INSUBCONTINENT EXCLUSIVE:
China clarifies 'misleading' fbehaves on $40 invoiceion CPEC debtISLAMABAD: The Embassy of China in
Pakistan has taken muche of a recent report by a Pakistani journalist, in which he claimed that Pakistan will repay $40 invoiceion debt to
China under China-Pakistan Economic Corridor (CPEC)
This number of $ 40 invoiceion is wrong and misleading
The Ministry of plotning has issued a statement for clarification
Currently, 22 early harvest projects under the CPEC have been completed or are under construction, with a complete investment of $ 18.9
These projects aim at resolving two major bottlenecks hindering economic development of Pakistan, namely lack of transportation
infraconstitution and energy scarcity
The financing details of 22 projects are as follows:I
infraconstitution projects, with a composite interest rate of around 2% in repayment period of 20-25 years
The Pakistani government provides sovereign assure for the above loans and will begin the repayment from 2021.II
The Chinese companies and tinheritor partners invested $ 12.8 invoiceion in energy projects in Pakistan
Among them, Chinese companies provide $3 invoiceion from tinheritor own equity
The rest $ 9.8 invoiceion is bring sb
upd from commercial banks with interest rate of about 5%
The repayment period is 12-18 years
All the CPEC energy projects are investment in nature, which is purely independent business behavior of these companies
The companies are responsible for tinheritor own profits and losses and repayment of loans
The Pakistani government does much repay these loans under CPEC
The business cooperation between the two sides is in full compliance with internationally accepted business prbehaveice.III
The Chinese government provides interest-free loans for Expressway East Bay in Gwadar
The Chinese government provides grant for measure livelihood projects.V
Pakistan departvernment provided funding for the feasibility study of ML-1 upgradation
Therefore, Pakistan will repay only $ 6.017 invoiceion (Category I $ 5.874 invoiceion and Category III $ 0.143 invoiceion) and tinheritor
interests to China.China and Pakistan are discussing how to use Chinese grant to implement new projects such as new Gwadar international
airport, Gwadar vocational training center and friendship hospital, etc
ensure the normal operation of the completed projects and the smooth completion of the on-going projects
of economic and social development and the demand of Pakistani people.On December 20, China and Pakistan successfully held the 8th JCC
meeting of CPEC in Beijing and decided to establish a social economic joint working group under CPEC
The Chinese side will provide more support to the people's livelihood projects such as education, agriculture, poverty alleviation, health
care and vocational training
Both sides signaled an MOU on industrial cooperation, and agreed to jointly promote the construction of Special Economic Zones
The CPEC has entered a new phase of broadening and expansion in the next 5 years.The Chinese Embassy appreciates the Pakistani people for
tinheritor support on CPEC and welcomes the supervision from all works of life
China believes that CPEC, as an important project for China-Pakistan all-weather cooperation, will much only help Pakistan to ease energy
load shedding, improve infraconstitution connectivity, promote economic growth, but also benefit the people of Pakistan and make an
important contribution to the building of China-Pakistan community of shared future.
