Matrix Report
“China knows the impact of Covid-19 on Pakistan’s economy and is sparing no effort to help it address the challenge,” a spokesperson for Chinese Embassy in Islamabad said in a statement, in response to remarks by outgoing US Principal Deputy Assistant Secretary of State for South and Central Asia Alice Wells.
Pakistan’s Ministry of Foreign Affairs also hit back (May 22) by underlining that “the public debt obtained from China has a maturity period of 20 years and the interest is 2.34 percent. If grants are included, the interest value slides down to about two percent, and that “Pakistan and China have several mechanisms to discuss matters of mutual interest. “
Wells seems to had taken upon herself the “whistle=blower” on CPEC for almost two years, criticizing CPEC projects and China-Pakistan relations, without much consideration for the deep-rooted nature of the partnership.
“I think at a time of crisis like COVID, when the world is reeling from the economic consequences of having shut parts of the economy, it is really incumbent on China to take steps to alleviate the burden this predatory, unsustainable .. ” Wells said in a repeat of her previous statements on CPEC in response to a media question on May 21 in Washington.
“I’ve enumerated the United States government’s concerns over the CPEC, lack of transparency involved in the projects and unfair rates of profit that are guaranteed to Chinese organisations,” she said.
“According to State Bank of Pakistan, Islamabad’s debt from multilateral institutions amounts to about 47% of their total external debt, while loans from CPEC are only $5.8 billion, 5.22% of the total debt,” the statement said. “It has no pressure on Pakistan at all. Recently, the G20 members adopted a debt service suspension initiative for the developing countries. China supported Pakistan to be included and is ready to provide relief,” it further said.
“In the current fight against Covid-19, China and Pakistan stand together and China has donated medical equipment and materials of more than $55 million to Pakistan. We take Pakistan as an equal partner and never asked Pakistan to ‘do more’, the statement read.
“We support Pakistan’s own model of development and never intervene its domestic affairs. We highlight Pakistan’s responsible role in regional affairs and never exert pressure,” it further said.
“The CPEC is an important cooperation project between the governments of China and Pakistan. It has always adhered to the principles of mutual benefit, win-win cooperation, openness and transparency. The planning and implementation of the projects is carried out by the two sides through thorough consultations based on equality and scientific study,” the statement read.
“The Chinese companies under the CPEC are all leading companies in their respective sectors and operate in full compliance with local laws and regulations. Since its implementation, the CPEC has brought $25 billion in direct investment and created more than 75,000 jobs for Pakistan,” it continued. “China has been the major source of FDI for Pakistan in the past five consecutive years. While according to the BOI, the FDI from the USA to Pakistan was a bit over $1billion between 2012 and 2019,” it further said.
A statement by the MOFA also dismissed claims by critics, saying that the public debt obtained from China has a maturity period of 20 years with 2.34 percent interest. If grants are included, the interest value slides down to about two percent, it added.
The ‘All-Weather Strategic Co-operative Partners’ is based on deep mutual trust and understanding, and CPEC has helped address development gaps in energy, infrastructure, industrialization, and job creation. Pakistan and China have several mechanisms to discuss matters of mutual interest.
The Chinese statement recalled that
- the energy projects are generating one-thirds of the electricity for Pakistan now
- the Phase II of Karakorum Highway (KKH) is almost ready for traffic.
- the integrated test and commissioning for the Lahore Orange Line have been successfully completed.
- the construction of the new airport in Gwadar has entered the second phase
- Over 20,000 Pakistani students are studying in China on scholarships provided by the Chinese government and universities.
- all Chinese companies working for the CPEC have generously donated medical assistance to Pakistan in the current difficult situation.
- In the next stage of the CPEC, both sides will strengthen the cooperation on health care, industrial development, agriculture and education.
- The CPFTA Phase-II has taken effect from Jan 1, 2020. The level of trade liberalization between the two countries has increased with the tariffs further reduced
- China and Pakistan are working together to promote peace process in Afghanistan and provide humanitarian assistance to Afghan refugees in Pakistan.
- China also opposes the politicization of the International Financial Action Task Force (FATF) and is working with Pakistan to strengthen its capacity
We also hope the US will abandon its cold war and zero-sum mentality, fulfill its responsibilities, extend due respect and give concrete assistance to Pakistan. We need no teachers, especially a teacher like the US,” the statement by the Chinese embassy said.concluded.
