World

Investing with confidence: Chinese say their money is safe in Pakistan

Say they believe in long-lasting friendship between the two countries

Shahram Haq April 20, 2015

PHOTO: AFP

ISLAMABAD:

Chinese businessmen have said investments they are putting in Pakistan are safe as both the countries enjoy excellent relations at government and public level.

“The global investments we make in any country depend on the nature of relationships between China and the particular country,” said Orient Evertrust Capital Group’s Chairman Jiang Xue Ming, while talking with The Express Tribune.

“Since Pakistan and China have excellent relationships, so we feel our investments in this country are completely safe,” he added.

A group of Chinese investors is currently in Islamabad as the Chinese president is arriving in Pakistan today (Monday) to sign some 50 different accords worth $46 billion, majority of which are energy based.

Heads of all Chinese companies have already reached Islamabad and are meeting with government officials and their counterparts for timely and speedy implementation of accords and projects.

Orient Group is spearheading this endeavour in collaboration with Shanghai Electric Corporation, which will install 1400MW mine mouth coal-fired power plants in Thar from the coal extracted from Block -1 of Thar coal field.

The total cost of the project is $3.5 billion from which $1.5 billion is for extracting the coal and the rest is for installation of mine mouth power plants.

Jiang said they are not limited to this project but are also considering other parts of the country for installation of power plants as they see lots of opportunities in Pakistan due to energy crisis which they believe will end with time.

“There are lots of investment opportunities in Pakistan as the country’s energy requirements are increasing more than the population growth. There are lots of opportunities to invest in Pakistan’s energy sector as curbing this crisis is a long term process,” he added.

Jiang is also willing to invest in Punjab though the plans are not clear yet.

“We just have a preliminary meeting with Punjab Chief Minister Shahbaz Sharif but currently we are not engaged with them. We met them to have first-hand information about their plans; however in future we have plans to invest in coal-fired power plants in Punjab,” he added.

“Coal is very important to meet the future energy needs of Pakistan, we think that Pakistan should take full advantage of 175 billion tons of coal reserves in Thar desert of Sindh,” said Weikai Gao, Chief Executive Officer of Global Mining China.

Global Mining China is the parent company of Sino-Sindh Resources, which is working on coal extraction from Block-I at Thar.

Talking with The Express Tribune, Gao said they are not limited to what they are currently doing in Thar, “We have also some other plans, one of which is to expand the coal mining and increase power generation to up to 4000MW from Block-I,” he said.

“In future we will import machinery and boilers from China to dry coal as China is the 3rd country in the world that provides technology to dry the coal. Later, if things go smooth, we will look into the possibilities to export the dry coal,” he said.

Weikai does not see any impediments from the judicial system of Pakistan. “We believe in judicial system of Pakistan and we believe in long lasting friendship between Pakistan and China. We are working and progressing according to the plan to start power generation from first unit in 2018,” he added.

Published in The Express Tribune, April 20^th, 2015.

COMMENTS (40)

Rafan | 8 years ago | Reply Why Indians are so much worried about Pakistan.. If I remember Modi too was reaching to many countries including china for investment and will be travelling for the same purpose next month.. so stop fooling pakistani.. Secondly China is investing for energy corridor and will pay atleast $2-3 billon every year as remittance. With these gas pipeline India too ready to pay remittance of $1 billion every year if IP Pipeline is extented to there country. Russia too is now investing $2 billion for the gas pipeline from nawabshah to lahore. And now many other countries are proposed to invest including south korea, UK and US. It is expected that pakistan will reach in to top economic 25 countries list in next decade. It was possible only because of raheel sharif desicion and action against TTP and BLA. Now very soon these bstart will be eliminated from our soil forever. In defence co-operation there is deal with china for many co-production and many other countries such as RUSSIA, TURKEY, South Africa, France are signing mou for defence deal.

Truthful | 8 years ago | Reply Why wouldn't China by happy? Punjabi rulers of Pakistan have handed over Baluchistan and Gilgit-Baltistan to China for a pittance, completely disregarding the wishes of people of those regions. Only beneficiary of this so-called "investment" will be China with their junior partners Punjab getting the leftovers. Baluchistan will only suffer more.

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Haider Zaidi | 8 years ago | Reply @Zaam: "Made in China" --India import more then $50 billion dollar worth of Made in China . The shining rising Indian use Chinese tools to repair Made in India Cars . HAHAHA

usman777 | 8 years ago | Reply very good points by indians. please send 46 billion dollars cashiers check. thanks.

Bose_Dk | 8 years ago | Reply The power project referred to has a cost of thermal power plant of about US$1.5 million per MW. The cost in India works out to US$1.0 million per MW. Interesting......

Aman | 8 years ago | Reply China didn't help Pak in 71 and 99

Aman | 8 years ago | Reply Well said Vishal

observer | 8 years ago | Reply @BruteForce: "Pakistan has received $50 Billion from US alone since its birth." Actually, converting into today's dollars, Pakistan has received more than $200B since its birth. The US alone (not counting Arabs, Japan, EU etc) gave Pakistan over $40B in the past 11 years.

