OBOR News & Developments

AmoghaVarsha

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Even if there was no CPEC going through PoK India would still never join OBOR.No chinese company will ever get a major infrastructure project in India due to security issues.Plus tye model wony work for India.

Eg.China decides to build a port in Southern India for 10bn USD.A chinese bank will fund the project and earn interest on that which will be paid by India.A chinese company will get that fund from the Chinese bank and will bring in 1000s of Chinese workers to work on the project and use that fund to pay their salaries.After completion the Chinese will run the project and earn profit.The port will be used to import Chinese goods into India.

So basically India gives land and pays loan plus interest to a chinese bank to fund a chinese company to build a port, with chinese workers, to be run by the Chinese, to trade chinese goods.How is it any good for India?
 

airtel

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. .

I think these documents were released by paki Government ..............so that they can better deal from China .
 

mayfair

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Not Pak government, Napaki fauj.

Now the following are assumptions based on my understanding of the matter.

One of the pre-requisites for the Napaki fauj to sign away their jaagir to the Cheeni biraather would most probably have been that Cheen would unambiguously and unquestionably support them in any and all disputes and confrontations with India. Probably Cheen blocking any action against Masood Azhar was a part of it. China also let Napakis believe that they were opposing India in NSG for the sake of "all-weather friendhsip".

Then the Napaki fauj started getting adventurous, more brazen in their recklessness. They fomented trouble in Kashmir after their key pawn Burhan Wani was dispatched to his duties in hell as a houri. While the Indian state grappled with this new challenge, Uri happened and Napaki fauj were gloating in their "grand success" and the "impotence of India, just like Pathankot".

They did not expect surgical strikes and the mortar/artillery duels that followed. The strikes alone did enough to dent Raheel's self-proclaimed Saladdin image. Despite all the bravado up front, the situation became delicate for him within his core support- Napaki fauj. The Dawn leaks further corroborated this fact. Raheel was forced to abandon his plans of an extension as a Field Marshall and gently but firmly shepherded to take over the new Saudi-led Tincan force.

There was also some resentment that China did not come to their aid when needed, no intelligence inputs, no satellite imagery, nothing.

Moreover, China began courting India to join CPEC/OBOR, probably against the wishes of the Pak army. Nawaz, seeing an opportunity to go one up on the fauj agreed with the Cheenis and made some usual mumbling, bumbling noises that he's oft to. India of course showed the middle finger and at the same time, started fast tracking projects in the Indus basin, that were languishing for years.

Now Napaki fauj is in a panic, they are getting hammered on LoC, their assets are no longer giving desired results and Nawaz is hoping to use Cheenis as a leverage against the fauj, knowing very well that the fauj wil dare not go against Cheen directly.

All of a sudden, the ISPR media which was singing paeans to CPEC a few months ago and gushing over dollars, biryani, bullet trains, superpower etc. suddenly discovered that CPEC had all the elements to become a second coming of the East India company. Hence all this rona dhona.

Napaki fauj as per their fitrat and zehniyat, are hoping that increasing shrillness of noise against CPEC will force Cheen into more concessions. Cheenis were hoping to ensnare Indian into CPEC/OBOR, not only to gain market access, but also defang India and effectively we end up paying for Cheeni "investment" in Pakistan.

They probably managed to get the Napaki fauj on board with this, but with India telling them both to shove OBOR/CPEC "up yours", the plan is not looking so good after all. Napaki fauj is seething.
 

Kshatriya87

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Exclusive: CPEC master plan revealed

EXTRACTS FROM THE ARTICLE

  • Visa-free entry for Chinese nationals
thousands of acres of agricultural land will be leased out to Chinese enterprises to set up “demonstration projects” in areas ranging from seed varieties to irrigation technology.

A national fibreoptic backbone will be built for the country not only for internet traffic, but also terrestrial distribution of broadcast TV, which will cooperate with Chinese media in the “dissemination of Chinese culture”.

Its scope has no precedent in Pakistan’s history in terms of how far it opens up the domestic economy to participation by foreign enterprises.

In some areas the plan seeks to build on a market presence already established by Chinese enterprises, eg Haier in household appliances, ChinaMobile and Huawei in telecommunications and China Metallurgical Group Corporation (MCC) in mining and minerals.

From provision of seeds and other inputs, like fertiliser, credit and pesticides, Chinese enterprises will also operate their own farms, processing facilities for fruits and vegetables and grain.

It identifies opportunities for entry by Chinese enterprises in the myriad dysfunctions that afflict Pakistan’s agriculture sector.

In the longer term the financial risk will be spread out, through “new types of financing such as consortium loans, joint private equity and joint debt issuance, raise funds via multiple channels and decentralise financing risks”.


main opportunity as helping the Kashgar Prefecture, a territory within the larger Xinjiang Autonomous Zone, which suffers from a poverty incidence of 50 per cent, and large distances that make it difficult to connect to larger markets in order to promote development. The prefecture’s total output in agriculture, forestry, animal husbandry and fishery amounted to just over $5 billion in 2012, and its population was less than 4 million in 2010, hardly a market with windfall gains for Pakistan.

“China-invested enterprises will establish factories to produce fertilizers, pesticides, vaccines and feedstuffs”




 

Kshatriya87

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CPEC could destroy Pakistan economy and society
http://economictimes.indiatimes.com/news/defence/cpec-could-destroy-pakistan-economy-and-society/articleshow/58722033.cms
BY
DIPANJAN ROY CHAUDHURY

NEW DELHI: The China-Pakistan-Economic-Corridor (CPEC) -- flagship project under the mega One Belt One Road (OBOR) initiative -- is not merely a corridor that Pakistan is hoping will transform its economy but rather a project that may wreck its finances and societal structure.

A 15-year master plan of CPEC that has come to light reveals that Pakistan will be fully subjugated by China under the current terms and conditions of the project.

