CPEC a debt reliever, not a 'debt trap' for Pakistan

The China-Pakistan Economic Corridor, as part of the Belt and Road Initiative, has been making remarkable progress, yet some countries and observers are trying to belittle its enormous potential benefits by labeling it a "debt trap".

Since the CPEC is entering the next phase of its development, those opposed to it are trying to impede its progress using a two-pronged strategy - first, deceiving the public by misquoting the CPEC's financial figures and achievements in the media, and second, raising the specter of past militancy in Pakistan to mislead investors into believing the country is still a volatile investment destination.

Despite Pakistani government departments issuing innumerable clarifications, along with the real facts and figures about the CPEC, the international CPEC cynics are bent upon calling it a "debt trap". Let us solve this puzzle by analyzing the CPEC's financial figures shared by the Chinese embassy in Islamabad. For instance, only $5.9 billion of the $18.9 billion funding provided by the Chinese companies so far for infrastructure projects constitute loans with a 2 percent interest payable from 2021. The rest of the sum is meant for energy projects funded by Chinese companies and other partners.