Analyzing CPEC

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Peregrine
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Analyzing CPEC

Postby Peregrine » 11 Dec 2017 17:45

X Posted on the Terroristan Thread

CPEC could develop into Pakistan’s debt trap

ISLAMABAD: The Pakistani economy is going through a ‘Creative Destruction’ of sorts. Firms without value addition, global market connectivity and innovation are dying a ‘peaceful death’ or re-locating. Unemployment level remains high. The official data are not credible. There is a lack of implementation machinery for facilitating Chinese private sector’s MoUs, deals, contracts and agreements.

Only big ticket projects by state-owned enterprises are being monitored by officials. The Board of Investment (BoI) mandarins lack corporate capacity, knowledge of global best practices, legal and marketing professionalism and have only English-speaking and may be some drafting skills.

The private sector has failed to move beyond ‘family businesses’, better known by the acronym ‘seth culture’. The private sector has entrenched domestic lobbies in the economy, while the public sector confronts institutional tussles and adopts a solo flight approach. The ruling political class lacks vision, integrity and leadership, with a culture of nepotism, favouritism, and cronyism in governance.

There is also a lack of collective leadership, consensus, compromise, co-existence and teamwork among the various state organs of power along with a lack of consistency in public policies. The small intellectual elite has been either sidelined or has chosen a ‘monastic life’ disgusted to see the affairs of the state, ever since the departure of the founding father Quaid-e Azam Muhammad Ali Jinnah and the first Prime Minister Shaheed Liaquat Ali Khan.

Pakistan needs to attract Chinese private sector investors by offering additional incentives. Their investment in small and medium enterprises by way of joint ventures will bring in 90% of the investment envisaged under industrial zones or SEZs of China Pakistan Economic Corridor (CPEC). The existing policies are inadequate with Pakistan unfortunately becoming a captive market for existing monopoly investors, who blackmail the government, and an import mafia which remains keen to import anything or everything, in cohort with the concerned state institutions that destroys domestic economic activity.

An indication of this is visible as to how Pakistan’s ‘Oil Bonanza Surplus’ of $14 billion from 2013-2017 due to falling oil prices, was dissipated on increasing consumer goods imports which has sent the current account deficit to a historic high.

Pakistan’s human resources with nearly two-thirds of the population below the age of 30 years are its greatest asset. Its strategic geographical location is also a great advantage, but not the only one. Social capital is yet another with the most resilient, passionate and determined population. Natural resource endowments are another plus with eleven minerals included in top ten of the world’s reserves and an irrigation system which is the world’s second largest.

Pakistan boasts of eight climatic zones, 14 vegetation zones and four topographic zones. The country is blessed with a natural solar belt and a wind corridor. Almost half of the country sits on Shale gas reserves, which can be exploited with the availability of affordable technology. The Makran coastline is richly endowed with ‘Condensed Ice Gas hydrates’. Now the technology to harness it has become affordable and available, with the Chinese showing the way. The list can go on and on.

CPEC worth $62 billion is a flagship project of the Belt and Road Initiative. Besides energy, infrastructure, transport and Gwadar Port development, the most important component of CPEC is the development of the industrial zones, nine of which have been prioritised. These industrial zones also called special economic zones (SEZs) will house the thousands of Chinese industries and enterprises which are planning to relocate to Pakistan.

Since fiscal year 2013-2014, China’s direct investment in Pakistan has been at the top among all the foreign countries, for three consecutive years. Chinese total investment in Pakistan has reached more than $5.4 billion, making it the largest investment destination in South Asia. The hype on the CPEC is justified as long as the necessary spade work on the various details of operational, technical, administrative, fiscal, security and institutional coordination aspects are addressed.

There is a great possibility for a quantum leap in Chinese investment with the relocation of Chinese industrial enterprises to the proposed ‘Special Economic Zones’ all along the routes of CPEC. The success of CPEC investments along with reforms will transform Pakistan’s economy like never before.

Pakistanis are used to present others with surprises, whether on cricket grounds, battlefields or in geostrategic games, but the CPEC has surprised all Pakistanis. A lot of Pakistan’s intellectual elite do not know frankly as to how to react. It is obvious that for a country which has been in ‘Intensive Care Ward’ of the international financial institutions (IFIs), struggling with a billion or two of FDI, to be offered the prospects of inflow of $62 billion (still evolving), is beyond imagination. Even more difficult to comprehend, is the fact that $20 billion of Early Harvest Power Projects are already nearing completion. It is apparent that Pakistan is fast catching up with the ‘Chinese speed of growth’.

Not only China, but Russia, Central Asia, Afghanistan, Iran, Saudi Arabia, Europe and Africa are finding the CPEC as an ‘economic bonanza’ opening up ‘new growth points’ for wealth generation, in a recession-prone global economy. No wonder there is growing interest in CPEC.

However, for ensuring the full success of CPEC, there is need for adoption of an ‘Enabling Policy of Comprehensive Reforms’, in consultation with the private sector and ‘Overseas Pakistanis’ to ignite ‘Chain Reaction’ for Pakistan’s industrial potential. In this respect, Pakistan could emulate the success of China in mobilising the overseas Chinese.

The comprehensive reforms could cover good governance, agriculture, industry, energy, taxation, SEZs, SMEs, civil service, electoral, land, labour, administrative structure, higher education, foreign trade, maritime, higher education, health, environment, social sector and community development, rural industrialisation, rural credit market and banking coverage.

The resultant consequences of inaction and lethargy to enact policy reforms have been a low rate of domestic savings, tax collection, FDI and low fixed capital investment, low factor productivity, poor innovation, low level of exports, poor innovation, backward vocational and technical skills level, widespread destruction of the cottage industry and decimation of the SMEs etc. Similarly, there is an urgent need for micro-level research in universities and think tanks, on the sector wise impact of CPEC on local industry (terms of trade), environment and society.

Pakistan also needs to strengthen the professional and institutional capacities of its private and public sectors in order to fully harness the openness of the Chinese market by promoting its exports, provide a level playing field to Chinese investments, promote interoperability with China’s private sector, benefit from China’s outgoing tourism boom by mutual relaxation of visas and develop the full potential of the border land route.

Those capacities will need to be created, which the ‘Macaulay’s system of education’ has not allowed to be developed in the colonial slave societies. The most important of these is the capacity to think, research and innovate. There is also the need for revival of Pakistani social capital, our age old soft power values and work ethics to enhance the ‘Total Factor Productivity’, learning from Global Best Practices and success stories including China.

CPEC is a means to an end which ultimately is the economic take off of Pakistan. CPEC will become only ‘supply side economics’ without policy reforms, and will be unable to trigger the ‘economic take off’. There is an absence of ‘soft infrastructure’, which increases the cost of doing business. It is important that Pakistan’s think tanks, research bodies and policy-making institutions begin in earnest, identifying, conceptualising and drafting a series of ‘policy reform packages’ in every sector of society and economy, for submission to the parliament for priority enactment and executive agencies for speedy implementation.

If it does not, without timely wide-ranging comprehensive policy reforms, CPEC could develop into a debt trap. Time is of essence to avoid subsequent anarchy and chaos which can mutate into a ‘colour revolution’ of sorts. Precious time has been already lost. There exists now only a narrow time space between 2017-2020 to conceptualise, enact and implement the first phase of policy reforms, in order to realise the full potential of the economy. Those holding back reforms are in fact aiding Pakistan’s return to the IMF with unpredictable consequences.

Once, China’s Premier Zhou Enlai was asked about his views on the ‘French Revolution’. He responded by saying that it was ‘too early to comment’. Pakistan is among the best blessed and placed societies in the world. Pakistan only needs to develop a sound political system through wide-ranging electoral reforms, creating a filtering mechanism to ensure integrity, merit, rule of law and justice.

Pakistan has the potential to emulate China’s success in less than two decades, if it can adopt wide-ranging policies and reforms under a collective leadership. The CPEC puts Pakistan at the ‘epicentre’ of a historic global transformation. Pakistan, however, needs a reformer, statesman and visionary like Deng Xiaoping, Lee Kuan Yew or Mahatir Mohammad, to make it happen. The 200 million people of Pakistan must have them.

