CPEC & Pakistani Economy: An Appraisal (By: Dr Ishrat Hussain)

Introduction

One of the common reservations expressed about CPEC is that it lacks transparency and non‐availability of complete information. The terms and conditions of financing at which the Chinese companies are participating in these projects are not fully known and the likely future financing burden on Pakistan’s balance of payments is not obvious. This booklet attempts to address some of these issues to the extent that the projects have been planned, agreed upon, finalized and implementation is under way. Only approximately half of $ 45 billion committed originally for CPEC would be utilized for these projects. Pakistan’s liability is therefore at present limited to this $ 23‐25 billion only. Many other projects are at feasibility stage, discussion or negotiation stage between the two governments or on hold. No amount has either been committed or disbursed for these projects and the liability of Pakistan has not yet arisen. It must be kept in mind that the planning of CPEC follows four stages and frim information would flow only when we reach that stage. These stages are: