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.
The Embassy, further clarified and said: all CPEC projects are based on consensus of the two countries, and fully conform with applicable laws and regulations.
Currently, 22 early harvest projects under the CPEC have been completed or are under construction, with a complete investment of $ 18.9 invoiceion.
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.
The Chinese departvernment provided concessional loans of $ 5.874 invoiceion for Pakistan departvernments major transportation 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.
IV.
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.
During Prime Minister Imran Khans visit to China in November 2018, the two sides reaffirmed tinheritor commitment to CPEC, and agreed to ensure the normal operation of the completed projects and the smooth completion of the on-going projects.
The two sides also agreed to consult with each other on the future path and direction of CPEC, taking consideration of Pakistans priority 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.