ISLAMABAD: China on Sunday refuted a media report which claimed that Pakistan would repay $40 billion in debt to China under the China-Pakistan Economic Corridor (CPEC) project.
According to a statement issued by the Chinese embassy in Islamabad, the figure of $40 billion is wrong and misleading.
The embassy said that the Chinese government provided concessional loans of $5.874 billion to Pakistan government’s major transportation infrastructure projects, with a composite interest rate of around 2 per cent in a repayment period of 20-25 years.
The embassy further said all the CPEC energy projects are investments in nature and the companies are responsible for their own profits and losses and repayment of loans.
The statement said that the Chinese government provided interest-free loans for Expressway East Bay in Gwadar and also provided grants for some livelihood projects. In a nutshell, Pakistan will repay only $6.017 billion along with interest to China.