The writer was Pakistan’s Ambassador to Germany, Singapore and Mauritius. He spent a decade in China and is an author of several books. He is currently the Director of Chinese Studies Centre in National University of Science and Technology, Islamabad

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anupmisra
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Re: Analyzing CPEC

Postby anupmisra » 11 Dec 2017 18:57

Let the :(( :(( :(( begin!!

Pakistanis open hearts for Chinese while Beijing keeps its doors locked
Just like the Yindoos, chinis have a small heart.

The South Asian country is keeping its door open to its brothers-in-business, the Chinese, :D and it is changing the face of the nation.
A growing number of Chinese nationals are coming to Pakistan in the wake of the China-Pakistan Economic Corridor (CPEC).Roughly
Despite all-weather friendly relations between the two countries which recently took a tandem flight of development under China’s Belt & Road initiative, Pakistanis don’t enjoy the same privilege in getting Chinese visa as easier as their northern neighbours do.
As Pakistanis are welcoming their neighbours with open hearts, a common notion prevails that the feelings are not mutual and the Chinese are only interested in exploiting Pakistan’s business potential to boost dwindling domestic growth while serving Beijing’s ambitious plans.
Pakistan’s business community are now voicing their concerns about visas for China becoming increasingly difficult to get. Moreover, even when they are granted, the validity period is seldom more than three months, and they are for single entry only.
It felt like I was going to India 8) , Pakistan’s arch-rival
We have to wait for hours to get our documents processed.
Chinese nationals seeking business visas are required to present only an invitation from a recognised body at any of Pakistan’s missions in China.
Besides this, he added, the duration of stay allowed for Pakistani nationals is significantly shorter than that of Chinese nationals.
He also highlighted the ease with which Chinese nationals can get visa – a photocopy or email is enough as proof of invitation – while, on the other hand, Pakistani nationals have to submit all the original documents to the Foreign ministry for visa processing.
However, Pakistan is a nation of more than 220 million people, and not all of the businesses are associated with the CPEC yet many of them are planning to explore Chinese markets despite all the hassles.
But, currently first-time visitors to China are paying Rs120,000to Rs250,000 to travel agents while the regular visitor to China hands over Rs35,000-40,000 for smooth application processing.
Also, for the last two years, the Chinese government has been asking for a police character certificate for first-time visa applicants as well as those who have not visited for the last two years.
Earlier this year, Pakistan tightened the relaxed visa regime to regulate the process of issuing visas to Chinese citizens visiting Pakistan on business or work-related visas.

However, showing due diligence, in June, the interior ministry decided to discourage long-term visa extensions for Chinese citizens.
Pakistani citizens are now demanding Beijing should value its neigbours equally, especially those who intend to learn the culture and explore the Chinese markets.




https://en.dailypakistan.com.pk/opinion ... rs-locked/

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Re: Analyzing CPEC

Postby panduranghari » 11 Dec 2017 19:19

chola wrote:We need a Chanakyan strategy to benefit from the reptile’s schemes if this thing moves forward. And right now the avalanche of chini money has a momentum of its own.


Perhaps. I posit they cannot run internal expansionary policy and also fund external fiscal policy simultaneously. One has to be chosen over the other. Restive population leads to revolutions. China does not want a bloody revolution.

TL Tsim is a big businessman from HK who has studied politics in China and as he is of Chinese heritage he knows a thing or two.

TL Tsim wrote: People also underestimate the length of the civil wars between Chinese dynasties, which can last for 150 years, he adds.

“That is something most Chinese people do not understand. And it has a bearing on the way we go forward,” Tsim said. “In spite of all of the intelligence, the learning, and the experience of the Chinese people over 5,000 years, they have not come up with a system of government which can deal with the effective and peaceful transfer of power. In the West, you do it through the ballot box. So Brexit is Brexit. You accept it. But in China, the fight goes on.


Xi also wants to be relected in 2022. He will want a booming economy in 2020-21. He will have to accept internal contraction to balance books. He will use surplus to fund his own BRI. But there is no certainty that will happen. There is no avalanche of chinese money. The Chinese pulling out the CPEC area infrastructure could also be due to paucity of funds. Their Pockets are not perpetually deep.

Peregrine
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Analyzing CPEC

Postby Peregrine » 12 Dec 2017 20:13

X Posted on the Terroristan Thread

CPEC delay a setback or ‘operational hiccup’?

The lack of adequate information on the outcome of the crucial 7th Joint Cooperation Committee (JCC) on China Pakistan Economic Corridor (CPEC) held in Islamabad last month has triggered speculations about the future of a number of proposed large transport and infrastructure projects.

The way details of the negotiations between the two countries on the future shape of bilateral cooperation around the Corridor initiative has trickled out has led many to conclude that China is probably backing out of its earlier commitments to finance and implement schemes direly needed by Pakistan.

The delays, for example, in the finalisation of the plan to upgrade Peshawar-Karachi railway line (ML1 or Main Line 1) and (Chinese) financing for three road development projects have widely been construed as ‘major setbacks’ for bilateral economic and financial collaboration around the trade route that will connect Western China with the Middle East, Africa and Europe via Gwadar port.

Pakistan’s rejection of the Chinese conditions for constructing the Diamer-Bhasha hydropower project and Beijing’s request to use yuan as ‘official currency’ in Gwadar further ‘strengthened’ this perception.

But does the ‘development’ on these projects — or lack of it — signify a setback for the future of economic cooperation between Beijing and Islamabad? Or does it merely represent operational hiccups as the Corridor project moves into a new phase?

With little information flowing out of the JCC meeting, according to Hasaan Khawar, a researcher who has done extensive work on the Corridor initiative, the interpretation of its ‘outcomes revealed so far’ can be very subjective in nature.

He is of the view that the agreement on framework for future bilateral cooperation under the Long Term Plan (2014-2030) in the spheres of industry, agriculture, tourism and finance is a major breakthrough. “Now the cooperation between the two countries is going to move beyond connectivity and energy projects.”

He also does not agree with suggestions that the delays in road development and railway line up-gradation projects meant a reduction in China’s interests in them. “I don’t think that China is backing out (as some commentators have since suggested).”

Beijing is just trying to be a little cautious because of (volatile) political conditions here, pausing for a moment as CPEC enters its next phase. Moreover, it does not have unlimited funds and would want to invest in projects and places where it can get better results.

China is probably focusing on implementation of the projects that are already in the pipeline rather than adding more to the wish list.

The total size of CPEC-related investments is said to have crossed $30bn with the overall commitments exceeding $60bn. Apart from some road projects, all other projects are being financed by commercial and concessional Chinese loans. But the government is yet to come clean on the break-up of the Chinese investment pledges in terms of financial arrangements — debt, investment, grants, etc.

Last week the IMF was reported to have conveyed to Islamabad that repayments on account of CPEC-related investments will peak after seven years and reach $3.5bn to $4.5bn a year. The IMF estimates the CPEC-related outflow’s impact on Pakistan to grow from 0.1pc in 2019 to 1.6pc of GDP (gross domestic product) a year by 2024.

Background telephonic interviews with two senior officials at the Planning Commission of Pakistan show that the government is not worried about the delays in the rail and road projects.

“Let me clarify one thing. It wasn’t China that backed out of $14bn Diamer-Bhasha hydropower project. Islamabad pulled out of the deal because of the conditions involved. That is not a setback at all. We are still negotiating the dam outside CPEC but personally I don’t think any Chinese firm will take it unless we agree to their conditions,” one of the two officials explains.

“As far as railway projects are concerned we need to work more on their feasibility. It is incorrect to assume that China has lost its interest in those projects. We just need to work more on different technical and financial aspects before we take these up with the Chinese authorities on balanced terms. You must remember that large projects like $8.2bn ML1 take years before these enter the execution stage.”

The other official argues that the ‘setbacks’ to CPEC as referred by some commentators are no more than operational hiccups and manifestation of an “evolving relationship between the two countries around the Corridor project”.

“Instead of letting early harvest projects set a time benchmark for future investments, we should now focus on commercial sustainability of the projects in the pipeline. We don’t want to go for a commercially unviable project only because it looks good.”

In his opinion, it is time for both the countries to “get out of the project mode and implement the long-term plan to deepen economic partnership. If Pakistan wants to benefit from this new trade route, we should use this connectivity for enhanced bilateral cooperation in industrial and agriculture sectors for transfer of technology and knowledge.”

