Pakistan rejects $2 billion investment in Thar coal

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Leave needle aside, it is produced on so large scale and marketed by China so cheaply that no country in this world can compete - mean not a feasible project.

Same happened to coal industry, we were focused at gas because at that time investment on gas looks more feasible and easy as compare to coal. So, our coal capabilities are not developed and to develop this capability we need investment which is not easy until this fu(king war of terror is going.

Given link, i think, is the same interview which you are quoting and it is revealing some very astonishing facts.

Yes - i think it was the interview.

[FKPcamper]

Thank you for the advice brother. Bangladesh also has very valuable natural resources near Bay of Bengal. Never share your wealth with India.

We Pakistanis wish Bangladesh all the best

same way you wished em in the 50's and 60's? LOL turning down biz on such grounds is plain bonkers...

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Its close to impossible to work with Indian investment. We in BD had a very sour experience with Tata/Mittl and latest NTPC. Those people in India think everybody in sub continent are just fool except Indians..
The offer from NTPC in their coal based power plant was 14 Tk/Kwh!!! whereas Bangladeshi companies are selling power for Tk 3/Kwh.

Forget it and stay 100 miles away from them. Before they leave just ask, how they going to arrange $2 Billion??? You will get the answer, using International financier which will be paid back by Pakistani Dollar with interest. Not a single penny gonna come from Mittal's pocket. And you know what, after securing a coal mine, any financial institution will finance any Tom, Dick or Chenny...

" just ask, how they going to arrange $2 Billion??? You will get the answer, using International financier which will be paid back by Pakistani Dollar with interest. Not a single penny gonna come from Mittal's pocket. "

you should teach a finance class! you're actually saying that mittal will use an intl financier to pay for this and pakistanis will pay the principal and interest?

sorry but you've lost all credibility with this statement.

[illusion8]

There is no public sentiments in this decision. It was simply not feasible for PAK, 2b$ Investment for 100b$ reserves?. We are facing energy crisis at home, so - public just want to utilize this coal to fulfill our energy requirement instead of exporting it on cheap price. I don't know where commonsense of bhartii's go when it's about Pak's interests

BTW - India is country not countries. So we have not missed golden opportunity to do business with other countries.

This is what is short sighted thinking, A lot of countries would not be willing to invest into PK right now, You always have china - but it would be wiser to have multiple countries investing - china is a major exporter of coal, they have abundant reserves - India is energy starved - 70% of India's energy needs are coal based, Arcelor mittal is a European company, this deal would have signaled to the world that Pakistan is open for business. Anyways its your decision it is not as if L.Mittal is losing anything here.

[truthseer]

its looks majority of pak people in this forum are pro investment which is a good sign to emege as favourite investment destination....

Even if true, this forum would not represent 2% of most Pakistanis.

See, if this deal was accepted, you can see how badly it would be used in politics. Plus, Mittal is clear in his interview. My allegiance is with India, he said

[Mytime]

its better to wait for chinese investment than to give it over to .india

It is not a wise move to be entirely pledge your whole resources or depend entirely on one country how ever close they are to you . If it is beneficial to pakistan is all that should have mattered and not the hatred towards a particular country ..

Why else is China allowing USA/ China allowing India or India allowing China to invest billions of dollars even though they are not the best of friends ???Other mature countries knows Its business ahead of emotions

[jha]

It is not a wise move to be entirely pledge your whole resources or depend entirely on one country how ever close they are to you . If it is beneficial to pakistan is all that should have mattered and not the hatred towards a particular country ..

Why else is China allowing USA/ China allowing India or India allowing China to invest billions of dollars even though they are not the best of friends ???Other mature countries knows Its business ahead of emotions

They would have understood if they wanted to...

[iajdani]

same way you wished em in the 50's and 60's? LOL turning down biz on such grounds is plain bonkers...

