Two percent interest to be paid on CPEC loans: Ahsan Iqbal
He assured that the entire project has been kept completely transparent
LAHORE (Dunya News) – Federal Minister for Planning and Development, Ahsan Iqbal for the first time exclaimed that China Pakistan Economic Corridor (CPEC) loans lent out by the Chinese government will be paid back with an interest rate of two percent.
The statement came in after a report of International Monetary Fund (IMF) claimed that Pakistan would be in trouble with inflows and increased rates over CPEC. However, the federal minister said that it was not against the massive investment at all.
“The report is not against the route. Pakistan will gain a large inflow of investments through this project. The government has scrutinized all the short term and long term aspects of this project. There is going to be billions of US Dollars worth of investment in the energy sector from the Chinese end which has not been subjected to any conditionality. The interest rate for the loan is two percent. There are several cost heads included in the interest and they amount to roughly two percent. The payback period is 20-25 years”
He assured that the entire project has been kept completely transparent.
“The energy tariffs are decided by NEPRA, there is no involvement from the government. The transparency of the entire affair is evident from the fact that the Chinese government is lending out projects to Chinese companies through self-conducted auctions; the Pakistani government has nothing to do with selection”
Internal loan recovery has increased, he said.
“There is a substantial decrease in internal debts. This project has led to a lot of deficit being filled up and by 2018 the energy crisis will be diminished and we will also witness a reduction in electricity prices. There is no chance of the government not buying energy from the IPP’s. We are energy-depleted. We need more electricity.”
The Russian rumor was generated by the local media, said Ahsan Iqbal.
“This was a baseless rumor. I have already clarified; the Iranian President met Mian Nawaz Sharif at the United Nations Summit and expressed his interest. The Deputy Crown Prince of Saudi Arabia also conveyed his interest in the project. The British Foreign Secretary also praised the initiative and expressed his interest in the route.
"Similarly, other Central Asian leaders and dignitaries have been approaching the Prime Minister and me to communicate their interests in the CPEC. The whole world realizes it’s potential. Pakistan was previously recognized for terrorism. Now CPEC has become Pakistan’s recognition point. This is a great achievement.”
The Minister said that Pakistan and China share a greater vision.
“The reservation about the western route being neglected, which was raised by some political parties, was laid to rest when the first fleet of containers arrived at the port. All the missing links and impending construction works were aided by the Frontier Works Organization at an incredible pace. Pakistan will get connected to Turkmenistan and central Asia through this route. Afghanistan and Iran will also be able to benefit from this project in the near future”.
