China rebuffs Pakistan's P.M. Sharif on new BRI investment

[Circadian Rhythm]

China rebuffs Pakistan's Sharif on new BRI investment​

 

[Circadian Rhythm]

INTERNATIONAL RELATIONS

China rebuffs Pakistan's Sharif on new BRI investment​

Islamabad hoped Beijing visit would breathe new life into infrastructure deals

Chinese President Xi Jinping, right, and Pakistani Prime Minister Shehbaz Sharif greet each other at the Great Hall of the People in Beijing on June 7. © Reuters
ADNAN AAMIR, Contributing writerJune 11, 2024 12:21 JST
ISLAMABAD -- Pakistani leader Shehbaz Sharif went to China hoping to land more big-ticket energy and infrastructure deals as his county reels from an economic crisis.
While Sharif and his entourage of cabinet ministers met with President Xi Jinping and other top officials in Beijing, the group left nearly empty handed after finishing a five-day official visit this past weekend.
That may be the new normal for Pakistan's leadership as China cools on the South Asian nation and its much-hyped $50 billion China-Pakistan Economic Corridor (CPEC), a cornerstone of Beijing's globe-spanning Belt and Road Initiative.

"The Chinese have become wary of putting in more money since they know it is a financial black hole due to Pakistan's long-term poor economic circumstances," Jeremy Garlick, an associate professor of international relations at Prague University of Economics and Business, told Nikkei Asia. "China needs to maintain the facade that CPEC is working because it is supposed to be a key part of the BRI."
Last month, Islamabad requested an additional $17 billion of China-funded energy and infrastructure projects following a key meeting of the body that decides on future CPEC investments.
Before his trip, Sharif's first to China since taking office in March, Pakistani officials had claimed that an upgraded version of the multibillion-dollar agreement would be formally launched in Beijing.
The Chinese response, however, was lukewarm. A 32-point joint statement issued this weekend revealed that Pakistan eked out few concrete gains, with only a vague mention of an upgraded economic cooperation deal.
"Earlier CPEC investments in the power sector were rushed by political needs, and might not have been optimal," said Stella Hong Zhang, a China public policy postdoctoral fellow at the Harvard Kennedy School's Ash Center.
That was highlighted by cash-strapped Pakistan's recent call to restructure more than $15 billion in power-plant debt owed to Chinese energy producers operating power plants in Pakistan. The surprise request came as the Islamabad negotiates a $6 billion to $8 billion bailout with the International Monetary Fund.
Another aggravating factor is security. On the weekend, Pakistan committed to ensuring the safety of Chinese workers in the country and projects after a string of deadly militant attacks alarmed Beijing, casting further doubt on future investment.
Still, Sharif's entourage managed some modest gains. China agreed to advance the Main Line 1 (ML-1) Railway project in stages. With a price tag of $6.7 billion, the ML-1 will improve Pakistan's railway infrastructure between the southern port city of Karachi and Peshawar in the north in three phases. China has only agreed to the first phase.
There was also a deal to upgrade a portion of the Karakoram Highway that connects Pakistan with China through mountainous terrain, which is closed during winter due to heavy snowfall.
"We will not see big investments, nor will we see China [completely] withdrawing from cooperation with Pakistan," Garlick said.
Mohammad Shoaib, an assistant professor at Quaid-i-Azam University Islamabad, said that further progress on Chinese investment in Pakistan will likely come slowly, and remain that way: "CPEC will continue to be a major enterprise in terms of rhetoric only," Shoaib said.
However, there may be potential for nongovernmental economic cooperation between the two countries, he added. "China will be interested in doing business with a growing number of enthusiastic entrepreneurs in Pakistan," Shoaib added.
Zhang, from Harvard's Kennedy School, agrees. The Chinese "government will urge companies to seek opportunities in Pakistan," she said. "Whether such activities will bear fruit will still depend on how much Pakistan's business environment improves."

 

[kambhakt]

PDF is full of posts of how Pakistan will do economic wonders when CPEC is completed. It looks like CPEC is now finished.

 

[Circadian Rhythm]

PDF is full of posts of how Pakistan will do economic wonders when CPEC is completed. It looks like CPEC is now finished.

