Wednesday, March 3, 2021
Home News Reports Disagreements emerge between China and Pakistan over CPEC project funding as Pakistan seeks concession...

Disagreements emerge between China and Pakistan over CPEC project funding as Pakistan seeks concession on loan interest

China is reluctant to lend money for ML-1 because Pakistan has already sought debt relief to meet G-20 lending conditions and it is not in a position to give sovereign guarantees

China and Pakistan are reportedly facing some disagreements regarding the Belt and Road Initiative that has resulted in a delay in holding the annual bilateral summit of the China-Pakistan Economic Corridor (CPEC). According to Economic Times, disagreements have emerged between the two countries over the Main Line 1 (ML -1) railway project and special economic zones under the CPEC. The ML-1, worth$ $6.8 billion, is the largest project under the CPEC. Pakistan wants to borrow $6 billion that China is expected to lend in the project at a concessional rate of less than 3%. However, China is reportedly hesitant in agreeing Pakistan’s demand as it feels that the local politics in Pakistan will pose obstacles in getting returns on the investment for China.

China reluctant to accept Pakistan’s demands

The ET quoted the statement of a senior journalist from Lahore, Nasir Jamal, given to Japanese media outlet Nikkei which read, “China is reluctant to lend money for ML-1 because Pakistan has already sought debt relief to meet G-20 lending conditions and it is not in a position to give sovereign guarantees”.

“China is much more comfortable deferring payments or providing new financing than it is offering concessional rates in the first place. This approach provides Beijing with greater leverage and control even if they are willing to be very flexible at the back-end”, Adrew Small, a senior trans-Atlantic fellow with Asia program at the German Marshall Fund told Nikkei .

JCC meeting being delayed due to disagreements between the two countries

The disagreements between the two countries have been pushing the Joint Cooperation Committee (JCC) meeting that had earlier been delayed due to Covid outbreak. The JCC, that governs the CPEC, is jointly chaired by Pakistan’s minister for planning, development and special initiatives and the vice-chairman of China’s National Development and Reform Commission. The first meeting of the JCC was held in August 2013 and the last meeting was held in November 2019. The 10th meeting of the JCC scheduled to take place in December 2020 could not be held due to pandemic.

Earlier this month, Pakistan Railways had reportedly asked the Pakistani government to provide 11 billion rupees for providing security to ML-1. Pakistan is reportedly renegotiating its $6 billion extended fund facility with the International Monetary Fund (IMF) that was suspended in April last year. The program will only be resumed by the IMF if Pakistan does not take any new commercial loan. Therefore, Pakistan is seeking concessions in the ML-1 project.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Feminism is not un-Islamic: Pakistan’s Aurat Azadi March explains ahead of Women’s Day after the rally was attacked last year

"We are against all such archaic practices that have been traditionally used to oppress women," said the video posted by Aurat March

‘Was shot at because I carried out Tiranga rally and opposed throwing of beef outside Hindu houses’: RSS activist narrates political violence in West...

In December 2019, RSS activist Bir Bahadur Singh was shot at point-blank range in his back in Kolkata’s Metiabruz area in broad daylight

As Anurag Kashyap, Taapsee Pannu and others face raid by Income Tax department, ‘liberals’ descend to cry vendetta

Liberals suffered a meltdown on Twitter after 22 locations linked to director Anurag Kashyap & others were raided by I-T Department

Metro car shed: Maha govt says it is ready to pay for disputed Kanjurmarg land, months after claiming it cost Rs 0

The disputed Kanjurmarg land, which the Maharashtra government and Aaditya Thackeray boasted of being acquired for free of cost, is currently under litigation.

Jalgaon shocker: Police officials and hostel employees accused of forcing women residents to strip dance, complaint filed

The resident girls in the hostel have alleged that police personnel and some outsiders, in connivance with some hostel employees, were allowed to enter the hostel under the pretext of interrogation.

West Bengal: Police recover arms, bombs from the house of a worker of Indian Secular Front, an ally of Congress

Police recovered shotguns, bombs & bomb-making equipment from the residence of Indian Secular Front worker Ziarul Mollah

Recently Popular

PM Modi and his mother abused live on air by a caller on a BBC radio show on Sikhs in the UK

BBC edited the program and the host offered apology after caller abused PM Modi and his mother during a live radio show

‘Inserted her hand claiming she was planting a tree’: LGBT activist Divya Dureja accused of sexual assault under pretext of shamanic ritual

A popular LGBT activist Divya Dureja has been accused of sexual assault by Elodie Gendron under pretext of a Shamanic ritual.

Aamir Khan shelves Mahabharat amidst controversies because ‘now is not the right time’: Reports

Aamir Khan has shelved his 'Mahabharat' project amidst controversies because the 'timing' is not right, reports say.

A woman molested, a father murdered, a Samajwadi Party leader accused: Here is all you need to know about the Hathras case

"Aatankwadi hain woh", Hathras victim Pooja exclaimed, expressing her angst against the SP leader for killing her father

Sourav Ganguly may attend PM Modi’s Brigade Ground rally in Kolkata on 7th March: Local media

Sourav Ganguly may attend PM Modi's rally at Brigade Ground in Kolkata on March 7, according to reports in local media.

The Hindu ‘journalist’ Suhasini Haidar puts out misinformation about ISRO satellite launch: Read details

Suhasini Haidar, National Editor of 'The Hindu', put out false information on social media in attempt to mislead the public.
- Advertisement -

 

Connect with us

253,186FansLike
521,572FollowersFollow
23,800SubscribersSubscribe