The master plan, a copy of which is seen by ET, envisages a deep and broad-based penetration of most sectors of Pakistan’s economy as well as its society by Chinese enterprises and culture. The plan spells out in detail what Chinese intentions and priorities are in Pakistan for the next 15 years. It may be recalled that China has decided to invest $62 billion for the CPEC project.

Under the plan, thousands of acres of agricultural land will be leased out to Chinese enterprises in Pakistan to set up “demonstration projects” in areas ranging from seed varieties to irrigation technology.

A system of monitoring and surveillance will be built in cities from Peshawar to Karachi with 24-hour video recording on roads and busy marketplaces for law and order.

Besides, as the per master plan, a national fibre-optic backbone will be built for Pakistan not only for internet traffic, but also terrestrial distribution of broadcast TV, which will cooperate with Chinese media in the “dissemination of Chinese culture”. A similar Sinification is visible in the Mandalay town of Myanmar which has impacted local architecture and culture. It remains to be seen how a conservative section of the Pakistani society reacts to the influence of Chinese culture.

In some areas, the plan is to build on a market presence already established by Chinese enterprises -- for instance, Haier in household appliances, China Mobile and Huawei in telecommunications, and China Metallurgical Group Corporation in mining and minerals.

A key thrust of the plan lies in agriculture. Pakistan will also become a market for agricultural produce from Western China and this will adversely impact local producers, alleged Pakistani civil society activists. From provision of seeds and other inputs, such as fertiliser, credit and pesticides, Chinese enterprises will also operate their own farms, processing facilities for fruits and vegetables and grain. Logistics companies will operate a large storage and transportation system for agrarian produce, as per the CPEC master plan. Chinese enterprises will take the lead in each field.

Experts on Chinese economy claim that Beijing’s goal through CPEC is to improve the agriculture sector of certain western provinces. The plan proposes to harness the work of the Xinjiang Production and Construction Corps to bring mechanization as well as scientific technique in livestock breeding, development of hybrid varieties and precision irrigation to Pakistan. It sees its main opportunity as helping the Kashgar Prefecture, a territory within the larger Xinjiang Autonomous Zone, which is poverty ridden.

FIBRE OPTIC WORRIES
One of the oldest priorities for the Chinese government since talks on CPEC began is fibre optic connectivity between China and Pakistan. An MoU for such a link was signed in July 2013 which may impact India’s security. “Moreover, China’s telecom services to Africa need to be transferred in Europe, so there’s a certain hidden danger of the overall security,” says the plan.

The plan also envisages a terrestrial cable across the Khunjerab pass to Islamabad, and a submarine landing station of cable in Gwadar. Gwadar, as per the plan, “is positioned as the direct hinterland connecting Balochistan and Afghanistan”.

The expanded bandwidth will enable terrestrial broadcast of digital HD television, called Digital Television Terrestrial Multimedia Broadcasting (DTMB). This is envisioned as more than just a technological contribution. According to the master plan, “It is a cultural transmission carrier. The future cooperation between Chinese and Pakistani media will be beneficial to disseminating Chinese culture in Pakistan, further enhancing mutual understanding between the two peoples and the traditional friendship between the two countries.”

“There is a plan to build a pilot safe city in Peshawar, which faces a fairly severe security situation in northwestern Pakistan,” the plan says, following which the initiative will be extended to major cities such as Islamabad, Lahore and Karachi. This may see deployment of Chinese forces in Pakistan with a direct bearing on Indian security.

Importantly, Pakistan’s federal and involved local governments should also bear part of the responsibility for financing through issuing sovereign guarantee, according to the plan.
 

nimo_cn

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CPEC could destroy Pakistan economy and society
BY
DIPANJAN ROY CHAUDHURY

NEW DELHI: The China-Pakistan-Economic-Corridor (CPEC) -- flagship project under the mega One Belt One Road (OBOR) initiative -- is not merely a corridor that Pakistan is hoping will transform its economy but rather a project that may wreck its finances and societal structure.

A 15-year master plan of CPEC that has come to light reveals that Pakistan will be fully subjugated by China under the current terms and conditions of the project.

The master plan, a copy of which is seen by ET, envisages a deep and broad-based penetration of most sectors of Pakistan’s economy as well as its society by Chinese enterprises and culture. The plan spells out in detail what Chinese intentions and priorities are in Pakistan for the next 15 years. It may be recalled that China has decided to invest $62 billion for the CPEC project.

Under the plan, thousands of acres of agricultural land will be leased out to Chinese enterprises in Pakistan to set up “demonstration projects” in areas ranging from seed varieties to irrigation technology.

A system of monitoring and surveillance will be built in cities from Peshawar to Karachi with 24-hour video recording on roads and busy marketplaces for law and order.

Besides, as the per master plan, a national fibre-optic backbone will be built for Pakistan not only for internet traffic, but also terrestrial distribution of broadcast TV, which will cooperate with Chinese media in the “dissemination of Chinese culture”. A similar Sinification is visible in the Mandalay town of Myanmar which has impacted local architecture and culture. It remains to be seen how a conservative section of the Pakistani society reacts to the influence of Chinese culture.

In some areas, the plan is to build on a market presence already established by Chinese enterprises -- for instance, Haier in household appliances, China Mobile and Huawei in telecommunications, and China Metallurgical Group Corporation in mining and minerals.

A key thrust of the plan lies in agriculture. Pakistan will also become a market for agricultural produce from Western China and this will adversely impact local producers, alleged Pakistani civil society activists. From provision of seeds and other inputs, such as fertiliser, credit and pesticides, Chinese enterprises will also operate their own farms, processing facilities for fruits and vegetables and grain. Logistics companies will operate a large storage and transportation system for agrarian produce, as per the CPEC master plan. Chinese enterprises will take the lead in each field.

Experts on Chinese economy claim that Beijing’s goal through CPEC is to improve the agriculture sector of certain western provinces. The plan proposes to harness the work of the Xinjiang Production and Construction Corps to bring mechanization as well as scientific technique in livestock breeding, development of hybrid varieties and precision irrigation to Pakistan. It sees its main opportunity as helping the Kashgar Prefecture, a territory within the larger Xinjiang Autonomous Zone, which is poverty ridden.