China has Many Investment Opportunities all over the World

And in Pakistan, the Unpaid Dues have created a Huge problem for Chinese Finance Managers who have to show Return on Investment

 

[nahtanbob]

It is China's way to telling India they do not want a two front confrontation with USA and India

 

[PakFactor]

PDF is full of posts of how Pakistan will do economic wonders when CPEC is completed. It looks like CPEC is now finished.

However, the reality of CPEC's progress has left some of my compatriots in denial. The project, initially proposed with noble intentions, has unfortunately been marred by poor execution.

When a country invests billions in building infrastructure, it needs to have a strong industry to support its future debt servicing. A Stanford University professor came up with the modern-day concept of Silicon Valley, envisioning a city built around the tech sector. As the business environment expanded, so did the infrastructure. Local schools adapted to the technology environment, serving as a testing zone of sorts, while universities updated their curriculum to become feeder schools, sustaining the local economy.

There is a reason why the Chinese wanted Pakistan to complete the Special Economic Zones: a total of 11 of them, with 1 completed at Gwadar by the Chinese themselves; the rest of the land is sitting collecting dust.

Anyway, I've beat this dead horse enough; now the other Pakistanis can come and eat the meat.

 

[AZADPAKISTAN2009]

Kitna Mila , ye bata do ?

Ya Hari Jhandi dekha di, Smile to Aysi ker raha hai Jesi Shaadi hogai

 

[nahtanbob]

There is a reason why the Chinese wanted Pakistan to complete the Special Economic Zones: a total of 11 of them, with 1 completed at Gwadar by the Chinese themselves; the rest of the land is sitting collecting dust.

What can Pakistan do for the SEZ ? They can allocate the land, make sure they have transport/telecommunication links. Beyond that Pakistan controls nothing

 

[AZADPAKISTAN2009]

Well , Pakistan - the State , has been given Billions , in order to set aside the funds for construction of Economic Zones, after China completed the Power Grid and Power projects. The funds were allocated to construct the economic zones

a) Build Infrastructure (Road/Water/Gas Lines)
b) Ensure the region has Electricity , Water and Gas
c) Ensure Businesses can easily attain the Property
d) Build buildings and Industrial Complex


Economic Zone development Ka Paisa Kahan giya?

I think our "Angels" have moved the Money to UAE and invested in the UAE property

• Recently it was disclosed Pakistani Own 22,000 Properties in UAE

Angle ki Karname Angel Jane
Main kiya Jano , Main kiya Jano

 

[nahtanbob]

• Recently it was disclosed Pakistani Own 22,000 Properties in UAE

Majority of the 22,000 properties are owned by expatriates who worked there
"property" could be as puny as an apartment or condo

 

[AZADPAKISTAN2009]

No working class can buy cash property in UAE

• It cost 600,000 USD to 1 Million Dollar

Only ...Government officials (Pakistan) OR High rank folks (Angels) can buy Property in Dubai

22,000 Property Ownership = 75% Of Small City

Pakistani Expats send back funds back home to their families
Their income levels are moderate Level in UAE , they can't afford expensive stuff

It is not possible they don't have that much salary in UAE

The Remittance Annual figures are proof the working class is sending back funds to build their home in Pakistan or help their poor families

 

[nahtanbob]

No working class can buy cash property in UAE

• It cost 600,000 USD to 1 Million Dollar

There are 1 million Pakistani expatriates. Even if 1% of them purchase properties it is 10,000.
There are some Pakistani businessmen and professionals who operate in Dubai. I keep hearing about corrupt Pakistanis stashing away hundreds of billions abroad. In USA secrecy is a little hard. I have seen little evidence of Pakistanis stashing their wealth.

 

[PakFactor]

What can Pakistan do for the SEZ ? They can allocate the land, make sure they have transport/telecommunication links. Beyond that Pakistan controls nothing

It needs to attract international investors from various sectors; however, the issue is corruption from local to state and federal levels. Unless we can clean the house, the concept of SEZ is dead.

I will give you an example: within the last decade, there was an IT company owned and operated by a Pakistani team in Texas. They decided they wanted to open a back office and software development team. Everything went according to plan, and when it came towards the end, the Nawaz Family sent their man to ask for a certain dollar amount. That party backed out, as they do not get involved in this sort of wheeling and dealing, so they abandoned the project altogether and opened the office in Singapore. I was part of this deal and would have made good money, but because of these corrupt practices, I lost out on almost $400,000 of profit.

