Imran Khan's Pakistan seeks a whopping USD 2.7 billion loan from China for CPEC projects

In yet ar deal with China, Imran Khan-led Pakistan has decided to seek USD 2.7 billion loan from China for construction of pack-I of Mainline-1 project of China Pakistan Ecomic Corridor (CPEC). Citing government officials, Pakistani media reported that sixth meeting of financing committee on ML-1 project, which includes upgring of 1,872 km railway track from Peshawar to Karachi was concluded and it was decided that Pakistan would initially request China to sanction only USD 2.73 billion in loan out of total estimated Chinese financing of about USD 6.1 billion.

RE | Mehbooba Mufti laments over ceasefire violation casualities; calls for Indo-Pak dialogue

This development comes even as Pakistan's ecomy has been teetering on verge of bankruptcy for some time and COVID-19 pandemic has me situation even worse. Ministry of Ecomic Affairs has been directed to formally send Letter of Intent to China next week as Beijing is expected to finalise its next year's financing plans by end of current month, as per Pakistani media reports.

RE | PM Modi recalls 1971 Banglesh War; names & shames Pakistan amid aggression at LOC

278-p report by "Committee for Power Sector Audit, Circular Debt Reservation, and Future RoMap" listed malpractices to tune of 100 billion Pakistani rupees (USD625 million) in independent power generating sector, with at least a third of it relating to Chinese projects.

According to committee's report, "excess set-up costs of (Pakistani Rupee) Rs 32.46 billion (approximately USD204 million) was allowed to two coal-based [Chinese] plants due to misrepresentation by sponsors regarding [deductions for] 'Interest During Construction' (IDC) as well as n-consideration of earlier completion of plants." interest deduction was apparently allowed for 48 months whereas plants were actually completed within 27-29 months leing to entitlement of an excess Return on Equity (RoE) of USD27.4 million annually over entire project life of 30 years in case of Sahiwal plant.

RE | J&K: Pak resorts to ceasefire violation as Indian Army continues to foil infiltration bids

India's stand on PoK

India has protested to China over CPEC as it is being laid through PoK. Ministry of External Affairs early this year said that Pakistan was told that entire Jammu and Kashmir and Lakh, including areas of Gilgit and Baltistan, are an integral part of India and that Islamab should immediately vacate areas under its illegal occupation.

Pakistan has illegally occupied PoK after incursion in 1947. In a thunderous declaration, while moving a resolution last year for revoking Article 370 that stripped J&K of its special rights and divided state into two Union Territories, Home Minister Amit Shah asserted that Pakistan occupied Kashmir (PoK) and Aksai Chin are part of India and said: "we are rey to give our lives for it". Subsequently, foreign minister S Jaishankar said that India will soon have jurisdiction over territory. Moreover, Army chief General MM Naravane said that Indian Army is rey to reclaim PoK if Centre orders.

RE | PDP co-founder Muzaffar Beigh quits party over 'seat-share issues' with Mehbooba Mufti

(With ANI inputs)