PrasadDeccani | 8 years ago | Reply @Shakir Lakhani: If there were no Kashmir dispute probably you would have made this $46 Billion investment yourselves. Have you thought about that possibility? So, why don't you vacate PoK and hand it over to India at least now; it is not too late.

raider | 8 years ago | Reply @pervaiz: yes your problem is pti, only emerging threat to ghosts growing fate on public money, seeming too sweeter for them and easy to engulf without entering a hard way to earn illegally

harkol | 8 years ago | Reply @Lost: I understood perfectly, perhaps you didn't understand what I said. I believe that irrespective of what happens to Pakistan politically, it has economic potential. That potential is being wasted by an inept, corrupt and dangerous Political parties & army. But, a foreign investor, who can leverage the demand in the market can certainly benefit from it. And surely Pakistan will be a gainer. Should Pakistan breakdown politically, it doesn't stop existing. It's people can and will pay for basic necessities like power - thus it is a safe investment (unless govt. has capability to take on chinese might militarily, and nationalize the power projects). So, Chinese investment is safe. And Pakistanis too gain. In other words - Win-Win for both. Much better than futile aid/investment in Army.

Aly Shah | 8 years ago | Reply Sandip : well Pakistani Flag in India's illegal occupation should explain who are the people of Kashmir with, Kashmir is a sovereign country as soon as you start implementing the UN resolution. Opps forgot you wouldn't know such a thing.

BruteForce | 8 years ago | Reply Pakistanis themselves are moving money out of Pakistan. Pakistan has received $50 Billion from US alone since its birth. All it has done is divert the money to weapons, even after which it lost half its country and lost '65, '71 and '98 wars. Pakistan is an Aid blackhole and everybody knows it. I don't think China is foolish enough to invest heavily in Pakistan or will any Chinese company is foolish enough to invest in a war torn country. With a slowing Economy Chinese would look at cutting costs, not dump Billions in a country, which would be happy with a few million and a couple of handshakes. Pakistanis themselves are moving businesses to India and Bangladesh. http://uk.reuters.com/article/2011/08/30/uk-pakistan-bangladesh-textiles-idUKTRE77T11020110830 http://www.ipsnews.net/2011/09/bangladesh-draws-pakistans-garment-makers/

globalobserver | 8 years ago | Reply "Chinese businessmen have said investments they are putting in Pakistan are safe" If the money is indeed safe in Pakistan what is the need to even refer to this aspect. Do we hear any statement by foreign investors saying this openly when they invest in any other foreign country? Apparently, the very reason they said this is because they have deep concern about the safety of their investment in Pakistan.

tamaam | 8 years ago | Reply And everyone is too clueless. There was not even a single project actually signed. All these were MoUs. They gave us metro buses recently. And some train engines. Right? They sent us junk in first lots and when we refused to accept and pay for the rest, they went to courts because we refused to buy kaath kabaar. The courts never decided the case, and the monarchs got personally involved. I dont know what happened next. All bow to kings of Pak though.

tamaam | 8 years ago | Reply @sid: Sid, Gwadar is not that big of a value to China. Its all about global reach my dear. Every country is always preparing for its role in next world war. And please dont expect any employment. Chinese are more unemployed on average per city than we are. They sold 3/4 G equipment and sent their staff and subcontractors with it. In almost all deals, they will appoint a 'pferable' company. Employment what? :) China is the next East India company. We WILL be slaves without a war. And they will have to fight India only to enslave them.

AB | 8 years ago | Reply @Vishal: As if our compassionate brothers across the border are sparing opportunities to spill our blood.

sid | 8 years ago | Reply China is giving soft loan to Pakistan to fulfill its own purpose.. How ? 1.Pakistan will pay interest on debt to China . 2.Through Gwadar they could save more than $300 billion annually. 3.Will Expand the trade activities with Central Asia , Africa n Middle East. 4.Will use Gwadar as a military base against their rivals . 5.Through pakistan they could increase the flow of goods and capital . What will Pak get ?? Electricity - Which pak would have increase with its own resources ... 2.Employment !! - I don't think bcoz gwadar is now a part of china for at least 40 yrs. Yes Pakistani would work as a lobourer in their aka's region 3.Reduction in funds from West plus bitter relations with India .. China is clever .. It won't give you anything for free ...

PakCheenDosti | 8 years ago | Reply ET are you on India's payroll? You don't publish my comment and publish anti-Pakistan comments like crazy. It seems from the comments section, it's an Indian newspaper! Shame on you!

pervaiz | 8 years ago | Reply First two comments are either from India and from PTI if from within Pakistan.

salman | 8 years ago | Reply Some people from a particular country are really b**t hurt and feeling jealous.

Sandip | 8 years ago | Reply @Shakir Lakhani: We have lost even more by allowing you to hold onto Pakistan-occupied-Kashmir. We need to get our citizens out of your clutch.