So you see, these are not just isolated cases but a daily reality for outside investors. The persistence of these issues casts a shadow over the potential of SEZs, rendering them ineffective.

Also, some of these politically and militarily connected individuals purchased the land where these SEZs are to be established. So wherever you go, you end up seeing their maskeen faces, from politicians to the military.

 

[Dalit]

INTERNATIONAL RELATIONS

China rebuffs Pakistan's Sharif on new BRI investment​

Islamabad hoped Beijing visit would breathe new life into infrastructure deals

Chinese President Xi Jinping, right, and Pakistani Prime Minister Shehbaz Sharif greet each other at the Great Hall of the People in Beijing on June 7. © Reuters
ADNAN AAMIR, Contributing writerJune 11, 2024 12:21 JST
ISLAMABAD -- Pakistani leader Shehbaz Sharif went to China hoping to land more big-ticket energy and infrastructure deals as his county reels from an economic crisis.
While Sharif and his entourage of cabinet ministers met with President Xi Jinping and other top officials in Beijing, the group left nearly empty handed after finishing a five-day official visit this past weekend.
That may be the new normal for Pakistan's leadership as China cools on the South Asian nation and its much-hyped $50 billion China-Pakistan Economic Corridor (CPEC), a cornerstone of Beijing's globe-spanning Belt and Road Initiative.

"The Chinese have become wary of putting in more money since they know it is a financial black hole due to Pakistan's long-term poor economic circumstances," Jeremy Garlick, an associate professor of international relations at Prague University of Economics and Business, told Nikkei Asia. "China needs to maintain the facade that CPEC is working because it is supposed to be a key part of the BRI."
Last month, Islamabad requested an additional $17 billion of China-funded energy and infrastructure projects following a key meeting of the body that decides on future CPEC investments.
Before his trip, Sharif's first to China since taking office in March, Pakistani officials had claimed that an upgraded version of the multibillion-dollar agreement would be formally launched in Beijing.
The Chinese response, however, was lukewarm. A 32-point joint statement issued this weekend revealed that Pakistan eked out few concrete gains, with only a vague mention of an upgraded economic cooperation deal.
"Earlier CPEC investments in the power sector were rushed by political needs, and might not have been optimal," said Stella Hong Zhang, a China public policy postdoctoral fellow at the Harvard Kennedy School's Ash Center.
That was highlighted by cash-strapped Pakistan's recent call to restructure more than $15 billion in power-plant debt owed to Chinese energy producers operating power plants in Pakistan. The surprise request came as the Islamabad negotiates a $6 billion to $8 billion bailout with the International Monetary Fund.
Another aggravating factor is security. On the weekend, Pakistan committed to ensuring the safety of Chinese workers in the country and projects after a string of deadly militant attacks alarmed Beijing, casting further doubt on future investment.
Still, Sharif's entourage managed some modest gains. China agreed to advance the Main Line 1 (ML-1) Railway project in stages. With a price tag of $6.7 billion, the ML-1 will improve Pakistan's railway infrastructure between the southern port city of Karachi and Peshawar in the north in three phases. China has only agreed to the first phase.
There was also a deal to upgrade a portion of the Karakoram Highway that connects Pakistan with China through mountainous terrain, which is closed during winter due to heavy snowfall.
"We will not see big investments, nor will we see China [completely] withdrawing from cooperation with Pakistan," Garlick said.
Mohammad Shoaib, an assistant professor at Quaid-i-Azam University Islamabad, said that further progress on Chinese investment in Pakistan will likely come slowly, and remain that way: "CPEC will continue to be a major enterprise in terms of rhetoric only," Shoaib said.
However, there may be potential for nongovernmental economic cooperation between the two countries, he added. "China will be interested in doing business with a growing number of enthusiastic entrepreneurs in Pakistan," Shoaib added.
Zhang, from Harvard's Kennedy School, agrees. The Chinese "government will urge companies to seek opportunities in Pakistan," she said. "Whether such activities will bear fruit will still depend on how much Pakistan's business environment improves."

LOL Yet, PML-N keeps blaming PTI for propaganda against CPEC and China Pakistan cooperation.

Imran Khan is right now in his cell spreading propaganda against CPEC.

 

[Ali_Baba]

China wants to fit the fundamental problems of good governance, strategic planning and honouring of contracts.

All of this - the same old chacha's in charge wont change or fix as it is not in their interests to do so.