Pakistan, which is facing financial crisis, is preparing to take loan from China. Pakistan has decided to seek a loan of $ 2.7 billion from China for the construction of Package-1 of Mainline-1 Project of China Pakistan Economic Corridor (CPEC). This loan is being sought from Pakistan from China at a time when the economy of Pakistan is already on the verge of bankruptcy. The coronavirus epidemic has made the financial crisis more serious.
The Pakistani newspaper ‘The Express Tribune’, citing government officials, said in its sixth meeting of the financing committee on the mainline-1 project that it was decided that Pakistan would initially receive $ 6.1 billion in Chinese funding from China. Will request to approve a loan of only $ 2.73 billion. The ML-1 project involves upgrading and doubling of the 1,872-km railway track from Peshawar to Karachi.
According to the committee’s report, “excess set-up costs of (Pakistani Rupee) Rs 32.46 billion (approximately USD204 million) was allowed to the two coal-based Chinese plants due to misrepresentation by sponsors regarding , deductions for the ‘Interest During Construction’ (IDC) as well as non-consideration of earlier completion of plants.”
