China's investment objective in economic corridor is only to make profit: America to Pakistan - Daily Current fairs

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Saturday, 23 November 2019

China's investment objective in economic corridor is only to make profit: America to Pakistan

The United States on Thursday warned Pakistan about the China-Pakistan Economic Corridor (CPEC). The US top diplomat said at a program in his own country that China's purpose of investing in CPEC is not to help but to benefit itself. If China continues to invest in CPEC's infrastructure for a long time, Pakistan's economy will collapse.

'It is not right to call the Corridor a game-changer'

Acting Assistant Minister of South Asian Affairs Alice Wells said, "Both China and Pakistan are showing the corridor as a game-changer, but it is not. It has become clear that Beijing only wants to profit from it. America can offer a better model than this. "

In a program at the Woodrow Wilson International Center for Scholars, Wells said, "China is giving non-concessional loans for its billion-dollar ambitious project. Chinese companies are also sending their laborers and goods. This increases the risk of unemployment in Pakistan. "

According to the US Assistant Minister, "If Pakistan delays China in repaying its debt, it will have a significant impact on its economic development." Also, Prime Minister Imran Khan's agenda of reforms in the country will also be affected. "

Wells also said that this model of China (CPEC) is different. We have seen worldwide that the models of American companies have been successful because we do not prefer money. We work on values, processes, and expertise. Also, strengthen the local economy. Several US companies such as Uber, Exxon Mobil, PepsiCo have invested around $ 1.3 billion in Pakistan.

The Economic Corridor is an ambitious plan of Chinese President Xi Jinping. In this, an economic corridor is being built from Gwadar in Pakistan to Kashgar in China at a cost of 50 billion dollars (about 3 lakh crore rupees). Through this, China will have access to the Arabian Sea. China is working on roads, ports, railways and energy projects under CPEC.

In October this year, two parts of the corridor had to be closed due to non-payment to contractors. This was informed by the Public Account Committee (PAC) of the Government of Pakistan. Imran visited China in October. He assured the Chinese government that he would now see the whole matter of the corridor.

The PAC wrote letters to the Ministry of Finance and the Planning Commission. The 2017-18 audit report was also attached to the letter by PAC chairman Noor Alam Khan. According to The News newspaper, a total of 20 thousand crores Pakistani rupees were needed for the first and second quarters. The government released only 7 thousand crores.

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