CPEC investment pushed from $55b to $62b

Published: April 12, 2017
SHARES
Email
PHOTO: PPI

PHOTO: PPI

KARACHI: China has approved additional financing for infrastructure projects in Pakistan under the China-Pakistan Economic Corridor (CPEC), taking the investment volume to $62 billion from $55 billion, announced Sindh Governor Mohammad Zubair on Wednesday.

“New investment has been approved for projects in various sectors including [establishment of] industrial zones,” said Zubair while speaking at a conference on “Infrastructure demand and financing” organised by credit rating agencies Pacra (Pakistan) and Dagong (China).

Chinese Fortune 500 company among bidders for Railways upgrade

“We are also in talks to place the Karachi Circular Railway under the CPEC banner,” he said.

China has been increasing investment in Pakistan’s infrastructure and power projects since it unveiled CPEC programme worth $46 billion in 2015.

The volume of investment was pushed to $55 billion when Federal Minister of Planning, Development and Reform Ahsan Iqbal, Federal Minister of Railways Khawaja Saad Rafique and chief ministers of provinces visited China about three months ago.

This country’s eyeing to become key partner of CPEC

“This [$62 billion investment] is good news. People will reap dividends of the investment,” remarked Zubair, who is an active member of Prime Minister Nawaz Sharif’s core economic team.

A major chunk of the multibillion-dollar investment, $34 billion, is going into electricity production and distribution.

According to Zubair, other countries are keen to become part of CPEC projects. They may become part of the project by investing in industrial zones, he said.

Electric cars icing on the CPEC cake

Additionally, CPEC projects also have huge indirect benefits as well. “Information technology firms from across the globe have arrived in Pakistan as each and every project under China’s investment would require IT assistance.”

Zubair added China had become one of the world’s economic superpowers by investing in huge infrastructure projects like highways, railways, power production and gas pipelines at home.

“We are doing exactly the same thing. CPEC will create massive economic momentum in Pakistan,” he said.

The governor pointed out that Pakistan was not the only country whose exports had gone down in recent years as China and India had also registered a significant decline in their exports.

“The uptrend in international fuel oil prices may widen Pakistan’s current account deficit,” he said.

Zubair announced that the federal government would soon unveil a financing plan for new projects across Sindh including Karachi, adding the Green Line public transport project would be completed by the end of the year.

Speaking on the occasion, Ministry of Finance’s former secretary Dr Waqar Masood pointed out that besides Chinese government’s investment in CPEC projects, the private sector of China was funding different schemes in Pakistan, which did not fall within the purview of CPEC.

President Mamnoon invites Belarus to join CPEC

The volume of China’s investment in Pakistan would be significantly higher than $62 billion if its private sector investment was also counted, he said.

Pakistan Credit Rating Agency (Pacra) Managing Director Adnan Afaq emphasised that the establishment of power projects would help overcome shortage and play a positive role in achieving the required economic growth of 7% in the next two to three years.

He was of the view that managing such a huge investment of $62 billion or higher under CPEC would remain a big challenge for Pakistan as it had never done that before. “We need to make sure the process [of utilising the finances] remains transparent,” he said.

Dagong Chairman Guan Jianzhong stressed that infrastructure development would support economic growth in Pakistan over the long run, adding it would open Islamabad to the world and bring investment.

Other speakers urged the authorities concerned to float infrastructure bonds in order to attract public investment. The government should play its role of providing incentives for the proposed bonds to stimulate investment from new avenues.

Facebook Conversations

Reader Comments (18)

  • Salman
    Apr 12, 2017 - 10:26PM

    Man it will give further sleepless night to Indians tonight.Recommend

  • Vaibhav
    Apr 13, 2017 - 12:23AM

    @Salman:
    India is also building DMIC (Delhi Mumbai economic corridor). But India building it with help of Japanese experts based on Tokyo Osaka economic corridorRecommend

  • Sara
    Apr 13, 2017 - 12:55AM

    @Salman:
    Lol. Agreed. They’re going to act like our best friends and try to ‘save us’ from the red dragon. Recommend

  • Khan
    Apr 13, 2017 - 2:49AM

    India is more afraid of CPEC than anythingRecommend

  • Ramesh
    Apr 13, 2017 - 9:56AM

    It will give sleepless nights to Pakistanis. Additional interest on the extra loan of 7 billion USD.Recommend

  • Human
    Apr 13, 2017 - 10:06AM

    Better Pakistan gov. can lease the country to china to developRecommend

  • Xof
    Apr 13, 2017 - 11:03AM

    @Vaibhav
    No one asked for it. Good for you. Grow out of the typical insecurity.Recommend

  • SK
    Apr 13, 2017 - 11:18AM

    More and more China building CPEC is looking like Britain building the Railways in India !Recommend

  • Hasan
    Apr 13, 2017 - 11:24AM

    Feel sorry for India (or anyone else for that matter), who believes that only someone’s loss is their gain.

