Saturday, 29 January 2022

CPEC loans not responsible for Pakistan’s economic crisis: China

BEIJING: China said it supported International Monetary Fund (IMF) in carrying out an objective and professional evaluation of Pakistan’s financial situation and assisting it dealing with current difficulties and added, the relevant measures should not affect normal bilateral cooperation between China and Pakistan.

“As a member of the IMF, China supports this organization in carrying out objective evaluation of Pakistan’s financial difficulties and assisting it in dealing with current difficulties and the relevant measures shall not affect the normal bilateral relations between China and Pakistan,” Chinese foreign ministry’s spokesperson Lu Kang said during his regular press briefing.

While rejecting the impression that the loans under China-Pakistan Economic Corridor (CPEC) were the cause of current financial situation of Pakistan, he said, the Chinese side had explained many times that the CPEC was undertaken by the two governments under the principle of consultations and contributions for shared benefits.

“All the projects and financing arrangements are made by the two sides on equal consultations,” he added.

The spokesperson said, in fact, judging from the debt structure already released by the Pakistani government, the debt incurred from the CPEC accounted for low proportion.

So, it was not the reason for Pakistan’s financial difficulties.

Lu Kang said the Chinese side would like to work with Pakistan to substantiate and expand the CPEC projects and help Pakistan achieve development on its own strength.

When asked to comment that the IMF would be scrutinizing the Chinese loans to Pakistan before taking any decision, he said, for the quite sometimes, there was a lot of discussion on Pakistan debt problems and its financial and economic difficulties.

“I just said, according to the debt structure released by the Pakistani government itself, the debt incurred through the CPEC accounts for a low proportion.

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