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With a new Chinese loan, CPEC is now worth $51.5bn

Updated Sep 30, 2016 09:55am

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ISLAMABAD: Despite Indian conspiracies, the size of the China-Pakistan Economic Corridor (CPEC) has been increased to more than $51.5 billion after China and the Asian Development Bank (ADB) agreed to lend $8bn to upgrade the main railway line from Karachi to Peshawar, according to a federal minister.

Addressing a news briefing upon his return from a week-long visit to China, Minister for Planning, Development and Reforms Ahsan Iqbal said Beijing has agreed to provide Pakistan with a $5.5bn concessional loan to upgrade and modernise the Karachi-Lahore main railway line called ML-1.

In addition, ADB will extend financing of $2.5bn for the Lahore-Peshawar railway track, he said.

Read: Russian researcher says CPEC ‘game-changer for the region’

“Both loans will carry less than 2 per cent interest rate. Both are concessional loans,” he said. However, he declined to discuss specifics of the lending programme, saying the Economic Affairs Division is still busy finalising the terms and conditions.

He said the original $46bn CPEC included about $3.56bn financing for the railway network, which has now increased to $8bn. “This is ad add-on” to the original CPEC, he explained.

He said the Karachi-Peshawar railway line processed 75pc of the passenger and cargo traffic, but its efficiency has dropped to 60-80 kilometres per hour. That is because of a continuous deterioration during the long tenure of former president Pervez Musharraf, he said, adding that the track, signalling system and bridges were in bad shape.

The refurbishment and upgradation of the main line will cost $8bn and take five to six years to complete. This will revive its efficiency to 120-160 kilometres per hour. It will be upgraded in a manner that it will accommodate fast-moving trains, reduce the cost of production and increase the competitiveness of Pakistani products.

The main line will then be expanded in the next phase to link Gwadar with Peshawar and then Havelian, Abbottabad, with Khunjerab.

Mr Iqbal said the CPEC has three phases and four major areas, namely Gwadar Port’s development, energy projects, road networks and industrial cooperation. The short-term, medium-term and long-term projects will complete by 2020, 2025 and 2030, respectively.

At present, work is in progress in the first three areas of infrastructure development, which will enable the two nations to push for industrial cooperation, he said.

Mr Iqbal said both sides agreed to convene the 6th Joint Cooperation Council (JCC) of the two countries in the last week of November. Before the JCC, working groups on transport, Gwadar Port and industrial cooperation will meet next month to firm up the implementation plan.

He said the long-term industrial cooperation has been finalised in Pakistan in consultation with all provinces, Azad Jammu and Kashmir and Gilgit-Baltistan. He said the four chief ministers belonging to different political parties have supported the CPEC that will be funded through the public-sector development programme, Chinese financing and funding by multilateral agencies.

Responding to a question, Mr Iqbal said some people have created misconceptions about the CPEC, adding that the federal government has invited the leadership of the Awami National Party for a briefing next week to address their concerns.

India has launched a massive campaign in the media to mislead people about the CPEC, he said. He noted that CPEC projects of about $18bn are currently in the implementation phase while another $17bn worth of projects are in the active pipeline. This means $35bn worth of projects have already been energised in just two years.

Published in Dawn, September 30th, 2016

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Comments (126) Closed



SB Sep 30, 2016 10:01am

Loan is fine.. but financial assitance would have been better

Desi Dimag Sep 30, 2016 10:01am

congrats for the new loan.

Fast Sep 30, 2016 10:04am

Wow interest rate of below 2%. Now an eye opener for those saying 15% interest rate etc etc. Let's focus on development.

Asif Sep 30, 2016 10:06am

whats so great about getting a loan. anyone can get loans

salman Sep 30, 2016 10:06am

Just less than 2% interest on the loan ? this is good for Pakistan

All-is-well Sep 30, 2016 10:11am

After completion of CPEC miracle route,almost 15 CAS states,Russia,Afghanistan,Iran,China and Pakistan will benefit.And if later India also added,in total 21 states will benefit.It will certainly be a game changer for whole of West & North Asia Region.

