- Federal minister clarifies that the reason for increase in current account deficit is not Chinese loans.
- Umar says all the details of the loans related to CPEC have been shared with the IMF.
- Asad Umar says that 74% of external loans have been taken from other international financial institutions.
Federal Minister for Planning, Development, and Initial Initiatives Asad Umar on Wednesday said the world’s eyes are fixed on the China Pakistan Economic Corridor (CPEC) and the enemy wants to cause harm to Pakistan.
Addressing a joint press conference flanked by the Special Assistant to the Prime Minister on CPEC Khalid Mansoor, Umar said “misconceptions are being spread regarding the transparency of CPEC projects, debt sustainability, and secret loans.”
Responding to a recent report by a US-based think tank, he said: “China has facilitated some CPEC projects by granting loans to Pakistan”, adding that loans were granted on less markup compared to the loans borrowed from other countries.
The federal minister said that 74% of external loans have been taken from international financial institutions.
Denying all rumours regarding expensive loans from China, the minister highlighted that power projects under the CPEC have an average of 4% interest rate, while the cumulative rate of interest on other Chinese loans is 4.25%.
Umar mentioned that the government had shared all the details of the loans related to CPEC with the International Monetary Fund (IMF).
The federal minister said that wrong information leads to misunderstanding, adding “the reason for the increase in the current account deficit is not Chinese loans as China had provided various grants for different CPEC projects,” he said.
Umar maintained that foreign media is spreading “incorrect information regarding CPEC” and urged the local media to question foreign reports instead of relaying information released by them “without due verification and understanding.”
“The IMF is a part of the programme and all details regarding the projects under CPEC have been shared in the Parliament as well,” he said.