ukhan99
November 23, 2014, 7:19pm
5
Re: China commits $45.6 billion for economic corridor with Pakistan
Remind me how and when PTIs jalsas hindered anything? Govt has made varying statements based on a variety of rubbish factors, none of which add up.
Pakistan will not be taking on any more debt, but will be taking over a lot of liabilities, which will be pinned on the public.
Investment is where a company/country invests money at their own risk, on a profit and loss basis. As noted in the article, the chinese companies will be operating as profit making entities. This is highlighted by a fact that the govt has refused to divulge in public, because it defies logic. The chinese investors will be paid a heavy amount in guaranteed dollar profits. That amount varies, depending on who you ask. One govt official was quoted as saying the figure was 17%, but I remember an economist saying on TV that based on the details of the contracts, the number could go as high as 27%. In contrast, current IPPs are being paid 15%…and half of them are sitting idle, because they cant be funded.
Because of Imran Khan’s jalsa the Chinese President had to cancel the visit in which the signing of these agreement s were to take place
Chinese president cancels Pakistan trip, India visit still on - - DAWN.COM
But Nawaz is ambitious about improving Pakistan s economy and himself travelled to China to sign these deals. As can be seen from the deals, many are designed to lower/eliminate load shedding. Good thing Pakistan has a powerful rich friend.