FIBRE OPTIC WORRIES
One of the oldest priorities for the Chinese government since talks on CPEC began is fibre optic connectivity between China and Pakistan. An MoU for such a link was signed in July 2013 which may impact India’s security. “Moreover, China’s telecom services to Africa need to be transferred in Europe, so there’s a certain hidden danger of the overall security,” says the plan.

The plan also envisages a terrestrial cable across the Khunjerab pass to Islamabad, and a submarine landing station of cable in Gwadar. Gwadar, as per the plan, “is positioned as the direct hinterland connecting Balochistan and Afghanistan”.

The expanded bandwidth will enable terrestrial broadcast of digital HD television, called Digital Television Terrestrial Multimedia Broadcasting (DTMB). This is envisioned as more than just a technological contribution. According to the master plan, “It is a cultural transmission carrier. The future cooperation between Chinese and Pakistani media will be beneficial to disseminating Chinese culture in Pakistan, further enhancing mutual understanding between the two peoples and the traditional friendship between the two countries.”

“There is a plan to build a pilot safe city in Peshawar, which faces a fairly severe security situation in northwestern Pakistan,” the plan says, following which the initiative will be extended to major cities such as Islamabad, Lahore and Karachi. This may see deployment of Chinese forces in Pakistan with a direct bearing on Indian security.

Importantly, Pakistan’s federal and involved local governments should also bear part of the responsibility for financing through issuing sovereign guarantee, according to the plan.
the destruction of Pakistan is what indians have been hoping for decades, is not it?

now china and Pakistan are making that dream possible by introducing cpec, you people should feel joyful at this moment. stop bitching around and celebrate.
 

bose

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China is distributing its debt to other fools like Pakistan ... Super hyped !! not substance !!
 

nimo_cn

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Even if there was no CPEC going through PoK India would still never join OBOR.No chinese company will ever get a major infrastructure project in India due to security issues.Plus tye model wony work for India.

Eg.China decides to build a port in Southern India for 10bn USD.A chinese bank will fund the project and earn interest on that which will be paid by India.A chinese company will get that fund from the Chinese bank and will bring in 1000s of Chinese workers to work on the project and use that fund to pay their salaries.After completion the Chinese will run the project and earn profit.The port will be used to import Chinese goods into India.

So basically India gives land and pays loan plus interest to a chinese bank to fund a chinese company to build a port, with chinese workers, to be run by the Chinese, to trade chinese goods.How is it any good for India?
you forget to mention that the project will be transferred to India after Chinese run it for a couple of years.

India is rich, so no worries over fund, but for countries that lack money to finance such mega project, that business model is feasible and acceptable.

back in 1980s, when china is desperate for investment, similar business model was employed. Chinese first nuclear plant - Daya Bay nuclear power plant, was built with french technology and fund, Chinese participation was limited. french experts were running the plant after its construction, to make their life convenient, a dedicated kindergarten was built for their children. and the profit of the plant was used to pay the loans.
 

Tarun Kumar

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you forget to mention that the project will be transferred to India after Chinese run it for a couple of years.

India is rich, so no worries over fund, but for countries that lack money to finance such mega project, that business model is feasible and acceptable.

back in 1980s, when china is desperate for investment, similar business model was employed. Chinese first nuclear plant - Daya Bay nuclear power plant, was built with french technology and fund, Chinese participation was limited. french experts were running the plant after its construction, to make their life convenient, a dedicated kindergarten was built for their children. and the profit of the plant was used to pay the loans.
Lol u are comparing yourself with muslims. They will not pay u a cent and will try to convert your engineers to islam. Enjoy your halal pork and circums**** in porkistan:rofl:

PS: I believe that India and China are not just destined to be friends but a couple. But it will happen after WW3 when a new India and a new China emerge from rubble of old world order. That is inevitable.
 

airtel

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you people should feel joyful at this moment. stop bitching around and celebrate.

yes we are happy , but we will be more happy when you will spread Chinese culture in Pakistan ...........please do it as early as possible .
:)
 

lcafanboy

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Setting the record straight
KHURRAM HUSAIN
THE Long-Term Plan (LTP) document for CPEC was developed by the China Development Bank and finalised by December 2015. One year later, on December 29, 2016, it was finalised by both sides in the sixth Joint Cooperation Committee meeting held in Karachi. Minister for Planning and Development, Mr Ahsan Iqbal, is claiming that along the way significant revisions were made to the plan, to the point of rendering the original one “redundant”.

From what can be understood, since much of this has been kept secret, the revisions that have been made relate mainly to the transport plan, which was developed by the Pakistani side, and the other areas of cooperation identified in Dawn’s story were largely untouched. We will know how much changed in the plan once it is made public, which the minister has committed to doing within a month. He made the commitment on Shahzeb Khanzada’s show on the night of May 16, and must be made to stand by it.

His reaction to the story was puzzling. He said the story was written in such a way as to present CPEC as a “nightmare scenario”. Can someone point out which line in the story even suggests that the whole enterprise is bad, let alone a “nightmare scenario”.

All the story does is lay out the details contained in the LTP that was drawn up by the Chinese government. If the minister finds these details frightening, then he needs to ask himself why rather than blame the story.

Many people are in fact impressed with the scope of the plan, and although there are reservations about some of the items in it (such as visa-free entry for Chinese nationals with no reciprocal measure for Pakistanis) on the whole it could turn out to be a very favourable development for Pakistan.

In the same interview, he said that CPEC is the “most discussed and most debated project” of the country, and also the “most transparent”.

He claimed that there is no detail in it that has not been probed by committees in the Senate and National Assembly, and numerous briefings have been given in chambers, committees and other forums. He claimed all details are on their website.
We will know how much has changed in the Long-Term Plan for CPEC once it is made public.

