Economy
Experts believe Beijing’s China Pakistan Economic Corridor will soon be a “trillion dollar blunder"

Just Earth News | @justearthnews | 23 Jun 2020 Print

Experts believe Beijing’s China Pakistan Economic Corridor will soon be a “trillion dollar blunder"

Tel Aviv: The China-Pakistan Economic Corridor (CPEC), a flagship of China's imperialistic and expansionist agenda under its Belt and Road Initiative, will soon be turning into a “trillion dollar blunder", experts believe.

The China-Pakistan Economic Corridor is a collection of infrastructure projects that are currently under construction throughout Pakistan.

 

Originally valued at $46 billion, the estimate of CPEC projects is now $87b., and only a quarter of which have been completed. CPEC was intended to rapidly modernize Pakistani infrastructure and strengthen its economy by the construction of modern transportation networks, numerous energy projects and special economic zones (SEZs), reports The Jerusalem Post.

However, according to the Center for Strategic and International Studies, these SEZs have remained largely empty today and the longstanding challenges have only become more exacerbated. Facing unsustainable debt levels, growth rates down to 3%, five-year-high inflation rates and soaring deficits, Pakistan’s economy is definitely moving in the reverse direction, reports the newspaper.

Analysts have told the Israel-based newspaper these are bridges that don’t go anywhere. Some of the ambitious projects like a high-speed train from Beijing to Moscow will never have any takers.

"The debt quotient of this corridor is about $80b., 90% of which will be paid for by Pakistan in the form of national debt. Pakistan itself knows it will not be able to pay China back and will slowly lose sovereignty of its own land," the newspaper reported.

According to experts, the projects do not seem to have the potential to be profitable or successful.

Ultimately, this is a Chinese “colonial” adventure that will never bear fruit, The Jerusalem Post reported.

China sets the price, Pakistan gets the bill and ends up with substandard infrastructure it cannot service. It will be known as the “trillion dollar blunder", reports the newspaper.