Pakistan has decided to take a loan of $ 2.7 billion (about Rs 20,000 crore) from China for the construction of a project of China-Pakistan Economic Corridor (CPEC) and an official request in this regard will be sent next week.
Pakistan has asked for this loan at a one percent interest rate, although China has not yet clarified anything about the interest rate and the real interest rate may remain above Pakistan’s proposal.
Out of a total of $ 6.1 billion, Pakistan will only ask for $ 2.73 billion
According to the report of Pakistani newspaper The Express Tribune, the financial committee of CPEC’s Mainline-1 Project (ML-1) has decided that Pakistan will approve only a $ 2.73 billion loan before China has a total of $ 6.1 billion in financing. Will request
Explain that the 1,872-km railway track between Peshawar and Karachi is also to be upgraded and doubled under the ML-1 project.
Pakistan will send a letter of intent next week
According to the report, the Finance Ministry in Pakistan has been asked to officially send a letter of intent to China next week as China will finalize its spending plans for next year by the end of this month.
Sources also told the newspaper that China did not say anything officially, but unofficially the Chinese administration says that the interest rate sheet could be more than one percent.
Pakistan is on the verge of economic bankruptcy
It is worth mentioning that Pakistan has been facing an economic crisis for a long time and is on the verge of an economic crisis. The coronavirus epidemic has added to her woes. In such a situation, this help of China can be beneficial for him.
What is CPEC?
CPEC is part of China’s ‘One Belt, One Road’ (OBOR) project, through which China intends to network its trade routes around the world. OBOR is the most ambitious plan of Chinese President Xi Jinping.
CPEC connects China’s Jinjiang Province to Pakistan’s Gwadar Port. It passes through Pakistan Occupied Kashmir (PoK) and hence India has been objecting to it. Under this, many railway lines and highways are to be built.
CPEC is very important for China
China is heavily dependent on sea routes for its trade and about 80 percent of its trade goes through the Malacca Strait (Malacca Strait). The Andaman-Nicobar Strait of India is located near the strait and the Indian Navy can easily stop the Chyna trade going through this route if needed.
To overcome this weakness, China is building the CPEC, through which it will bypass India and reach the Arabian Sea directly.
Pakistani experts have expressed apprehension
China is investing around $ 62 billion in CPEC, although some Pakistani experts have also expressed apprehensions about China’s intentions. They doubt that China can keep it as a “colony” by suppressing Pakistan under its debt.