This assertion is also puzzling. How many people have seen the LTP? We know there are some, and we also need to ask what feedback they gave and how it was received. But aside from those few, when have the elements of the LTP ever been discussed before parliament or with business leaders?

It is true that he has given numerous briefings to various forums along the way. But those have been highly selective, focusing only on those areas the government wants to draw our attention to.

For instance, take this rather strange incident that was reported in the daily Business Recorder. A seminar was under way at the International Growth Centre on CPEC. The panel consisted of Dr Safdar Suhail, then executive director of the CPEC Centre for Excellence at PIDE and the man charged with developing Pakistan’s response to the LTP. The other panelist was Miftah Ismail, chairman of the Board of Investment (BoI) and another key player in the CPEC negotiations.

Here is what the report says: Dr Safdar Sohail … pointed out how agriculture was one of the ‘pillars’ of the CPEC.” Pillar, mind you, which refers to something being very critical. A few minutes later, an environmentalist asked Safdar’s co-panelist (sitting on the same stage), Miftah Ismail, the boss of BoI, about the environmental assessment of Chinese interest in Pakistan’s agricultural land. And his response: CPEC has nothing to do with agriculture in Pakistan.”

Throughout this time, the government put out misleading signals. In another such event, where Minister Ahsan Iqbal was briefing reporters about CPEC, in September 2016, shortly before the finalisation, he is quoted telling reporters that “CPEC has three phases and four major areas, namely Gwadar Port’s development, energy projects, road networks and industrial cooperation.” No mention of fibre optic connectivity, of agriculture or ‘tourism’.

This is a pattern that repeats itself throughout the time when the government was engaged with their Chinese counterparts on the LTP. The information that has been drip-fed to the public and stakeholders is always selective, vague, and thoroughly sanitised.

The minister has preferred to speak in large generalities, and is reluctant to discuss details. The net result is that people are genuinely surprised to learn that there is a lot more to CPEC than what they imagined, which is roads, power plants and Gwadar.

Here is what is going on: the Chinese have drawn up the LTP which details what they want. The Pakistanis have drawn up their list of power plants and the monographic study on transport, which details what they want. The Chinese want access to our agrarian economy and our domestic market, amongst a few other things. In the shorter version of the LTP, circulated to the provincial governments in February this year, there is a list of key “areas of cooperation”.

There are seven areas listed: connectivity (roads and fibre optic), energy, industry, agriculture (to include “modern agriculture demonstration zones”), tourism (with two centres in Gwadar and Karachi, and five zones from Keti Bander to Jiwani), livelihoods, and finance.

The section on livelihoods appears to be designed specifically to bring “construction of public transport system” into the CPEC ambit. The emphasis on roads, energy and livelihoods appears to have come from the Pakistani side. The emphasis on industry, agriculture, tourism and finance has come from the Chinese side. These are the same areas the details of which are given in my report. So what has changed in those details?

Let me emphasise that nothing said here is to suggest in any way that CPEC is a bad thing. I do not believe that. But people have a right to know what exactly is being agreed to under its ambit.


https://www.dawn.com/news/1333753/setting-the-record-straight
 

lcafanboy

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Exclusive: CPEC master plan revealed
KHURRAM HUSAIN
Details from original documents laying out the CPEC long term plan are publicly disclosed for the first time.

  • Plan eyes agriculture
  • Large surveillance system for cities
  • Visa-free entry for Chinese nationals(without reciprocity)
The floodgates are about to open. Prime Minister Nawaz Sharif arrived in Beijing over the weekend to participate in the One Belt, One Road summit, and the top item on his agenda is to finalise the Long Term Plan (LTP) for the China-Pakistan Economic Corridor. [See next tab for details on how the plan was made].

Dawn has acquired exclusive access to the original document, and for the first time its details are being publicly disclosed here. The plan lays out in detail what Chinese intentions and priorities are in Pakistan for the next decade and a half, details that have not been discussed in public thus far.


Prime Minister Nawaz Sharif and Turkish President Recep Tayyip Erdogan at the One Belt One Road summit in Beijing. — APP
For instance, thousands of acres of agricultural land will be leased out to Chinese enterprises to set up “demonstration projects” in areas ranging from seed varieties to irrigation technology. A full system of monitoring and surveillance will be built in cities from Peshawar to Karachi, with 24 hour video recordings on roads and busy marketplaces for law and order. A national fibreoptic backbone will be built for the country not only for internet traffic, but also terrestrial distribution of broadcast TV, which will cooperate with Chinese media in the “dissemination of Chinese culture”.

The plan envisages a deep and broad-based penetration of most sectors of Pakistan’s economy as well as its society by Chinese enterprises and culture. Its scope has no precedent in Pakistan’s history in terms of how far it opens up the domestic economy to participation by foreign enterprises. In some areas the plan seeks to build on a market presence already established by Chinese enterprises, eg Haier in household appliances, ChinaMobile and Huawei in telecommunications and China Metallurgical Group Corporation (MCC) in mining and minerals.

In other cases, such as textiles and garments, cement and building materials, fertiliser and agricultural technologies (among others) it calls for building the infrastructure and a supporting policy environment to facilitate fresh entry. A key element in this is the creation of industrial parks, or special economic zones, which “must meet specified conditions, including availability of water…perfect infrastructure, sufficient supply of energy and the capacity of self service power”, according to the plan.

But the main thrust of the plan actually lies in agriculture, contrary to the image of CPEC as a massive industrial and transport undertaking, involving power plants and highways. The plan acquires its greatest specificity, and lays out the largest number of projects and plans for their facilitation, in agriculture.



The plan states at the outset that the corridor “spans Xinjiang Uygur Autonomous Region and whole Pakistan in spatial range”. It’s main aim is to connect South Xinjiang with Pakistan. It is divided into a “core area” and what they call the “radiation zones”, those territories that will feel the knock on effects of the work being done in the core area. The core area includes “Kashgar, Tumshuq, Atushi and Akto of Kizilsu Kirghiz of Xinjiang” from China, and “most of Islamabad’s Capital territory, Punjab, and Sindh, and some areas of Gilgit-Baltistan, Khyber Pukhtunkhwa, and Balochistan” from Pakistan. It has “one belt, three passages, and two axes and five functional zones”, where the belt is “the strip area formed by important arterial traffic in China and Pakistan".

