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Pakistan gradually being 'hopeless' from the CPEC!

Monday - May 27, 2019 4:34 pm , Category : WTN SPECIAL
Pakistan slowly being enmeshed in China's debt
Pakistan slowly being enmeshed in China's debt

Pakistan's dream of economic reforms despaired from CPEC

MAY 27 (WTN) - The CPEC that means the China-Pakistan Economic Corridor is proving to be a white elephant for Pakistan, which is now on the verge of wasting economy of Pakistan. We are saying this, because even after spending billions of dollars by China, Pakistan's situation is going to be same and Pakistan's poor economic condition is not going to improve.

When the CPEC was announced in 2015, the immediate Pakistan's Prime Minister Nawaz Sharif described it as a 'game changer' for Pakistan. Then Pakistan hoped that this project of China's cooperation would improve Pakistan's bad days, and there would be prosperity in Pakistan. Four years have gone to the project, but the hopes that Pakistan had tied up with this project are not being fulfilled.

According to the information, due to the huge debt on Pakistan, the lack of domestic revenue, the payment crisis, declining rupee against the dollar, and the separatists, the expectations to the CPEP in Pakistan are slowly getting tarnished. For your information, let you know that the CPEC Project was prepared from 2015 to 2030 for 15 years. This project includes basic infrastructure and electricity related many small and big schemes. $ 18 billion has spent in CEPC on 22 projects by 2018. Out of these 22 projects, 10 out of 22 projects have been completed.

These 10 projects consist of seven electric and 3 road construction schemes. By the way, these completed seven power projects have increased the capacity of Pakistan's power generation by nearly 4000 MW. But none of the benefits of this gained by Pakistan. That's because, the capacity of Pakistan's transmission lines is less than 3,000 MW. According to the information, electricity generated from Chinese projects is very expensive. China's huge debt, transmission and electricity stealing are the main reasons for electricity being expensive. At the same time, Pakistan has to spend a lot of money in protecting the Chinese citizens working in these projects, due to which the electricity generated by these projects is quite expensive.

Talk differently from the power projects, then the Gwadar port under the CPEC project is of a great importance. This port was inaugurated in November 2016, but according to the information, so far the expected revenue has not been achieved. There are several reasons for the loss from Gwadar port. The first reason is that there are many other ports in this area, the other reason is that there is a lack of industrial infrastructure at Gwadar port due to which the trade is being slowly from here. Well, for your information, let us know that according to the agreement of CPEC between China and Pakistan, 91 per cent of the total revenues from Gwadar Port will be given to China for the next 40 years.

The biggest problem for Pakistan is 7000-kilometer long pipeline built for transportation of oil and gas from Gwadar port to Tianjin in China. According to experts, such a long pipeline is very impractical from the financial perspective. The 7,000-kilometer long pipeline will cost $ 10 per barrel for transportation, which is being said much more.

For your information, let you know that this pipeline will pass through Balochistan, and the challenging geographical area. As you know, the separations movement in Balochistan continues against the atrocities of the Pakistan government and Pakistan Army. In such a situation, the security of such a long pipeline in this area is a matter of great responsibility for itself.

If you talk about the geographical challenge for this pipeline, then the pipeline will have to take oil and gas through the sea level of Gwadar, at an altitude of approximately 15,400 feet from Khunjerab pass. Obviously there are a lot of challenges in the construction of this kind of pipeline, and once the pipeline is formed, it will be spent on its maintenance too. Obviously, due to the high cost of this pipeline, there will be less revenue gaining from this.

In a hope, Pakistan had said yes to China for the CPEC project, but in reality, this project is going to create headache for Pakistan. It is unlikely that Pakistan will be able to repay its debts to China with the revenue received from these projects. Experts believe that till Pakistan stabilizes its economy and does not succeed in attracting foreign investment, then it is a dream that the economic situation of Pakistan will improve by the CPEC.