10/21/2016 (8)WhatwouldbetheimpactofCPEContheeconomyofPakistan?

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PakistanDefence EconomyofPakistan +8

WhatwouldbetheimpactofCPEContheeconomyof
Pakistan?
WhatwouldbetheshorttermimpactofChina'sinvestmentof$46billioninPakistan's
economy?

IsPakistangoingtobecomeatransitroutelikeHongKongorDubaiorDoha?

WhatwouldbetheimpactofChinaPakistanEconomicCorridor(CPEC)onPakistan's
economyinthelongrun?...(more)

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AsadAli,MechanicalEngineer,Muslim,Pakistani
WrittenNov26,2015
OriginallyAnswered:AssumingthatGwadarandCPECactuallygetdeveloped,wouldtherebebenefits
forPakistan'sEconomy?
TherewasnoguaranteethatKarachiwouldbecomeamegacitybackin1950but,stillwe
seeitaneconomichub.SamegoeswithGawadar,agiftfromnatureinshapeofdeepsea
portandwiththeplannedcityandinfrastructureconnectingitwithChinaandviaCASA
1000tothelandlockedcountryAfghanistanandTajikistan,itwouldcertainlyprovide
opportunitiesfortheprovincialgovernmentstodevelopindustrialestatesalongtheroute.

Thisalldevelopmentwouldresultinrevenueintheshapeoftaxanddutiesfromthe
movinggoodsbut,thisrevenuewouldjustbepeanutagainsttheopportunitieswhich
provincialgovernmentswouldgetintheshapeofinfrastructurefordevelopmentof
industrialestatesandwithreducedtaxationonlocallyproducedgoodsPakistanwouldbe
abletocompeteIndiaandChinaininternationalmarkets.

However,thisallcouldgoinvainifthewayofgovernanceremainsimilarasofcurrent.
Butasapanglossianview,thecurrentgovernmentsupportscapitalistssowemightthink
thatthistrendwillremainandasaresultthecommonmanwouldbebenefited!

https://www.quora.com/WhatwouldbetheimpactofCPEContheeconomyofPakistan 1/5
10/21/2016 (8)WhatwouldbetheimpactofCPEContheeconomyofPakistan?Quora

Waitingcommentsforhealthydiscussion.
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YashBonde,Idon'tdownvoteyouifyoudislikePakistan.
WrittenAug15,2015

ThiscorridorisobviouslygoingtohelpPakistan,bycreatingmillionsofnewjobs,overthe
years.Thejobsthatwillbecreatedwillbeoftwotypes,thedirectjobs,likeaconstruction
workermakingtheroad,tosecondaryorsidejobs,likearestaurantownerontheroad.
Iwillanalysethisquestionintwosections.
TheimpactonPakistan'seconomythiswillhaveadirectimpactonPakistan's
economyandpolitics.Onemustunderstandthatmakinganinvestmentof$46billionis
notafreegift,butaneffectivebuyingofpower.
Whenlookingattheimpactoneconomy,itisclearthatPakistanwillmostlybeatransit
point.ThisprojectwouldbesavingthousandsofkilometresoftransitbetweenChinaand
othercountries.AsitwillbemucheasierforChinatoshiptheproductsthatare
manufacturedinit'sindustriestotherestoftheworld.ThisprojectcomesundertheOne
Belt,OneRoad (21stcenturysilkroad)project,proposedbyChina.

TheimpactonPakistan'spoliticsbutaswitheverythingintheworldtherearetwo
sidestoeverycoin.Theothersideisthepoliticalone.Thisprojectwouldmeanthatthere
willbeaneffectivebuyingofpowerfromthehandsofPakistan'sgovernment,bothcivil
andmilitary.Nowthiscan,andwillbeusedasacheckforIndiaanditsmilitaryaswellas
economy.Pakistanwon'tquestionChinaifitdeployssomeofit'stroopsalongthe
PakistanIndiaborder.
IntheendthisthingwilldefinitelymakealotofimpactnotjustonPakistan,butalsothe
restoftheregion.Itwouldhurtalotofeconomies,especiallycountrieswhichactasa
transithubintheregion.
ItisabittooearlytotellweatheritwouldbegoodforPakistanornot.Butforthetime
beingthecapitalwillhelpPakistanrevitaliseit'sstrandedeconomy.Butinthelongrunit
definitelylooksasifPakistanigovernmentsoldthepowerabitcheaply.
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HaiderKhan,BePakistani,buyPakistani.
WrittenJun5
OriginallyAnswered:InwhatwaysandtowhatextentwillChinaPakistanEconomicCorridor(CPEC)
benefitPakistan?
Someofthebenefits,butnotlimitedto,arethese:
StrengthenedinternationalrelationsbetweenChinaandPakistan