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Re: Analyzing CPEC

Postby Falijee » 12 Dec 2017 20:49

x posted

CPEC : Hiccups And Indigestion :roll:

Work on three CPEC projects halted till China’s approval, says planning minister
Updated December 12, 2017

ISLAMABAD: China has halted the release of funds for three projects under the China-Pakistan Economic Corridor (CPEC) till the revision of its ‘financial mechanism’ by Beijing, Minister for Planning and Develop­ment Ahsan Iqbal confirmed on Monday.According to an official press release issued by National Assembly Secretariat, the minister informed the 25th parliamentary committee meeting on CPEC that the Chinese side was reviewing the financial mechanism of these projects and work on them would restart after receiving approval from Beijing.Mr Iqbal could not convince the committee members as to why the Chinese government had opted for a new financial mechanism and scrapped the previous one which was agreed upon by both countries. One more indicator of the Chini-fication of Pakistan :D . The master ( China ) determines the terms and conditions . The servant ( Pakistan ) has to comply :twisted:
It was reported that China had temporarily stopped funding some projects, particularly those related to the road network under CPEC, till a further decision on ‘new guidelines’ by Beijing. Earlier "rumours" confirmed !
When contacted, Pakistan Tehreek-i-Insaf (PTI) leader Asad Umar, who is also a member of the parliamentary committee, said he had raised the issue of suspension of Chinese funds at the meeting, which was chaired by Senator Mushahid Hussain Syed.The members, he said, were informed that China was revising the infrastructure projects under its “financial review”. China orders ! Pakistan complies ! US orders ! Pakistan salutes! Saudis deport Pakis ! Pakis stay mum !
Another member of the committee, Al-Haj Gul Khan Afridi, said they were told that China had not stopped financing the CPEC projects but raised some ‘technical objections’ to three NHA road projects. A team of Chinese experts would arrive in the country soon to inspect the three NHA projects, he added. Soften the blow :roll: . The Chinis are not that easily fooled (with fictitious invoices :D ) as the Amreekis
However, a senior NHA official rejected the government claim that work on the three road projects of the authority had been halted on technical grounds. “It is not true that China raised objections to the projects because these had already been approved at the 6th Joint Cooperation Committee (JCC) meeting held last year,” he said. Wonder if the Paki fauj is somehow involved in this shenanigans . Have they siphoned off some funds and the Chinis are smelling something :mrgreen:
Ahsan Iqbal informed the committee that the Karachi Circular Railway project had been approved for CPEC, while similar projects for Quetta and Peshawar would be reviewed in accordance with the technical feasibility reports. So, the CPEC is not a "gravy train" as many Pakis thought it would be :mrgreen:

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Re: Analyzing CPEC

Postby Falijee » 13 Dec 2017 03:45

X Posted

Further Proof Of Chini-fication. It Is China Who Determines What Should Be Prioritized "Into" CPEC , Not Pakistan :mrgreen:

China does not prefer Hattar over Rashakai as priority Special Economic Zone: ministry

ISLAMABAD: The Ministry of Planning, Development and Reforms on Tuesday clarified that the propaganda that China prefers Hattar over Rashakai as priority Special Economic Zone is absolutely untrue and the speculations in this regard are out of context and one-sided.
A spokesman for the ministry, Asim Khan, said that the Rashakai Economic Zone site has been identified by the Khyber Pakhtunkhwa government as priority location, approved for inclusion in CPEC by 6th Joint Cooperation Committee held on Dec 29, 2016 in Beijing.
He said that the zone site has been preferred by the KP government due to its location on M-1-Peshawar to Karachi Motorway which under CPEC Transport Plan is part of Western and Eastern, both the corridors. The impression that all falls on Western route is incorrect, he stressed. All the Paki Provinces are 400% itching to jump on the CPEC bandwagon ( IMO, one of these days the "bandwagon" is going to crash because of overloading !) but it is the master ( China ) who determines the rules and not the servant (Pakistan ) or the servant's servant ( Paki Provinces ). That is being made clear through this so-called clarification :mrgreen:

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Re: Analyzing CPEC

Postby anupmisra » 13 Dec 2017 10:06

CPEC long-term plan to be made public on Dec 18: Ahsan Iqbal

Minister for Planning and Development Ahsan Iqbal has announced that the long-term plan (LTP) for the China-Pakistan Econo­mic Corridor (CPEC) that was signed on Nov 21 will be made public on Dec 18.
he emphasised how the CPEC is a “game-changer” for Pakistan
There are around three billion people living in this region and 25 per cent GDP, which the CPEC will be in a position to connect.”
He pointed out that 85 million jobs are going to be relocated out of China to developing countries due to rising labour costs there, and Pakistan must make every effort to capture as large a share of these as possible.


https://www.dawn.com/news/1376344/cpec- ... hsan-iqbal

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Re: Analyzing CPEC

Postby arun » 13 Dec 2017 10:14

The Mohammadden Terrorism Fomenting Islamic Republic of Pakistan continues to have its snout rubbed in the fact that as far as Higher than Himalaya’s, Deeper than Indian Ocean, Sweeter than Honey, As Close as Lips to Teeth, Stronger than Steel Iron Brother the Peoples of China is concerned, the China Pakistan Economic Corridor aka CPEC more correctly stands for Colonization of Pakistan for the Enrichment of China:

In CPEC talks, Chinese drive a hard bargain with Pakistan

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Re: Analyzing CPEC

Postby chola » 13 Dec 2017 15:59

Can’t think of a more deserving nation for colonization. Conversely, I can think of a better morsel of hell for Cheen to try to swallow than that jihadi-infested disease ridden shithole. It’s like gulping down a maggot-infested piece of dog vomit smeared with pig feces. Good luck not getting sick trying to eat that chit.

OBOR might be a strategic threat. CPEC? Can’t happen to a better couple.

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Re: Analyzing CPEC

Postby Austin » 13 Dec 2017 17:44

The US suspects China of trying to create its own economic order

https://ria.ru/economy/20171213/1510787236.html
WASHINGTON, Dec 13 - RIA Novosti, Ekaterina Sobol. The US suspects China of trying to build its economic world order bypassing international rules, US Secretary of State Rex Tillerson said in a speech at the Atlantic Council in Washington.

"China's policy -" one belt - one way "is a continuation of its economic development.Our policy is not to try to hinder China's economic development, but China's economic development in our understanding should work in the system of international economic norms, and" one belt is one way " seems to be trying to find its own rules and norms, "Tillerson said, commenting on China's creation of the Silk Road.

He added: "All countries in the region should have equal access to free trade."

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Re: Analyzing CPEC

Postby ArjunPandit » 13 Dec 2017 22:32

in some sense it may be better for india that han takes over pakistan
1. would cause significant strife in pakistan diverting attention/resources of pa & plaf
2. han would also have fun with terrorism
3. hans at the end of day are not cimalsi terrorists,
4. It will be easier to handle our own leftist/liberals in that case
5. The fire on our musharrafs might pull us out of slumber

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Re: Analyzing CPEC

Postby Vips » 14 Dec 2017 19:56

In CPEC talks, Chinese drive a hard bargain with Pakistan.

Pakistan appea­red to have been pushed hard by the Chinese side to give in more than it secured in return during the recently held 7th joint cooperation committee (JCC) meeting of the China-Pakistan Economic Corridor (CPEC). :rotfl:

This is evident from the minutes of the 7th meeting on a series of issues including revision in the completion deadlines of the energy projects, the Main Line-1 project and early activation of revolving fund in 30 days for payments to Chinese sponsors.

The JCC agreed that Pakistan’s agencies in power sector and Chinese project sponsors should sign the supplemental agreements at the earliest and decided that “Pakistani side will address timely payment of electricity charge in power projects under CPEC as soon as possible”.

In accordance with the governmental agreement on energy cooperation between the two sides, a revolving bank account should be created within 30 days after commercial operation date of the CPEC energy projects.

The two sides noted that some energy projects under CPEC had very tight construction schedules and agreed to urge the financial close and construction of relevant projects as soon as possible. It was also agreed to “make reasonable arrangement of the extension in financial close and construction through friendly negotiations” (more vaseline for paki momins) within the Power Generation Policy 2015 framework.

