China reluctant to clear $6 bn loan for CPEC project as debt rises
China has shown reluctance to clear a USD 6 billion loan for the single largest project under the China-Pakistan Economic Corridor (CPEC) due to the growing concern over mounting debt.
The cost of the Mainline-I (ML-I) railway project was initially USD 9 billion but later it was reduced gradually to USD 6.8 billion. According to a report in The Express Tribune, Chinese authorities are wary of Pakistan’s ability to service its debt.
“Beijing conveyed its concerns during a meeting held on March 30 to discuss financing modalities of the project,” the Pakistan government officials said as per the report.
“The Chinese side have sought clarification regarding the possibility of raising further debt by Pakistan during currency of the IMF program.