Podmari Sep 30, 2016 10:19am

More loans...!! i would not suggest. Better would have been, first make the existing project a success and once it starts to pay back, go for more loan. Also is there nothing that is for education or other basic things that the public need? Roadways and railways expenses can never be tracked by normal people. Just have to go by words. This is just adding more burden to the future generation

Sonu Sep 30, 2016 10:24am

Loan is loan, you have to do income and return everything with intrest. One can take unlimited loan but should be capable to return it.

Babu Bhaiya Sep 30, 2016 10:24am

LOL entire country is running on loans from various sectors.

Ahmad Sep 30, 2016 10:22am

It is still loan and you have to pay it back. Pak is unable to pay back old loans and now new loans are also being added.

Neighbour Sep 30, 2016 10:25am

So instead of IMF, now Pakistan takes loan from China. Anyways India always wanted a prosper neighbor. A stable and proper country and government means better jobs and less mischievous acts for youths. So congratulations and utilize them rightly instead of opening more panama gates.

WiseAdvice Sep 30, 2016 10:26am

Both loans will carry less than 2 per cent interest rate. Both are concessional loans. How can 2% interest rate on USD is concession loan. US gives interest at the rate of .25% on USD. And it is not that it can be paid back in pakistani currency, it has to be paid back in USD only. So depreciation of pakistani currency with time will further increase the rate. I don't know how the figures are quoted in Pakistan and why it is said "concessional loans" but I don't see it

Rishi Sep 30, 2016 10:29am

$50bn is spare change for India.India would have happily invested in Pakistan. All we were asking was peace.

ABHI Sep 30, 2016 10:28am

What so great in loans anyways 2% is too high for such a long term project and Pak has to pay back... Japan is giving India loan of Rs 65000 cr at 0.1% for 50 years for its bullet train ..that is what you call building partnership

Aman Sep 30, 2016 10:30am

Congratulation on getting new Loan

Yusuf Sep 30, 2016 10:33am

When are the going to pay the previous loans, now they added cpec security tax in electricity bill and they are still getting more loan.

Zaheer Sep 30, 2016 10:32am

This is excellent news! The transparency regarding the interest rate for this particular project loan is really welcome. I can only hope that the government will be more forthcoming regarding the interest rates being levied for the other CPEC project loans and the budget model used to cover operating costs.

KK Sep 30, 2016 10:34am

Excitement on just getting a loan from Bank itself expose state of economy in Pakistan.

NAVIK Sep 30, 2016 10:40am

Less than 2% per month or per year.. Nobody bothered to ask..

hassan Sep 30, 2016 10:39am

Oh no theives to take care of national funds.

Fast Sep 30, 2016 10:42am

@newport dear $34bn out of 50bn dollars will be direct investment not loans. And remaining 16bn dollars are concessional loans having just 2% interest rates. But it's benefits already explain in the article. It will increase competence of our goods for trade. So let's focus on development.

Sachin Sep 30, 2016 10:42am

The world's largest infrastructure project is being built in India ( DMIC- Delhi Mumbai Industrial Corridor ). The whole project is estimated to cost $100 billion. Of this, $4.5 billion is being initially funded by the Japanese government as a loan for a period of 40 years at a nominal interest of 0.1%.

shumail Sep 30, 2016 10:44am

There is no need to include Lahore in the CPEC. It is out of route and Lahore has no significance in the project, yet it has been included.

Suresh Sep 30, 2016 10:46am

Good for the people and government to develop infrastructure.Sincerely Hope it is spent in right direction instead of diverting for other "things" .

ABC Sep 30, 2016 10:50am

With $3.56 bn already included in the initial allocation of $46 bn, the new worth of CPEC projects is $(8-3.56+46=50.44)bn and NOT $51.5bn.

ravi vancouver Sep 30, 2016 10:56am

China is charging high intrest rate of 2%, very high as per international standards from Pakistan. Who shall bear the big security bill of CPEC projects, China is charging so much loan interest , it should bear the security expense of their project. As China shall be also benefiting from CPEC projects, it should give Pakistan intrest free loan for the project.

