Stories about $51.5 billion

Will Pakistan forever be indebted to China for CPEC?

Loans are no fun, nor is $51.5 billion coming under the cover of China–Pakistan Economic Corridor (CPEC). It is easy to find yourself in debt, but it is hard to get out of it. This leads to the question, how will Pakistan get out of Chinese loans? CPEC has financial arrangements on South-South Cooperation model which don’t just depend on giving aid like the North-South Cooperation. Under this Cooperation, China has made use of four major tactics: investment, aid/grants, joint ventures and equity ratio. And when BOT (build-operate-transfer) is not possible, the next best alternative is opting for soft loans. These loans are comprised of three categories: preferential ...

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