Agriculture
For agriculture, the plan outlines an engagement that runs from one end of the supply chain all the way to the other. From provision of seeds and other inputs, like fertiliser, credit and pesticides, Chinese enterprises will also operate their own farms, processing facilities for fruits and vegetables and grain. Logistics companies will operate a large storage and transportation system for agrarian produce.

It identifies opportunities for entry by Chinese enterprises in the myriad dysfunctions that afflict Pakistan’s agriculture sector. For instance, “due to lack of cold-chain logistics and processing facilities, 50% of agricultural products go bad during harvesting and transport”, it notes.

A full system of monitoring and surveillance will be built in cities from Peshawar to Karachi, with 24 hour video recordings on roads and busy marketplaces for law and order.

Enterprises entering agriculture will be offered extraordinary levels of assistance from the Chinese government. They are encouraged to “[m]ake the most of the free capital and loans” from various ministries of the Chinese government as well as the China Development Bank. The plan also offers to maintain a mechanism that will “help Chinese agricultural enterprises to contact the senior representatives of the Government of Pakistan and China”.

The government of China will “actively strive to utilize the national special funds as the discount interest for the loans of agricultural foreign investment”. In the longer term the financial risk will be spread out, through “new types of financing such as consortium loans, joint private equity and joint debt issuance, raise funds via multiple channels and decentralise financing risks”


The plan proposes to harness the work of the Xinjiang Production and Construction Corps to bring mechanization as well as scientific technique in livestock breeding, development of hybrid varieties and precision irrigation to Pakistan. It sees its main opportunity as helping the Kashgar Prefecture, a territory within the larger Xinjiang Autonomous Zone, which suffers from a poverty incidence of 50 per cent, and large distances that make it difficult to connect to larger markets in order to promote development. The prefecture’s total output in agriculture, forestry, animal husbandry and fishery amounted to just over $5 billion in 2012, and its population was less than 4 million in 2010, hardly a market with windfall gains for Pakistan.

However, for the Chinese, this is the main driving force behind investing in Pakistan’s agriculture, in addition to the many profitable opportunities that can open up for their enterprises from operating in the local market. The plan makes some reference to export of agriculture goods from the ports, but the bulk of its emphasis is focused on the opportunities for the Kashgar Prefecture and Xinjiang Production Corps, coupled with the opportunities for profitable engagement in the domestic market.

The plan discusses those engagements in considerable detail. Ten key areas for engagement are identified along with seventeen specific projects. They include the construction of one NPK fertilizer plant as a starting point “with an annual output of 800,000 tons”. Enterprises will be inducted to lease farm implements, like tractors, “efficient plant protection machinery, efficient energy saving pump equipment, precision fertilization drip irrigation equipment” and planting and harvesting machinery.


The plan shows great interest in the textiles industry in particular, but the interest is focused largely on yarn and coarse cloth.


Meat processing plants in Sukkur are planned with annual output of 200,000 tons per year, and two demonstration plants processing 200,000 tons of milk per year. In crops, demonstration projects of more than 6,500 acres will be set up for high yield seeds and irrigation, mostly in Punjab. In transport and storage, the plan aims to build “a nationwide logistics network, and enlarge the warehousing and distribution network between major cities of Pakistan” with a focus on grains, vegetables and fruits. Storage bases will be built first in Islamabad and Gwadar in the first phase, then Karachi, Lahore and another in Gwadar in the second phase, and between 2026-2030, Karachi, Lahore and Peshawar will each see another storage base.

Asadabad, Islamabad, Lahore and Gwadar will see a vegetable processing plant, with annual output of 20,000 tons, fruit juice and jam plant of 10,000 tons and grain processing of 1 million tons. A cotton processing plant is also planned initially, with output of 100,000 tons per year.

“We will impart advanced planting and breeding techniques to peasant households or farmers by means of land acquisition by the government, renting to China-invested enterprises and building planting and breeding bases” it says about the plan to source superior seeds.

In each field, Chinese enterprises will play the lead role. “China-invested enterprises will establish factories to produce fertilizers, pesticides, vaccines and feedstuffs” it says about the production of agricultural materials.

“China-invested enterprises will, in the form of joint ventures, shareholding or acquisition, cooperate with local enterprises of Pakistan to build a three-level warehousing system (purchase & storage warehouse, transit warehouse and port warehouse)” it says about warehousing.

One of the most intriguing chapters in the plan speaks of a long belt of coastal enjoyment industry that includes yacht wharfs, cruise homeports, nightlife, city parks, public squares, theaters, golf courses and spas, hot spring hotels and water sports.

Then it talks about trade. “We will actively embark on cultivating surrounding countries in order to improve import and export potential of Pakistani agricultural products and accelerate the trade of agricultural products. In the early stages, we will gradually create a favorable industry image and reputation for Pakistan by relying on domestic demand.”

In places the plan appears to be addressing investors in China. It says Chinese enterprises should seek “coordinated cooperation with Pakistani enterprises” and “maintain orderly competition and mutual coordination.” It advises them to make an effort “seeking for powerful strategic partners for bundling interest in Pakistan.”

As security measures, enterprises will be advised “to respect the religions and customs of the local people, treat people as equals and live in harmony”. They will also be advised to “increase local employment and contribute to local society by means of subcontracting and consortiums.” In the final sentence of the chapter on agriculture, the plan says the government of China will “strengthen the safety cooperation with key countries, regions and international organizations, jointly prevent and crack down on terrorist acts that endanger the safety of Chinese overseas enterprises and their staff.”