TOMUHTO TAWMAYTO Sep 30, 2016 10:55am

This economy runs on loan money...

Good Guy Sep 30, 2016 10:55am

If 2% per year figure in USD is correct then these are good terms considering Pakistani bonds have interest rate of over 7-8%. But believing this 2% is difficult unless contract documents with basic details are in public domain. I guess ADB loans will be easy to verify but not Chinese loans.

Sandip Sep 30, 2016 10:57am

The loans mentioned amount to $16b, if not more. At 2% simple interest, the annual interest burden shall be Pak Rs. 3,400 crores, excluding payment of principal. Look at what all this amount can buy.

Smiling Buddha Sep 30, 2016 10:56am

@ABC The worth will keep increasing. Interest is interesting.

bala Sep 30, 2016 10:59am

This loan will put additional tax on you.

What kind of celebration it is?

arif Sep 30, 2016 11:01am

Good Job, CPEC is definitely a game changer. We need to advertise vigorously so that many International Companies will have their share in CPEC's development. Industrial Network on this corridor will change the shape of Pakistan

Desi Soch Sep 30, 2016 11:13am

Loan, another loan.

Abood. Sep 30, 2016 11:20am

@Rishi .well you dont want peace.all you do is killing and torturing of innocent in kashmir and minoroties in india.

optimistic Sep 30, 2016 11:25am

Good news for Pakistanis but bad news to the Pakistan's enemies.

McChrist Sep 30, 2016 11:23am

How is Pakistan going to repay this loan which is not even a trillion dollar economy? 2% interest rate isn't that less, Japan lended loan for Indian metros at 0.5%.

Muhammad Tahir Jamali Sep 30, 2016 11:26am

If everybody pays Tax, then there is no need for loan. Since inception of country, none of us bothered to pay Tax except 2% of total population.

prasad Sep 30, 2016 11:25am

watch out.. ur taking loan from china to build something for chinese benefits and pay intrest to chinese and more debt for pakistan.. i dont know what pakistan is gaining here ..

Hammad Zafar Khari Sep 30, 2016 11:27am

Way to go Pakistan... Long Live Pakistan ameen

Ibby Sep 30, 2016 11:37am

@SB Sorry Chinese do not believe in financial assistence. One who believes in assistance is US which is now miles away from us.

bryan Sep 30, 2016 11:37am

@arif Industrial investment needs many things- a market, inputs i.e. raw materials, power, water, infrastructure and supply chain, technology, regulations, capital and skilled talent. Industrial zone business is somewhat like a restaurant business- success probabilities are low. An analysis of Industrial Development Corporations/Agencies across developing nations revealed that almost 50% of the land bank is unsold or industrial zone has not met its desired objectives. In developing nations there is a serious threat of real estate speculation. Cost of inputs, transportation, aggregation and disaggregation blunts cost competitiveness. Skill availability is a major factor. In cases where proposed development is far outside city/town limits the cost of providing housing and related infrastructure is high. Many examples of not accounting for such costs exists. A large program spanning few thousand kilometers has an impact of Project IRR and Equity IRR. Hope planners have factored it in.

Rakesh Sep 30, 2016 11:39am

The biggest corridor is the Suez Canal, It did not make the the Egyptians rich nor can it make Pakistan Rich... It is just a secondary route for China for its Oil import.

If you believe that CPEC will make Pakistan as Switzerland or Netherlands then it is not gonna happen. If China is so caring about Pakistan, let it divert 5% of its manufacturing base to Pakistan. That is a game changer... CPEC is useful but not an ultimate and final solution to Pakistani woes.

