CPEC didn’t cause Pakistan’s debt burden: China

October 9, 2018

FILE PHOTO: A container is loaded on to the first Chinese container ship to depart after the inauguration of the China Pakistan Economic Corridor port in Gwadar, Pakistan November 13, 2016. REUTERS

The Working Group of the IMF to Pakistan has made it clear that Pakistan’s debt burden was not caused by CPEC or related projects, Chinese official said on Tuesday.

“On the contrary, the IMF Working Group has clearly pointed out that the construction of the China-Pakistan Economic Corridor will help promote the development of the Pakistani side in the long run,” Chinese foreign ministry’s spokesperson Lu Kang said.

The remarks came a day after Prime Minister Imran Khan’s government decided to approach the IMF for a possible bailout package.

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Pakistan’s new government recently expressed its full support for the CPEC projects, which it believed was in line with the long-term development of the country, the Chinese official said.

“I think it is still necessary to see that the construction of the China-Pakistan Economic Corridor is fundamentally conducive to regional connectivity and lasting prosperity,” he said.

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“From the very beginning, the Chinese and Pakistani governments have built on the principle of sharing, building and sharing,” he added.

He said that all the issues, including the project selection and related financing arrangements, were decided by the Chinese and Pakistani governments after consultation.