China reveals its cards for investing $20 billion in Pakistan

[Fattyacids]

So, then, is this simply a bad investment by China in order to help its ailing ally?

Isn't that the point I was making? These investment are not made with profit in mind, it shows the strength of China-Pakistan friendship.

 

[kbd-raaf]

Isn't that the point I was making? These investment are not made with profit in mind, it shows the strength of China-Pakistan friendship.

In that case, I'm sure China wouldn't mind hiring Pakistani workers, Pakistani engineers and transferring profits to Pakistan?

 

[UKBengali]

It does not matter if China does not even hire one Pakistani Worker or use any local Pakistani materials - not that I am saying they won't.

What matters is that the Chinese will build the infrastructure cheaply and quickly.

The whole point of this offer is to strengthen Pakistan as quickly as possible and not to make any sort of financial profit for China.

 

[Fattyacids]

In that case, I'm sure China wouldn't mind hiring Pakistani workers, Pakistani engineers and transferring profits to Pakistan?

China might as well give $20 billion cold hard cash to Pakistan, why transfer profit? Spare me your asininity, talk some sense.

 

[illusion8]

With up to 40 billion being injected into our economy, and the energy crisis being permanently fixed, it will further draw in Chinese and international investment.

Pakistan should, hand over, all major projects to China to build and run, including, upgrading our obselete railway infrastructure.

Most part of that 40 billion will go back to Chinese companies and engineers, consultant, managers, post service maintenance by chinese and spare parts from Chinese companies

You will end up having a big loan to pay back and some infrastructure that you cannot own till you pay back.

If Chinese start to invest heavily in Pakistan, the others will follow suite.

The "others" is what China wants to avoid by having a monopoly bidding on all projects.

We have a 50 year vision for this era of cooperation with the PRC.

Pakistan has a 50 year vision?, can I have some literature on it? I thought Pakistan's on a ventilator.

 

[Bilal.]

Just in terms of yearly forex saved due to substitution of expensive oil based electricity we would be saving billions and that's direct benefit. When one factors indirect benefits of economic activities generated and cheaper input cost for our export industry the benefit is manyfold.

 

[DESERT FIGHTER]

If the Chinese agree to hire the labor force locally then this is a good deal, it is not like Pakistan has options anyway.

Chinese firms hire local workforce .. Yes... But manage themselves .. And even employ sub contractors... For example GAndhara Airport Islamabad has 2 contractors.. FWO n some Chinese firm.. But tht firm has also employed other sub contractors aswell.. Yes most are Chinese .. But the labour force etc is from Pak.. But managed by Chinese engineers etc.. And some Pakistanis..

Its basically kind of Built-Operate-Transfer deals that Chinese are interested in. Pakistan gave similar contract to Chinese in Saindek Project (Gold and Copper). In the end what Pakistan got was really a small fraction of the pie (about 10paisas from 1 rupee).
These are the kind of projects which can be of great interest to any global company and consortium of willing investors could also be formed but... our government and bureaucratic setup is corrupt and lazy.

Problem with Nawaz government is that they are extremely corrupt and always looking after their own personal financial and business interests. During his previous regimes he was extremely gracious towards awarding everything to South Koreans. During his current tenure he is similarly inclined towards Turkish and Chinese firms. Inside story we may never know but eventually in future lots of corruption stories will surfaced.

One benefit of doing grey deals with Chinese is that if one ever caught, the special relation between Pakistan and China force the government to stop investigations then and there in fear of decline in friendly relations. This was the case when Chinese firms supplied third class railway locomotives but our government push the matter under the carpet.

If Pakistan invite international tenders for these projects, it will be the benefit of Pakistan as we will eventually get the best deal. Even Chinese companies can win such open competition.

The saindak project is a true example.. I agree..

 

[Chinese-Dragon]

So Indians, out of no where have become our 'friends', today....ain't that priceless?

If our friends, in China are investing up to $40 billion dollars in Pakistan, we ought to make trivial adjustments to make that happen.

