FO defends CPEC after Alice Wells' criticism
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ISLAMABAD: The Foreign Office (FO) on Friday said that China-Pakistan Economic Corridor (CPEC) was transparently contributing to national development and issues in the execution of the project were bilaterally addressed by Beijing and Islamabad through existing mechanisms.
The statement was issued after senior US diplomat for South and Central Asia Ambassador Alice Wells repeated her criticism of China’s Belt and Road Initiative (BRI) and its flagship CPEC project. The FO statement, however, did not say that it was a rejoinder to what Amb Wells said at her online media briefing about CPEC.
“The economic development and long-term prosperity of the people is our government’s top priority. The CPEC, a flagship project of BRI, is a transformational project contributing positively and transparently to Pakistan’s national development,” the FO said.
“Pakistan believes that regional economic connectivity will provide a critical stimulus for creating broad-based growth across the region,” it added.
The FO said that CPEC projects had helped Pakistan address energy shortages and develop infrastructure, industrial base and create jobs.
At her media briefing, Amb Wells said that the US was concerned about CPEC projects because of “lack of transparency”, and the “unfair rates” of profits guaranteed to the Chinese firms that were executing these projects.
She said the US calls on “China to offer transparent relief from BRI’s predatory loans that countries are suffering from to emerge on stable footing”.
The FO clarified that Pakistan’s total public debt relating to CPEC projects was less than 10 per cent of the total debt burden. Moreover, it said, the CPEC loans from China had a maturity period of 20 years and the interest was 2.34pc. Therefore, the claims about the burden of Chinese debt on Pakistan’s economy were “contrary to facts”, the FO said.
The statement said that Pakistan and China had instituted various mechanisms to address issues that arise in the execution of the projects and they often address those matters bilaterally.
“Pakistan and China are ‘All-Weather Strategic Cooperative Partners’. We are engaged in prompting peace, development and stability in the region based on principles of mutual respect, mutual benefit, win-win cooperation and shared development,” the statement emphasised.
“Our ties are based on deep mutual trust and understanding,” it further said.
Published in Dawn, May 23rd, 2020
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May 23, 2020 08:20am
There is no need for Pakistan to defend CPEC. It is quite obvious that this project is going to help China and Pakistan immensely and hence there is a natural reaction from the US and Hindustan.
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May 23, 2020 08:26am
When IK was on containers , he was saying that CPEC is not transparent . Now is it the proverbial UU turn?
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May 23, 2020 08:27am
Than why ask loan write off from the West?
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May 23, 2020 08:31am
Defend un-defendable.
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May 23, 2020 08:34am
China is our iron brother and can do no wrong. Even high interest rate or unfavorable clauses in the joint agreements will benefit us in the long run. Chinese are more concerned about our welfare and development than their commercial interests.
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May 23, 2020 08:35am
So we’ve been told lots of times that China is the only true friend that has been ‘investing’ in Pakistans development, with almost no western investment. Why then we ask the west for debt writeoff? Is it because Pakistan took western loans to pay for chinese ‘investment’??
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May 23, 2020 08:38am
There will be a very dangerous future to Pakistan Small scale industries, no one can protect our local products.
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May 23, 2020 08:44am
Many forums and people cautioned Pakistan about CPEC. Pakistan repeatedly denied any problems with CPEC. So everyone from outside should keep off the issue and let Pakistan do what it believes is in its best interest. It's Pakistan's right to choose. Those who loaned money to Pakistan should confine their actions and comments to just get their loans repaid as per agreed terms.
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May 23, 2020 08:45am
What this is all leading up to are questions that will come from the US and EU on why Pakistan should be provided any form of debt relief from western financial organizations, if it insists that its economic relationship with China is so strong. A legitimate question can be asked as to why Pakistan cannot ask its benefactor to provide it debt relief instead, since most of the debt is owed to said benefactor.
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May 23, 2020 08:50am
CPEC Transparency is as good as a brick wall, but it is Pakistan People are satisfied with it then it should be of no concern to Alice Wells.
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May 23, 2020 08:56am
When you need to defend, means there isn't anything to prove
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May 23, 2020 08:57am
Alice Wells has said truth and nothing but truth...
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May 23, 2020 09:04am
CPEC is a bilateral issue between Pakistan and China.No doubt about it.
Problem is one that Pakistan seeks loan on daily basis to run her governments day to day affairs,but diverts these loans to payback Chinese loan taken for this project.
Every world body that gives loan to Pakistan seeks assurance from Pakistan that loan will not be used to repay loan taken from China.
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May 23, 2020 09:08am
So today no "Rejection" from FO! But I understand that USA talked in favour of Pakistan and asked China to help Pakistan on the loan issue.
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May 23, 2020 09:13am
For everything else there is loan.
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May 23, 2020 09:15am
More than one year have passed when official inaugurations of cpec projects done, but still waiting for an article about trade volume , data, annual review or benefits of these projects.
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May 23, 2020 09:20am
Please make the the agreements in public. For so called transparent dealings. Rate of interest
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May 23, 2020 09:28am
FO lying about 2.4% interest rate as usual.
