Are Chinese debts going to kill CPEC?
Video     Photos     Pakistan     World     Islam     Health     Crime     Islamic News     Business     Society     India     Travel     Middle East     Sport     sci/tech      Contact      RSS
Search

Decision to assassinate Arafat approved by Saudis: Former senior advisor

Persian Gulf kingdom sought to buy Israeli Hermes attack drones: Report

India shifted BLA commander to Afghanistan, claims Dr Jumma Marri

Indian troops martyred 95,238 Kashmiris in IoK since January 1989

India end Australia Test drought in nail-biter

“PM Khan tried to get me killed”: Serious accusation or a hilarious joke?

NO PLACE IN ISRAEL SAFE FROM HIZBULLAH MISSILES: NAIM QASSEM

Is Punjab Government giving special treatment to Shahbaz Sharif?

MYANMAR BECOMES HELL FOR KACHIN CHRISTIANS AFTER ROHINGYA MUSLIMS

DAESH TERRORISTS' RUSSIAN WIDOWS SEEK RETURN TO THEIR COUNTRY

SAUDI FM REJECTS TURKISH DEMAND FOR KHASHOGGI MURDER SUSPECTS’ EXTRADITION

NEW ME SECURITY PACT FOR US ALLIED ARAB REGIMES BEING WORKED OUT

After Trump's letter to Imran, US tirade against Pakistan continues

HOUTHI ANSARULLAH OPEN FOR MORE TALK IF SWEDEN PROCESS YIELDS: SALAM

PAKISTAN FOREIGN MINISTER FORESEES RESTORATION OF US AID

KP CM SEEKS REPORT ON TALIBAN EXTORTION COMPLAINTS

MBS: My strange experience of teaching the Saudi crown prince

PM Imran to review ministries’ performance every three months

PGCC should take Kuwait approach, avoid nonsense: Spox

Asian Classic Power-Lifting: Baig ends Pakistan’s medal wait after 15 years

Allocation of idle LNG capacity to private sector can save $100m

PML-N’s last ditch efforts to save its Quaid

Malaysian PM Mahathir defends PM Khan’s statement on ‘U-turn’

Exposure to air pollution can raise risk of miscarriage, study warns

Imran ‘India’s best bet’ after Pervez Musharraf: ex-Indian spy chief

We lost Test series against New Zealand due to our own mistakes, says Sarfraz

Saudi Arabia rules out extraditing Khashoggi case suspects

US needs ‘puppet’ like Saudi Arabia to achieve global domination: Analyst

Hezbollah: No spot in Israel safe from our missiles

Do not recommend leaving Afghanistan, says US military chief

Speaker Asad Qaisar meets Iranian President, counterpart in Tehran

US accuses Huawei CFO of Iran sanctions cover-up

Atletico, Sevilla go joint top with Barca

Sheikh Rasheed stirs controversy over information portfolio

Now, visa-free travel to this North American country

The deal behind the doors: PML-N looks ready to show flexibility on PAC chairman issue

Larijani: US creating terrorist groups

Punjab Will Have Uniform Syllabus By March 2020

Govt framing national tariff policy to boost exports

Two Iranians nominated for best Asian futsal coach

Over 1,700 arrested in latest 'yellow vest' protests in France

Iran, Russia stress support for private sectors in sanctions era

NAB is an autonomous body: Javed Iqbal

Pakistan may soon clear K-Electric’s sale

PM Imran, President Alvi due in Karachi today

Qatari emir, sultan of Oman not to join PGCC summit in Saudi Arabia

Not a nepotism: Fawad’s brother appointed as Punjab AAG

Who misfed PM Imran Khan?

The Wooing of Jared Kushner: How the Saudis Got a Friend in the White House

Super-Calm Asad Shafiq Equals a Unique Record For Pakistan

Paris in pictures: Burned cars and graffiti littered monuments

Israel authorized sale of spyware to Saudis: Report

Imran Khan’s Pakistan stands up to US like a sovereign nation: Analyst

Regional intelligence services behind Chabahar terror attack

2nd Speakers' Conference releases final statement

Controversy erupts over information portfolio; Chaudhry offers to step down in Rashid's favour

6 injured in blast at Milad gathering in Karachi's Gulistan-i-Jauhar area

Pakistan Army to Acquire FD-2000 Air Defense System With 125KM Range: Report

Can the Israeli regime attack Lebanon ?!