GreenSaffron Sep 30, 2016 11:43am

Hope that this loan taken from Asian Development Bank (ADB) get utilized in proper way rather than going to few corrupt politician's bank account. Pakistan is occupied by huge corruption in the system.

dax Sep 30, 2016 11:45am

Loans means debt, required to pay back in installment. Loans are taken when financial situation are bad or worst to manage from the regular household income. Debt if not paid in the time , your property can be take over by the loan provider. Again due to loan you only look after the property but not the actual owner till you are debt free - a common man understanding...

Kau Sep 30, 2016 11:44am

Pakistan has to pay China in the US dollars for the loan. Also what Pakistan can sell to the world to earn US currency to pay back the accrued debit with interest.

Your Name Sep 30, 2016 11:44am

I dont see any change in the life of an ordinary Pakistani even though "$35bn worth of projects have already been energised in just two years". I agree that the projects are not yet complete, but wouldnt this kind of money flowing into the economy in last two years made a difference to us?

Prakash Sep 30, 2016 11:47am

@Rakesh Sensible reply

Farrukh Sep 30, 2016 11:48am

@Asif You sure brother?

Because I have tried and banks are not lending me mere 100K

Ajay ladkani Sep 30, 2016 11:48am

@optimistic no you don't understand basic thing. More debts means more problem for Pakistan.

Paul Sep 30, 2016 11:52am

When country give loan to other it just don't have to worry about what project you spend money on or how you spend.

Financial assistance usually is specific to purpose or achieving common goal.

Salim Khan Sep 30, 2016 11:50am

We are being buried under loans that our generations would remain slaves forever.

Shashank Sep 30, 2016 11:55am

I don't think this is going to help Pakistan in any means until and unless Pakistan government makes an effort to eliminate the terror factors.

For an economy to grow we need foreign investments which in-turn creates jobs, This CPEC project is the only investment Pakistan has and off-course it'll help in improving the infrastructure,But in long turn this is going to help only China.

Pakistan must be worried about the fact that it stands last in Global competitiveness ranking in South Asia that too behind countries like Bangladesh, Srilanka, Nepal, Bhutan etc.,

Feroz Sep 30, 2016 11:54am

Does Pakistan want to follow in the footsteps of China where Debt/GDP ratio is now 270%, worst after Greece and may be Japan. At least China and Japan have decent foreign exchange reserves which can protect their currency to some extent.

Vinay Ji Sep 30, 2016 12:01pm

@SB nothing is for free

Lafanga Sep 30, 2016 12:01pm

India please keep up your campaign to isolate Pakistan. Since you started this campaign Pakistan has recieved Russian military for exercises, Iranian desire to join CPEC and now this.

Saleem Sep 30, 2016 12:03pm

And once again 70% of the loan will be going into the pockets of Railway Ministry and other relevant people. Remaining amount will then be spend to enhance the railway.. !!

Texans Sep 30, 2016 12:04pm

Deteriorated during long tenure of Musharraf??? Did they stop deteriorating during 8 years of Zardari and Nawaz? 8 billions for 50 mph train?

Duniya Hasan Sep 30, 2016 12:08pm

@Desi Dimag ....India has been taking £4.8 million pounds from UK annually for poverty since 1947 and had taken over 65.1 billion USD for economic assistance from US from 1947 til 2012. Pakistan takes loan and will pay it back

Mahmood Sep 30, 2016 12:09pm

Let's hope the plan comes to fruition as intended , and not hampered by corruption and legendary mismanagement of Pakistani system.

citizen Sep 30, 2016 12:10pm

Loan means someday you have to repay and there is an interest component too..

citizen Sep 30, 2016 12:12pm

@ravi vancouver : I wonder how India managed similar loan amount from Japan at 0.5% interest....

True words Sep 30, 2016 12:12pm

@Fast Japan has offered interest rate of only 0.5% for Speed Trains to India. Govt to Govt loans are always cheap..2% is actually expensive considering the benefits China is getting in terms of empolyment of there people revenues for chinese companies.