Shakir Lakhani | 8 years ago | Reply Indians should realize that they have lost a lot by holding on illegally to Kashmir. Today, instead of China, Indian companies could have been investing and minting money in Pakistan.

Tahir Khan | 8 years ago | Reply @Vishal: I know whilst India has constrained relations with India, China is good for Pakistan. Industry needs power and excellent road infrastructure. Pakistan needs investment, will India spend $46 bn on Pakistan?

nadeem | 8 years ago | Reply While this is good news, there is one downside: it will delay the arrival of tax culture in Pakistan. If the treasury will get an injection of money from a foreign country, there will be less pressure on Ishaq Dar to reform taxes and to collect taxes the way they should be collected if we are to ever become sustainably self sufficient.

Farooq | 8 years ago | Reply So many Indians here...please go and talk negatively on rediff.com

Fareed | 8 years ago | Reply @N: Lets face and agree to the positives on both sides(India & Pakistan). Let the topic remain a serious topic and not get disarrayed by silly comments like the ones you have made. @Others: instead of passing derogatory comments, it would be better if you refine them. This forum is not supposed to have an Indo-Pak battle of bouts. The least one can do is to respond in a better way to the ones who are trying to be reasonable.

raider | 8 years ago | Reply @Blithe: peoples don't bother about any china or gulf they want their basic problems be solved, which are unlikely in future, Chinese to invest in Pakistan because we could not develop our self in 70 years still it makes me amazed that peoples still vote for them which are responsible for shoddy condition, client mentality never gets crowned if certain concerted efforts are made to make him be crowned still they throw it out and proclaim "ju hoqm mery aqa" cleansing action at your blood first be needed which is impregnated with slavery then solve problems of peoples instead of day dreaming of being a developed country just because of inflows of china for their own material purposes. Chinese investment is not going to do anything, peoples will have to pay back all this and chines likely to earn every thing left in Pakistan, thanks

N | 8 years ago | Reply As India is our nabour Pakistan is willing to give some incentives to Indians as well, to boost their moral while giving them street sweepers job as Pakistan will be needing huge manpower for the cleaning of infrastructures build by Chinese and Pakistani companies India can have advantage kindly don't miss the opportunity

Zaam | 8 years ago | Reply Pak China relationship is just like “Made in China” not reliable and disposable

N | 8 years ago | Reply Unfortunately India has lost the opportunity to expand frienly relation with Pakistan the geopolitical situation of Pakistan is extremely important and India could have got exess to the Russian states which could have positive effects on Indian economy anyhow china our all weather trusted friend took the advantage Pakistan has put jealousy in Indian basket

Lost | 8 years ago | Reply @Vishal and @harkol, you both are absolutely right. However, Pakistan has a very peculiar condition, let me explain. people of Pakistan have tried relying on their local leaders but nothing except plunder have come their way, despite having no dearth of natural resources and capabilities even resources at an arms reach have not been exploited. It is true that this would definitely come with a price, the most evident would of course be utilization of the route without hindrance from China all the way to Gwadar ... however, as i always argued in Tethayan Company issue (which was accused of 'stealing' Copper and Gold reserves from Balochistan), if we can't exploit our resources, might as well let someone else will. At the very least it will generate economic activity, create employment and get the local economy out of the log-jam it is in. Meanwhile, we'd hope for continuation of democracy and eventual strengthening of institutions which will ensure more answerable politicians. Till then, God save Pakistan and thank you for your erstwhile comments.

Ganesh | 8 years ago | Reply Moderator,be open to comments about harsh truth...!!its only words and not going to destroy you....!!lol

Blithe | 8 years ago | Reply ET, is this the best headline you could come up with??? How uninspiring!

Milind | 8 years ago | Reply Pic is word thousand words... The Chinese President stands steadfast and firm, while the Pakistani PM walks towards him to shake hands.. Shows who's the master and who's the slave.

pakistani | 8 years ago | Reply @Vishal: thank you, keep your advice to yourself.

MAK | 8 years ago | Reply India can never see happy faces of Pakistani People. Lets see where this artificial growth & Shaky Infrastructure of India will take it to.

Amused | 8 years ago | Reply Amazing how the first two comments are both from India... yet, of course, they are "not obsessed with Pakistan."

harkol | 8 years ago | Reply China is putting its money in Many countries of Asia & Africa. They have found that their money has limited growth in China has Chinese growth engine has slowed, and they are better off investing in higher growth trajectory nations. Chinese investment in India too runs in to billions of $, because India offers a competetive advantage in many areas especially IT. Pakistan investments are based on consumption story. Huge market for power, an industry that's starved of investment. So, irrespective of political unrest in Pakistan the investment in power is indeed a wise one. People will pay for it, and China will recover its investment - one way or another.

Vishal | 8 years ago | Reply Dear Pakistani brothers, The Chinese are minting money at your expense, i know you will not trust me. Innocent trapped people of Pakistan are paying with their blood.

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