In a recent development, the United States warned Pakistan about the increasing Chinese investment in the country on Thursday. In the statement, the United States warned about long-term damage in the Pakistan economy with a minimal return from the China-Pakistan Economic Corridor (CPEC).
The top diplomat for South Asia, Alice Wells, revealed that the ongoing CPEC project completely changed the dynamics of the region. She further warned Pakistan that the project would only benefit China, not Pakistan. She claimed that the United States offered a far better model than CPEC to Pakistan. She rejected China’s claim that CPEC is a kind of aid for underdeveloped Pakistan.
While attending a conference in the Woodrow Wilson International Center for Scholars, she said that the CPEC project is carried out by the Chinese workers. As a result, the unemployment rate in Pakistan is increasing in the last couple of years. As China is using its state-produced material, the profits will be significantly higher than expected.
Alice Wells warned Pakistan about the future consequences. She said that Pakistan would face the heat of the ongoing CPEC after some years. After four to six years, Pakistan has to pay a massive sum to China, which seems impossible due to the lack of economic reforms in the country. The growing amount of loan will be a burden for the Pakistan economy. Even if both the countries decide to postpone the loan payment time, the Chinese investment will minimize Pakistan’s growth potential, she added.
More about CPEC
The China-Pakistan Economic Corridor (CPEC) is a part of China’s highly ambitious Belt and Road initiative (BRI) project. The project is also termed as the flagship project by President Xi Jinping. In the project, China investing heavily in different parts of the world in infrastructure. China is building highways, railways, and ports around the globe. Previously, China captured multiple ports and foreign lands by using debt-trap through this project.