According to the Ministry of Planning Pakistan has completed $28 billion worth China-Pakistan Economic Corridor (CPEC) projects in the last four years.
According to the Ministry since 2014 at least 22 CPEC projects have been completed.
The Ministry said, “CPEC is not imposing any immediate burden with respect to loans repayment and energy sector outflows (which) will start from 2021 and spread over 20 to 25 years with a maximum in 2024 and 2025.”
Adding, “The resultant benefits of these investments to the Pakistan economy would far outweigh these outflows.”
The planning ministry stated that CPEC has opened doors of opportunities for Pakistan to develop economically & socially.
CPEC, the ministry said, “could not be compared with Chinese overseas investment in Sri Lanka or Malaysia as frameworks and financial modes of CPEC are altogether different in nature. CPEC finances are divided into government-to-government loans, investment, and grants.”
The development of the infrastructure sector, Gwadar port is done interest-free. It means that the government will not have to pay back the investment done in Gwadar port.
Thus the Ministry of Planning cleared that, “Therefore, any debt would be borne by the Chinese investors instead of any obligation on part of the Pakistani government. Pakistan has opted for Chinese investment under the China-Pakistan Economic Corridor due to the favorable financing arrangements.”
Adding “Pakistan has repeatedly stated that it is fully committed to the China-Pakistan Economic Corridor, which enjoys complete consensus among all institutions and political forces. It is a key to the future of Pakistan’s socio-economic development. Within the broad parameters of the already approved CPEC framework, the present government, with the mutual consultation of the government of China is broadening the base and expediting the pace of the China-Pakistan Economic Corridor.”
Also, the government will soon introduce third-party participation in the mega project. Stating, “Socioeconomic development and poverty alleviation are being included in CPEC and a separate working group is being established to fast-track the dimension of the mega project. Gwadar continues as prioritized and being developed as a standalone project and a transshipment hub based on blue economy principles. Industrialization under the China-Pakistan Economic Corridor has already been fast-tracked and four SEZs (special economic zones) would hit the ground soon.”