Dow Jones

Pakistan Seeking Donor Help With $31 Billion Development Projects

ISLAMABAD -(Dow Jones)- Pakistan is seeking help from international donors for projects worth up to $31 billion over the next eight years, including development of the transportation and power sectors.

At the three-day Pakistan Development Forum last week, representatives of donors including the World Bank and Asian Development Bank heard plans for $7 billion in road construction by 2014, $18 billion in major reservoir construction by 2010, $3 billion on the Iran-Pakistan-India gas pipeline and $1 billion on the development of the port city of Karachi.

Donors formulate their plans for Pakistan largely on the outcome of the annual forum.

The government also unveiled a $2 billion, five-year development plan for tribal areas considered a hub of Taliban activities that have been destabilizing neighboring Afghanistan. U.S. aid agency USAID said at the conference it would contribute half the funds for the plan that seeks to alleviate the poverty that the government believes is breeding terrorism in the tribal areas.

In developing the country's water and power resources, he government is focusing on partnership with the private sector in five hydropower projects.

"Total investment for the power sector during 2005-2010 is estimated at PKR1.1 trillion ($18.3 billion), including PKR445 billion from the private sector," Salman Shah, advisor to the prime minister on finance, told the forum.

The five hydropower projects are: the 4500 megawatt Diamer Basha Dam costing $ 6.5 billion; the 3600 MW Kalabagh Dam ($6.0 billion); the 600 MW Akhori Dam ($ 4.2 billion); the 740 MW Munda Dam ($885 million) and the 83 MW Kurram Tangi Dam ($327 million).

The government is also hoping to create savings of $7 billion a year by developing the nation's transport infrastructure, particularly railways, ports and highways, according to Syed Asad Shah, a member of the government's Planning Commission.

"The existing capacity cannot support 7%-8% sustained growth and needs new investment," Asad Shah told last week's conference.

-By Islamabad Bureau; (92) 300 501 3825; ahmed_ma1@hotmail.com

-Edited by Graham Norris

http://www.nasdaq.com/aspxcontent/NewsStor...000172.htm&

We should never borrow from the neo-colonialist weapons, namely the world bank nor the IMF, otherwise we will never get out of this cycle of debt and the conditions that come with the loans.

I wish wecould borrow from these arab idiots whom hoard their money in America and Switzerland.

Arabs are already investing 10s of billions in Pakistan.

Arab money and pakistani ingenuity can become a true force to be reckoned with. it's a lethal combination.

that's a lot of infrastructure investment and all of it is urgently needed within the next few yrs if we want to sustain present growth rates or even achieve higher ones.

Amna i agree with you but Pakistan is now also in a much better and can tell the IMF and WB to go screw themselves if they start placing stupid restcitions on us. Also a lot more ME money is flowing in so we have alternative avenues from where to get the funds.

Arab money and pakistani ingenuity can become a true force to be reckoned with. it's a lethal combination.

Armyhobbyist .. exactly and in this case it would be seen with great concern by other great game players and to achieve economic goals single avenue is always dangerous .. hence, the more important to diversify our investors to make sure that in place of favourtism the country is on the route of true economic revival.

By 2030 Pakistan would be one of the world's largest economies and so far things are making that happen. Arabs are investing looking at the same perspectives of the future potential of the country. And what better way to bring influence in the early stages while the country is the in the development stage.

I estimate that keeping in mind that the country stays stable and on the path of progress, Gulf Arabs by 2030 would have invested in excess of $300 billion dollars in Pakistan if not substantially more. There is already more than $100 billion of investment in the pipeline by them for the next 10 years. And its only going to rise as more investment from Arabs would incourage other investors from the rich countries to take their market share as well.

And the country's strategic location and a strategic population mix is just perfect for all investments to bear fruit and provide high returns.

WB loans are a sweet poision, I have posted a thread today about WB assistance for officers training in US, you would get a clear idea what do these finances mean.

I am dealing with Arab investors for quite some time, they are desperate to pull out of US and invest in Muslim countries, Malaysia provided them a good oppertunity back some times but it is taken over by corruption and fake projects.

Now Arabs have two options left, Indonasia and Pakistan and both are attrective, but we need to improve our investment culture, I have not seen a single Arab investor with political aims, they are just trying to keep their investments in a growth cycle.

yes, if we talk about Zionist investors they are always based on political intrests, if we can get a batter option from the Arab guys, why should we go for a sweet poision?

Jewish Money and "pakistani ingenuity" can also become lethal combination.
but not too many strings attached.
Does anyone know about Westinghouse, and Chief Justice of Pakistan
matter ?

That is true, WB and IMF are poison, but when private investment is not reaching infrastructure development and when public funds are not as expansive - certain things will have to be done. Credit to Pakistan that it is not in the same situation as many African countries. One of the institutions - i.e the military - is very strong and allegedly has extensive economic assets. With proper organization, management and the loaned money actually going to the development projects 100% AND profits coming out of the economy - it can be paid off. However if Pakistan is again under 101% corruption, then it'll go down the African route.

well, as a country we don't have much money to invest. as individuals, Jewish businessmen are doing deals all the time all over the world including in covert with arab and muslim regimes. I worked for a company in israel that had resellers in both malaysia and indonesia via a "parent company" (essentially a functionless shell) in united states. they didn't have any problems at all reselling our product.

so there are no strings attached as long as it's not arms - which is a big political thing.

also, we don't control the WB, despite what many people think :)

nope you (i.e. the Israelis) don't but Washington does...ever heard of the Washington concensus? biggest piece of BS you'll ever hear and all as a condition for getting a loan. i mean where's the fairness in trying to make a poor African country reform its capital account so that American corporations can speculate on its currency just as a pre-condition for getting a loan for vaccines?

Agreed on that comment.

Few year bak, i picked up NEW INTERNATIONAL mag, that was when i was in final year of high school. So the main article was abd WB and IMF loans to poor countries especially african countreis. They had this nice graph which showed GDP growth b4 loans and After loans.

B4 loans GROWTH was average 5% in african countries

After Loans were given that very growht fell to -3.5% or so....

Now should we got to IMF after getting rid of em. The answer in my eyes is not. I would perfer waiting than taking loan and having some form of impact on our growth. Though waiting might also do the same, but who knows we might find some1 to fund it. BUT I WANT US TO STAY AWAY FROM WB and IMF>

Bro,

I dont want to say it loud, but still we have lots of morons, intrest groups and so on, otherwise we can just shut down the IMF and WB offices in pakistan like Chavez.

You guys wont trust me, we have a sparow giving gold eggs but lot of us want to kill it to take out eggs........

Here I would quote Mahatir Muhammad (I dont like him as a leader) "Let the cake grow and every one have a bite", we need to let the cake grow and a leadership which dont put the cake in a cage.

i have no love lost for the idiots at the IMF or the WB but i do beleive that now Pakistan is in a position of strength to discuss issues with the IMF. we can take loans and still pay them back but i would be against the govt accepting any loans that came with pre-conditions.

regards.

I liked your analysis about Mahatir Muhammad although he's helped Malaysia a hell lot but he's put in a lot of friction n strife which is going to come around some day so...Good Analysis!!

yeah, i'm no fan of the world bank and IMF either. i'd really wish to see africa actually get developed.
nonetheless, it seems like WB/IMF involvement in the caucasus was more successful. it depends on the corruptness of the country too.

but i agree on the main issue of this thread - if you can get it from someplace else, don't go WB/IMF. and if you do, try to drive a hard bargain.

I agree we are already in debt we should not borrow from the world bank or the IMF if we do we will remain tangled in this cylce of debt and conditions that come with the loans.