Min­istry of Plan­ning clar­i­fies western me­dia fresh re­port on CPEC

Daily Messenger - - Sportlight -

IS­LAM­ABAD: The Min­istry of Plan­ning has said that Western me­dia re­cent’ re­ports re­gard­ing China Pak­istan Eco­nomic Cor­ri­dor (CPEC) are based on in­cor­rect in­for­ma­tion, dis­torted facts and one-sided opin­ions of in­di­vid­u­als.

The min­istry clar­i­fied that China Pak­istan Eco­nomic Cor­ri­dor (CPEC) is a flag­ship and most ac­tive project of Belt and Road Ini­tia­tive where 22 projects of worth $ 28 bil­lion have been ac­tu­al­ized over the past 04 years.

It said the project 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 in govern­ment to govern­ment loans, in­vest­ment and grants. In­fra­struc­ture sec­tor is be­ing de­vel­oped through in­ter­est free or govern­ment con­ces­sional loans.

Gwadar Port is grant-based or in­vest­ment which means the Govern­ment of Pak­istan does not have to pay back the in­vested amount for the de­vel­op­ment of the port.

En­ergy projects are be­ing ex­e­cuted un­der In­de­pen­dent Power Pro­duc­ers (IPPs) mode and fi­nances are mainly taken by the pri­vate com­pa­nies from China De­vel­op­ment Bank and China Exim Bank against their own bal­ance sheets, 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 CPEC due to the fa­vor­able fi­nanc­ing ar­range­ments. China stepped for­ward to sup­port Pak­istan’s de­vel­op­ment at a time when for­eign in­vest­ment had dried up, and eco­nomic ac­tiv­i­ties were be­ing crip­pled by en­ergy short­ages and in­fra­struc­ture gaps. CPEC is not im­pos­ing any im­me­di­ate bur­den with re­spect to loans re­pay­ment and en­ergy sec­tor out­flows.

CPEC out­flows would start from the year 2021 and spread over 20 to 25 years with a max­i­mum in the year 2024 and 2025.

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