Pakistan has to pay back China $40 billion of its debt and dividends over a $26.5 billion under the China-Pakistan Economic Corridor (CPEC), in 20 years.
According to news reports, earlier the Chinese investment in the CPEC was about $50 billion, but however, the reports then suggested that the Chinese investment was nearly half of that figure in the CPEC.
Reports states that out of total $39.83 billion of contract signed, the debt repayement of infrastructure projects and of energy amounts to about $28.43 billion, according to documents of the ministry of planning and development.
According to official estimates, the remaining of repayment about $11.4 billion will be paid as a dividends to the investors.
The reports stated: “This suggests that unlike the claims of $50 bn to $62 bn CPEC investment, the actual investment is likely to remain half of the initially announced investment figures.”
Major project which could be materialized in next few years is the Mainline-I Project of Pakistan Railways which amounts $8.2 billion. This major project cost has not been included under these estimates.
These considers as the first comprehensive estimates of the inflows which based on major projects under implementation, and also the outflows has been estimated on account of the debt servicing of infrastructure projects and energy and dividends payment of power plants.
According to reports, under CPEC current portfolio, private investors has settled the energy projects, and the infrastructure schemes were undertaken by government.
$5.9 billion loan was signed at an interest rate fluctuating from 2 percent to maximum of 5.2 percent.
According to planning ministry’s figures, the CPEC inflows into existing projects would calm down in 2022-23, after which the country will receive $26.5 billion. On the basis of inflows estimated, the Pakistani government has to repay around $39.84 billion to the Chinese authority.
Pakistan has to pay back China $40 billion of its debt and dividends over a $26.5 billion under the China-Pakistan Economic Corridor (CPEC), in 20 years.
According to news reports, earlier the Chinese investment in the CPEC was about $50 billion, but however, the reports then suggested that the Chinese investment was nearly half of that figure in the CPEC.
Reports states that out of total $39.83 billion of contract signed, the debt repayement of infrastructure projects and of energy amounts to about $28.43 billion, according to documents of the ministry of planning and development.
According to official estimates, the remaining of repayment about $11.4 billion will be paid as a dividends to the investors.
The reports stated: “This suggests that unlike the claims of $50 bn to $62 bn CPEC investment, the actual investment is likely to remain half of the initially announced investment figures.”
Major project which could be materialized in next few years is the Mainline-I Project of Pakistan Railways which amounts $8.2 billion. This major project cost has not been included under these estimates.
These considers as the first comprehensive estimates of the inflows which based on major projects under implementation, and also the outflows has been estimated on account of the debt servicing of infrastructure projects and energy and dividends payment of power plants.
According to reports, under CPEC current portfolio, private investors has settled the energy projects, and the infrastructure schemes were undertaken by government.
$5.9 billion loan was signed at an interest rate fluctuating from 2 percent to maximum of 5.2 percent.
According to planning ministry’s figures, the CPEC inflows into existing projects would calm down in 2022-23, after which the country will receive $26.5 billion. On the basis of inflows estimated, the Pakistani government has to repay around $39.84 billion to the Chinese authority.