FB   
 
Powered bysps
        Society for Policy Studies
 
 

 
Overselling CPEC
Updated:May 11, 2017
 
Print
Share
  
increase Font size decrease Font size
 
It is easy to understand that the volume of trade going through the ports of Pakistan will increase once the CPEC project gains momentum. But when the chief economist of the Planning Commission claims, as he did in a recent interview with Reuters, that 4pc of global trade will pass through this route, it can only be called a gross exaggeration. In fact, that figure is absurd since it implies that approximately $700bn could be flowing through the CPEC infrastructure, going by figures of global merchandise exports alone. Clearly, this is an overstatement of colossal proportions. 
 
The same individual then went on to claim that Pakistan could earn up to $8bn a year just from toll taxes and ‘rental fees’ from this traffic, helping it to easily tide over the repayment obligations from the various investments that have come in under CPEC, and which he claims will peak at $5bn per year.
Once again, this sounds like an overly optimistic assessment. First of all, nobody is sure of what toll taxes and ‘rental fees’ he is talking about, and, secondly, whether his projections of the volume of traffic that would be generated by CPEC are realistic. Thirdly, who will be responsible for the cost of maintaining the road infrastructure in the years to come? For a long time now, there have been calls for more transparency in CPEC implementation, particularly regarding the financing arrangements. Thus far, the government has kept silent.
 
 If this is the best that the Planning Commission has to offer in response to repeated calls for more disclosure, then it suggests that the government itself does not know what it is getting involved in. Ahsan Iqbal, the deputy chairman of the Planning Commission, has repeatedly urged those who are asking questions about CPEC to avoid “negative propagation”, hinting that doing so plays into the hands of Pakistan’s enemies. But what else are we supposed to do when we are fed this sort of overoptimistic information, if not ask questions?
 
Dawn News, May 12, 2017
 
 
 
 
Print
Share
  
increase Font size decrease Font size
 

Disclaimer: South Asia Monitor does not accept responsibility for the views or ideology expressed in any article, signed or unsigned, which appears on its site. What it does accept is responsibility for giving it a chance to appear and enter the public discourse.
Comments (Total Comments 0) Post Comments Post Comment
Review
 
 
 
 
spotlight image Ties between India and Japan are probably at their best ever, Japanese Ambassador to India H.E. Kenji Hiramatsu told India Review & Analysis’ Nilova Roy Chaudhury, as he outlined how the two countries have moved closer. Ahead of Japanese Prime Minister Shinzo Abe’s visit
 
read-more
Vowing to stop “radical Islamic terrorism,” United States President Donald Trump warned September 19 of strong action against countries that support or finance organisations like the Taliban.
 
read-more
That regional cooperation in South Asia is lower than optimal levels is well accepted. It is usually ascribed to – the asymmetry in size between India and the rest, conflicts and historical political tensions, a trust deficit, limited transport connectivity, and onerous logistics, among many other factors.
 
read-more
Former Reserve Bank of India (RBI) Governor Raghuram Rajan said ‘In order to become a more developed country, India has to get people who owe taxes to actually pay them.’ This is one of the major objectives that Modi sought to achieve though demonetization and he has largely succeeded.
 
read-more
The two-day visit to Kashmir by a Congress team headed by Dr Manmohan Singh team has called for restoration  of the dialogue with the separatists to address the ongoing turmoil in the state.
 
read-more
The Communist Party of China (CPC) is expected to amend its constitution at the upcoming national congress.
 
read-more
Médecins Sans Frontiéres (MSF) or Doctors Without Borders has urged Myanmar to grant international humanitarian organisations unrestricted and independent access to the conflict-torn Rakhine state to enable provision of humanitarian assistance to the hundreds of thousands of internally displaced people.
 
read-more
In an unprecedented warning delivered at a world forum, United States President Donald Trump on September 19 threatened North Korea with total destruction if his country is forced to defend itself and its allies against the threats from Pyongyang.
 
read-more
It is a privilege to be invited to this most prestigious of law schools in the country, more so for someone not formally lettered in the discipline of law. I thank the Director and the faculty for this honour.
 
read-more
Column-image

Title: A Bonsai Tree; Author: Narendra Luther; Publisher: Niyogi Books; Pages: 227 Many books have been written on India's partition but here is a firsthand account of the horror by a migrant from what is now Pakistan, who ...

 
Column-image

As talk of war and violence -- all that Mahatma Gandhi stood against -- gains prominence across the world, a Gandhian scholar has urged that the teachings of the apostle of non-violence be taken to the classroom.

 
Column-image

Interview with Hudson Institute’s Aparna Pande, whose book From Chanakya to Modi: Evolution of India’s Foreign Policy, was released on June 17.

 
Column-image

This is the continuing amazing spiritual journey of a Muslim man from Kerala who plunged into Vedic religion after a chance encounter with a Hindu mystic under a jackfruit tree in the backyard of his house when he was just nine. It is a story w...

 
Column-image

History is told by the victors but in our modern age, even contemporary events get - or are given - a slant, where some contributors soon get eclipsed from the narrative or their images tarnished.

 
Subscribe to our newsletter
Archive