US concerns about CPEC misplaced: Asad Umar

KARACHI/ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Asad Umar Saturday said China-Pakistan relations were not against anyone and the concerns of US Assistant Secretary of State for South Asia Alice Wells about the CPEC were misplaced.

Addressing a press conference along with the PTI leaders in Karachi, he said the first phase of the CPEC had been completed and it was the top priority of the government to speed the project up.

He said China-Pakistan relations could not derail over the concerns of others.

Asad said China always helped Pakistan through thick and thin and gave $4.9 billion under the CPEC.

He said foreign loans were hindering the economic progress, while circular debt was the biggest challenge for the government.

Asad said 74 billion foreign loans would be paid by the Pakistani taxpayers adding that trade deficit would be reduced in two to three years.

He said Pakistan wanted to welcome investment from the US and Europe.

Umar said US President Donald Trump had appreciated Pakistan’s role in the Afghan peace process adding that Pakistan wanted an Indian government that promoted peace in the region.

Meanwhile, commenting on the US Principal Deputy Assistant Secretary of State Alice Wells’ speech on the CPEC, the Ministry of Planning and Development Saturday said her views were based on a wrong analysis and incorrect assessment of facts.

In a statement, the ministry spokesman said the major share of the CPEC investment had been allocated to the energy projects.

It is worthwhile to note that all the energy projects are in the IPP mode and thus are bearing no financial liabilities on the Pakistan.

For infrastructure projects, the amount is $5.8 billion and that too concessionary loan at 2.34%.

Similarly, the CPEC outflows are spread over 20-25 years, starting from 2021, with an option of even further deferral thus putting Pakistan in a much better position in terms of repayments.

During their last visit, the IMF officials also endorsed the factual stance by stating that they had full access to borrowing and maturity terms of the CPEC projects and its loans were manageable.

Regarding employment opportunities in the infrastructure development phase, the primary data collected from 12 projects under the CPEC revealed that of 81,121 total workforce in these projects, more than 90% were Pakistani workers.

Elaborating further, the spokesman said the first phase of CPEC focused on laying the foundations of development by creating physical infrastructure and overcoming energy deficit, vital for the growth of every economy.

“The thrust in the current phase is industrial and agricultural cooperation. Nine SEZs have been prioritized, three of which are on fast-track development.

Ground-breaking of Rashakai would be taking place by the end of this year. Export-oriented and import substitution industries not only from China rather businesses and capital from all over the world would be attracted through special incentive investment packages which would be announced soon,” the spokesman said.

Employment would be generated not only in the industrial relocation and JVs, but also through agriculture growth and agri-exports.

In short, the CPEC projects are not adding to the woes of the country in terms of debt burden, as its share in the overall debt was less than 6% whereas its contribution to socio-economic development was promising.

He said the CPEC will prove to be a platform for Pakistan’s path to development and a symbol of shared growth for others to emulate.