Industry

For industry, the plan trifurcates the country into three zones: western and northwestern, central and southern. Each zone is marked to receive specific industries in designated industrial parks, of which only a few are actually mentioned. The western and northwestern zone, covering most of Balochistan and KP province, is marked for mineral extraction, with potential in chrome ore, “gold reserves hold a considerable potential, but are still at the exploration stage”, and diamonds. One big mineral product that the plan discusses is marble. Already, China is Pakistan’s largest buyer of processed marble, at almost 80,000 tons per year. The plan looks to set up 12 marble and granite processing sites in locations ranging from Gilgit and Kohistan in the north, to Khuzdar in the south.

The central zone is marked for textiles, household appliances and cement. Four separate locations are pointed out for future cement clusters: Daudkhel, Khushab, Esakhel and Mianwali. The case of cement is interesting, because the plan notes that Pakistan is surplus in cement capacity, then goes on to say that “in the future, there is a larger space of cooperation for China to invest in the cement process transformation”.

“There is a plan to build a pilot safe city in Peshawar, which faces a fairly severe security situation in northwestern Pakistan”.

For the southern zone, the plan recommends that “Pakistan develop petrochemical, iron and steel, harbor industry, engineering machinery, trade processing and auto and auto parts (assembly)” due to the proximity of Karachi and its ports. This is the only part in the report where the auto industry is mentioned in any substantive way, which is a little surprising because the industry is one of the fastest growing in the country. The silence could be due to lack of interest on the part of the Chinese to acquire stakes, or to diplomatic prudence since the sector is, at the moment, entirely dominated by Japanese companies (Toyota, Honda and Suzuki).


One of the CPEC transport routes

Gwadar, also in the southern zone, “is positioned as the direct hinterland connecting Balochistan and Afghanistan.” As a CPEC entreport, the plan recommends that it be built into “a base of heavy and chemical industries, such as iron and steel/petrochemical”. It notes that “some Chinese enterprises have started investment and construction in Gwadar” taking advantage of its “superior geographical position and cheap shipping costs to import crude oil from the Middle East, iron ore and coking coal resources from South Africa and New Zealand” for onward supply to the local market “as well as South Asia and Middle East after processing at port.”

The plan shows great interest in the textiles industry in particular, but the interest is focused largely on yarn and coarse cloth. The reason, as the plan lays out, is that in Xinjiang the textile industry has already attained higher levels of productivity. Therefore, “China can make the most of the Pakistani market in cheap raw materials to develop the textiles & garments industry and help soak up surplus labor forces in Kashgar”. The ensuing strategy is described cryptically as the principle of “introducing foreign capital and establishing domestic connections as a crossover of West and East".

Preferential policies will be necessary to attract enterprises to come to the newly built industrial parks envisioned under the plan. The areas where such preferences need to be extended are listed in the plan as “land, tax, logistics and services” as well as land price, “enterprise income tax, tariff reduction and exemption and sales tax rate.”


Chinese Troops marching in the Pakistan Day Military Parade
Fibreoptics and surveillance
One of the oldest priorities for the Chinese government since talks on CPEC began is fibreoptic connectivity between China and Pakistan. An MoU for such a link was signed in July 2013, at a time when CPEC appeared to be little more than a road link between Kashgar and Gwadar. But the plan reveals that the link goes far beyond a simple fibreoptic set up.

China has various reasons for wanting a terrestrial fibreoptic link with Pakistan, including its own limited number of submarine landing stations and international gateway exchanges which can serve as a bottleneck to future growth of internet traffic. This is especially true for the western provinces. “Moreover, China’s telecom services to Africa need to be transferred in Europe, so there is certain hidden danger of the overall security” says the plan. Pakistan has four submarine cables to handle its internet traffic, but only one landing station, which raises security risks as well.

So the plan envisages a terrestrial cable across the Khunjerab pass to Islamabad, and a submarine landing station in Gwadar, linked to Sukkur. From there, the backbone will link the two in Islamabad, as well as all major cities in Pakistan.

The expanded bandwidth that will open up will enable terrestrial broadcast of digital HD television, called Digital Television Terrestrial Multimedia Broadcasting (DTMB). This is envisioned as more than just a technological contribution. It is a “cultural transmission carrier. The future cooperation between Chinese and Pakistani media will be beneficial to disseminating Chinese culture in Pakistan, further enhancing mutual understanding between the two peoples and the traditional friendship between the two countries.” The plan says nothing about how the system will be used to control the content of broadcast media, nor does it say anything more about “the future cooperation between Chinese and Pakistani media”.


Judging from their conversations with the government, it appears that the Pakistanis are pushing the Chinese to begin work on the Gwadar International Airport, whereas the Chinese are pushing for early completion of the Eastbay Expressway.

It also seeks to create an electronic monitoring and control system for the border in Khunjerab, as well as run a “safe cities” project. The safe city project will deploy explosive detectors and scanners to “cover major roads, case-prone areas and crowded places…in urban areas to conduct real-time monitoring and 24 hour video recording.” Signals gathered from the surveillance system will be transmitted to a command centre, but the plan says nothing about who will staff the command centre, what sort of signs they will look for, and who will provide the response.

“There is a plan to build a pilot safe city in Peshawar, which faces a fairly severe security situation in northwestern Pakistan” the plan says, following which the program will be extended to major cities such as Islamabad, Lahore and Karachi, hinting that the feeds will be shared eventually, and perhaps even recorded.

Tourism and recreation

One of the most intriguing chapters in the plan is the one that talks about the development of a “coastal tourism” industry. It speaks of a long belt of coastal enjoyment industry that includes yacht wharfs, cruise homeports, nightlife, city parks, public squares, theaters, golf courses and spas, hot spring hotels and water sports. The belt will run from Keti Bunder to Jiwani, the last habitation before the Iranian border. Then, somewhat disappointingly, it adds that “more work needs to be done” before this vision can be realized.

The plans are laid out in surprising detail. For instance, Gwadar will feature international cruise clubs that “provide marine tourists private rooms that would feel as though they were ‘living in the ocean’”. And just as the feeling sinks in, it goes on to say that “[f]or the development of coastal vacation products, Islamic culture, historical culture, folk culture and marine culture shall all be integrated.” Apparently more work needs to be done here too.



