CPEC not to blame for Pak’s economic crisis, says China
ISLAMABAD: Against the backdrop of reports that Pakistan does not want a major trade and transit corridor with China to focus only on infrastructure projects, Chinese officials have said that the multi-billion dollar CPEC cannot be blamed for Islamabad’s economic problems.
Pakistan is grappling with a severe balance of payments crisis and may soon be forced to seek a bailout from the International Monetary Fund as key allies such as Saudi Arabia have not responded to its request for financial aid.
At a two-day international meet at Xuzhou in China attended by academics, members of intelligentsia and businessmen from Pakistan, Iran, Malaysia, Thailand, Bangladesh and South Korea, Chinese officials defended the country’s role and investments when the issue of the China-Pakistan Economic Corridor (CPEC) came up on Monday. Sun Hongqi, advisor to China’s president on Pakistan affairs, sought to negate the impression being spread by campaigners opposed to the CPEC that only Beijing will benefit from regional connectivity projects. “What will China gain from energy projects given priority in the first phase of CPEC as per desire of Islamabad, other than helping our all-weather friend to overcome the electricity deficiency badly hitting its econ-
Loan repayments for the CPEC projects will start in the financial year 202324, when economic growth rate of Pakistan will be much higher than present (and the country will be in a better position to bear financial liabilities). SUN HONGQI, advisor to China’s president on Pakistan affairs
omy?” asked the scholar who heads the Pakistan Study Centre at Jiangsu Normal University.
An Qiguang, who served as a diplomat in Pakistan, said Chinese companies executing various CPEC projects will hire more Pakistani labour and mid-level managers. He was responding to a suggestion by Pakistani columnist Syed Muhammad Mehdi that Beijing should involve the local population in projects to give Pakistanis a sense of ownership of CPEC.
Jiangsu’s deputy secretary general Wang Zhizhong said China will import more agricultural products from Pakistan to help reduce the trade imbalance. The Wall Street Journal recently reported that Pakistan wants CPEC to now focus on private sector Chinese companies that will benefit more Pakistani workers and suppliers.