Bahria Town in Trouble? Employees, Residents & Customers protest

Shia Muslims lament inaction against terrorists for Parachinar blast

US Centcom Chief accuses Pakistan of using Taliban as a hedge against India

Top general warns of another 9/11 if US pulls out of Afghanistan

NAB should stay the way it is: Nawaz

China mission launches to far side of Moon

US sanctions against Iranian nation 'clear example of economic terrorism'

Backdoor diplomacy: Saad spills the beans on PML-N strategy to ‘go soft’ on PTI

President House opens door to public

‘Trade potential between Pakistan, India can be engine for prosperity’

Iran to give crushing response to perpetrators of Chabahar terrorist attack

US report highlights murky world of ‘contractors’ in Pakistan

Society’s mindset needs to be changed to combat harassment: Mazari

SC gives Wapda 15 to prepare new PC-1

Imran wants peace in Kabul without fighting others’ war

Govt wants SBP to consult Centre on exchange rate

Can Russia put an end to western hegemony?

Military-Media: Collaboration to counter propaganda?

Trump’s letter to PM Khan: A long-overdue realization

Biography of Shaikh Saduq

US new sanctions to impact Iranian nation: Dorsey

Constitutional rights to be extended to people of Gilgit-Baltistan

Tel Aviv’s ‘northern shield’ operation’s objective in Lebanon border

Hindu Yuva Vahini Announces Rs 1 Cr Reward For Beheading Congress MLA Navjot Singh Sidhu

Funeral ceremony held for two martyrs of Chabahar terror attack

New Zealand beat Pakistan by 123 runs in third Test, clinch series 2-1

From worse to worst: Another scam of Nawaz Sharif revealed

US government, record-holder of defeat against Iran

'Do not want Pakistan treated like a hired gun': PM Khan on US ties

US fails to condemn Hamas at UN General Assembly

Saudi warplanes launch 28 airstrikes on Yemen, kill 3 amid Sweden peace talks

Pakistan army wants US to leave Afghanistan

ISPR DG warns PTM not to cross limits

Chabahar rocked by Bomb attack: 3 killed

PTI minister Azam Swati resigns 'to uphold moral authority'

Is Trump’s letter a failure of his “New South Asia” policy?

Another Karkare? Slain Policeman was investigating Hindu lynchings of Muslims

Gullu Butt hugs Tahirul Qadri: Irony of the day

I paved way for a ‘Dentist’ President: Zardari’s comments spark uproar

Pakistan must ‘save’ CPEC before its too late

Turkey files arrest warrants for Saudi crown prince allies over Khashoggi murder

2018-10-02 06:28:59

Are Chinese debts going to kill CPEC?

 

Despite assurances by the government of Pakistan that Islamabad is completely on board with Beijing vis-à-vis the China-Pakistan Economic Corridor, some in the higher echelons of government seem to be wary of a debt trap, critics of CPEC warn about. The Prime Minister of Pakistan, Imran Khan, in his inaugural address to the nation, said that the country needs to get out of the debt trap.

Austerity measures, such as auctioning off of cars at the PM house are also meant to convey the message that the government takes the issue of debt seriously. Many experts have predicted that Pakistan will ultimately have to go to the International Monetary Fund for a bail-out package of nearly $8 billion. That, however, will not be without preconditions. The IMF will demand spending cuts on its own terms.

Saudi Arabia becomes part of the China Pakistan Economic Corridor and finances some projects under CPEC. The two sides inked an agreement worth $ 16.1 million at the offset.

The Minister of Finance, Mr. Asad Umar, said in a speech in Parliament that going to the IMF is not feasible. He also indicated that the government of Pakistan will look for other options. Some experts have pointed out that these options may include incentivizing overseas Pakistanis to buy government debt in the form of bonds or look for alternative sources of investment.

To this end, the visit of Prime Minister Imran Khan to Riyadh may prove to be highly significant. The PM made his first overseas visit to Saudi Arabia for a two-day tour at the invitation of King Salman. He was accompanied by the foreign minister, the minister for finance and the advisor to the Prime Minister on commerce.