China also demanded Pakistan not to adopt differential electricity charge policies towards CPEC power projects designed and constructed to Chinese standards, technologies and equipment. Pakistan will respond later.

On the railway side, the speed on the ML-1 has now been reduced to 160 kilomtres per hours from originally conceived speed of 260km per hour (Pakistani bullet train dreams go kaput) . It was reported that both sides have reached agreements on making fast track arrangements for completing all related task for ML-I implementation in a timely manner. The Chinese side did not immediately accept Pakistan’s demand for easing financial terms for the ML-1 project.

Given the strategic importance of ML-I project, both sides jointly decided that financing arrangement would be made proactively and work on ground could be started early. “Pakistan side proposed that financing arrangement for the project may have favorable terms and condition which Chinese side agreed to consider in financial negotiations (Yeah sure, will offer finance at 6.75% instead of 7%) ”. It was agreed that work on Phase-I of ML1 Project would be started early 2018, and all requisite arrangement including preliminary design review, signing commercial contract, etc. would be completed through proactive approach in a timely manner.


The JCC expressed satisfaction on the progress of 300mw coal fired project at Gwadar. The Chinese proposed to replace its company for the coal power project and Pakistan agreed to make amendments but demanded that Chinese should deposit funds for the land acquisition while promising to ensure seamless security arrangements. ( Pakistan will be glorified Chowkidar's rendering service for money that will never come)

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Analyzing CPEC

Postby Peregrine » 15 Dec 2017 03:21

Can Pakistan pay CPEC loans?

You are Pakistan. You make textiles. Meanwhile, Country X grows avocadoes. If you sell Country X textiles worth Rs1,000, but buy avocadoes worth Rs1,500, you will have a Rs500 trade deficit. This is not necessarily a bad thing. Without trade deficits, the world market would not be able to function. Deficits only become an issue when you sell barely any textiles but still buy a lot of avocadoes again and again.

Let’s say a friend of yours sees this chronic deficit problem you have and lends you some money because they are afraid if you default on all of your payments then you might get angry. Let’s call this friend the IMF. You might be a little upset that the IMF has put you on a list with Afghanistan, Sierra Leone, Greece and 37 other countries that require these ‘bailouts’. But at least you never made a decision as fiscally cancerous as, say Britain did via its inane Brexit.

Your situation is dire, so you swallow your pride and accept the money (a dozen times since 1988). In return, you are told to start making strides to resolve your spending habits by hitting a few metrics that they get to assign you. For example: they do not like the way your currency is overvalued by about 20% via a managed float regime. A managed float regime (or dirty float) is a complex bit of high finance jargon which describes a system of economic management where Ishaq Dar yells at enough people so that, economically, things look good. Reality only comes knocking post-election cycle when the duct-tape starts peeling.

What could go wrong with someone being lent money? It is not as if the IMF consists of nation-states that are drowning in debt themselves. It is not as if the IMF’s largest contributor by far, the United States, has a Federal Reserve System chairman who recently expressed an intense anxiety over its $20 trillion national debt. It is not as if the said nation is now run by a man whose race-baiting antics bounce wildly around the walls of the White House, sending its staffers into panic attacks galore. Sad! All this to say that the plug could be pulled on future loans for a great number of reasons. Who is going to bail you out then?

Enter China. What principle does China adhere to more than ‘love your neighbour as yourself (apart from India)’? China likes you. You are like the little brother that Hong Kong never was. China even agrees to build you a nice corridor. An economic corridor! That sounds like exactly the kind of thing that makes money.

But the math on CPEC is grim. About 65% of the early project loans (some $28 billion) are not on the same terms as those provided by the IMF. They have a roughly 7% interest rate attached. If you think you may somehow manage paying back $28 billion, then I regret to inform you that a little less than $40 billion more at similar rates are on the way. You are the nation-state equivalent of an overdrawn credit card and, over the last decade, the Chinese have shown that they are as skilled at debt-collection as they are at power-plant construction. Monetary compensation is optional since surrendering small chunks of sovereignty is payment enough. Just ask Sri Lanka. You may be reminded of sunny days when the IMF never really bothered you when you could not make payments. They chide your lack of structural reform and how obvious your tactics to enact superficial actions are, but they are so used to disappointment that they just ask you to try your best next time. They point out that at least you did not abandon the eurozone in a fit of petulant, populist protectionism like, say, Britain did via its ridiculous Brexit.

As we head towards further rupee volatility, we need to have transparent checks and balances in place that can prevent finance ministers from artificially propping up the currency by pressuring the State Bank and others.

As another IMF, eurozone, and/or the World Bank bailout looks less likely than ever before, we need to create some degree of meaningful, long-lasting economic reform via a series of ambitious but necessary measures. They include wiping out the obvious corruption in our stock exchanges and corporations to promote Capital Asset Pricing Model investments, setting ablaze any and all rent-seeking subsidies (which would be most of them), and dismantling state-owned corporations. That would be a start.

As our nation continually accepts high-interest rate commercial loans from the Chinese, we should create an independent and objective third party that is able to not only track every aspect of the CPEC deal, but also keep the citizens informed of its details in layman terms. The government has done a poor job of promoting the transparency of the process, although they have fought off the yuan’s encroach into Gwadar… for now.

The Pakistani economy is not beyond saving — because it never did anything as foolish as, say Britain did via its mad Brexit. It is not even in dire straits. But without proper drainage, its worst elements will continue to eat its most promising ones.

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Analyzing CPEC

Postby Peregrine » 15 Dec 2017 03:37

Time for a reality check - THE EXPRESS TRIBUNE - OPINION - EDITORIAL]

It is worth standing back from the fulsome political rhetoric that surrounds the China-Pakistan Economic Corridor (CPEC) and consider what China is actually doing and what it wants — expects — from Pakistan. Firstly, it must be understood that CPEC is but a part of a much larger Chinese global project, One Belt One Road (OBOR) that stretches from central Africa through Pakistan and up into the Central Asian states. The OBOR project is not just about creating and sustaining a market for Chinese goods and services it is about creating a modern hegemony, a vast swathe of power and influence that stretches decades hence. As America retreats so China moves to filling in the blanks. Pakistan is a key part of that but pragmatic and ruthless as they are the Chinese will want Pakistan as a part of OBOR — but on their terms.

Thus it is no surprise to learn that the Chinese pushed hard at Pakistan to give more than it secured in return at the most recent high-level meeting between the two sides. It was the 7th time the Joint Cooperation Committee (JCC) had met and the going got tough for Pakistan. The Chinese want a revision of deadlines in completion dates for energy projects, the Main-Line-1 railway project which is the lynchpin of CPEC linking Karachi to Peshawar, and the timely payment by Pakistan to Chinese sponsors.

In these areas alone cultures potentially clash. Pakistan has never in its existence been a timely payer for anything. The two countries and cultures are vastly different in their understanding and practice of work ethics, particularly relating to the timely completion of any project large or small, because the Pakistani minute as a unit of time is 30 seconds longer than the standard Chinese minute. CPEC is invariably spoken of as a game changer for Pakistan and we have no doubt about that — but only if it is completed and operated to Chinese timetables and standards, and if it is not then the Chinese are not above considering where else they are going to put their money, cutting their losses and walking away. Game over. Think carefully.

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Re: Analyzing CPEC

Postby Prem » 20 Dec 2017 04:03

China Pakjab Excrenomic Corridor : From occupied Kashmir to Occupied Balochistan

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Re: Analyzing CPEC

Postby Falijee » 20 Dec 2017 07:08

Water For "Thirsty Gwadar"

All set to inaugurate 5 million gallon desalination plant in Gwadar

Under China Pakistan Economic Corridor (CPEC), a 5 million gallon desalination plant has been established in Gwadar to supply water to the residents of the area. Water will be supplied at a price of 80 paisa per gallon to the residents of Gwadar. According to the head of China Port Holding, the inauguration of the plant will take place on 1st January 2018 after which people of Gwadar would be able to easily access clean drinking water. First remains to be seen if the deadline holds. Secondly, will the Aam Abduls afford to pay such price !

The 2 minute video promo on Gwadar proudly announces that at present 2000 Chinese in Gwadar . By 2023, the figure is expected to rise to 500,000 ! Lots of other interesting details as well !

