Islamabad – Claims are being made in Pakistan that the China Pakistan Economic Corridor (CPEC) is the country’s future. But this project, and also the future of Pakistan, seems to be under threat. The Pakistan government had demanded that China should restructure certain loans given to Pakistan under this scheme. China has dismissed the demand. China has also clearly refused to provide any further assistance to Pakistan for these projects.
The proportion of debt in the Pakistan economy has increased to dangerous levels. Pakistan has a debt of nearly USD 294 billion. This is almost 109% of Pakistan’s GDP. Therefore, the Pakistan government had demanded a restructuring of certain loans provided under the CPEC scheme to revive the sinking economy.
China has provided a loan, under CPEC, to Pakistan for the hydroelectric project. The Pakistan government had requested China to restructure USD 3 billion out of these, saying that the interest rate was high. The previous Pakistan government had signed the agreement, but as per the Imran Khan government, this will create problems for Pakistan. But China has refused to oblige Pakistan. Moreover, China has reprimanded that demands for restructuring and reconsideration of any past loans will not be considered.
The Chinese banks, who have provided loans to Pakistan, are in no mood to consider the Pakistani demand. Therefore, the noose of Chinese debt seems to be tightening around Pakistan’s neck. A few days ago, Chinese President Xi Jinping said that the CPEC project has shown excellent results. But now, it is to public knowledge that these results have nothing to do with Pakistan.
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