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" just ask, how they going to arrange $2 Billion??? You will get the answer, using International financier which will be paid back by Pakistani Dollar with interest. Not a single penny gonna come from Mittal's pocket. "

you should teach a finance class! you're actually saying that mittal will use an intl financier to pay for this and pakistanis will pay the principal and interest?
sorry but you've lost all credibility with this statement.

My pleasure... Anytime. I can even arrange a special session for you.

Now coming back to how you going to pay back your loan from project!! HOW? From selling coal. Aint it? And whose coal? Pakistan's!! Aint it? And whose money is it? Mittal's or Pakistan's???

[jbgt90]

so an Indian steps forward and you deny him because he is one . (would want an Indian to invest in our country ..NO NO)
so any one else stepping up to invest . ? other then your jani dushman?

[Stumper]

Now coming back to how you going to pay back your loan from project!! HOW? From selling coal. Aint it? And whose coal? Pakistan's!! Aint it? And whose money is it? Mittal's or Pakistan's???

Well Mate, before you go around name calling people or race ("This Indians" as per you), it would be interesting to see what alternative do you propose for Financing such investment's? ... Certainly Pakistan has always had the option to go all the way alone... Or would you attribute us Indian's to be wily enough to fool the Pakistanis in their own backyard?

DO correct me if i'm wrong, but :
1)The offer has been made by Arcelor, which is not a Indian Company, in case you missed this point.
2)The proposal was for "Investment" in the mining of the coal. The coal would be used for Arcelor's steel plants in India and Abroad.
3)Will it be Profit sharing or any other revenue model, has still not been cleared, Is'nt it?

So, Sir, Maybe you can enlighten us on your reason for this "Pakistani Dollar" paying the interest thing , that the evil Indian Mr.Mittal has conjured up. You see, hard as i may try, i really do not see how, in the absence of any such details, were you able to demystify not only the revenue sharing but also the debt servicing part of the whole deal.

[DESERT FIGHTER]

The sindh thar coal-electricity project has started as per todays news.

[Mr Javed]

Good move by Gop, 2 billion $ are just penuts there are big corporations from China, Australia etc who want to invest as much as 100 Billion $ so its better tht if ppls frm UK or else want to invest they should do joint ventures with Pakistanis in small projects.

P.S: i dont consider this guy mittal an indian, even i hav heared some where that he himself dont consider himself indian & dont even like to visit india dont know why indians are so much proud of him

[Abu Zolfiqar]

Me personally, i think there's more to it than meets the eye. Business proposals are not one-line documents....there is fine-block print, there are conditions.....there are certain parameters

as this would be a simple export-import activity of a commodity, I don't think it would really compromise on our national security....but perhaps the terms of the proposed deal did not see satisfaction by Pakistani authorities.

i dont think it has much to do with bilateral relations --which seem to be fairly stable as of late, despite some unresolved issues & diverging interests in the region


me personally, I think $2 billion offer is absolute peanuts.....our coal @ thar is not even superior quality...it's actually fairly medium-quality coal....but we just happen to be sitting on very vast amounts of it. If the offer and terms are re-visited and both sides feel confident, then sure they should let the deal go through, why not.

[foxbat]

Good move by Gop, 2 billion $ are just penuts there are big corporations from China, Australia etc who want to invest as much as 100 Billion $ so its better tht if ppls frm UK or else want to invest they should do joint ventures with Pakistanis in small projects.

P.S: i dont consider this guy mittal an indian, even i hav heared some where that he himself dont consider himself indian & dont even like to visit india dont know why indians are so much proud of him

lol.. he carries an Indian passport and a voter card.. Thats normally a reason enough for someone to be called Indian..

[Abu Zolfiqar]

I like to give credit where it's due; and to his credit he built a fortune through hard work and some luck.....today its one of the leading global steel manufacturing companies.


but anyways, back on topic

[Farooq]

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While I support peaceful, friendly and business ties between India and Pakistan, I think it was right to reject India's offer.

I believe business deals between the two countries should start in baby steps and gradually move up as relations get better.

Pakistan acceptance for India's MFN status is definitely a start!