Darshan Sep 30, 2016 12:18pm

WoW, excellent, good of Pakistani Awaam, if managed properly,

Simons Fredricks Sep 30, 2016 12:19pm

Railway tracks alone will not solve the problem. We need to get rid of the present trains and replace all the trains and engines with modern trains. And then there must be a proper check and balance system in place so that railway becomes profitable and pay back its loan and earn regular revenue for government while provide excellent service at low cost to the masses.

Akram Sep 30, 2016 12:21pm

@Rishi "India have happily invested in Pakistan " But no one is asking for Indian investment.

Akram Sep 30, 2016 12:28pm

@Rakesh . Awwww.... Don't worry about us mate. Even if CPEC doesn't make us Switzerland or Netherlands we are happy about that . By the looks of it it will make us far better than India.

Akram Sep 30, 2016 12:32pm

All these concerned Indians commenting here is is proof That this time is headed in the right direction.

Dvshah Sep 30, 2016 12:32pm

Loan is to repay, don't forget.

BK Sep 30, 2016 12:33pm

Congratulations for such high loan. But be careful and read terms and conditions properly before implementing. China is concerned about business only.

Salman Sep 30, 2016 12:33pm

@Fast this new loan is for 2 % .the previous loan taken is on 18 % interest rate.

Syed Sep 30, 2016 12:36pm

Congrats, finish upgradess adap, but also introduce high speed bullet train as well...

N.Sid Sep 30, 2016 12:43pm

Why so many brothers from across the border criticising the CPEC project between China and Pak. If one cannot contribute...than it leaves little/no space for criticism.

Pakistan has asked for Indian help in revitalizing it railways, new loco's and more, India declined it for reasons best known to her. Pakistan has to look towards China.

Also CPEC is not just an energy/cargo corridor, much of the investment is in energy sector, in RLNG, coal, wind, solar, nuclear, hydel, many power plants on fast tract opening in 2018.

Dozens of Industrial estates in execution state, Gwadar port will start operation in 2017, a new airport, infra planned for the city.. CPEC will generate an additional 150 billion USD of investment roughly, can be more.

http://www.dawn.com/news/1251644

http://nation.com.pk/national/12-Sep-2016/cpec-to-attract-150bn-investment-in-pakistan

Mandy Sep 30, 2016 12:46pm

Loan is Loan..weather it is 1 billion, 50 billion or 100 billion you will have to pay it back...has Pakistan government started thinking in that front?

Usman786 Sep 30, 2016 12:50pm

what if they refuse to continue use it or demand exclusive rights at a later stage?

Aniket Rastogi (Indian) Sep 30, 2016 12:55pm

Loans are also to be paid back. Chinese are making a cunning investment which will definitely benefit them but wonder of it will help pakistan the way its projected.

SB Sep 30, 2016 12:56pm

Pakistan Railway annual revenue PKR 31 Billion (USD 300 Million) Interesting figures. Another loan of USD 8 Billion on top of existing debt.

Karachitee Sep 30, 2016 01:03pm

We, Pakistani, usually don't care if India takes loan from any institution or any country. Why Indians so much worried about if we take loan. By the way India total external loan is 23% of GDP as per times of India.

Thiru Sep 30, 2016 01:06pm

It is a loan that a poor nation has to pay back. How could it be classed as "worth"? Right across the sub-continent, why do the leaders misguide the common people who have to pay the price?

Khan of KPK Sep 30, 2016 01:12pm

PAK China Dosti Zindabad CPEC is a game changer. Keep working on it.

parveez Sep 30, 2016 01:33pm

@Asif Do you have any knowledge of economic, because if you did . You would not have said that. Credit rating has to be good for one country to get loans . If you Google, you will find how so many countries can not get loans

marcus Sep 30, 2016 01:36pm

Can you please explain is 2 per cent on the 2 billion on a daily basis or annual basis?

arjun Sep 30, 2016 01:41pm

2% is not that great concessional interest...japan investing 35 bn$ in india with .5% rate

Arshad ,Canada Sep 30, 2016 01:39pm

@Asif , Only trustworthy and creditworthy with an ability to payback, in the eyes of Lenders, gets such a low-interest loan. Please stop being sarcastic or ignorant.

