Islamabad: China-Pakistan Economic Corridor (CPEC) is not all bell and whistles, as Pakistan would be required to payback China $100 billion for loans procured to finance 19 early harvest projects.
Majority of these loans have been obtained for the energy sector, as cited in a local newspaper report daily, The News. Sources in the Chinese Embassy said these loans given out to Pakistan could be termed as ‘concessional” due to the subsidies granted by the Chinese government.
They added that China had contributed enormously to bolstering Pakistan’s economy and said CPEC’s contribution could be gauged by the 5.2pc growth rate compared to 3.6pc four years ago. They said these loans won’t burden Pakistan’s economy, as it only constituted 1.1pc of the country’s total foreign debt.
Sources further elaborated that various Chinese firms had been working in Pakistan and procured loans from Chinese banks to finance development projects under CPEC. Sharing that China had also offered free assistance for high-profile projects like Gwadar Port, schools and emergency health-care centers etc.