CPEC energy projects create no debt for Pakistan: Chinese FM

BEIJING: The energy projects under the China-Pakistan Economic Corridor (CPEC) framework are invested in by Chinese companies and the Pakistani government doesn't have to pay any debt, let alone does this cause any debt burden for the Pakistani side, Zhao Lijian, spokesperson of the Chinese Foreign Ministry, said at a regular press briefing on Thursday, foreign media reported.

Zhao's remarks came as some foreign media reported that Pakistan is struggling to repay Chinese loans and the South Asian country will soon seek to reschedule as much as $22 billion in outstanding power sector credits.

"I worked in Pakistan for years and have a good knowledge of energy projects under the CPEC," Zhao said, noting that all of the energy projects are funded by commercial investment or foreign direct investment.

He said the construction and operation of relevant projects goes smoothly, providing large amounts of stable and cheap electricity, while increasing the Pakistani government's tax revenue.

"These projects create material economic and social benefits," Zhao said. "We're confident China-Pakistan energy cooperation will continue to make greater contributions to Pakistan's development and the improvement of livelihoods there," he said.