    Clearly when it comes to Pakistan, this is The Indian Psychology. India should grow up & cooperate with Pakistan & other neighbours – Or walk away. The business of wasting energy on propaganda & sending spies to spread terrorism is negative and stupid.

    I had no idea of the negative energy & hatred existing in India, until the day i got the TaTa HD Dish & was horrified to see Pakistan Propaganda on almost every news channel in India. I feel sorry for India & what their Government has done to its people by filling the hearts of everyday Indians, sportsmen, even artists…. with hatred which is a very negative emotion. Hatred only causes negative energy. THERE IS NO INDIAN PROPAGANDA ON EVERY PAKISTANI TV NEWS CHANNEL. Pakistan believes in creating positive vibes in the form of daily progress in health, education, technology etc.

    We don’t have to agree on anything to be civil to one another. Recommend

  • sanjeev
    Apr 13, 2017 - 11:40AM

    How Russia and Germany will use road from China to Gwadar ? Will China allow any one to participate creating competition to its goods ? It wont allow it from even Pakistan. And to understand the real game read the book ‘New Confessions of an Economic Hitman”
    https://www.goodreads.com/book/show/26593431-the-new-confessions-of-an-economic-hit-man
    Those who think India will have sleepless nights etc. are living in the fools’ paradise. Recommend

  • Yogesh
    Apr 13, 2017 - 12:25PM

    62 billion upto 2030. Right? That means an average FDI of 4.4 billion from 2015 per annum. Is it showing in your accounts? It is laughworthy that your govt is deceitfully showing high interest loans as investment and Pakistanis are buying it. I mean how gullible are our neighbours? Lol.Recommend

  • Haramullah Fattuddin
    Apr 13, 2017 - 1:11PM

    @Sara, No dear Sara, nobody will save you from the Red dragon. Its you and only you responsible for your acts whether good or bad. So good luck.Recommend

  • Albert Xavier
    Apr 13, 2017 - 1:51PM

    Pakistan’s debt rises from 55b to 62b,Recommend

  • Hasan
    Apr 13, 2017 - 2:45PM

    @Ramesh and all those ignorant about CPEC.

    Pl read and do your homework before making ignorant statements.

    Pakistan is not raising debts or leasing itself to China. Most CPEC projects are EPC based.
    Pl go and wiki what that means.Recommend

  • Haroon Raza
    Apr 13, 2017 - 5:20PM

    There are good debts and then bad ones. This one is good. No body will take away these roads. Debts can be waived later. I was fresh engineer at Lahore-Islamabad Mototorway Project and remember how many were saying at that time “we don’t need motorways”. Ask them now if that motorway did make any difference.Recommend

  • Atul S Wagle
    Apr 14, 2017 - 12:16AM

    Has no one seen how China has dealt with unpaid loans .Please look again at Venezuela and Srilanka. They both are paying dearly for Chinese investment .Same is with All the African countries China invested in .The Chinese will milk you bone dry if and when you cannot payback say bye bye to Gwadar, Baluchistan, Parts of POK. All I can say is best of luckRecommend

  • Ayesha AHmad
    Apr 14, 2017 - 5:46AM

    To all the Indians who commented on this article please put some light on why you are even reading an article which has nothing to do with India. If Cpec is a problem for Pakistan you should be happy, but reading all the comments it clearly shows how insecure you are, you are not only reading something that should be no value to you people but even taking time to putting your comments. Unbelievable Recommend

  • Haroon Raza
    Apr 14, 2017 - 3:34PM

    @Atul S Wagle:
    Hey Atul
    I disagree with your China KNOWLEDGE. But apart from that I have a suggestion for all Indians – call POK as Occupied Kashmir only.Recommend

Leave Your Reply Below

Your comments may appear in The Express Tribune paper. For this reason we encourage you to provide your city. The Express Tribune does not bear any responsibility for user comments.

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments FAQ.

More in Business