Pakistan has debt problem, but not China debt problem

Karachi – Pakistan has a debt problem for sure, however, it does not have a China debt problem, said Finance Minister Asad Umar. Speaking to the China Global Television Network (CGTN), at the China International Import Exhibition (CIIE), his remarks came in response to accusations that China was using debt diplomacy to expand its influence worldwide.

Umar has said that the China-Pakistan Economic Corridor (CPEC) was an excellent example of cooperation between the two countries and was beneficial for both sides. Responding to the idea of CPEC being a sinister move by China to cause economic problems to Pakistan, he said it was “absolute nonsense”.
He made the comments in response to statements that China was using “debt diplomacy” to expand its influence worldwide.

Under CPEC, a pilot project of the Belt and Road Initiative (BRI), the Pakistan was granted Chinese loans to build billion dollar infrastructure projects, from railways to roads. CPEC has become the poster child for the Chinese debt trap allegations. Umar said China’s debt was not more than 10% of the total, which was a not a significant figure.

He said the percentage of debt-to-GDP of the country was high but still manageable. “The reason why debt sustainability is a problem in Pakistan is that we don’t have enough exports; we are not generating enough foreign currency inflows to be able to service the debt, and that’s the fundamental problem,” he added.  

"Monitoring Desk"

RELATED POSTS

2
PM Imran Khan praises Chinese support, says China has been helpful in many areas
0.7 Million jobs likely under CPEC by 2030
Power generation capacity of Port Qasim power plant equivalent to 10 percent of national power generation capacity
CPEC energy projects undergoing rapid construction
China confirms pledging financial assistance to Pakistan
NHA plans construction of sections of CPEC Western Route, project to complete by end of 2019
CPHGC’s Unit 1 successfully synchronized with Pakistan national grid
Chinese Embassy clarifies CPEC debt article
Chinese industrial group to establish ceramics unit in Faisalabad
Chinese Embassy provides details on the latest progress of CPEC
Work on the New Gwadar International Airport, vocational training center and friendship hospital to begin in the first quarter of 2019
Six Pakistani entrepreneurs graduate from UNCTAD, Alibaba’s fellowship
China donates Rs6m more to families of martyred cops
Pakistan coming on track by enhanced export, trade volume with neighboring countries
China says it hopes US can show sincerity on trade

FOLLOW US


About Corridor.pk

Corridor.pk is Pakistan’s leading regional connectivity media & communication/outreach platform, dedicated to profiling and promoting the business activities, news and views on the regionally connected business corridor across OBOR. 

     

Addional Information

 Ethics Policy     Advertise
 Terms & Conditions
 Contact Us