Skip to main content

Pakistan Says Debt in CPEC-related Projects is Just 10%, Rejects US' Concern

Pakistan Says Debt in CPEC-related Projects is Just 10%, Rejects US' Concern

The FO reiterated that the CPEC, a long-term project, helped address development gaps in energy, infrastructure, industrialisation and job creation.

File photo of Pakistani flag. (Getty Images)
Pakistan Says Debt in CPEC-related Projects is Just 10%, Rejects US' Concern

Pakistan on Friday said that its debt in the multi-billion dollar CPEC-related projects is just 10 per cent of the total public debts, days after a top US official called on China to release countries like Pakistan from "predatory loans".

The US' top diplomat for South and Central Asia Alice Wells on Wednesday said that at a time when the world is reeling from the economic consequences of having shut parts of the economy due to the coronavirus, it is really incumbent upon China to take steps to alleviate the burden this "predatory, unsustainable and unfair" lending is going to cause to Pakistan.


Responding to the remarks of Wells, who has been critical of the USD 60 billion China-Pakistan Economic Corridor (CPEC), Pakistan's Foreign Office said that its total public debt relating to the CPEC projects is less than even 10 per cent of the total debt.

Moreover, the public debt obtained from China has a maturity period of 20 years and the interest is 2.34 per cent

"If grants are included, the interest value slides down to about two per cent. The claims made by some of the commentators and public officials on Pakistan's debt obligations relating to the CPEC are contrary to the facts," it said in a statement.

The FO reiterated that the CPEC, a long-term project, helped address development gaps in energy, infrastructure, industrialisation and job creation.

"Pakistan and China have several mechanisms to discuss matters of mutual interest. Both countries are regularly in touch to address those issues bilaterally," it said.


The CPEC, a flagship project of the Belt and Road Initiative (BRI) of China, is a transformational project contributing positively and transparently to Pakistan's national development, the FO said, adding it believes that the regional economic connectivity will provide a critical stimulus for creating a broad-based growth across the region.

The BRI is a multi-billion dollar initiative launched by Chinese President Xi Jinping when he came to power in 2013. It aims to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network of land and sea routes.

India has protested over the CPEC which is being laid through Pakistan-occupied Kashmir.

The FO reiterated that Pakistan and China are "All-Weather Strategic Co-operative Partners".

"We are engaged in prompting peace, development and stability in the region based on the principles of mutual respect, mutual benefit, win-win cooperation and shared development. Our ties are based on deep mutual trust and understanding," it said.

On Thursday, the Chinese embassy here rejected the remarks of Wells, saying "we need no teachers, especially a teacher like the US".

It said that China will "never force Pakistan to pay back debts" and that "China's loans have no strings attached".

The embassy also asked the US that it should not comment on China's ties with Pakistan as Beijing had no intention on commenting on Pakistan-US relations.

It said that the CPEC is an important cooperation project between the governments of China and Pakistan. It has always adhered to the principles of mutual benefit, win-win cooperation, openness and transparency.

"The planning and implementation of the projects are carried out by the two sides through thorough consultations based on equality and scientific study. The Chinese companies under the project are all leading companies in their respective sectors and operate in full compliance with local laws and regulations," the embassy said.

It claimed that the CPEC has so far brought USD 25 billion in direct investment and created more than 75,000 jobs in Pakistan, adding that China was the major source of foreign direct investment for Pakistan in the past five consecutive years.

"In the next stage of the project, both sides will strength cooperation on healthcare, industrial development, agriculture and education. The CPEC will give a new impetus to Pakistan's economic revival even in the post COVID-19 period," the embassy said.

Wells had also commented on the CPEC in November 2019, when she said that the project was harmful as it would take a toll on Pakistan's economy in the future


Popular posts from this blog

SSG Commando Muddassir Iqbal of Pakistan Army

“ Commando Muddassir Iqbal was part of the team who conducted Army Public School operation on 16 December 2014. In this video he reveals that he along with other commandos was ordered to kill the innocent children inside school, when asked why should they kill children after killing all the terrorist he was told that it would be a chance to defame Taliban and get nation on the side. He and all other commandos killed children and later Taliban was blamed. Muddassir Iqbal has deserted the military and now he is  with mujahedeen somewhere in AF PAK border area” For authenticity of  this tape journalists can easy reach to his home town to interview his family members or   ISPR as he reveals his army service number” Asalam o Alaikum: My name is Muddassir Iqbal. My father’s name is Naimat Ali. I belong to Sialkot divison (Punjab province), my village is Shamsher Poor and district, tehsil and post office  Narowal. Unfortunately I was working in Pakistan army. I feel embarrassed to tell yo

RWR Advisory: Belt and Road at a Glance

This edition covers developments from March 12 - March 26..  Belt and Road at a Glance   Subscribe to the Belt and Road Monitor Top Developments China National Machinery Industry Corporation, commonly known as Sinomach, has agreed to  build  a $845 million, 255-mile railway across  Iran , building upon a sustained period of growth for Chinese investment in Iran that accelerated after Xi Jinping’s state visit to the country in January 2016. The railway will link the cities of Tehran, Hamedan and Sanandaj. China Civil Engineering Construction, a subsidiary of CRCC, is currently also  building  a 263-km railway line from Kermanshah to Khosravi. According to Chinese entrepreneur Lin Zuoru, who  owns  factories in Iran, “Iran is at the center of everything.”On March 23, China’s Ministry of Commerce announced that foreign direct investment by Chinese companies in 50 Belt and Road countries fell by 30.9% year-on-year. While the Ministry stated that this number covers investment across al

CPEC Jobs in Pakistan, salary details

JOBS...نوکریاں چائنہ کمپنی میں Please help the deserving persons... Salary: Salary package in China–Pakistan Economic Corridor (CPEC) in these 300,000 jobs shall be on daily wages. The details of the daily wages are as follows; Welder: Rs. 1,700 daily Heavy Duty Driver: Rs. 1,700 daily Mason: Rs. 1,500 daily Helper: Rs. 850 daily Electrician: Rs. 1,700 daily Surveyor: Rs. 2,500 daily Security Guard: Rs. 1,600 daily Bulldozer operator: Rs. 2,200 daily Concrete mixer machine operator: Rs. 2,000 daily Roller operator: Rs. 2,000 daily Steel fixer: Rs. 2,200 daily Iron Shuttering fixer: Rs. 1,800 daily Account clerk: Rs. 2,200 daily Carpenter: Rs. 1,700 daily Light duty driver: Rs. 1,700 daily Labour: Rs. 900 daily Para Engine mechanic: Rs. 1,700 daily Pipe fitter: Rs. 1,700 daily Storekeeper: Rs. 1,700 daily Office boy: Rs. 1,200 daily Excavator operator: Rs. 2,200 daily Shovel operator: Rs. 2,200 daily Computer operator: Rs. 2,200 daily Security Supervisor: Rs.