC. The committee directed that relevant sections should pre-plan for the next year so that projects required at federal and provincial levels could be sent to the planning ministry before February.

Published in Dawn, September 17th, 2021

 

[mazkhan]

Gwadar was always a failure , because it has no natural water supply or drinking water , so how can you have a functioning city and make it into a karachi , we don't have the luxury of the gcc countries to install desalination plants and burn cheap oil or gas to make seawater drinkable because its too expensive .

The whole cpec project is a folly and a massive white elephant of debt.

 

[GoUgandaCranes]

It's a bad idea to rely on another country to bring progress to your lands. Progress should be home-grown, even if it's slow; calculated, self-sustainable, and across the board distributing the fruits of progress to a major spectrum of the population if not all of it so that there is no one that's left behind.

My country has spent 70 plus years running behind the so-called superpowers of the respective era and has very little or nothing good to show for it. A steel mill that makes loss year after year, an Ojhri camp that provided a firework display of magnificence mixed with terror in the middle of the day, a C-130 loaded with mangoes among other things burning in the plains of the once-mighty River Chenab, rabid TTP/BLA/and other factions of terrorists cutting fences and putting bullets through our soldiers, men, women & kids without discrimination, and millions of people living on the footpaths piercing their veins every day as they replace their dreams with heroine shots; are just to name a few notable things that we have accrued over the past decades.

We made the country so it's an example for the world, we did become one, irony is it's an example of how not to run a country. Another overlord, another skin change, another alien language in our land; why do we think it's going to end any differently from the previous times?