Pakistan rejects US claims regarding CPEC financing – Pakistan

Pakistan has rejected claims by US diplomat Alice Wells that the China Pakistan Economic Corridor (CPEC) is financed solely through non-concessional loans or financing with sovereign guarantees.

During the weekly press conference on Thursday, Foreign Ministry spokeswoman Aisha Farooqui tried to make things clear about the growing impression that Pakistan’s economy is under a huge burden on Chinese debt.

“The CPEC debt amounts to $ 4.9 billion, which is not even 10 percent of the country’s total debt,” he explained.

Farooqui said the $ 12.4bn CPEC 7,000MW energy projects “have come to an end” and that the completion of all other CPEC projects was the government’s top priority.

The spokesman reminded the media that CPEC “has helped Pakistan address the development gaps in energy, infrastructure, industrialization and job creation,” he said. Pakistan Radio.

According to the national broadcaster, he stressed that it should be considered in terms of “huge economic benefits for the people of Pakistan and social economic development.”

He also highlighted its benefits for “regional connectivity and prosperity.”

The Ministry of Planning also issued a response to Wells’ comments. According to a statement by the ministry spokesman, “the projects completed so far in Phase 1 have already brought relief and began to generate dividends and tangible socio-economic benefits.”

The statement says that CPEC projects will accelerate development in the country, boost economic growth and mark the beginning of people’s prosperity.

“The fact that Pakistan is a sovereign state exercises the right to choose economic partners from around the world for mutual benefit,” reads the press release.

According to the statement, “all related projects are being carried out according to the laws and regulations of Pakistan and through an institutional mechanism in which transparency is a priority consideration.”

“The necessary due diligence with all financial implications is being carried out before the completion of any project,” the statement said.

He stressed that the “debt sustainability strategy of the country has the support of international financial institutions.”

Earlier in the day, Foreign Minister Shah Mehmood Qureshi said that when it comes to CPEC, Pakistan must ensure what is best for the country.

“We will continue to do what is beneficial to us,” the Foreign Minister said in a statement issued by his office Thursday morning.

Beijing warning to Washington

Pakistan’s response comes a day after China issued a strong statement following accusations made by US diplomatic ambassador Alice Wells, who had said there was no transparency in CPEC projects.

Claiming that Pakistan’s debt burden was increasing due to Chinese financing, Wells claimed that the World Bank blacklisted companies had obtained contracts in the CPEC.

Speaking at an event in Islamabad on Tuesday, Wells had insisted that Chinese money was not assistance. When obtaining Chinese financing for the projects, Pakistan was buying expensive loans and, as a buyer, needed to be aware of what it was doing, since this would have a high cost in its economy that was already in difficulty, he had said.

A day later, with a strong exception to the comments of the senior US diplomat, the Chinese Embassy in Pakistan had emphatically warned the United States against the interference in relations between Pakistan and China and the CPEC.

“We would be more than happy to see the United States develop its relationship with Pakistan, but we strongly oppose the interference of the United States in relations between China and Pakistan and the CPEC … … we have to make clear our position and reject the negative propaganda of the United States. ” We must not allow the truth to be distorted and lies to go crazy, ”the embassy had said in a statement.

“The comments have nothing new,” the embassy said and recalled that both China and Pakistan have repeatedly rejected similar advances in the past.

“However, the US side still ignores the facts and is obsessed with the history it made for CPEC.”

After noting that China “prioritizes the interests of the Pakistani people” in CPEC projects, the embassy stressed that China and Pakistan firmly adhere to the “principles of mutual consultation and cooperation” to obtain shared benefits.

The embassy had asked the United States to allow the people of Pakistan to decide whether or not CPEC suited them instead of judging for themselves. He said that the 32 CPEC early harvest projects completed over the past five years have significantly improved local transport infrastructure and energy supply, created more than 75,000 jobs directly and contributed to up to two percent of Pakistan’s GDP growth in Pakistan

“It shows that CPEC is playing an important role in boosting the socio-economic development of Pakistan and improving people’s livelihoods,” said China.

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