On $26.5b CPEC investments, Pakistan to repay $40b to China – Research Snipers

On $26.5b CPEC investments, Pakistan to repay $40b to China

In 20 year time, on $26.5b CPEC investments Pakistan has to repay China $40 billion. The repayment will be done of the debt and dividends taken by Pakistan. In the mega China-Pakistan Economic Corridor (CPEC), China have invested $26.5 billion as documented by the Ministry of Planning and Development.

The debt repayments of energy and infrastructure will be around $28.43 billion. $11.4 billion will be paid to the investors in the shape of dividends. This will amount to a total of $39.83 billion.

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According to the projections made by the private companies the figures are much lower than what was predicted.

Now the CPEC project that is expected to practically develop in a few years’ time is the Pakistan Railways $8.2 billion Mainline-I Project. These estimates were shared by the Finance Ministry to International Monetary Fund (IMF). On average, Pakistan will repay $2 billion per annum to China.

The official spokesman on CPEC affairs Hasan Daud Butt said, “CPEC projects inflows will continue till 2030 on account of energy, infrastructure projects that will be based on pragmatic planning on their economic outlook and socio-economic, agriculture and Gwadar projects.”

To a query, Daud answered that the inflows and outflows have been prepared according to the real investment and are based on the projects that are under implementation. He revealed that these estimates are shared with the Ministry of Finance by the Ministry of Planning.