ISLAMABAD – US questions Pakistan China strategic CPEC project worth $60billions. Questioning the China Pakistan Economic Corridor (CPEC) project,the United States on Friday (November 22) warned Pakistan of its ill-effecton its economy.
The US said the project, a form of financing ensuring guaranteed profitsfor Chinese state-owned enterprises, and pointed out that the multi-billiondollar project is certain to take a toll on Pakistan’s economy at the timeof the repayment of the debt and dividend in the coming years.
US Acting Assistant Secretary for South and Central Asian Affairs AliceWells said that the lack of transparency in the CPEC could fostercorruption and increase the project cost, thereby resulting in an evenheavier debt burden for Pakistan.
Speaking at an event at the Wilson Center here on China’s Belt and RoadInitiative (BRI) in South and Central Asia, Wells said that the lack oftransparency in the CPEC could foster corruption and increase the projectcost, thereby resulting in an even heavier debt burden for Pakistan.
“Because it is clear or needs to be clear that CPEC is not about aid, thisis almost always the form of loans or other forms of financing, oftennon-concessional with sovereign guarantees or guaranteed profits forChinese State-owned enterprises that are repatriated to China,” Wells said.
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“Now together with non-CPEC Chinese debt payment, China is going to take agrowing toll on Pakistan’s economy, especially when the bulk of paymentstart to come due in the next four to six years.
Even if loan payments are deferred they are going to hang over Pakistan’seconomic development potential, hamstringing Prime Minister (Imran) Khan’sreform agenda.
The lack of transparency can increase CPEC cost and foster corruption,resulting in an even heavier debt burden for Pakistan,” she added.
