Zubair Qureshi
Islamabad
A spokesperson of the Chinese embassy in Pakistan on Wednesday took strong exception to a negative statement by the US Secretary of State Alice Wells with regard to China Pakistan Economic Corridor (CPEC), and said it was nothing but just denying the basic facts and spreading rumors.
“There is no truth whatsoever in her reported allegations that there was no transparency in CPEC projects, and that Pakistan’s debt burden was growing due to the Chinese financing.
Alice in her statement had alleged cost escalation in railways ML-1 upgrade project, and said the Chinese companies joining CPEC were blacklisted by the World Bank.
When asked to comment on her statement, a spokesperson of the Chinese embassy said: “We noted that during her recent visit to Pakistan, Ms Alice Wells Acting Assistant Secretary for South and Central Asian Affairs of the US State Department, made negative comments on the China-Pakistan Economic Corridor again. The comments hold nothing new, but the same cliché in her speech in November 2019, which has been repeatedly rejected by China and Pakistan. However the US side still ignores the facts and is obsessed with the story it made for the CPEC.
We would be more than glad to see the US develop its relationship with Pakistan, but we strongly oppose the US interferes into China-Pakistan relations and the CPEC, said the Chinese spokesperson adding, although one can never wake up a person who is pretending to be asleep, we have to make our position clear and reject the negative propaganda by the US.
“We must not let the truth be distorted and the lies run wild,” the spokesperson said
In CPEC projects, China and Pakistan have been firmly committed to the principles of mutual consultation and cooperation for shared benefits, the spokesperson further said. We put Pakistani people’s interests first. Major progress has been achieved in the past 5 years, with 32 projects achieving early harvests.
It shows that the CPEC is playing an important role in boosting Pakistan’s socioeconomic development and improving people’s livelihood. Whether the CPEC works, the answer should be given by the Pakistani people rather than the US.
Under the CPEC, during its planning or implementation, every project is equally discussed, carefully studied and jointly implemented by both China and Pakistan. The Chinese government always requests the Chinese companies to operate according to local laws and regulations.
All Chinese companies joining the CPEC enjoy international reputation and all projects strictly follow the market-oriented and internationally accepted business model, adopt state of art technology and strict environmental protection standards. The entire process is open and transparent and is in line with international norm. The spokesperson said, “We keep in touch with the relative accountability agencies of Pakistan and it is agreed that the CPEC is clean. The US holds a stick of sanction all over the world blacklists this and that country, but it is not for global economy, just ways to serve its own political purpose.”
Regarding the so-called debt issue, according to statistics from the State Bank of Pakistan, the total foreign debt of Pakistan is US$110 billion.
In fact, international financial institutions including the Paris Club and IMF are the largest creditors of Pakistan. Loan for the CPEC is about US$ 5.8 billion said the spokesperson adding accounting for 5.3% of Pakistan’s total foreign debt, with a repayment period of 20-25 years and an interest rate of approximately 2%.
Its repayments will start in 2021, with annual repayments of about US$ 300 million and it will never be a burden to Pakistan, he spokesperson said.
Moreover, China has never forced other countries to pay debts, and will not make unreasonable demands on Pakistan. The US keeps fabricating the so-called debt story, their mathematics is bad, and their intention is worse.
As to the cost of the ML-1 project, we have said many times the initial design of the project was jointly accomplished by the China Railway No 2 Bureau, National Engineering Services Pakistan Limited (NESPAK), and Pakistan Railway Advisory & Consultancy Services Ltd (PRACS). The project was launched in 2016, and the initial designs were submitted in May 2017.
In April, 2019, it has successfully passed the initial design review, organized by Pakistan Railways (PR), of the complex including Mott McDonald Pakistan (MMP), Canarail and the Crimson, the spokesperson further said adding, as the project has not yet been approved, the amounts of the project will be adjusted according to the actual condition and the needs of Pakistan. After finalizing the design of the project, we would initiate bidding in accordance with international practice and this is a completely normal business practice.
China-Pakistan ties are rock-solid and unbreakable. China will continue to work with the Pakistani government and people to steadily advance the BRI and CPEC to promote regional peace and development, the spokesperson said.