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May 23, 2020 09:49am
2.34 pc per year or per month?
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May 23, 2020 10:22am
Then ask loans write off from CPEC China, not West. Alice Wells take note
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May 23, 2020 10:22am
So which countries in region are being connected?
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May 23, 2020 10:26am
There was no option for FO but to make that statement.
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May 23, 2020 10:26am
Pakistan herself has asked China to decrease interest rates on these projects by 200 basis points. If everything is fine then why Pakistan demanding debts cancellation and going for loan from IMF? Why Pakistan do not support debt cancellation on OBOR projects?
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May 23, 2020 10:31am
Let’s try to understand imperialism. Powerful country C gives a loan to weak country P to make infrastructure (roads and a port). On what seems to be cheap rates for a long period of repayment. Then C awards execution of project to big contractors in C. Small sub-contracts come to locals in P. The road is built. Primarily C’s goods are transported through the road for exports. P doesn’t have much to export. So in effect, C never gave P the money but rather to C’s own contractors. For exporting C’s own goods. And made P pay for it! Including interest!! P is indebted to C for a long time, and it has infrastructure which it currently doesn’t need. C practically controls P economically and politically.
Of course I am only talking of Hambantota port in Sri Lanka. Any similiarity to CPEC is just coincidental!
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May 23, 2020 10:32am
Don’t pay any attention to Alice Wells, CPEC is the best Infrastructure project for Pakistan. Payoff is in the long term. Even In the short term , the financing is reasonable. Roads and Rail is key to development in the future. That is how America developed in mid 1800’s.
40 years of my economic background tells me CPEC is the future of Pakistan.
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May 23, 2020 10:32am
To call a country "iron brother" who are not ready to write off the debt of pakistan shows the desperation of IK to show a fake united picture of china and pakistan.
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May 23, 2020 10:32am
Pak fo making official their statements a full one day after US and China made their statements. So fast
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May 23, 2020 10:37am
China had a maturity period of 20 years and the interest was 2.34pc.
World Bank charges 0.5%, so China charging 4 times more
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May 23, 2020 10:40am
Then why is CPEC stalled?
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May 23, 2020 10:40am
The deal should be made public. What is there to hide?
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May 23, 2020 10:49am
Then it should not be difficult for china to write of the loans and debts. And convert these into aid and donation.
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May 23, 2020 11:08am
Visit CPEC website. No information available about anything.
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May 23, 2020 11:17am
Asking west to repay china
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May 23, 2020 11:31am
The US has nothing better to do than cast confusion on other nations going their own way.
In fact, US itself is totally confused because it cannot find a system to re-polish its dirty image the world over. Salams
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May 23, 2020 11:40am
A classical example of Stockholm Syndrome, which would be taught to students a few years from now!
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May 23, 2020 11:57am
China has spent $45 billion US dollars on CPEC, needs another $25 billion dollars from Pakistan to make CPEC a $65 billion dollar project. But currently China is embroiled in Covid-19.
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May 23, 2020 12:00pm
Rest of this century is for Social Distancing and not Connectivity...CPEC is a conceptual and financial flop!
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May 23, 2020 12:01pm
FO motto: A rejection a day, keeps the problems away
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May 23, 2020 12:03pm
Though Pakistan is defending US for CPEC, but China will take the stake, if Pakistan is unable to pay off the Chinese loans/debts.
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May 23, 2020 12:12pm
@Ali da Malanga, still day dreaming!!
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May 23, 2020 12:43pm
Wells and the US should mind their own business. It’s clear that US has decided to slow China’s Growing influence.
It’s not going to work USA.
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May 23, 2020 12:45pm
People of Pakistani are asking what benefits they are getting , at the moment Chinese power companies charging very high rates for electricity compare to other countries.Chinese companies.are make huge profits.
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May 23, 2020 01:21pm
How can you politicians be so selfish or may be blind
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May 23, 2020 01:21pm
Then IK should expect loan waiver from China only not US.
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May 23, 2020 01:24pm
In the latest project of dam construction, mutually signed between China and Pakistan, I was horrified to note that 70% stake is for China an d only 30% for Pakistan. Does this type of agreement really spur growth for Pakistan ? I feel bad for Pakistan and Pakistanis.
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May 23, 2020 01:31pm
Every CPEC project is without competetive bidding....why?
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May 23, 2020 01:38pm
@Simanjit Singh Mann, It was not transparent at that time because of Nawas Shariff & Family.
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May 23, 2020 01:39pm
Unfolding Tragedy
1.Alice Wells claims CPEC loans are predatory.
2.Pakistan and China deny that,
3.Pakistan's President and Ministers travel to Beijing asking for interest reduction. Iron brother makes vague sounds.
4. Alice Wells claims CPEC loans are predatory.
5.FO and Chinese Ambassador deny ferociously.
And so the drama continues.......
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May 23, 2020 01:40pm
@AJ, Per decade.
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May 23, 2020 01:43pm
Many countries are involved in CEPC including West.
