ISLAMABAD (PAK TIMES): Pakistani government said in a statement on Wednesday that we have defended our economic partnership with China, amid fears that the terms of opaque multi-billion dollar investments by China could be exacerbating Islamabad’s economic woes as it considers a fresh International Monetary Fund (IMF) bailout.
“We have noted the recent reports by the media questioning the viability of China Pakistan Economic Corridor (CPEC), claiming that it would create an unbearable debt burden for Pakistan,” the federal government of Pakistan said in a statement.
“Such media reports are often one-sided, distort facts, and also based on irresponsible statements by the individuals who either have no understanding of China Pakistan Economic Corridor (CPEC) or are driven by ulterior motives,” the government added.
China Pakistan Economic Corridor (CPEC) is an ambitious plan by China to build infrastructure in Pakistan, mainly energy and transport sectors, connecting the western Chinese region of Xinjiang with the Arabian Sea.
It is part of China s massive “Belt and Road” initiative seeking to revive ancient trade routes through a massive rail and maritime network via $1 trillion in investments across Asia and Europe.
But the opaqueness of the China Pakistan Economic Corridor (CPEC) terms has led to concerns as Pakistan faces a looming balance-of-payments crisis, with analysts saying it will need to take urgent action, potentially seeking a bailout from the International Monetary Fund (IMF).