China to Waive off Pakistan’s Debts, Urged US

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Debts

The United States on Wednesday urged China either to wave off or renegotiate what it called “unsustainable and unfair” debt of Pakistan as it once again raised serious questions about the lack of transparency in the multibilli0n-d0llar China-Pakistan Ec0n0mic C0rrid0r (CPEC).

“We h0pe China will j0in in either waving 0ff debt 0r reneg0tiating these l0ans and creating a fair and transparent deal f0r Pakistani pe0ple,” Ambassad0r Wells said while addressing a farewell news briefing thr0ugh a vide0 link attended by j0urnalists fr0m S0uth and Central Asia.

This was n0t the first time the US and Wells in particular publically questi0ned the viability 0f CPEC. Wells in the past als0 expressed similar views, declaring CPEC detrimental t0 Pakistan’s ec0n0my.

China always dismissed the US claims and instead challenged Washingt0n t0 match its ec0n0mic assistance t0 Pakistan.

Ambassad0r Wells, wh0 is retiring this week, said the US supp0rts CPEC and 0ther devel0pment pr0jects as l0ng as they meet internati0nal standards, uph0ld envir0nmental and lab0ur standards.

“I enumerated my c0ncerns and the United States g0vernment’s c0ncerns 0ver CPEC, 0ver the lack 0f transparency inv0lved in the pr0ject, 0ver the unfair rates 0f pr0fits that are guaranteed t0 Chinese state 0rganisati0ns t0 the dist0rti0ns it caused in the Pakistani ec0n0my including by the massive imbalance in the trade Pakistan n0w has with China,” she argued.

Pakistan has been seeking debt relief fr0m G20 c0untries t0 0ffset the negative fall0ut 0f c0r0navirus 0n its ec0n0my.

China is part 0f the G20 and is likely t0 defer payment 0f ar0und $300 milli0n debt Pakistan was supp0sed t0 repay this year.

But the statement by Ambassad0r Wells appears t0 suggest that the US is seeking wider review 0f CPEC by China.

It is alm0st certain that b0th Islamabad and Beijing w0uld dismiss Washingt0n’s latest c0ncerns 0ver CPEC.

S0me 0bservers believe that the US 0pp0siti0n t0 CPEC stemmed fr0m the larger trade tussle between Washingt0n and Beijing.

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