The China-Pakistan Economic Corridor (CPEC) is a $62 billion multi-sector collaboration between Pakistan and China as part of the Belt and Road Initiative (BRI). Over the last few years, CPEC has been a hot topic of discussion amongst policymakers and ordinary citizens. To enrich this discussion, the Pakistan-China Institute (PCI) has produced descriptive statistics using data from $19 billion worth of projects out of the total portfolio. The extensive details can be found in the recent monograph titled "CPEC: Where is the money going?" published by the PCI, and a shorter version published in Journal of Infrastructure, Policy and Development based at the National University of Singapore. A few highlights from this research are given below.
CPEC is composed of four different types of financing instruments. The first type is called "Investment" where the Chinese firms that are undertaking the infrastructure projects borrow commercial loans with an interest rate between 4-5%. The second category is called "Concessional Loans" which are given to the Government of Pakistan at an interest rate of 2-2.5% with a maturity period of 25-30 years. The third category is called "Interest-free loans" which constitute a small propo
Saturday 18 July 2020
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