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Re: Analyzing CPEC

Postby anupmisra » 20 Dec 2017 17:04

Falijee wrote:Water For "Thirsty Gwadar"

All set to inaugurate 5 million gallon desalination plant in Gwadar

The 2 minute video promo on Gwadar proudly announces that at present 2000 Chinese in Gwadar . By 2023, the figure is expected to rise to 500,000 !


500,000 chinis X 20 liters per day per capita (per WHO) X 0.264172 gallons in a liter = 2.64 million gallons of drinking water per day needed for the projected half million chini comrades (a priority, of course) in g'wad'r. Less than half will be sold @ PKR 0.80 per gallon generating a revenue of PKR 688 Million per year or $6.2 Million per year (assuming all the remaining drinking water is sold to the locals).

Not a bad deal (a win-win deal for the chinis). Free water on free land, free access to seas off the paki coast, a 6% income stream for the chinis (if it is a $100 Million project) and employment for 500,000 comrades.

And, to top it, if the poor baloch are unable to pay for this, more water for the chinis to water their gardens.

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Re: Analyzing CPEC

Postby Aditya_V » 20 Dec 2017 17:34

Per person per capita consumption will be 100 liters water- toilet, bathing, washing dishes, cleaning floors, tables, washing clothes, bedsheets plus water for cooking and drinking.

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Re: Analyzing CPEC

Postby anupmisra » 20 Dec 2017 17:58

Aditya_V wrote:Per person per capita consumption will be 100 liters water- toilet, bathing, washing dishes, cleaning floors, tables, washing clothes, bedsheets plus water for cooking and drinking.


WHO standards are leaner. In either case, pakis will be paying for it.

http://www.who.int/water_sanitation_hea ... es_qa5/en/

What is the minimum quantity of water needed?

Based on estimates of requirements of lactating women who engage in moderate physical activity in above-average temperatures, a minimum of 7.5 litres per capita per day will meet the requirements of most people under most conditions. This water needs to be of a quality that represents a tolerable level of risk. However, in an emergency situation, a minimum of 15 litres is required. A higher quantity of about 20 litres per capita per day should be assured to take care of basic hygiene needs and basic food hygiene. Laundry/bathing might require higher amounts unless carried out at source.

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Re: Analyzing CPEC

Postby Aditya_V » 20 Dec 2017 18:10

Yes, but if 500K Chinese are living, they will need laundry bathing in addition to 20 liters for basic food Hygiene.

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Re: Analyzing CPEC

Postby Aditya_V » 20 Dec 2017 18:15

I think Pakistan needs to focus on 3 industries to grow

1. Wood- using their surplus manpower they must cut all the trees and export wood.
2. Beef and leather- the Indus basin is perfect for leather, they must create tanneries, they must focus on lives stock and not waste land for grain, vegetable and fruit production.
3. They must use land for raw mining, i.e any mountain Hill can cut down for granite/marble - foreign manpower can do this- Pakistan can get royalties. SImilair coal can be dug. Sand also must be exported, no land should be left as it is.

Other than these 3 no other induystry should be there- weapons/ ammunition/ bullets should be strictly imported. This can make the country Islamic and prosperous.

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Re: Analyzing CPEC

Postby Peregrine » 20 Dec 2017 19:11

Aditya_V wrote:Yes, but if 500K Chinese are living, they will need laundry bathing in addition to 20 liters for basic food Hygiene.
Aditya V Ji :

The Chinese can "Do as the Natives Do" i.e. Have a Bath Dur Roz Jumay Kay Jumay - Jumay Kay Jumay!

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Analyzing CPEC

Postby Peregrine » 20 Dec 2017 19:24

CPEC: the long-term plan

Despite political events in the country created by some narrow vested interests, the 7th Joint Coordination Committee (JCC) meeting on CPEC was successfully held on November 21, 2017 in Islamabad.

Our Chinese counterparts showed complete resolve and commitment to successfully complete all CPEC projects in a timely manner. The 7th JCC also officially approved the Long Term Plan (LTP) of CPEC. It is a standard practice around the world that a bilateral agreement cannot be made public unless it is approved by both parties. But unfortunately some cynics in the media tried to generate unnecessary controversy by publishing an incorrect version of LTP. As we promised, we have released the LTP for the public and the media.

The development of any country is based on its industrialisation process. The qualitative difference between the developed and the developing countries is the difference in their degree of industrialisation. Where developed countries have now entered a post-industrial age, developing countries are still struggling to complete their industrialisation process and modernise their economy. The PML-N has believed in and consistently strived for industrialisation of Pakistan. In light of this vision, the PML-N government initiated work on CPEC immediately after coming into power. CPEC has assumed worldwide attention due to its significant contribution towards removing energy and infrastructure growth bottlenecks from Pakistan’s economy. It provides Pakistan a great opportunity to leapfrog to expedite the processes of industrialisation.

The LTP provides a conceptual framework for CPEC up to 2030; it also gives a framework for the industrialisation of Pakistan. To finalise the LTP, the government of Pakistan consulted provinces, federal ministries and their respective technical groups. The plan is completely in line with the seven pillars of ‘Pakistan Vision 2025’; these pillars are founded on the economic principles of inclusive and sustainable development. The seven salient feature of the LTP are connectivity, energy, trade and industrial parks, agricultural development and poverty alleviation, tourism, cooperation in areas concerning people’s livelihood and non-governmental exchanges and financial cooperation. The spirit of the LTP is best captured in the following statement, “...CPEC will greatly speed up the industrialisation and urbanisation process in Pakistan and help it grow into a highly inclusive, globally competitive and prosperous country capable of providing high-quality life to its citizens.”

I will briefly discuss some of the salient features of CPEC’s long-term plan to illustrate its central role in the industrialisation of Pakistan.

Connectivity is the cornerstone of development. It increases the flow of goods, information and people across regions. That is why an integrated transport system is central to the LTP. It includes the construction and development of Kashgar-Islamabad, Peshawar-Islamabad-Karachi, D I Khan-Hakla, Sukkur-Gwadar Port and Dera Ismail Khan-Quetta-Sohrab-Gwadar road infrastructure to improve inter/intra-connectivity in Pakistan and China. The development of Gwadar Port city, Gwadar airport and Easy Bay expressway are going to transform the city of Gwadar into a maritime trade hub and a new smart port city of the region. It will also lead to the industrialisation of Balochistan.

Information technology is critical for development. In this regard, we have laid a cross-border optical fibre cable between Pakistan and China, and agreed to cooperate in promoting technologies of the fourth industrial revolution in Pakistan.

In the energy sector, both countries will enhance cooperation in the fields of oil and gas, electricity and power grids. The focus is on thermal power, hydropower, coal gasification and renewable power generation and modernising power transmission networks. CPEC has already addressed the major energy bottleneck in Pakistan. Almost over half of the 10,000 MW energy added recently to the national grid comes from CPEC.

To build the industrial base of the country, new industrial parks/ special economic zones (SEZs) will be built all over the country. Both countries will cooperate to improve efficiency in the textile and garment industries, both of which are the backbone of Pakistan’s export sector. Engineering-based industries will also be developed in Pakistan.

No country has successfully industrialised without modernising its agricultural sector. CPEC will allow us to modernise agriculture through the introduction of new technologies such as biological breeding, drip irrigation etc. The emphasis is to improve incomes of small farmers by increasing their productivity and efficiency.

Coastal tourism can be a new niche for Pakistan. CPEC will allow us to build coastal leisure and vacationing centres across the Keti-Bander-Karachi, Sonmiani-Ormara, Jhal Jhao, Gwadar and Jiwani routes. CPEC is about cooperation at all levels between both countries, including non-government organisations and people-to-people interactions. For cross-fertilisation of ideas and cultures, exchange of students, tourists and academics will be an integral component of the corridor.

Pakistan and China will be enhancing monetary cooperation between their central banks. Both countries agree on bilateral currency swap arrangements and would prefer making payments in RMB and rupees regarding CPEC projects rather than any third-party currency.

According to the LTP, the implementation of CPEC will take place in three phases, with clear goals. In the first phase, that is – by 2020 – the major bottlenecks in Pakistan’s socio-economic development will be completely addressed and “CPEC shall start to boost the economic growth along it for both countries” (LTP document, p 10).

