Actually we under estimate Pakistan's potential too much...
You are absolutely right about the Arabs. Remember also the privatization of PTCL for which even today we have been paid nothing in spite of the fact that we gave them this company for practically nothing.
As far as China is concerned we are too much brain washed from our childhood... China like any other country is driven solely by their own interests... what general people don't know about Pak/China relationship:
1) We import more than 15 billion dollars goods from China. In addition to this there is an estimated 5 billion dollars of smuggled goods from Khost border. Our markets are flooded with cheap Chinese sub standard electronic goods/toys/ladies fabrics/shoes/and whatever you can imagine from Karachi to Khyber. Remember when Chinese Premiere visited Pakistan, he visited the warehouse of Koochi Khan, the big smuggler of ladies fabric and electronic goods on Raiwind Road...
2) Pakistan exports 4 billion dollars worth of industrial raw materials to China from cotton yarn to leather for their own value added exports.
3) No Chinese company has ever invested in manufacturing or exports from Pakistan. Chinese only invest in Pakistan through lucrative concessions given to them for nothing.
4) For a normal pakistani guy it's much easier to get US visa compared to Chinese visa. Chinese government is very suspicious about Pakistani people because they are afraid that if they allow Pakistanis to travel to China freely, they may infect the Chinese muslims with religious fanaticism. You can not imagine how difficult it is to get a visa to travel to China for a genuine businessman from Pakistan.
We Pakistanis are just too naive and emotional... and our government does not look after our interests.
As far as return on foreign investments in Pakistan are concerned, if you check the results of these foreign investors in Pakistan, Pakistan is a heaven for these foreign investors. In any case do you believe what China has invested over the years to finance US debt worth trillions of dollars... they will ever see this money again... The investments China made in Pakistan are gold compared to them...!!!
I agree with almost all the points ( visa part was bit surprising, i have visited China quite a few times and they have shown no concern in issuing it, may be things have changed now)
Chinese have a different agenda, they do invest, but they do not invest in the industrial side... y... it is simple, they are not as stupid as US is, i.e. creating industrial havens in other countries and ending up importing finished goods... which i believe we should also do... but unfortunately that is the not the case for Pakistan and as you have rightly mention that Pakistan's main exports are raw-products.. it is not limited to China, it is the main export product of Pakistan... and there is nothing any govt. have done to change it...
Trust me, i know that if it is not the Chinese interest, the Yellow Army will never show up to save us.. ( we have seen it in 71 war)
But there are something which we can get from China.. and that is technology, know-how... and i believe that Zardari's current trip to China has imported technology to certain extent...
I agree to the part that we are dump-house of Cheap Chinese product and i think we have potential to turn the things around...and InshaAllah we'll going to do it someday... all we need is ground to stand.. it is like a wet bird needing some time, space and protection from Cat....
On top of everything, Chinese have different theory all together, they buy minerals/mines/strategic locations in return of strategic support in the international business... we having neighbors like India ( where election result depends of the relationship with Pakistan) who is set bound to destroy us and and then we have invited the bosses of all evils US in Afghanistan.. i think we need muscle man to keep the dogs away...
Overall i agree with you that we shouldn't be giving to much concessions to Chinese, we need to create a balance...