China has said that power projects under the China-Pakistan EconomicCorridor (CPEC) did not incur debt burden on Pakistan as they wereinvestment projects.
“I can say this with good authority that these energy projects arecommercial investments where Chinese companies invested in Pakistan,”Chinese Foreign Ministry Spokesperson Zhao Lijian said during a regularbriefing in response to a question that Pakistan had requested China toreschedule its debt of around $22 billion in power projects funded byBeijing.
“We have responded to similar questions on many occasions. I don’t know howyou got your specific figure,” he said, adding that there were many powerand energy cooperation projects in CPEC. “Perhaps you are referring toloans on the energy projects. Right?”
Lijian informed that he had worked in Pakistan for many years and was veryfamiliar with the energy projects and the CPEC. “So, these loans are fromChinese companies. The Pakistani government doesn’t need to pay backanything,” he added.Article continues after this advertisement
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The spokesperson remarked that the construction and operation of energyprojects under the CPEC framework were “going on very well”, providingsteady and affordable power source, adding tax revenues and producing verytangible, economic and social benefits. “We are confident that energycooperation between the two countries will continue to make greatercontributions to Pakistan’s national development and livelihoodimprovement,” he added.
According to official data, a total of 22 energy and power projects will beconstructed under CPEC, a flagship project of the Belt and Road Initiative(BRI) launched by Chinese President Xi Jinping. So far, nine energy andpower projects have been completed, boosting the energy needs of Pakistan.These projects have contributed 5,340 megawatts of electricity to the maingrid, helping meet the country’s vital needs of industry, agriculture anddomestic consumers. Another eight energy projects are near completion andwill pump in an additional 4,470MW of electricity to the national grid.Another five projects are in the planning and implementation phase.