It will fix our energy crisis, heal our economy and bring stability....its a win win.



Since when do we Pakistanis require our enemies to tell us, whats good and whats not for 'our' nation.?

Good or bad, timely fulfillment of our mega projects WILL boost our GDP growth, create jobs, businesses, infrastructure and will be another mile stone in our alliance with our best ally, China.

What the Indian trolls on this thread fail to realize, is that we are taking on almost all the financial risk.

Same with our loans to many other countries. If they can't pay the loan back for whatever reason, we are the ones who lose out.

And it's not like we could "take back" the infrastructure in the event of non-payment right? So basically they get to keep the stuff and we lose billions.

Investment is all about risk and reward. We've been playing the investment game for a long time.

In any case, China has BY FAR the most experience in building infrastructure in the developing world. Every nationality represented on this thread has Chinese involvement in their infrastructure sector, the reason is because they know we'll get the job done.

 

[Armstrong]

What the Indian trolls on this thread fail to realize, is that we are taking on almost all the financial risk.

Same with our loans to many other countries. If they can't pay the loan back for whatever reason, we are the ones who lose out.

And it's not like we could "take back" the infrastructure in the event of non-payment right? So basically they get to keep the stuff and we lose billions.

Investment is all about risk and reward. We've been playing the investment game for a long time.

In any case, China has BY FAR the most experience in building infrastructure in the developing world. Every nationality represented on this thread has Chinese involvement in their infrastructure sector, the reason is because they know we'll get the job done.

You'd better hire me on contract as part of those Projects or else I'm gonna take Vicky Zhao away from China through my suave & womanizing abilities !

And yes I expect my payments in the form of weekly deliveries of the Peking Roast Duck !

 

[Chinese-Dragon]

You'd better hire me on contract as part of those Projects or else I'm gonna take Vicky Zhao away from China through my suave & womanizing abilities !

And yes I expect my payments in the form of weekly deliveries of the Peking Roast Duck !

Cantonese Roast Duck is better.

And Zhao Wei is now a movie director, did you know? She just directed a movie called "So young", it was pretty good as well.

 

[kbd-raaf]

China might as well give $20 billion cold hard cash to Pakistan, why transfer profit? Spare me your asininity, talk some sense.

Oh that'd be wonderful, please lobby your local CCP minister to do that. India needs a stable neighbour to it's West.

 

[Fattyacids]

Oh that'd be wonderful, please lobby your local CCP minister to do that. India needs a stable neighbour to it's West.

LOL, if $20billion is all it takes, India govt would gladly co-pay. Don't be a retard, favorable FDI is not about hiring local or transfer profit.

 

[Skies]

China has extra money to invest everywhere. China Now Owns a Record $1.317T of U.S. Government Debt. Around 8 % is held by China, the biggest foreign holder of U.S. debt. It may mean other countries like US sells sovereign bond to China, so other developed counties like US, EUs may have less reserve money to invest in other countries at lower cost. So I think other developed countries can not offer better than China considering the cost,

so it's a better offer to Pk by China. I mean other countries may not have as much extra [so their investment could be costly] reserve money to invest in other countries as much China has.

I think its a good offer considering the situation and China is always trustworthy for some countries like PK BD etc.


China Now Owns a Record $1.317T of U.S. Government Debt | Fox Business


Is China's Ownership Of U.S. Debt A National Security Threat? - Forbes

 

[rott]

Cantonese Roast Duck is better.

Peking Roast Duck is better.

 

[Chinese-Dragon]

China has extra money to invest everywhere.

This is true.

Our currency reserves alone are around $3.6 trillion. If you include the CIC branch of our currency reserves, it goes to over $4.2 trillion.

We can afford to loan money to other countries at the cheapest rates. Nobody else has that much cash lying around, nobody can afford to loan money at better rates than we can.

We have the most experience in building infrastructure in the developing world, and we loan money at the cheapest rates. That's why we win infrastructure contracts all over the world.