Insta
‘No Transparency In CPEC, Contracts Given To Companies Blacklisted By World Bank’: US Diplomat Alice Wells
Swarajya Staff
Jan 23, 2020, 05:43 PM | Updated 05:43 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Senior US diplomat for South Asia region Alice Wells, on Wednesday (22 January) criticised the China-Pakistan Economic Corridor (CPEC) for not having any transparency in the projects, reports Wion News.
Wells who was speaking at an event in Pakistan, said that under the multi-billion project contracts were given to companies which are blacklisted by World Bank.
Wells was categorical about the lack of transparency in the CPEC projects and said that Pakistan's debt burden was growing due to the Chinese financing. It will increase a cash-strapped Pakistan's debt burden and it was time to rethink of its involvement in this multi-billion dollar project of Chinese President Xi Jinping.
"By getting Chinese financing for the projects, Pakistan was buying expensive loans and as a buyer, it needed to be aware that what it was doing would take a heavy toll on its already struggling economy," Wells said.
While speaking at the prestigious Woodrow Wilson International Centre for Scholars on 21 November 2019, Wells noted that the multi-billion-dollar initiative was driven by non-concessionary loans and she said, “CPEC relies primarily on Chinese workers and supplies, even amid rising unemployment in Pakistan.”
Wells said, CPEC would profit only Beijing and the US offered a better model. The acting assistant secretary of state for South Asia added, “It’s clear, or it needs to be clear, that CPEC is not about aid.”
Many experts believe CPEC is nothing but a “debt trap” and it will not address the growing unemployment in Pakistan as China predominantly uses its own citizens and supplies. In few years it will take a great toll on the Pakistan economy when it will have to repay the loans given at very high interest rates in the next four to six years.
CPEC was launched under the ambitious Belt and Road Initiative (BRI) in which China planned develop a network of roads, railways and energy projects linking China's resource-rich Xinjiang Uyghur Autonomous Region with Pakistan's strategic Gwadar Port on the Arabian Sea which is very close to Strait of Hormuz.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.