Pakistan PM Imran Khan admits delay in CPEC projects, promises speedy progress: Reports

Pakistan Prime Minister Imran Khan said the coronavirus pandemic may have slowed down the progress of the China–Pakistan Economic Corridor (CPEC) project, News International reported on Friday.

Khan, who was speaking at the launch of the new project from Matiari in Sindh to Lahore, on Thursday, promised to increase the pace of the project as it generates employment for local youth.

Notably, China's highly touted project aims to connect Gwadar Port in Balochistan with China’s Xinjiang province. It is considered a flagship plan of Chinese President Xi Jinping’s ambitious Belt and Road Initiative (BRI). When the plan was put forth in front of the Pakistani government, it was valued at $46 billion. However, when it was recalculated in 2017, the CPEC projects were worth $62 billion.

“China had already invested around $25 billion under the umbrella of the China-Pakistan Economic Corridor (CPEC),” Khan said in an interview with Newsweek and informed that projects worth $20 billion were under implementation. The Pakistani Prime Minister added that “projects worth a further $25 billion are in the pipeline." 

According to the Pakistan-based news outlet, numerous terror strikes, and corruption have slowed down China's ambitious plan. Earlier this month, a Pakistan Senate Panel had expressed concern over the sluggish movement of development on the CPEC. Apart from the Pakistani Panel, Chinese companies have also expressed dissatisfaction over the slow pace of the project, Dawn reported. Meanwhile, the sluggish progress of the CPEC project has prompted Chinese financing companies to refuse loans at commercial rates, a new report published by AidData revealed on Wednesday. 

China committed $34.4 billion in development finance to Islamabad: Reports

According to the AidData report, Chinese loans under CPEC constitute 95.2% and 73% of total promises in the power and transportation sectors. As per the report by Dawn, China has committed $34.4 billion in development finance to Islamabad between 2000-2017. "The interest rate is 3.76% for an average loan with 13.2 years' maturity (when full repayment with interest is due) and 4.3 years of the grace period", the newspaper report added.

It should be mentioned that the Chinese government has been accused of granting hefty loans to lower-and middle-income countries (LMIC) in order to lure them into a debt trap. Both India and the United States, on several occasions, have raised the issue at the international forum. The concerns grew louder after China took over Sri Lanka’s Hambantota port on a 99-year lease.

(With inputs from ANI/PTI, Image: AP)