For Ormara, the plan recommends building “unique recreational activities” that would also encourage “the natural, exciting, participatory, sultry, and tempting characteristics” to come through. For Keti Bunder it recommends wildlife sanctuaries, an aquarium and a botanical garden. For Sonmiani, on the eastern edge of Karachi, “projects like a coastal beach, extended greenway, coastal villa, car camp, SPA, beach playground and a seafood street can be developed.”

It is an expansive vision that the plan lays out, and towards the end, it asks for the following: “Make the visa-free tourism possible with China to provide more convenient policy support for Chinese tourists to Pakistan.” There is no mention of a reciprocal arrangement for Pakistani nationals visiting China.

Finance and risk
In any plan, the question of financial resources is always crucial. The long term plan drawn up by the China Development Bank is at its sharpest when discussing Pakistan’s financial sector, government debt market, depth of commercial banking and the overall health of the financial system. It is at its most unsentimental when drawing up the risks faced by long term investments in Pakistan’s economy.

The chief risk the plan identifies is politics and security. “There are various factors affecting Pakistani politics, such as competing parties, religion, tribes, terrorists, and Western intervention” the authors write. “The security situation is the worst in recent years”. The next big risk, surprisingly, is inflation, which the plan says has averaged 11.6 per cent over the past 6 years. “A high inflation rate means a rise of project-related costs and a decline in profits.”

Efforts will be made, says the plan, to furnish “free and low interest loans to Pakistan” once the costs of the corridor begin to come in. But this is no free ride, it emphasizes. “Pakistan’s federal and involved local governments should also bear part of the responsibility for financing through issuing sovereign guarantee bonds, meanwhile protecting and improving the proportion and scale of the government funds invested in corridor construction in the financial budget.”

It asks for financial guarantees “to provide credit enhancement support for the financing of major infrastructure projects, enhance the financing capacity, and protect the interests of creditors.” Relying on the assessments of the IMF, World Bank and the ADB, it notes that Pakistan’s economy cannot absorb FDI much above $2 billion per year without giving rise to stresses in its economy. “It is recommended that China’s maximum annual direct investment in Pakistan should be around US$1 billion.” Likewise, it concludes that Pakistan’s ceiling for preferential loans should be $1 billion, and for non preferential loans no more than $1.5 billion per year.

It advises its own enterprises to take precautions to protect their own investments. “International business cooperation with Pakistan should be conducted mainly with the government as a support, the banks as intermediary agents and enterprises as the mainstay.” Nor is the growing engagement some sort of brotherly involvement. “The cooperation with Pakistan in the monetary and financial areas aims to serve China’s diplomatic strategy.”

The other big risk the plan refers to is exchange rate risk, after noting the severe weakness in Pakistan’s ability to earn foreign exchange. To mitigate this, the plan proposes tripling the size of the swap mechanism between the RMB and the Pakistani rupee to 30 billion Yuan, diversifying power purchase payments beyond the dollar into RMB and rupee basket, tapping the Hong Kong market for RMB bonds, and diversifying enterprise loans from a wide array of sources. The growing role of the RMB in Pakistan’s economy is a clearly stated objective of the measures proposed.

Conclusion
It is not clear how much of the plan will be earnestly followed up and how much is there simply to evince interest from the Pakistani side. In the areas of interest contained in the plan, it appears access to the full supply chain of the agrarian economy is a top priority for the Chinese. After that the capacity of the textile spinning sector to serve the raw material needs of Xinjiang, and the garment and value added sector to absorb Chinese technology is another priority.

Next is the growing domestic market, particularly in cement and household appliances, which receive detailed treatment in the plan. And lastly, through greater financial integration, the plan seeks to advance the internationalization of the RMB, as well as diversify the risks faced by Chinese enterprises entering Pakistan.


In some areas the plan seeks to build on a market presence already established by Chinese enterprises, eg Haier in household appliances, ChinaMobile and Huawei in telecommunications and China Metallurgical Group Corporation (MCC) in mining and minerals.

Gwadar receives passing mention as an economic prospect, mainly for its capacity to serve as a port of exit for minerals from Balochistan and Afghanistan, and as an entreport for wider trade in the greater Indian Ocean zone from South Africa to New Zealand. There is no mention of China’s external trade being routed through Gwadar. Judging from their conversations with the government, it appears that the Pakistanis are pushing the Chinese to begin work on the Gwadar International Airport, whereas the Chinese are pushing for early completion of the Eastbay Expressway.

But the entry of Chinese firms will not be limited to the CPEC framework alone, as the recent acquisition of the Pakistan Stock Exchange, and the impending acquisition of K Electric demonstrate. In fact, CPEC is only the opening of the door. What comes through once that door has been opened is difficult to forecast.

https://www.dawn.com/news/1333101/exclusive-cpec-master-plan-revealed
 

Tarun Kumar

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These chinese are deluded by grandeur visions of power of their emperor. They dont realize that there is another emperor beyond heavens who is guiding them into what will be an alliance with Ummah Chumma. That will be their inevitable downfall. Dont worry during WW3 when God himself comes down in India as an avatar to set things right , Chinese will be set on the right spiritual path. Till then let them enjoy this Chichorapanti.
 

lcafanboy

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In simple words Pakistanis are going back to the British Raj Days!

The only difference is, Britishers replaced Chinese who will be treating Pakistan as their own colony. With visa free entry, exclusive towns and cities and no reciprocity there will be no direct benefit to Pakistani society. Even the so called infrastructure like roads, power houses etc, all are for their own requirements for which Pakistani idiots have increased their debt to 100 Billion USD which they won't be able to repay and so will face annexation of their country by China. Great move by Chinese a true game changer. So porkistan and Porkies are back to being slaves this time though to China. :):):pound::pound::clap2::clap2::clap2:

:facepalm::facepalm::hehe::hehe:
 

nimo_cn

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Lol u are comparing yourself with muslims. They will not pay u a cent and will try to convert your engineers to islam. Enjoy your halal pork and circums**** in porkistan:rofl:

PS: I believe that India and China are not just destined to be friends but a couple. But it will happen after WW3 when a new India and a new China emerge from rubble of old world order. That is inevitable.
Islam is not evil, those who distort religion to fulfill their own agenda are.