Greaterinflowofforex
8
HigherGDP
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Exponentialeconomicoutput
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Decreasedunemployment

Empoweredmilitary WilltheUK'sinvolvementof$121.6millioninCPEC
helpPakistantoattractmoreforeigninvestmentsin
Fewersecurityconcerns
CPEC?
Gwadarwouldcomeintoexistence
HowwillCPECeffectIndia,Pakistan&China?
Lessertaxes
HowwillChineseslowdownaffectChinaPakistan

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10/21/2016 (8)WhatwouldbetheimpactofCPEContheeconomyofPakistan?Quora
GreaterexplorationoftheprovinceofBalochistanintermsofitsnaturalresources EconomicCorridor(CPEC)?

1.3kViewsViewUpvotes WilltheproposedChinaPakistanEconomicCorridor
Upvote 9 eversucceedkeepinginmindPakistan'slucid
Downvote Comment
securitysituation?OrwillCPECbecomeanon...

WhyIndiaisbeingamutespectatoronChina
DarshanKotecha PakistanEconomicCorridor(CPEC)projectpassing
WrittenSep27 throughPOKregion?
OriginallyAnswered:InwhatwaysandtowhatextentwillChinaPakistanEconomicCorridor(CPEC)
benefitPakistan? WhatisCPEC(ChinaPakistanEconomicCorridor)?

PakistantalksaboutgoingonfullscalewarwithIndia,theycan'tevenaffordtogoonwar HowwillPakistanbecomecolonyofChinathrough
withTaliban,theycan'tevenprotecttheirownpeoplefromtheterrorofTaliban,Itmay CPEC?
dryupPakistansalreadydriedeconomyfordecadestocome.Theytalkaboutusing
nuclearweapons,sure,youcanstrikeusfirstandkillfewmillionsbutwhenwereatliate, GiventhepoliticalandregionalinstabilityinPakistan,
whyChinaisinvestingatahugerate?(Ref.CPEC,
therewillbefewmillionsleft.Yes,ofcourse,theyhaveChina'ssupport,butChinadoesn't
Gwadaretc.)
careforPakistan,alltheycareaboutismoneyandpower.Pakistanshouldacceptthis,and
soonertheyaccept,thebetteritis.

PakistaniArmywillsellit'speople,selltheirbody,theywilleventradetheirsoulwith
China,iftheycangetevenasmallchancetobiteIndia'snail.

PakistanhasbecomeprostituteofChina,aftersigningtheCPECdeal,theyknowwhat
AfricagotinreturnfromChina'sinvestment,ChinaissuckingAfricancountrieslikea
leach.ChinahasinvestedbillionsinAfricanbusinessesandtakeshomemaximumprofit
generatedthroughthosemines,railways,powercompanies,transportation,i.eroads,
trainsandportsetc.

Chinesebanks,givesbilliionsincredittotheAfricangovernment,thoughwithpoorcredit
history.LoanisprovidedthroughStaterunbanks,suchas,AsianInfrastructure
InvestmentBank(AIIB),ChinaImportExportbank,oncommercialrates,torunthe
businesses,whicharethenrunbyChinesecompanies.GovernmentpaysthedebttoChina,
throughtheprofitsfromthetaxes,which,isalreadylowduetovarioustaxexemptionsfor
chinesecompanies.

China,wantstogetbestpartofPakistanthroughrunningbusinessestoreachGwadar
port,likepowerplants,Oilcompanies,Constructionfirms,Railways,Airportsandmany
more.And,nottoforgetthemilitaryimportanceoftheport,duetoitsstrategiclocation.

AllthesebusinessesarerunbyChinesefirms,whose,administrationstaffareChinese.

Engineforthetrainischinese,soisthesteelfortracks.Chinesecompanies,Import
everythingfromChinalikeCementfortheroads,Ships,labour(notalways),Infact,the
CoaltorunthepowerplantwillbeChinese,andthelistgoesonandon.

Pakistanwillpayhightollsforitsroads,itwillpayhighpriceforitsrailways,highprice
perunitforitselectricity,willpayhighpriceforitsairticketsetc.Governmentwillpaythe
debt,Chinesefirmsgettaxexemptions,torecovertheinvestments.Chinesepeopleare
smartbusinessman.