Salma Shahid Sep 30, 2016 01:42pm

So now our external loans are USD 80 billion?

Arshad ,Canada Sep 30, 2016 01:42pm

@Sonu , Only the capable of paying back gets the loan.

A Sep 30, 2016 02:00pm

@WiseAdvice its variable rate so it will increase as rate increase in US

Ishrat Salim Sep 30, 2016 02:01pm

@Fast Even our SBP has conceded that CPEC details has not been shared by the govt and announcing that the new loan carries an interest less than 2% is yet again an ambiguous statement by the planning minister.

Rahul Sep 30, 2016 02:03pm

Loan means Pakistan will have to pay it back.

Ishrat Salim Sep 30, 2016 02:09pm

Gen Musharraf ruling period was 8 years yes ! agreed nothing done, but why no development in Railways done by the democratic civilian govt in power for the last 8 years ? blaming for every other problem on the dictator is not appreciated. The civilian govt was voted in to solve those problems. When Obama took over Americans were facing host of problems, but not once he passed the buck on the shoulders of Bush govt. That is called maturity and our politicians and literate class must display that sense of maturity.

Arshad ,Canada Sep 30, 2016 02:13pm

@NAVIK , You should be a banker in India ! who pays 2% per months on a state to state loans?

Arshad ,Canada Sep 30, 2016 02:16pm

@WiseAdvice , By the way , India is getting a loan from Japan for 50 years with very small interest. The actual going interest rate in Japan is in Negative. So you got bad deal

Jamil Sep 30, 2016 02:34pm

@Rishi And peace can only come through the solution of the Kashmir dispute, by giving the people of Kashmir the right to decide their future as promised.

Rohit Sep 30, 2016 02:52pm

Japan has given India $16 billion loan for its bullet train project.. And interest rate is 0.1% only..

Aisha Sep 30, 2016 03:13pm

What is the worth of something when it is on loans with interest?

vivek Sep 30, 2016 03:34pm

Can any one tell me what will be annual repayment for this whole $50 billion + other loans considering all " concessional rates" and "investments"? In $ bn per year ?

AHA Sep 30, 2016 03:59pm

Just the interest on 8b loan for rail line would be half of total revenue Pakistan rail is earning now.

SB Sep 30, 2016 06:29pm

Most of the traffic from China passing through pakistan will use Karanchi port..as apprehended by Senate co-ordination commtee on CPEC. To my understaning Gwadar port will be mainly used as naval base.

Sami Sep 30, 2016 07:32pm

Love China Long live China and Pakistan

Shoban Sep 30, 2016 08:26pm

Our heart felt congratulations Pakistan. ..all the very best..

Khalistan Sep 30, 2016 08:31pm

Great work

smh Sep 30, 2016 08:31pm

who runs a business if you dont get atleast 20% profits? Basically projects will be given to chinese blacklisted companies for 20% or more profitability. So it is working to 2% + 20% makes it 22%.

Indian that supports PAK on CPEC Sep 30, 2016 10:29pm

While $8bn is approved. Please make sure the contract does not go to China (that is called conflict of interest). Make sure they provide the technology, and then use Pak people to complete that.

Muhammad Arshad Sep 30, 2016 11:06pm

Good News for PR.

Yousafzai Sep 30, 2016 11:21pm

@Asif its loan for development not for oil payments

Lootra Oct 01, 2016 12:31am

The keyword is "Loan".

Loans need to be repaid you know.

I am sure the loans will be able to buy Chinese products and technologies. Win win for China and questionable for Pakistan, especially if China doesn't use CPEC as much as expected. Then Pakistan is stuck with a huge loan to pay back.

Alright now start responding and telling me why my logic is flawed and CPEC is already a big success.

