Planning Ministry rejects U.S. diplomat's remarks about CPEC

ISLAMABAD, Nov 24 (DMN) : Planning Ministry rejects U.S. diplomat's remarks about CPE. The Planning Ministry has affirmed that the

speech by a U.S. diplomat on the China-Pakistan Economic Corridor (CPEC)

Project was based on wrong analysis and incorrect assessment of the

facts.

Commenting on her views, the spokesperson of the ministry said major

share of CPEC investments were allocated to energy projects and all the

energy projects were in IPP mode and thus bearing no financial

liabilities on the Government of Pakistan.

He said for infrastructure projects, the amount was USD 5.8 billion and

that too concessionary loan at 2.34 percent with tenure of 25 years

starting from 2021.

The spokesperson said the first phase of CPEC focused on laying the

foundations of development through creation of physical infrastructure

and overcoming the energy deficit, vital for the growth of every

economy.

Regarding employment opportunities in the infrastructure development

phase, he said primary data collected from 12 projects under CPEC

revealed that of 81,121 total workforces in these projects, more than 90

percent are Pakistani workers.

Meanwhile, Foreign Minister Shah Mahmood Qureshi on Sunday reiterated

that America's stance on the China Pakistan Economic Corridor (CPEC)

would have "no impact" on the project.

Speaking to reporters in Multan, Qureshi said that Pakistan does not

agree with the views expressed by US diplomat Alice Wells.

He was referring to a recent statement by Wells, who is in charge of

South Asia affairs at the US State Department, in which she had "warned"

that CPEC would further add to Pakistan's debt burden. 

She had said the multi-billion-dollar CPEC would take a toll on Pakistan’s economy at the time of repayments and dividend in the coming years.

"Pakistan does not agree with that view. We have rejected that view,"

Qureshi said, adding: "We do not think that the burden of CPEC will

increase our debt burden." The foreign minister said that Pakistan's

total debt burden is $74 billion of which CPEC is $4.9bn.

"To say that CPEC is increasing our debt servicing is incorrect," he

said, adding that the second phase of the development project has been

launched.

Meanwhile, Special Assistant to the Prime Minister on Information and

Broadcasting Dr Firdous Ashiq Awan said CPEC is the (government's) first

priority, also saying that Pakistan does not agree with America's

concerns regarding the project.

In a tweet, Awan said: "This great corridor will open new paths for

economic development and prosperity in the entire region, not just for

Pakistan and China."

The premier's special assistant added that the project is a "surety of

our economic development", adding: "China is our close friend and has

stood by us during every trying time."

Earlier, in a move to allay US concerns over CPEC's impact on Pakistan’s

debt crisis, the newly appointed Federal Minister for Planning and

Development Asad Umar had said the bilateral commercial debt from China

would start declining in two to three years.

He, however, made it clear that Pakistan would neither back out from

CPEC and its time-tested friends like China nor would it become the

"collateral damage" of any conflict between major powers.

The minister said that Wells' primary contention was that Pakistan was

sinking further into the quagmire of debt with CPEC. DMN

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