ISLAMABAD – Ministry of Planning, Development and Reform clarified a newsarticle regarding CPEC debt, published in a section of press on 26thDecember 2018.
The article is based on incorrect information, baseless assumptions andbiased analysis. It is hereby clarified that China Pakistan EconomicCorridor (CPEC) is a flagship and most active project of Belt and RoadInitiative with CPEC finances comprises of Government to Government loans,Private investment and grants.
To date, 22 projects are progressing in various stages of implementation.Government of Pakistan financial liability is only to the tune of US $6billion comprising of low interest loans and grants in infrastructureprojects spread over 20 to 25 years payback period. Therefore, giving theimpression US$ 40 Billion as liability on Pakistan is false, baseless anddistorted.
The Energy projects are being executed purely under Independent PowerProducers (IPPs) mode and finances are mainly taken by the privatecompanies against their own balance sheets. Therefore, debt would be borneby the investors instead of any obligation on part of the Pakistanigovernment.
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The dividends of the energy sector projects are also based on profit andloss and are subject to individual company’s financing policies.
