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  1. #1
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    Govt is Considering to Renegotiate CPEC Contracts and Projects: FT Report

    Financial Times has claimed that Pakistan is rethinking its role in China’s Belt and Road Initiative, known in Pakistan as the China Pakistan Economic Corridor (CPEC), citing adviser to the Prime Minister for Commerce, Textile and Investment Abdul Razzaq Dawood that Pakistan negotiated poorly with China which helped Chinese firms benefit heavily putting Pakistan at a slight disadvantage.

    The London-based paper says that the Pakistani ministers and other authorities involved are reviewing the trade agreement with Chinese authorities, which exempt Chinese firms from various taxes, effectively putting Pakistani companies at a disadvantage.

    The trade deal which took place in 2006 can be opened to renegotiations, said the Chinese Foreign Minister who visited Pakistan on the weekend. He also iterated that the project would mean a huge economic boost for Pakistan:

    "CPEC has not inflicted a debt burden on Pakistan. When these projects get completed and enter into operation, they will unleash huge economic benefits."

    Mr Dawood said that Pakistan is taking a closer look at all the agreements signed in the previous government following the orders of the Prime Minister Imran Khan to lay out the liabilities and benefits of the project before proceeding further. Taking a break for a year is also under consideration.

    "I think we should put everything on hold for a year so we can get our act together. Perhaps we can stretch CPEC out over another five years or so."

    Other officials are of the view that cancellation of the project is not the way forward rather stretching the projects over a longer time frame can be a preferred choice.

    Finance Minister Asad Umar said that Pakistan will not handle the project like Malaysia, which recently decided to review a a massive rail-link project, in addition to cancelling three pipeline projects backed by China.
    https://propakistani.pk/2018/09/10/g...cts-ft-report/

    Don't know how much we can re-negotiate but this is important.

  2. #2
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    Makes you wonder *** the previous government were doing.

  3. #3
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    we should not put it on hold..that would be a bad idea..renegotiating is the best option and China is up for it..

  4. #4
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    I would like to see details and transparency. Last Govt was completely silent about the terms and conditions. In Democracy this should be public information and there should be lot more debate about CPEC... I hope more transparency this time around. I would also like to know the role of Army in all this...


    If you want to do things that are certain to succeed, you are doing very obvious thing - E Musk

  5. #5
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    It is long overdue. For example, 93% of Gwadar’s income will go to China.

  6. #6
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    Watch Zara Hut Kay 10th September. They covered this topic really well and makes lot of sense.

    There are so many factors involved to blindly either support or oppose this massive project, need balanced approach.

    In short, PTI government is trying to limit the divert some of the investment from infrastructure to human development projects. Clean water, technical training and education, health etc are being promoted.

  7. #7
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    Quote Originally Posted by saeedhk View Post
    It is long overdue. For example, 93% of Gwadar’s income will go to China.
    Such things need to be renegotiated. While CPEC will help develop Pakistan, it is not going to help Pakistan's economy grow in the long run if so many of Pakistan's assets are Chinese owned and operated. Rather, it will make Pakistan dependant on China, and hence, not truly independent.


    “It is not defeat that destroys you, it is being demoralized by defeat that destroys you.”
    ― Imran Khan

  8. #8
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    Pakistan, China agree to broaden CPEC base

    ISLAMABAD: Pakistan and China on Sunday agreed to formally invite “third-country” investors to be part of the $60 billion China-Pakistan Economic Corridor and add social sector and regional development schemes to the existing portfolio of CPEC projects.

    The understanding on addition of “two major dimensions” to the CPEC projects came about at a long meeting between the Planning, Development and Reforms Commission of Pakistan and the National Development and Reforms Commission (NDRC) of China on Sunday.

    At the four-hour meeting, the Pakistani team was led by Minister for Planning Makhdoom Khusro Bakhtiar while the NDRC’s vice-chairman, Ning Jizhe, led the Chinese delegation. Planning Secretary Zafar Hassan, CPEC’s project director Hassan Daud and officials of the NDRC and Chinese Embassy also attended the meeting.

    Sources said that Beijing wanted involvement in the upcoming special economic zones (SEZs) of countries friendly to both Pakistan and China because it wished to steer clear of adverse criticism, particularly from the US and India, about possibility of secretive deals that “remain beyond public eye”.

    No country was specifically mentioned in this regard and Central Asian, European and other countries including Turkey, Russia and Saudi Arabia could invest in the nine SEZs proposed, said an official.


    Gwadar would be re-prioritised as a centre of industries for export markets where these countries could invest alone or in partnership with Pakistan or China, to take advantage of the city’s trans-shipment potential and location apart from the free-zone incentives it offered.

    The government led by the Pakistan Tehreek-i-Insaf (PTI) wished to include in the project portfolio social sector schemes — involving clean drinking water, health, education and technical training — to bring the huge initiative in line with Prime Minister Imran Khan’s priority areas of human development. This could be done by making some changes in the seven central pillars of the CPEC’s Long Term Plan.

    The official, however, agreed that China and Pakistan had so far not been able to settle key issues about development of the Rashakai or Hattar SEZ in the first phase of industrial cooperation. Thus, it would be difficult to attract “third-country” investors immediately.

    He insisted that the two sides would work from now on to achieve the big objective and recalled that even the basic issues of CPEC were not settled in the first meeting.

    Mr Bakhtiar, he said, had already ordered the relevant agencies to take the various SEZ projects to the groundbreaking stage within three months as a lot of time had already been wasted.

    “Realigning the goals of CPEC, Pakistan has introduced new targets of socioeconomic and regional development under this unprecedented mega project,” said the Planning Commission in an official statement.

    The minister reaffirmed his government’s commitment to the CPEC and “categorically said that all-out efforts would be made for the success of this project of economic development and prosperity. CPEC is a reality... aimed at initiating a modern era of trade and economic growth”, said the statement.

    To achieve the new targets, the government was dedicated to putting all its energies together to make progress at the earliest, said the official.

    During the meeting, both the sides said that CPEC — “an icon of the Belt and Road Initiative” — was an engine of rapid growth for Pakistan and a manifestation of the strong Pak-China relations that would continue to promote inclusiveness.

    The Pakistani team also told the visiting dignitaries that the PTI-led government accorded top priority to the development of Gwadar as a standalone project. The port city would be transformed into a trans-shipment hub and a centre for industrialisation with special focus on industrial units enjoying incentives that could produce a high rate of return.

    The two sides agreed that industrial cooperation should be the main area of attention so that efforts were made to encourage relocation of Chinese industries with a view to increasing exports and maximising employment opportunities.

    The Pakistani side said that progress had now been expedited and investors from across the world were being encouraged to populate the SEZs.

    Mr Bakhtyar said his government intended to encourage projects based on indigenous sources of energy, including Thar Coal.

    On the occasion, Mr Ning praised the PTI-led government’s agenda and its efforts for socioeconomic development of the country. He reiterated the commitment that Chinese companies would effectively work for completion of the CPEC projects.

    The two sides also decided to further expedite key development projects in Gwadar and ensure groundbreaking this year of the New Gwadar International Airport, a technical institute and a hospital there.

    Published in Dawn, September 10th, 2018

    https://www.dawn.com/news/1432000


    “It is not defeat that destroys you, it is being demoralized by defeat that destroys you.”
    ― Imran Khan

  9. #9
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    Why not include Basha and Diamer Dam as part of CPEC?

  10. #10
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    Quote Originally Posted by Savak View Post
    Why not include Basha and Diamer Dam as part of CPEC?
    I heard rumors that China demanded a very unfair agreement for it and some of the bureaucracy and WAPDA stepped in to prevent it. China wanted full control over the dam which would let them dictate the electricity prices and have control over when to open the spillway. That situation would pose a serious security threat and compromise on Pakistan's solidarity. Reason behind this is that China knows we are desperate and they would be seriously pissing off India.

    Though these are rumors, keep that in mind.

  11. #11
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    CPEC deals need to be made public ASAP.... so we can judge whose been doing what.

  12. #12
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    My understanding is that the CPEC deal was signed under PPP but the ground work started under PML-N. Both parties need to be on the dock for a deal detrimental to Pakistan's economy.

  13. #13
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    Most of the agreements and profit-sharing models signed under the CPEC are heavily tilted towards China. For example, most/all of the road toll income on roads constructed under the CPEC will go directly to China.

    I did make a thread on the exploitative nature on CPEC but I cannot seem to unearth it.

  14. #14
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    Quote Originally Posted by saeedhk View Post
    It is long overdue. For example, 93% of Gwadar’s income will go to China.

    I am surprised other countries which are competing with China for regional influence such as India for example, don't see the opportunity here. Why could they not offer better terms than the Chinese allowing Pakistan to keep say, 15% of the income, that would still leave a healthy 85% for India?


    I for one welcome our new In____ overlords - Kent Brockman

  15. #15
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    What Atif Mian thinks of CPEC.
































    “It is not defeat that destroys you, it is being demoralized by defeat that destroys you.”
    ― Imran Khan

  16. #16
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    Atif Mian is on the mark with those comments, he seems to have a good knowledge of finance.


    I for one welcome our new In____ overlords - Kent Brockman


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