Planning ministry rejects reports about CPEC debt

Islamabad: Ministry of Planning and Development Wednesday rejected reports about repayment of China-Pakistan Economic Corridor (CPEC) project debt and liabilities.

A statement issued by Ministry said that the news reports were based on incorrect information and biased analysis.

The ministry clarified that CPEC was a flagship project of Belt and Road Initiative and to date, 22 projects are at various stages of implementation and government financial liability is only to the tune of 6 billion US dollars comprising of low interest loans and grants in infrastructure projects spread over 20 to 25 years payback period.

The official said giving the impression of 40 Billion dollars as liability on Pakistan is false, baseless and distorted.

The Planning Ministry also said that the power projects are being executed by Independent Power Producers and finances are mainly taken by the private companies against their own balance sheets.

Planning Ministry also said that CPEC was not imposing any burden with respect to loans repayment while outflows would start from the year 2021 and spread over 20 to 25 years.

Moreover, CPEC projects will continue to increase in the form of private investment in Special Economic Zones which were prioritized in the recent Joint Coordination Committee (JCC) meeting.