Abbas Oct 01, 2016 12:44am

It is sad that Pakistan always depends on assistance of other countries first US , Then Saudia and now China, rather than developing industrial capacity to export we always look for assistance....

gbtusa Oct 01, 2016 01:06am

A loan is what you have to return, you know that right? with interest?

Just Me Oct 01, 2016 02:42am

Guys this is Debt. Please be aware of this if you don't have the returns how you going to return debt. It is easy to take funds national sovereignty is at stake please be aware when you are pledging on your future earnings.

A shah Oct 01, 2016 02:45am

How can it be a Indian conspiricy as India is the second largest stakeholder in the ADB?

A shah Oct 01, 2016 02:45am

We now consider loans to be great achievements?

Basheer Oct 01, 2016 02:46am

Almost all of these comments are abut the loan. No one seems to have realized that 120-160 kmph is not really that fast.

javed khan Oct 01, 2016 03:17am

@Rishi : Wow, you are a generous Indian. By the way do take permission from Modi.

Zok Oct 01, 2016 05:29am

@SB : Perhaps the Kingdom of Saudi Arabia can divert its very generous religious education funding around the world to help Pakistan develop its infrastructure and economy . Maybe Mr. Gulen can spend leave education to the government and support CPEC?

Zok Oct 01, 2016 05:36am

@Podmari :People need efficient transportation to develop their communities, schools, hospitals, industries and take stuff to the markets of the world! That's what you see in the West--Transportation....

Zok Oct 01, 2016 05:55am

@shumail :If a country by-passes large cities, they will be come backwater and shrink.

Zok Oct 01, 2016 05:57am

@Good Guy : Australia, NZ, Canada, UK, and Africans all over are finding out that Chinese finance people can run circles around anybody anywhere. Theirs is a new colonialism--except they don't come with their priests, armies, and government administration--only with money, engineers, managers and very strong will to work on large and small projects.

Zok Oct 01, 2016 06:01am

@arif :I hope it works for ordinary Pakistanis!

Zok Oct 01, 2016 06:27am

@Farrukh :World over, banks are scared stiff and embroiled in MAJOR corruption! Western economies have peaked and depend on immigrants to energize them. Even Chinese economy has stalled, it appears. Renminbi is taking flight to safe havens and real estate--causing real estate bubbles in Oz, NZ, Canada, etc. Untested Chinese corporations are buying BIG in these countries without taking real financial stress tests. The sources of the wealth are actually untraceable!

Subodh Jain Oct 01, 2016 07:49am

Chinese are getting smarter. By, loaning money, which has be repaid they do not have to risk Chinese lives in an area which is subject to violence, sabotage & disruption by Taliban, assuming the railway line from Karachi to Peshawar would go through Quetta

Subodh Jain Oct 01, 2016 07:56am

@ABHI Japan is in deflationary cycle. 0.1% rate is lot attractive than negative rate, plus you are helping your industry. Lot of money will find its way back to Japan as remuneration for engineering, equipment that Japan will export to India. US EXport IMport work on the principle that 85% of the money loaned be spent in US, 15% in the debtor country.

Gulzar Ali Oct 01, 2016 09:02am

If that's what it takes for CPEC to grow I have no doubt that it will become a 100 billion dollar program (debt) in no time .

Meow Oct 01, 2016 01:44pm

Looks like more Chinese railway engines

Sami Shahid Oct 01, 2016 05:00pm

keep Afghanistan out of this project for the sake of this project

Govind Sarda Oct 02, 2016 09:26pm

Chinese are not fools like people of India and Pakistan, who take decision by Heart. Every single penny they spend is backed by their country interest and trust me they will recover every single penny back from Pakistan. In case you feel that they are your true friend why dont you ask part of Aksai Chin . 38000 Sq Kms of kashmir is also under their occupation . Just request once to clear all your doubts

Tariq Oct 03, 2016 01:24am

Please add UAE in CPEC prohect

D.K. PAMNANI Oct 03, 2016 10:08am

@Govind Sarda

This sounds very true. Pakistan to understand this. For present interest, they should not do this.