BRI and CPEC are already under financial and operational pressure to either scuttle or park their ongoing initiatives. India has no role to play in their self destructive implosions.
None of the infrastructure development projects carried out by China in Pakistan have any Pakistani contractors. From workers, to raw material to management, everything is being by the Chinese.
Obviously, where are the resources – workers know how to run kalashnikov, banks and military knows how to make money and management has never been honed. So, it is not a wrong decision not the Pakistanis execute the blueprint of CPEC. Anyways, it doesn’t fit the Chinese model of business. Irrespective of the country where they are building infrastructure, the Chinese companies are owning those almost 100%.
Now, let’s visit CPEC dynamics
China is truly constrained on funds and revenue, for several reasons – vast infrastructure projects that have doubtful ROI in immediate future, its over 50 ghost cities, its own military and cyber incursions and now the pandemic. Keynesian principle has not stimulated the economy, not because it lost relevance, however not utilizing the principles behind the principle.
Pakistan never has a culture of entrepreneurship
Barring individual efforts, the country has never offered a milieu for growth and industry. Neither does it have the ability to repay. More-so, recently China demanded a higher interest rate. If you calculate the payback interest and principle, you will realize these CPEC are costing Pakistani Rs. 8328 per person. Agreed, not all infrastructure should be considered from the perspective of tangible ROI. We need to factor in the opportunities it creates. However, in this case where are the revenues to service the loan?
Face Saving
It is graceful to not admit any of the above but to put the usual suspect, India. Skeptics may differ but the decision is left to the future to decide.
They know this will not solve their problem but facing is an art, that conjures the present, unlikely to save from the realities and future.
Pakistan accuses India of masterminding Belt and Road attacks
https://asia.nikkei.com/Spotlight/Belt-and-Road/Pakistan-accuses-India-of-masterminding-Belt-and-Road-attacks
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