CPEC & Debt Trap

[TeslaCoil]

For people who are big fan of China and CPEC (accept my apologies)

In China, it is NOT illegal to make money through fraudulent ways from foreign investors/ Govt.s / companies. Whether it is Metro Bus Project, Orange train, power plant or motorways China is looting Pakistan. This debt bubble that will take down Pakistan in 2025.
Chinese banks are paying to Chinese companies (majority of these companies are sham), which are buying material from China, deploying Chinese labor and what Pakistan will get Infrastructure projects and huge debt which we will be unable to pay.
Debt Trap:
Out of these 60 Billion USD ; only 6-8 Billion USD will come to Pakistan and 90% will be paid by Chinese banks to Chinese companies in China (all in Yuan). So Pakistan will be financing this infrastructure bubble by appx. 54 Billion USD.
This is an amazing plan from China but no way it can give any benefit to Pakistan.
SHOCKING DETAILS:

• No one in Pakistan has done any due diligence of these companies.
• All these companies are consortiums; majority of them are not publishing any financial reports.
• These Chinese consortiums have shown their annual revenues appx. 40 – 50 Million USD but in Pakistan and Kazakhstan they got projects worth Billion USD’s.

Just look at these two companies:
Gezhouba Group led Consortium:
Several small companies having combined worth of not more than 15-20 million USD were awarded 5 Billion USD Neelum Jhelum Hydropower project and Hazara Motorway. Now the consortium has a combined worth of 1.5 Billion USD. There journey from 20 Million USD to 1.5 Billion USD ?

Shandong Ruyi (Clothing Company) & China Huaneng Group (Grid Company)
Two coal power projects in Punjab are awarded to these companies. Their combined worth is 30 Million USD (under Chinese evaluation) but they were awarded projects worth 3 Billion USD projects.
In this consortium two companies were involved in USA for reverse merger and looting US citizens. Huaneng has never installed or part of any such mega projects (only small projects). Shandong is clothing company is not even involved in power projects elsewhere.

Just check all other consortiums and some renewable energy companies. Even by simple search on Google you will find the shocking details...

 

[PakistanRoshanMustaqbil]

No one in Pakistan has done any due diligence of these companies.

That's a ridiculous and very sweeping statement.

Even by simple search on Google you will find the shocking details...

So the government has no clue but anyone with access to Google is well-informed in these matters. Seriously?

 

[ahrc2000]

Not only that but the rate of return promised to chineese investors, I heard somewhere like 34% is mind boggling. PML-N really did pakistan in.

 

[miafridi]

Conclusion of the Thread.

You should be the Finance minister because you are so genius.:tounge::tounge:

As for the Thread :

China is not giving you the money forcefully, but we are taking it because we want it and need it. Now it is all up to us how we use that money else there is always a chance that you will fail not only in this situation but you always fail in any situation which you don't care about.

 

[TeslaCoil]

Conclusion of the Thread.

You should be the Finance minister because you are so genius.:tounge::tounge:

As for the Thread :

China is not giving you the money forcefully, but we are taking it because we want it and need it. Now it is all up to us how we use that money else there is always a chance that you will fail not only in this situation but you always fail in any situation which you don't care about.

I do not qualify yet to be FM. But i have studied International Trades.

It works like consumer banking. You do not go to banks , banks are after you for loans. In this case China has no issues as we have to pay returns in US dollars but China has to pay locally printed Yuans to their contractors. This way China is showing massive growth...

This is a new scam. It will be reported in 2025

 

[aazad.mubassir]

Bank will check your credit rating first then offer you the rate of interest (you’ll know when you get the mortgage loan processed, never get their posted rates always with fine print of good credit scores 750+ or more). So go check on Modi’s rating site Pakistan credit score and tell me who’ll give you loan on India or even Bangladesh rate.

I don’t understand, what company worth has to do with the project cost? It’s the net profit they make after completion of the project. I’m sure each project cost was calculated after counting inflation in the country (10% at least in Pakistan) and it will be more than 70% after 7 years.

I do not qualify yet to be FM. But i have studied International Trades.

It works like consumer banking. You do not go to banks , banks are after you for loans. In this case China has no issues as we have to pay returns in US dollars but China has to pay locally printed Yuans to their contractors. This way China is showing massive growth...

This is a new scam. It will be reported in 2025