Taking along cabinet members responsible for finance and commerce to the Kingdom of Saudi Arabia shows the purpose of the visit seems to have been successful. He proposed that Saudi Arabia becomes part of the China Pakistan Economic Corridor and finances some projects under CPEC. The two sides inked an agreement worth $ 16.1 million at the offset. Indeed, a Saudi delegation reached Islamabad on Sunday.

The delegates from Riyadh may sign up to four MoUs with the government of Pakistan. Islamabad is looking to secure deferred payments for crude oil from Saudi Arabia. In return, KSA will get to set up an oil refinery at Gwadar, invest gold and copper mines in Baluchistan. The delegation is led by the Minister for Energy, Industry and Mineral Resources, Khalid Al-Falih. The refinery at Gwadar is expected to produce up to 110,000 barrels per day (bpd).

Islamabad rejected the funding of the Diamer Bhasha dam under the economic corridor because the terms were not favorable enough.

Crude oil imports form a major part of Pakistan’s import bill. Deferring payments should allow relief to Islamabad as far as the balance of payments is concerned. Saudi Arabia has allowed Pakistan to defer payments for crude oil before as well. After the nuclear tests in May 1998, Riyadh was one of the few countries that aided Pakistan when it was isolated internationally towards the end of the millennium. The Saudi delegation is set to visit Gwadar and Reko Dik in Baluchistan during their four-day visit.

The fact that the Prime Minister of Pakistan asked Saudi Arabia to become part of CPEC has evoked mixed reactions. To many, it shows flexibility and foresight by the new government in Islamabad. However, critics of CPEC take it as further evidence that the economic corridor will result in the country getting mired in debt and that the government is slowly beginning to realize this.

They point towards to the fact that China acquired a 99-year lease on a strategic port in Sri Lanka after the government in Colombo failed to pay back Chinese loans. The Prime Minister of Malaysia, Mahathir Bin Mohammad, also walked back several projects that were supposed to be financed by China.

A report by the UK daily, the Financial Times, even suggested that a 9-member committee will ‘think through’ CPEC, quoting a senior government official as saying, “The previous government did a bad job negotiating with China on China-Pakistan Economic Corridor-they did not do their homework and did not negotiate correctly so they gave away a lot.”

Renegotiation under CPEC does not mean the government of Pakistan will cancel entire projects the way the Malaysian Prime Minister did.

The official in question, Abdul Razak Dawood, is the advisor to the Prime Minister on commerce and textile, rejected the claims made by the Financial Times report. The foreign office of Pakistan also completely rejected any insinuations against CPEC. Once again, speculations in the media suggest that the government might be ‘re-thinking’ CPEC.

The Minister for Planning, Development, and Reforms, Khusro Bakhtyar said in a press briefing recently, “We are seeing how to develop a model so the government of Pakistan wouldn’t have all the risk.” The revamping of the 1872 kilometer long ML-1 railway line has been promised under CPEC at a cost of $8.2 billion. It connects the Arabian Sea to the base of the Hindu Kush.

Critics of CPEC point out that since the government might be reconsidering terms of finance under CPEC for this vital railway line, this shows the project is not good for the country. However, the fact of the matter is that CPEC is ultimately a business transaction. It is hoped that it will prove to be mutually beneficial to both China and Pakistan, not unlike how the Marshall Plan proved to be beneficial to both Western Europe and the United States.

Islamabad rejected the funding of the Diamer Bhasha dam under the economic corridor because the terms were not favorable enough. This does not mean that the friendship between Islamabad and Beijing is getting strained. Nor does it mean that the $60 billion infrastructure investment project is likely to fail. Debates around this issue in the media usually tend to lack nuance and depth.

Renegotiation under CPEC does not mean the government of Pakistan will cancel entire projects the way the Malaysian Prime Minister did. It shows that there are enough flexibility and trust between Islamabad and Beijing that both are willing to find ways to make this project work best for both parties.

Categories:  
Tags:   CPEC ، China ،
From other agencies (RSS Reader)

احتساب اور کرپشن

- ایکسپریس

Swindler arrested

- The News