Massive Chinese financing comes to further three CPEC projects
Unequivocally, China Pakistan economic corridor is a
real game changer for Pakistan. Only three projects of the China-Pakistan
Economic Corridor acquired 90% of the whole Chinese financing of $1.8 billion
in the last year.
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| CPEC |
In the starting of the former fiscal year 2017-18,
Pakistan made an estimate of getting $1.6 billion in Chinese loans and agrees
for about one and a half dozen projects. This outlay run over the target, but
only three projects got about 90 per cent, revealed the statistics put together
by the Ministry of Finance and Economic Affairs. For More
Details: Sea Cargo to
Pakistan at the Cheapest Rates
Economic inflows into Chinese-backed projects points
out that there is, by a very small margin, any productive development on the
western passage that makes its way through Pakistan’s hinterlands and on Gwadar
schemes.
Out and out, seven infrastructure projects come in for
the loans of $1.8 billion and four of them were associated with CPEC, which is
the segment of a strategic Chinese Belt and Road Initiative.
The three projects that were provided with $1.6
billion included, Thakot-Havelian motorway, Sukkur-Multan motorway and Orange
Line Metro project, Lahore. The fourth CPEC project that got Chinese aid was
the Cross-Border Optical Fibre that received $16.5 million in the last fiscal
year.
Back in the days, cramped provinces have found fault
with ignoring them in CPEC development, claiming that the most important
consideration is being specified to projects that are either part of the
eastern alignment or situated in Punjab like the Orange Line Metro project.
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| Gwadar Port |
At odds with Pakistan’s estimates of $333 million, the
Sukkur-Multan project at the eastern alignment received $904 million or half of
the total loans came by in the last fiscal year.
In the same way, the Thakot-Havelian segment of the
eastern passage came in for $318.2 million in loans against the official
calculations of $197 million. Contrary to this, Orange Line Metro project,
Lahore gained $359 million.
CPEC starts bearing fruit for people
On time winding up of these two huge road projects is
pretty vital for the interconnection of China’s hinterlands with Gwadar Port.
CPEC has been marked as the skipper project of the $1-trillion Belt and Road
Initiative that will, in the long run, tie up 64 countries of Asia and Europe
through the criss-cross of roads and seaports.
In the last fiscal year, China granted $4.5 billion in
loans Cargo to Pakistan. These
loans comprised of $2.2 billion as commercial loans, $1.8 billion under CPEC
and $500 million in deposit from State Administration of Foreign Exchange
(SAFE).
Pakistan’s dependence on China has increased over the
past few years. China has also been granting loans for balance of payments
support.
Other projects that got Chinese economic help include
Neelum-Jhelum hydroelectric power project ($96.8 million), Pakistan Remote
Sensing Satellite ($8.64 million) and Chashma Nuclear Power Plants 3 and 4
($65.5 million).
Pakistan
has now decided to start action
Pakistan expected to get loans for two Gwadar
projects including the Gwadar International Airport and Pakistan-China
Vocational Institute Gwadar. But, Pakistan was unable to get those loans from
China.
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| Cargo Container |
Another project mapped out to give safe and clean
drinking water to the Gwadar city also did not get any Chinese aid. Similarly,
few other projects got no aid from China causing a disturbance in their way.
But, Pakistan has decided to finance these project itself.
Hopefully, this could bring ease in the way of these
under construction projects.