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May 23, 2020 01:53pm
Us has been pak allay fir decades but treated pak with no respect now they can srand it developing. US has been the biggest obstacke creating peace in region
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May 23, 2020 02:01pm
A poor country like Pakistan should stop this «regional» rethoric and focus only and only on her own economy.
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May 23, 2020 02:20pm
The US actually spoke in Pakistan's favour and asked for loans to be written off, Pakistan should welcome this support by America.
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May 23, 2020 02:28pm
Pakistan is only going to end up with huge debts. With adversity growing against China, not many countries will utilize the CPEC trade, thus rendering it useless. Most economists have labelled it a disaster and those who support it will stop day-dreaming in the next few years.
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May 23, 2020 02:33pm
Yet to see establishment of industries in economic zones of CEPAC.
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May 23, 2020 03:39pm
Once the world's largest toll booth- CPEC is completed, every Pakistani will become rich like the sheiks of middle East. Pakistanis need not work, they can live off the toll collected from CPEC, just like the sheiks live off the oil sold in middle East.
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May 23, 2020 03:46pm
@AJ, In which currency, from start of the project or from start of the contract or from end of completion of project. Compounded monthly or annually?. And so on
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May 23, 2020 03:48pm
A friendship higher than K2 and deeper than Arabian Sea should waive the loans darker than night.
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May 23, 2020 04:00pm
Looks like CPEC will good only for selling Chinese goods to Pakistan .
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May 23, 2020 04:26pm
There is no need for G20 to give Pakistan a debt deferral till they come out clean. This debt deferral should come from ‘All-Weather Strategic Cooperative Partner’.
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May 23, 2020 05:38pm
Obviously issued under Chinese pressure.
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May 23, 2020 05:43pm
I am surprised no denouncement of Ms. Wells statement.
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May 23, 2020 05:49pm
Question is not about transparency of CPEC, rather its about alleged write off from IMF debts that Pakistan may use to repay CPEC. So far Pak has not divulged how its going to repay huge infrastructure debts
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May 23, 2020 06:24pm
@Simanjit Singh Mann, whatever he does, we are happy not our....
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May 23, 2020 06:29pm
@Joe, if assurances are given to concerned parties than let them get worried you enjoy
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May 23, 2020 06:35pm
The issue is that Pakistan loses sole control over where it plans to spend its money as soon as it starts demanding Loan Deferments and more Loans.
The banker is fully in his right to ask you to stop the wastefulness if you’re asking for a loan or to change the terms of a loan.
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May 23, 2020 06:50pm
Only two countries have a problem with it and that means everything is going fine Alhumdulillah.
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May 23, 2020 06:54pm
Where is the proof for all the claims the foreign office is making?
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May 23, 2020 07:25pm
CPEC is an issue between China and Pakistan. It's for them to decide the course and terms of the project. If Pakistan is happy with it, nobody else from other countries need to speak about it. Only thing where others have a say is to give any loan or grant to Pakistan or not and if already given loans to Pakistan they should confine themselves to demanding repayment as per agreed terms and conditions. What is the point of always raising the CPEC conditions.
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May 23, 2020 07:50pm
If Pakistan is satisfied, ok. Let the future generations worry about the debt repayment.
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May 23, 2020 07:52pm
There is nothing left to defend China as they have no money, no loan visible in future.
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May 23, 2020 07:58pm
@Ali da Malanga, US is more closed to Pakistan always as compared to India ....
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May 23, 2020 08:13pm
FO routine is reject or defend daily, but no real work. Can’t give progress report what FM is working on or achieved in past.
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May 23, 2020 08:16pm
CPEC is run by China, build by Chinese Companies and Experts who profit from that and finances by China. Pakistan pays for it for certain long term benefits which are too risky for a viable business case. No significant and tangible transfer of technology or vision to develop infrastructure beyond CPEC for sustainable uplifting of economy. Future is most likely similar to Sri Lanka were great port and airport are empty and now transferred to China on 99 years lease.
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May 23, 2020 09:09pm
Best of Luck Pakistan!!
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May 23, 2020 09:11pm
What about power projects? How are they costed - competitive or 200% inflated? What is the rate of return allowed? Somenone please....
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May 23, 2020 10:19pm
How come the first letter in CPEC is C for China but it's Pakistan which is responsible for taking huge loans and paying all the bills? Does not make sense. Shouldn't China pay 50% of all of the costs?
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May 23, 2020 11:53pm
@Ali da Malanga, Good luck to Pakistan and China
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May 24, 2020 12:16am
It is indeed your right to support all your matters and reject others' statements even if valid and worthy of due consideration.
Hope when the time comes to redeem the debts and make interest payments, you don't forget it and are not left gasping for life and look to others' pockets!
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May 24, 2020 03:25am
why is he not rejecting?
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May 24, 2020 07:29am
This project will not help Pakistan. It will ruin them financially by mountain of debts. China are very cunning they only look at their interest.
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May 24, 2020 07:31am
West is not going to write off your loans your I-only option is China.
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May 24, 2020 05:58pm
These are irrelevant justifications of a US that is in its "dying throes of a spent power" tumbling from top spot to the emerged giant China.
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