Pakistan federal government is too greedy

[srh]

There is a conflict between Pakistan federal government and Sindh provincial government on interest rate for Karachi circular railway project. The total cost of the project is 1.5 billion dollars. Japan International Cooperation Agency is ready to give loan for this project on 0.75% interest rate to the Pakistan federal government. But the Pakistan federal government then want to give this loan to Sindh provincial government on 15% interest rate.

http://www.jang.com.pk/jang/jan2011-...011/u58396.htm

Thats a huge difference between interest rates.

[insaftak]

Originally Posted by srh There is a conflict between Pakistan federal government and Sindh provincial government on interest rate for Karachi circular railway project. The total cost of the project is 1.5 billion dollars. Japan International Cooperation Agency is ready to give loan for this project on 0.75% interest rate to the Pakistan federal government. But the Pakistan federal government then want to give this loan to Sindh provincial government on 15% interest rate. http://www.jang.com.pk/jang/jan2011-...011/u58396.htm Thats a huge difference between interest rates.

PPP gov't is stupid they are not even serious about doing anything for Sindhis. This project is a must for Karachi and lahore as well. We need to move away from cars.

[srh]

Originally Posted by insaftak PPP gov't is stupid they are not even serious about doing anything for Sindhis. This project is a must for Karachi and lahore as well. We need to move away from cars.

Correct. One place where Musharaf failed big time is that he did not start any subway/train projects. In his 10 years Karachi and Lahore should have functional subways by now.

[Looney]

Although a mass transit system are a must for the cities BUT i read somewhere that even if we have this transit system , it will fail if the government does not subsidize it as a lot of people will not be able to afford it

[hasanb]

Delhi is an interesting example here, theyve got an excellent system now.

[kkmix]

I remember Mustafa Kamal pushed for mass transit system for Karachi in his time, he even got the Japanese company to work on this project, same company that made transit system for Delhi, but it was never approved by the federal gov't.

[insaftak]

Originally Posted by kkmix I remember Mustafa Kamal pushed for mass transit system for Karachi in his time, he even got the Japanese company to work on this project, same company that made transit system for Delhi, but it was never approved by the federal gov't.

This Project can't move forward without the help of provincial and federal gov't. They need to be smart about it and move quickly and get transit system for people of Karachi.

[taxzu]

I think something is missing in this news. I havent heard any bank giving loan at that low rate. It must have been LIBOR + 0.75%. I would go with govt of pakistan's loan which is fixed rate rather than going for floating rate loan in current conditions.