The second phase will be done by 2025, all the infrastructure of CPEC will be ready and all industrial projects will have been completed. As a result, CPEC will have a major impact on the livelihoods of people living along the corridor. The goals of Vision 2025 will be achieved and there will be more balanced regional economic development.

The third phase of the LTP will mature by 2030. The endogenous mechanisms for indigenous inclusive and sustainable economic growth will be in place in Pakistan. As per the LTP: “CPEC’s role in stimulating economic growth in Central Asia and South Asia [will be] brought into holistic play, and South Asia shall grow into an international economic zone with global influence”.

Pakistan is a democratic country where provincial governments are not just autonomous, but are also led by different political parties which are staunch opponents of each other. The federal government and all provincial governments are united in making the LTP and CPEC a game-changer for Pakistan.

Pakistan is a country full of promise and potential but due to strategic mistakes in the past we haven’t realised our true development potential. The PML-N government is committed to prioritising the economic interests of the country by engaging in the geo-economics – instead of geo politics – of the region through CPEC.

CPEC is a major step taken by Pakistan to transform itself as an economic nation and become hub of trade, commerce and manufacturing in the region. Without industrialisation we cannot resolve many of our socio-economic problems and CPEC is our opportunity to become an industrialised country. The sustainability of this qualitative shift mandates the collective support of all national stakeholders, including the media, to turn this dream project of Pak-China friendship into an everlasting joint enterprise for shared destiny and prosperity.

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Re: Analyzing CPEC

Postby Prem » 21 Dec 2017 06:13

It will be fun to watch 500k Chinamen living with their Porks without their favorite Pork simultaneously . It wont take long before some good folks start earning good money by throwing the pork blood and meat on Jummah gathering.

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Re: Analyzing CPEC

Postby deejay » 21 Dec 2017 09:53

There were 02 desalination plants planned for Gwadar. This is the first. Water was one of the biggest challenges at Gwadar. The Chinis have overcome this to some extent.

A step closer to a full fledged PLAN base. CPEC needs to be cut. Either Balochistan goes out of their hand or POK. Preferably both. I believe, POK is easier.

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Re: Analyzing CPEC

Postby Aditya_V » 21 Dec 2017 10:06

Water is a key requirement for human activity. Desalination plants can provide only a limited supply, ships coming to port need fresh water supply along with cleaning etc. Plus Paki population in Gwadar will require water. I think after some time Chinese will cut off water supply to Pakis in Gwadar and keep the water for themselves from their Desalination plant

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Re: Analyzing CPEC

Postby Manish_P » 21 Dec 2017 13:04

Dawn Link - Chinese engineer goes missing in Kahuta

A Chinese engineer went missing on Wednesday while working on a tunnel linked to a river for the Karot power project in Kahuta.

Police, intelligence officials and special protection unit (SPU) personnel have launched a search operation in and around the camp where the workers live to find 36-year-old Pingzhi Liu, who is suspected to have been swept away by the river.

However, the police did not rule out the possibility of kidnapping as his mobile phone was switched off.


Question - if it is kidnapping and ransom has to be paid then who pays - China or Pakistan or both or none ? :?:

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Re: Analyzing CPEC

Postby Prem » 26 Dec 2017 08:17

Xi_peck-ed here

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Analyzing CPEC

Postby Peregrine » 26 Dec 2017 16:27

X Posted on the Terroristan Thread

China, Pakistan to look at including Afghanistan in $57 billion economic corridor

BEIJING: China and Pakistan will look at extending their $57 billion China-Pakistan Economic Corridor to Afghanistan, Chinese foreign minister Wang Yi said on Tuesday, part of China's ambitious Belt and Road plan linking China with Asia, Europe and beyond.

China has tried to position itself as a helpful party to promote talks between Pakistan and Afghanistan, both uneasy neighbours ever since Pakistan's independence in 1947.

Their ties have been poisoned in recent years by Afghan accusations that Pakistan is supporting Taliban insurgents fighting the US-backed Kabul in order to limit the influence of its old rival, India, in Afghanistan.

Pakistan denies that and says it wants to see a peaceful, stable Afghanistan. And - of course -Pigs will Flay in Terroristan!

Speaking after the first trilateral meeting between the foreign ministers of China, Pakistan and Afghanistan, Wang said China hoped the economic corridor could benefit the whole region and act as an impetus for development.

Afghanistan has urgent need to develop and improve people's lives and hopes it can join inter-connectivity initiatives, Wang told reporters, as he announced that Pakistan and Afghanistan had agreed to mend their strained relations.

"So China and Pakistan are willing to look at with Afghanistan, on the basis of win-win, mutually beneficial principles, using an appropriate means to extend the China-Pakistan Economic Corridor to Afghanistan," he added.

How that could happen needs the three countries to reach a gradual consensus, tackling easier, smaller projects first, Wang said, without giving details.

Pakistani Foreign Minister Khawaja Asif said his country and China were "iron brothers", but did not directly mention the prospect of Afghanistan joining the corridor.

"The successful implementation of CPEC (China-Pakistan Economic Corridor) projects will serve as a model for enhancing connectivity and cooperation through similar projects with neighbouring countries, including Afghanistan, Iran and with central and west Asia," he said.

India has looked askance at the project as parts of it run through Pakistan-administered Kashmir that India considers its own territory, though Wang said the plan had nothing to do with territorial disputes.

China has sought to bring Kabul and Islamabad together partly due to Chinese fears about the spread of Islamist militancy from Pakistan and Afghanistan to the unrest-prone far western Chinese region of Xinjiang.

As such, China has pushed for Pakistan and Afghanistan to improve their own ties so they can better tackle the violence in their respective countries, and has also tried to broker peace talks with Afghan Taliban militants, to limited effect.

Wang said China fully supported peace talks between the Afghan government and Taliban and would continue to provide "necessary facilitation".

The Belt and Road infrastructure drive aims to build a modern-day "Silk Road" connecting China to economies in Southeast and Central Asia by land and the Middle East and Europe by sea.

Comments : This is a ploy by the Chinkies to convince Afghanistan to trade with India via Terroristan instead of via Cha Bahar and fill India with ISI Spies (in the garb of Truck Drivers)

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Re: Analyzing CPEC

Postby chetak » 26 Dec 2017 19:32

What's that very presumptuous CPEC rail link running across India presumably and ultimately also connecting from lanka's hambanthota port to somewhere in paki land??



PERSPECTIVES
CPEC and the Silk Road Rail Network

Reliable freight routes will help Pakistan and neighbouring countries cut transportation costs, save time and ease mobility

Yasir Habib Khan

DECEMBER 23, 2017

If CPEC is handled carefully and Pakistan is able to use it to its advantage, there is a fortune to be made in trade and the industrial market through one of its lesser known projects. This is the Silk Road Rail Network (SSRN), also known as the Eurasian Rail Project or Eurasian trans-continental rail transport network. It is meant to link Pakistan to Eurasian countries; including Myanmar, Bangladesh, India, Turkey and Germany as part of China’s Belt and Road Initiative (BRI). This massive overland railroad which will stretch from Myanmar to Germany only exists on paper today, but it is highly likely that it will see the light of day soon as the practical and theoretical issues associated with it have been smoothed out.

Robust and reliable freight routes will help cut transportation cost, save time and ease mobility. China and the Eurasian countries, which include Pakistan, will be able to exploit the SRRN and rejuvenate their economies and change the fate of the entire Eurasian landmass. 80 percent of global trade is currently executed through sea due to a lack of rail networks across the world. Once the SRRN is completed, global trade will be revolutionised. China Railways has already published its master plan for the SRRN, outlining all emerging rail routes. The railway will start at Kunming, the capital of China’s western Yunnan province and connect Myanmar, Bangladesh, India, Pakistan, Iran and Turkey before ending in the heart of Europe at Hamburg.

However, this project does not include the 1800 kilometre long rail line between Pakistan and China, which is specifically a part of CPEC. The SRRN is part of the Silk Road Train. There is already optimism regarding this plan, because freight trains have already journeyed from China to Europe in the recent past. 7500 mile long rail links are already operating within Suzhou, a major city in the South Eastern Jiangsu province, which leads to Warsaw.