So,basicallyPakistanisaproxystateforChina.Maybe,Pakistanisafool,ortheirvoidego
hasblindedthemtotakefalserevengeforafalseclaim,withsomuchatthestake.Their
entireeconomicgrowthforatleastnext20yearsdependonthis.Maybe,theymighteven
looseBaluchistaninthisfightbutChinawillstillrunthebusiness.

Idon'tknowwheredoesKashmirbelong,butIknowthatPakistanwasapartofIndia.So,
whatevertheyclaim,Indiaownsalready.

IfitwerenotfortheMomhmadAliZinha,Pakistanwouldbethe30thstateofIndia.
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VikramYashashvi,TradeisthebestbridgetobringIndia&Pakistantogether
WrittenMar4

Whatisthefunofmakingahighwayifnocarsandtruckswouldplythatroad?

InprincipleCPECisafantasticidea,butcurrentlyitbenefitsonlyChina 8
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CPECprovidesChinesegoodsamarketinPakistan,andAfghanistan.Thatsaid
purchasingpowerofgoodsreceivingcountrymustbethere.Incurrentscenario,Chinawill
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everythingisinshambles.IfPakistandefaultsonthe50billionpaymentofloanthenthe helpPakistantoattractmoreforeigninvestmentsin
effectonitseconomycouldbedrastic,therateforaUSDcouldbe1000Pakistanrupeefor CPEC?
adollar.InthecasePakistantakesaloantorepaythisloan,thecurrentexchangeratewill
tripleatleast,thiswillwhittleawaywealthoflocalPakistaniswhohavenotyetparked HowwillCPECeffectIndia,Pakistan&China?
theirearningsabroad.
HowwillChineseslowdownaffectChinaPakistan

https://www.quora.com/WhatwouldbetheimpactofCPEContheeconomyofPakistan 3/5
10/21/2016 (8)WhatwouldbetheimpactofCPEContheeconomyofPakistan?Quora
CPECbringsearningpotentialforPakistan,iftradepassesthroughthehighway.However EconomicCorridor(CPEC)?
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goodscominginfromChinatoPakistan,onwhichPakistanearnsnothing!Sotomake
eversucceedkeepinginmindPakistan'slucid
CPECviable,Pakistanhastounderstandthatitsgeographicalsituationiszilchinabsence securitysituation?OrwillCPECbecomeanon...
fromtradewithIndia,asnooneelseinregionismanufacturingandtradingmoreand
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problems,Chinawouldholdsovereignterritoryinitscontrol,shouldPakistandisintegrate.
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existinthewayitdoestodaytoexercisesupremecontrolonCPECandawarmwaterport. Gwadaretc.)
Peoplewillsaymyviewisfarfetched,butthen..itsaviablepossibilityaseverynationwalks
thepathsitdoesforitsinterests.

CPECcanbringrichestoPakistan,CPECcanbringstabilitytoPakistan,onlyifPakistan
allowsIndiaunfetteredaccess.Ifitdoesn't,godsavePakistan.
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ElavarasuThangavelu
WrittenApr25

ForChina:

PollutionfreeChina:ChineseplasticandmanyPetrochemicalpollutionindustrieswillbe
movedtoPakistan.Manysubitemsandrawmaterialindustrywillbemovedtopakistan
whichisthemajorpollutioncausingindustry.

SouthChinaSea:CPECwasmainlyaimedtomakesouthchinaseaasamoremilitarized
zone,sothatallthegoodcantransitthroughPakistan.

Employmentrateofchina:MoreChinesecanbeemployeddirectlyinPakistantocontrol
theproductcost,settlingtheminpakistan

MoreshopsandsupportstorescanbesetupbyChinesealongtheRoadways,sothat
increaseinemploymentofchinesewillbemore.

Asafricatheycanexploitingtheiron,naturalgasandmetalsinBaluchistanformore
export.MoreChinesepopulationneedsemploymentthanPakistan,Chineseopportunities
inminingindustrywillbeabright.

ForPakistan:

MostlyPakistanarmywillgetthemajorshareinnameofthesecurityproviderand
remaininglittlemoneywillbegiventocivilian,whichwillbeusedtopayinterestofthe
loantoAsiandevelopmentbank.

MorepeopleprotestagainstChinesewillariseduetopollution,andunemploymentof
Pakistanpeople.Armywillbeusedtocontrolthepeople.

TotaldestructionofPakistanIndigenizationindustry.

HowcouldemploymentwillincreaseinPakistanwhentheinvestingnationitselfstruggling
withemploymentissues.,chinawantsthenewgroundtodobusinesswithothercountries,
thatgroundwillbethePakistan.

ManycountriesarefallingontheChinesemoneywithdreams,butPakistansoldalmost
theirfuturetochina
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