Chinese don't judge people by their religion. China has been doing business with Islamic world for decades, just the same with the rest of the world.

OBOR is merely a business proposal by China, not a scheme to colonize the world. India sees no opportunity in it and decide not to join in, that is fine, no need to overinterpret the plan.
 

nimo_cn

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yes we are happy , but we will be more happy when you will spread Chinese culture in Pakistan ...........please do it as early as possible .
:)
Chinese are there to do business, no on a culture promotion mission.
 

no smoking

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The drilling maybe $5-10 per barrel, but the crude is not. As of today, Brent crude is trading anywhere between $48-53. This is the price at which China WILL buy the oil from the Gulf (probably a trifle less if it's in bulk).


Then add to this the cost of shipping, disgorging the contents at Gwadar, building a pipeline to transport this oil all the way upto Xinjiang via Karakoram, which will limit the amount of oil you CAN transport. Land-based transport is much more expensive than sea-based transport, a fact that you should probably know. Then add the transit fee and you are looking at a price that could easily surpass what you claim is the cost of drilling in Xinjiang.

There is some background factors you are missing:

Firstly, the oil mining capacity within China already reach the peak. The domestic oil consumption, however, will continue to increase in next few decades. So, the annual oil production in Xinjiang won’t grow anymore. Those new increased demand can only be met with importation.


Secondly, as I pointed out, Chinese crude oil is low grade oil, too much sulfur in it, which requires more refining steps comparing to those imported oil. The refining cost is so high that Chinese domestic produced petrol/diesel is lot more expensive than imported petrol/diesel. Today, petrol/diesel smuggling is quite active in east coast of China. And we haven’t talked about environment cost yet, which is quite


Finally, why spend so much money on a troubled route when the oil can be transported on sea?

1. The refining capacity in East coast is running on full speed already. For environmental and political reasons, there is no much speech for new refining factories. The new factories are planned to locate in inland or western China.

2. The sea transport is cheaper, but when the oil reach the Chinese eastern coast, it has to travel another 1000-3000 km land journey before they get to those factories. Without considering the “Security cost”, the transporting cost through Pakistan won’t be much higher than the sea transport, if not cheaper. You have to consider the time will be shorter.

3. From strategic point of view, China need to diversify the risk of oil transportation.


And don't forget you are claiming that you'll invest over $50 billion just to set up the infrastructure in the hellhole called Pakistan. The operating and security costs will come much later. You do the maths (or rather let the NaPakis do the maths)

The next development stage for China is Western China. However, the border area between Pak and Afghan has been the warm bed for terrorism for decades. You can’t develop your western area when a big bomb sitting in the neighbourhood. If China wants to repeat her development story in the Western part, she need to keep the neighbouring area stable. She can’t keep these areas stable when the people there are stuck in absolute poverty. So, it is in China’s national interest to invest in this “Shithole”. It is risky. But if China succeed, the profit will be huge.



Actually no. It would be far more easier and cost-effective to get your supplies from Russia and Central Asia rather than Gwadar if that's indeed your purpose. You already have direct and indirect links with Russia, Kazakhastan and Iran, the three major producers of Oil and gas, pipeline infra is there or getting augmented. There's literally no need for you to transport oil all the way up Pakistan, especially since

1. You can only transport limited quantities up and down the mountains

2. Karakoram route will be closed for some time because of the geography and topology of the region- landslides, snow etc.

3. Your own (most optimistic) estimates say no more than 1 million barrels per day, via CPEC. That is less than 10% of your total imports. How much strategic independence this will provide is open to interpretation.

The pipelines you are talking about are either under Russia direct or Indirect control, in long term, China can’t allow any country to control more than 15% of her oil importation. So, China has to build a pipeline through the territory with minimum Russian influence.


Besides, the pipeline will transport mainly the oil other than Russian and Iran.




So in your wisdom you decided to build an alternate route that is EVEN more vulnerable and EVEN MORE easy to disrupt than the sea route? That too without regards to other's sensitivities and sovereignties?

Way to go!!

Well, it is highly unlikely the 2 routes get the problem at the same time.

Besides, this land route may be more risky, but Chinese is more capable to intervene comparing the sea route, right?




1. The Napakis will sell you a porky just like they've been doing to NATO. Looting the transhipment containers and fleecing the …. Xinjiang exports will completely decimate this source of revenue, so I say go ahead by all means.
.

Once the aam abdul sees his tattered shalwar being complete ripped apart by the Cheeni biraather, things will get very interesting indeed

I think I can’t argue with someone if he just determines that Pakistan people is too stupid to look after their own interest. As a country who has survived in a 70 years long conflict against a 10 times bigger enemy, they really deserve some credit.
 

Tarun Kumar

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Firstly India is not 10 times bigger than Pakistan, it is 7 times bigger. Also Pakistan has survived because India has been kind and Pakistan has been under Superpower tutelage since its birth. In 1971 when Indira Gandhi was contemplating ending Paki existance, by attacking western pakistan, her plans were leaked to CIA by her own cabinet minister and US stepped in. By that time Pakistan had enough breather to produce nukes and missiles, where also it Got Chinese support. US and China have always used Pakistan to hold back India but both will pay karmic retribution for their support to this criminal nation.
 

Bornubus

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As a country who has survived in a 70 years long conflict against a 10 times bigger enemy, they really deserve some credit.
It's barely a survival but more like a victim of gang rape which was gang banged in 1971 war resulted in dismemberment and later annexation of Siachen and Kargil. So one Fart one fake project won't save it.


Thus Bangladesh is more like an illegitimate ......
 

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