Less than 20 percent current CPEC projects using Chinese loans: Lu Kang
ISLAMABAD: China on Monday said less than 20 per cent of current projects under the China Pakistan Economic Corridor (CPEC) were using the Chinese loans and more than 80 percent of them were directly invested by China or using Chinese grants.
A Chinese foreign ministry’s spokesperson Lu Kang during his regular briefing in Beijing rejected impression that Chinese loans were adding to Pakistan’s debt problems.
He said that carrying out major projects with the international financing was a global practice and it was also an effective approach for the developing countries to break the financial bottleneck and expedite their economic growth.
The spokesperson said that the projects being completed under the CPEC, a flagship project of the Belt and Road Initiative did not add burden to Pakistan’s debt issue rather it strengthened the economy.
Explaining further, he said there were 22 early harvest projects creating tens of thousands of local jobs and satisfying electricity needs of 8.6 million households.
Lu Kang said the CPEC had greatly improved Pakistan’s infrastructure and power supply.
According to analysts, in the past five years, 11 projects had been completed under the CPEC, and 11 were in the construction stage.
The total investment of those 22 projects was about 18.9 billion dollars.