80 percent of global trade is currently executed through sea due to a lack of rail networks across the world. Once the SRRN is complete, global trade will be revolutionised. China Railways has already published its master plan for the SRRN, outlining all emerging rail routes. The railway will start at Kunming, the capital of China’s western Yunnan province and connect Myanmar, Bangladesh, India, Pakistan, Iran and Turkey before ending in the heart of Europe at Hamburg

There are also railways which go from Lianygang to Rotterdam, Chengdu to Lodz, Chongqing to Duisburg, Yiwu to Madrid and Zhengzhou to Hamburg. Currently, these trains move along one of two main routes: either they go north from China to link with Russias Trans-Siberian network or they travel west across Kazakhstan and feed into the Trans-Siberian at Yekaterinburg which divides Europe and Asia.

After the China-Madrid rail connection, the China-London route has been gaining traction. This is the second longest rail route conceived in history. It journeyed from China to the UK, reaching Barking’s Eurohub freight terminal in London in January 2017. The train is famous by the name of ‘East Wind’, getting its inspiration from Chairman Mao who once claimed that “The East Wind shall prevail over the West.” This train made London the fifteenth European city with direct rail links to China. Last month, the first freight train set off from Standord-le-Hope, Essec for Yiwu in Zhejiang province, China. As Brexit looms, British Prime Minister Theresa May is likely hoping trade ties between the UK and China continue to improve.

Image

The train starts its journey from Zhengzhou, which is located on the southern banks of the Yellow River. Once it was known as one of the eight ancient capitals of China, home to the famous Shaolin Monastery. Being a leading national railway hub, it has easy access to Beijing and some other regions by high speed train.



Passing through Baoji, Tianshui, Lanzhou and Zhanye, renowned cities for China huge industrial belt, it reaches at Xinjiang, old route of Silk Road trade that linked to Middle East. This ancient route’ footprints may be found easily by moving into its traditional open-air bazaars of the oasis cities of Hotan and Kashgar. Making headways, train has a route of the old Kazakh capital Almaty, and Astana, Kazakhstan’s modern capital. After penetrating into Russia, train accesses to Yekaterinburg, Russia’s fourth-largest city. It is place of Ural mountain range considered as the boundary between Europe and Asia.

Before The Silk Road Rail Network made the world sit up and take notice, some initiatives had taken shape in form of “The Trans-Siberian”. After this, various rail routes came into play between East and West. As a major part of the Silk Road Economic Belt, the overland segment of China’s BRI, direct cargo trains are frequently moving between China and Europe.

The writer is a senior journalist working for China Today, CRIOnline and, China Plus. He also writes for local and international print media. He is a fellow of ICFJ and a recipient of China friendly Netizen 2017 award. He can be reached at yaseerkhan@hotmail.com and tweets at @yasirkhann

Published in Daily Times, December 23rd 2017.

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Re: Analyzing CPEC

Postby kit » 26 Dec 2017 21:55

Prem wrote:China Pakjab Excrenomic Corridor : From occupied Kashmir to Occupied Balochistan


India just needs to stay away from that obhor !! .. build / replicate that with some deep pocket countries ., (you take the interest and let us build .. for eg India Japan ! ).. lets use all those foreign reserves for something other than bank !

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Re: Analyzing CPEC

Postby kit » 26 Dec 2017 21:57

Manish_P wrote:Dawn Link - Chinese engineer goes missing in Kahuta

A Chinese engineer went missing on Wednesday while working on a tunnel linked to a river for the Karot power project in Kahuta.

Police, intelligence officials and special protection unit (SPU) personnel have launched a search operation in and around the camp where the workers live to find 36-year-old Pingzhi Liu, who is suspected to have been swept away by the river.

However, the police did not rule out the possibility of kidnapping as his mobile phone was switched off.


Question - if it is kidnapping and ransom has to be paid then who pays - China or Pakistan or both or none ? :?:


i suppose the mobile phone works underwater ? .. oh wait it does .. made in china what else :mrgreen:

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Re: Analyzing CPEC

Postby kit » 26 Dec 2017 21:59

Peregrine wrote:X Posted on the Terroristan Thread

China, Pakistan to look at including Afghanistan in $57 billion economic corridor

BEIJING: China and Pakistan will look at extending their $57 billion China-Pakistan Economic Corridor to Afghanistan, Chinese foreign minister Wang Yi said on Tuesday, part of China's ambitious Belt and Road plan linking China with Asia, Europe and beyond.

China has tried to position itself as a helpful party to promote talks between Pakistan and Afghanistan, both uneasy neighbours ever since Pakistan's independence in 1947.

Their ties have been poisoned in recent years by Afghan accusations that Pakistan is supporting Taliban insurgents fighting the US-backed Kabul in order to limit the influence of its old rival, India, in Afghanistan.

Pakistan denies that and says it wants to see a peaceful, stable Afghanistan. And - of course -Pigs will Flay in Terroristan!

Speaking after the first trilateral meeting between the foreign ministers of China, Pakistan and Afghanistan, Wang said China hoped the economic corridor could benefit the whole region and act as an impetus for development.

Afghanistan has urgent need to develop and improve people's lives and hopes it can join inter-connectivity initiatives, Wang told reporters, as he announced that Pakistan and Afghanistan had agreed to mend their strained relations.

"So China and Pakistan are willing to look at with Afghanistan, on the basis of win-win, mutually beneficial principles, using an appropriate means to extend the China-Pakistan Economic Corridor to Afghanistan," he added.

How that could happen needs the three countries to reach a gradual consensus, tackling easier, smaller projects first, Wang said, without giving details.

Pakistani Foreign Minister Khawaja Asif said his country and China were "iron brothers", but did not directly mention the prospect of Afghanistan joining the corridor.

"The successful implementation of CPEC (China-Pakistan Economic Corridor) projects will serve as a model for enhancing connectivity and cooperation through similar projects with neighbouring countries, including Afghanistan, Iran and with central and west Asia," he said.

India has looked askance at the project as parts of it run through Pakistan-administered Kashmir that India considers its own territory, though Wang said the plan had nothing to do with territorial disputes.

China has sought to bring Kabul and Islamabad together partly due to Chinese fears about the spread of Islamist militancy from Pakistan and Afghanistan to the unrest-prone far western Chinese region of Xinjiang.

As such, China has pushed for Pakistan and Afghanistan to improve their own ties so they can better tackle the violence in their respective countries, and has also tried to broker peace talks with Afghan Taliban militants, to limited effect.

Wang said China fully supported peace talks between the Afghan government and Taliban and would continue to provide "necessary facilitation".

The Belt and Road infrastructure drive aims to build a modern-day "Silk Road" connecting China to economies in Southeast and Central Asia by land and the Middle East and Europe by sea.

Comments : This is a ploy by the Chinkies to convince Afghanistan to trade with India via Terroristan instead of via Cha Bahar and fill India with ISI Spies (in the garb of Truck Drivers)

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that should be interesting .. Afghans can help by putting some extra duty for shipping via obhor !!

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Re: Analyzing CPEC

Postby ArjunPandit » 26 Dec 2017 22:43

80 percent of global trade is currently executed through sea due to a lack of rail networks across the world. Once the SRRN is complete, global trade will be revolutionised. China Railways has already published its master plan for the SRRN, outlining all emerging rail routes. The railway will start at Kunming, the capital of China’s western Yunnan province and connect Myanmar, Bangladesh, India, Pakistan, Iran and Turkey before ending in the heart of Europe at Hamburg

1. Do they teach cost benefit analysis in CPEC?
2. Look at the line through India and then Pakistan.

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Re: Analyzing CPEC

Postby SSridhar » 29 Dec 2017 14:46

https://www.dawn.com/news/1379522/indian-design-to-hamper-cpec-project-to-be-foiled-asserts-ahsan-iqbal - DAWN
QUETTA: Interior Minister Ahsan Iqbal has said that conspiracies being hatched by India against the China-Pakistan Economic Corridor (CPEC) will be foiled with the support of the people of Pakistan.

Talking to journalists after inaugurating an executive passport office here on Thursday, he said that India was using the soil of Afghanistan for such conspiracies, but expressed the hope that the CPEC project would be made successful.

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Re: Analyzing CPEC

Postby anupmisra » 29 Dec 2017 19:09

ArjunPandit wrote:Look at the line through India and then Pakistan.


