China rebuts claims of CPEC adding to Pakistan's economic woes

ISLAMABAD: Chinese Ambassador to Pakistan Yao Jang has said the government and the people of China were eagerly waiting for the historic visit of Pakistan’s prime minister in first week of November as China was pinning high hopes on the new government in term of bringing peace and development not only in Pakistan but the whole region.

Addressing a press briefing, Jang said China wanted to see Pakistan economically strong and independent country to promote regional peace, prosperity and stability.

He said during the visit, the prime ministers of the two countries would witness signing of a number of bilateral agreements in areas of mutual interests besides participating as a guest of honour in Business Conference to be held in Shanghai on November 5.

He said China was willing to extend maximum possible support to Pakistan and good news is expected at the conclusion of the visit.

He said Pakistan was a longstanding trade and strategic partner of China and “we have plans to invest more under China Pakistan Economic Corridor (CPEC) and buy more from Pakistan to make it economically stronger and independent country”.

He said during the visit of Prime Minister Imran Khan a major breakthrough in a number of projects under CPEC was expected specially in Rashakai Special Economic Zone where the agreement is likely to be finalized and it is also expected that ground breaking of this SEZ would be held by the end of current year.

He also appreciated the new government’s efforts to bring peace in the region by offering peace talks to its neighborly countries.

With regard to CPEC, the Chinese envoy rejected the notion being propagated by some elements that the project would only benefit China and Pakistan would get nothing out of it. “We are building this mega project based on mutual sharing and mutual interests,” he stressed.

Mr. Yao Jang said China has trust over Pakistan that was why it was investing such a huge amount for the economic development of the country. He said the investment was hard earned money of people of China, therefore the gesture should be recognized.

“Elements who do not want to see China and Pakistan to prosper and develop and the elements who do not want good relationship between the two countries are spreading such propaganda,” he added.

Deputy Chief of Chinese Mission in Pakistan Lijian Zhao said Pakistan owes debt to China worth only USD 6 billion, which was only around 6.3 percent of Pakistan’s total foreign debt and repayment of this payment would start on year 2021 with payment of $300-400 million per year.

“All the CPEC projects are funded by commercial loan which are borrowed and repaid by the Chinese companies,” he said adding that this is no debt on Pakistan government.

Zhao said the average interest on the loan under CPEC was around 5.3 percent including insurance payment. He said Rashakai, Hattar and Dhabeji special economic zones (SEZs) were the front line projects among all SEZs and work on them would be started soon.

Replying to a question, he said a good economic package was expected during the upcoming visit of Prime Minister Imran Khan to China.