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    Pak Railways to get $200m loan from China.

    Now China is offering us loans to modernise our railways. Coming so soon after the investment for Gwadur and other projects is China moving to form a more stretegic economic partnership with Pakistan?

    http://www.dawn.com/2001/08/12/top3.htm


    Railways to get $200m loan from China


    China's Exim Bank will provide $200 million soft-term loan to Pakistan for modernization of its railway system. This was stated by Communication Minister Javed Ashraf Qazi while talking to newsmen here on Saturday after his meeting with the Chinese Railway Minister Fu Zhen Huan.

    "We discussed financial package to be provided by the Exim Bank for supply of 69 locomotives and 175 coaches to Pakistan Railways," he said, adding the terms and conditions of the financing would be finalized over the next two weeks. All the technical issues in this regard have already been finalized, he added.

    Under the arrangements, the Chinese firm Dong Fang Electric Corporation would provide 69 locomotives to Pakistan Railways under supplier credit programme, while the China National Machinery Import and Export Corporation would supply 175 passenger coaches to the Pakistan Railways. The Chinese government has also accepted Pakistan's request of helping in selecting the equipment to be provided to Pakistan Railways.

    It was also agreed during the meeting that the Chinese railways minister would visit Pakistan soon to see as to how they could further assist Pakistan Railways for its development. Meanwhile, the vice-minister for railways will be visiting Islamabad within the next two to three months for holding preliminary discussion with the Pakistan authorities.

    Balochistan projects: The $200 million financial support for Gwadar port and Makran coastal highway extended by China was an encouraging development for Pakistan's investment sector, said Waseem Haqqi, the Board of Investment (BoI) chairman. He told Dawn that the move further strengthened strategic relations between the two countries following the recent visit of Chinese Prime Minister Zhu Rongji to Islamabad.

    The BoI chairman said it had been decided at the top government level to build strategic partnership through mega projects like Gwadar port, Makran coastal highway and Thar coal project instead of going for international competitive bidding (ICB). He said that a high-level delegation of Shenhua Group of China led by its chairman Ye Qing recently visited Pakistan on the invitation of the Pakistan government.



    #2
    China has challenged to become number 2 IT power house after US in 2004 not by providing cheap labour but by indigenous hi tech products. One of their telecommnications enetrprice is already becomming a challenge to Cisco and Nortel.

    I rather worship the rising sun as long as it invests in Pak.

    Comment


      #3
      Malik 73,

      Pakistan Railway needs billions of dollars to replenish its out dated rolling stock, changing from plain bearing to roller bearing on carriages and freight wagons, complete dieselisation of locomotives, converting all vacuum to air brake system, renewal of bridges buildings, stations and structures, renewal and doubling of tracks etc. Most important, complete overhauling and change of organizational structure and sending almost 90% of people who are corrupt and sucking the last drop of blood from sinking ship.

      These $200 million dollars are peanuts and will not make much difference.

      FARID

      Comment


        #4
        Pakistan Railway needs billions of dollars...

        Yes Farid they do. But so do many of the railway systems of western countries. They have the billions to spend if they choose to, but we do not. The 200 million soft loan from China is quite a lot considering how much our government's spend annually on the railways.


        These $200 million dollars are peanuts and will not make much difference.

        200 million dollars is certainly not peanuts. If you read the news article you will see that is to be used for the 'supply of 69 locomotives and 175 coaches to Pakistan Railways'. That's quite significant, and a good start in the long overdue modernisation of Pak Railways.

        Comment


          #5
          Malik73,

          One locomotive 2000 to 3000 HP, cost about $7 millions, calculate how many new locomotive you can purchase from $200 millions? By the way there is one locomotive manufacturing plant in Resal pur and one carriage factory exist at Islamabad, why there is need to import from China rather than utilize these existing facilities on which already millions of dollars have been spent???? Malik read current Year Book of Pakistan Railways and get acquaint with the operation and working of the system rather than poking your nose in any subject which you have dick knowledge? Foreign aid is definitely required to improve the system but mostly it is the ORGANIZATIONAL STRUCTURE THAT HAS TO BE CHANGED. If you do not know what Organizational Structure is, then read any book on Theory and Design of Organizational Structures.

          FARID

          Comment


            #6
            How much of this loan will be really used on railway development? and howmuch on the military?

            Comment


              #7
              Originally posted by honestali:
              How much of this loan will be really used on railway development? and howmuch on the military?
              Since u know it will be used that way you can give us the figures too.

              Comment


                #8
                Malik73,

                The frequency of P. Railway accidents itself a proof that mere $200 million would not be sufficient. Railways once safest, cheap and comfortable mode of transport for poor and rich people alike, has become one of the worst un-safe mode of transport in Pakistan. Read today’s Dawn, where two accidents/derailments per day on main line is not unusual.

                FARID

                Comment


                  #9
                  One locomotive 2000 to 3000 HP, cost about $7 millions, calculate how many new locomotive you can purchase from $200 millions?
                  Instead of pulling figures from the air I suggest you carefully read what the article actually says. Concentrate on the words 'provide' and 'supply' :-

                  the Chinese firm Dong Fang Electric Corporation would provide 69 locomotives to Pakistan Railways under supplier credit programme, while the China National Machinery Import and Export Corporation would supply 175 passenger coaches to the Pakistan Railways.

                  And as you claim to have more "knowledge" than others in this matter maybe you could tell us: -

                  - How many new locomotives and passenger coaches Pak Railways has put into service in recent years?

                  - How much the government(s) of Pakistan have spent annually on the railways in the past? Is it anything close to 200 million dollars?



                  [This message has been edited by Malik73 (edited August 20, 2001).]

                  Comment


                    #10
                    Malik ji, Abdali ji and rest... can someone tell me how Pakistan plans to repay the loan?? yeh karzay warzay kuch ziada nahin hotay jarahay?

                    ------------------
                    For Computer Programmers:
                    "It is better to have a programmer enemy then to have a non-programming friend!"... the latter (can) never appreciate(s) your work.

                    Comment


                      #11
                      Originally posted by Mughal-e-Azam:
                      Malik ji, Abdali ji and rest... can someone tell me how Pakistan plans to repay the loan?? yeh karzay warzay kuch ziada nahin hotay jarahay?

                      You get rid of the thieves and I will repay the loans.

                      I am soooo afraid kahin rail gari na chori ho jai.

                      Comment


                        #12
                        clearly PR has not been managed well as the number of people who use PR increases every year yet with it the loss of $ for GOP. what will be the impact if PR is privatized? there was a big fuss about it sometime ago. i think it will be a pain for everyone in the beginning i.e the new companies will shut down certain non-profitable routes, implement sound ticketing system etc. but beneficial in the long run as the quality of service will improve and govt will not be paying for its losses anymore.

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