Its all about China and Chinese economic expansion into rest of the world. Europe is already well connected, internally. Without a buy in from India and Afghanistan, there is only "Line A" through the frozen wastelands on N. Europe.

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Re: Analyzing CPEC

Postby anupmisra » 29 Dec 2017 19:11

SSridhar wrote:https://www.dawn.com/news/1379522/indian-design-to-hamper-cpec-project-to-be-foiled-asserts-ahsan-iqbal - DAWN
Talking to journalists after inaugurating an executive passport office here on Thursday,


Baki interior ministers are reduced to this mundane stuff now?

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Re: Analyzing CPEC

Postby Falijee » 01 Jan 2018 00:34

CROSS POSTED FROM TERRORISTAN

"Chinese Muslim" At Isloo Embassy Spells Out Details Of Chini-fication Of Pakiland Under CPEC :mrgreen:

Lijian Zhao‏Verified account @zlj517

Long Term Plan: Real game of CPEC is to prepare the economy, society & culture of Pakistan for a massive influx of Chinese investments & personnel. This could indeed prove to be a positive development. :roll:
And then he teeters this as his "evidence" !

Long Term Plan: The Core of CPEC
December 11, 2017 Saadat Hassan Bilal

The LTP is the most detailed long-term plan that has ever been proposed for Pakistan, and its ramifications for the economy are deep and broad. Contrary to the image of CPEC as an enterprise involving roads and power plants, the LTP shows that the real nature of the engagement with China that is about to begin goes far beyond infrastructure investments and enhanced connectivity. The real game of CPEC appears to be to prepare the economy, society and culture of Pakistan for a massive influx of Chinese investments and personnel. This could indeed prove to be a positive development, and provide the economy with a boost given the scale of the investments being contemplated. The Paki author is preparing the Paki public that they are going to lose their famous sover-virginity , if they are not "careful" :mrgreen:
For instance, thousands of acres of agricultural land will be leased out to Chinese enterprises to set up “demonstration projects” in areas ranging from seed varieties to irrigation technology. A full system of monitoring and surveillance will be built in cities from Peshawar to Karachi, with 24 hour video recordings on roads and busy marketplaces for law and order. A national fibreoptic backbone will be built for the country not only for internet traffic, but also terrestrial distribution of broadcast TV, which will cooperate with Chinese media in the “dissemination of Chinese culture”. The dreaded Chinification that even the Mullah Brigade has warned the Paki Establishment about -
The plan envisages a deep and broad-based penetration of most sectors of Pakistan’s economy as well as its society by Chinese enterprises and culture. Its scope has no precedent in Pakistan’s history in terms of how far it opens up the domestic economy to participation by foreign enterprises. In some areas the plan seeks to build on a market presence already established by Chinese enterprises, eg Haier in household appliances, ChinaMobile and Huawei in telecommunications and China Metallurgical Group Corporation (MCC) in mining and minerals. In other cases, such as textiles and garments, cement and building materials, fertiliser and agricultural technologies (among others) it calls for building the infrastructure and a supporting policy environment to facilitate fresh entry. A key element in this is the creation of industrial parks, or special economic zones, which “must meet specified conditions, including availability of water…perfect infrastructure, sufficient supply of energy and the capacity of self service power”, according to the plan. The local owned Paki industry is going to be decimated , if Paki traders and Paki industrialists are to be believed !
Contrary to popular belief, there are no existing demands from Chinese to ‘give out thousands of acres of land’. Instead China wants to adopt a cautious approach in certain areas. That is the reason, why even the initial draft long-term plan mostly talked about ‘demonstration’ projects’ especially in areas of improved technological cooperation. Any future interest of China in agriculture would be contingent upon how Pakistani side responds these demonstration projects. :roll: The cautious Chinese have to be careful of the cultural aspects of their vast presence in Pakiland :mrgreen:
Financial cooperation forms an important part of CPEC. Free and unrestricted flow of capital provides an important pre-requisite for attracting foreign direct investment. The proposed initiatives stress on reducing the reliance of both countries on dollars or euros, for bilateral trade as well as to create access for infrastructure projects in Pakistan to newly created institutions for Belt and Road like Asia Infrastructure Investment Bank. Yuan to be "adopted" , Dollar to be "dropped" :roll:
-

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Analyzing CPEC

Postby Peregrine » 02 Jan 2018 18:29

X Posted on the Neutering & Defanging Chinese Threat and Terroristan Threads

China media advises India to shun hostility, join CPEC

BEJING: Chinese state media has once again extended invitation to India to join the China-Pakistan Economic Corridor (CPEC) and advised New Dehli to shun policy of antagonism towards its neighbours.

State-owned Global Times in an opinion piece on Tuesday stated that major world powers have abandoned the traditional mind-set of geopolitical competition after the Cold War and embraced peace and development in keeping with the spirit of the times. However, some countries, such as India, still swear by the outdated geopolitical strategy and base their sense of security on narrow national interests and political confrontation.

India’s strategic considerations are underpinned by its traditional geopolitical strategy. India reckons regional cooperation promoted by China will bring about a zero-sum game and even jeopardize its national security and interests. New Delhi’s clout will weaken because of its dwindling ties with adjacent states. SOLLY! CHIN-CHIN CHOP CHOP CHOP. INDIA NOT LIKEEE TLAVELSING THLOUGH TELLOLISTAN

When some powers outside the region enter and affect India’s sphere of influence, more countries in the region are eager to break away with India. As a result, the geopolitical game in the region surrounding India is likely to grow stronger.

India’s opposition to the Belt and Road initiative not only deprives it of an opportunity for development and shows its jealousy toward its neighbors gaining from the initiative, but also reflects New Delhi’s dread and delusion with China attempting to grab its sphere of influence.

In addition, the world may suspect that Beijing is trying to isolate New Delhi through the initiative. Hence, India’s allegation that its national interests will likely be affected by China’s efforts to extend the China Pakistan Economic Corridor (CPEC) to Afghanistan may sound reasonable. Undeniably, India brings trouble to itself making it lose development opportunities.

In fact, the Belt and Road initiative is designed to boost international cooperation following the principle of shared growth through discussion and win-win cooperation.

Instead of pursuing a country’s growth at the cost of others or damaging interests of a nation, the initiative is a new geopolitical collaborative model characterized by joint participation and shared development.

China and other countries welcome India to join the initiative. Extending the CPEC to Afghanistan is not intended to undermine India, but to enhance the economic corridor. HA! HA!! HA!!!

As emerging powers responsible for propelling the new international order, China and India should abandon an outdated antagonistic mind-set, uphold the values of friendship, justice and shared interests, participate in regional governance and develop new state-to-state relations.

That’s how we can foster a peaceful global environment and stable international order, strive for development featuring openness, innovation, inclusiveness and mutual benefits, boost national, regional and global development and build a community with a shared future for mankind.

Comments : When will the Chinese Lealn that India DOES NOT WANT TO DO ANYTHING WITH TELLOLISTAN! :twisted:

Cheers Image

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Re: Analyzing CPEC

Postby JohnTitor » 03 Jan 2018 09:30

Looks like yuan is legal currency in pak

Monetary Takeover? Pakistan Allows Government And Private Bodies To Transact Using Chinese Yuan


Pakistan's central bank, State Bank of Pakistan (SBP) today (2 December) announced that both public and private sector enterprises of both countries could use the Chinese Yuan (CNY) for bilateral trade and investment.

Under existing foreign exchange regulations, the Yuan has approval for denominating foreign currency transactions in Pakistan. The SBP says that it has already put in place the required regulatory framework to facilitate the use of the Yuan in trade and investment transactions. The Yuan in Pakistan is considered to be at par with other international currencies such as the United States Dollar, the Euro and the Japanese Yen among others.

After signing a foreign currency swap Agreement (CSA) with its Chinese counterpart, the People’s Bank of China (PBC), the SBP took several measures to promote the use of the Yuan in Pakistan for trade and investment with China. In 2012, banks were allowed to accept deposits and give loans in the Yuan. In 2013, it had set up a system to enable banks to make use of the CSA so that banks could get Yuan from the SBP.

The Industrial and Commercial Bank of China's (ICBC) Pakistan branch has been permitted to establish a setup in Pakistan so that it can open Yuan accounts for locally-operated banks and to enable the settlement of Yuan-based transactions with China.


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