CPEC debt liabilities estimated to be around $3.3-4.5 billion per year by 2025

The debt liabilities of the China-Pakistan Economic Corridor (CPEC) are estimated to be around US$3.3 to US$4.5 billion per year by 2025, said the findings of 10th annual report on the state of economy titled "China-Pakistan Economic Corridor Review and Analysis" prepared by the Shahid Javed Burki Institute of Public Policy at Net Sol.
The report was launched on Monday. Governor Punjab Rafique Rajwana was the chief guest. Former foreign minister Khurshid Mahmood Kasuri presided over the session. Former governor State Bank of Pakistan Dr Ishrat Husain, Chairman Shahid Javed Burki Institute of Public Policy Shahid Javed Burki, Vice Chairman Shahid Najam and former foreign secretary Shamshad Ahmad Khan expressed their views on this occasion.
The report recommended that the government of Pakistan should consider establishing a specific CPEC unit within the framework of Council of Common Interests to manage CPEC with transparency and efficiency. It is also recommended that to turn things around, policymakers need to take cognizance of this fact and take measures such as improve revenue performance at national and provincial levels and reduce public sector enterprises losses (3.8pc of GDP) and enhance trade competitiveness.
Prudence in planning and implementation would be a key to effective use of available funds under the CPEC and ensure that these investments result in real benefits to cope with future liabilities. The report also recommended that bringing Afghanistan into CPEC umbrella will greatly enhance the potential benefits of the scheme and help reduce regional conflicts.
The report also called for improving trade transit facilities at China-Pakistan border. The master plan proposes to develop the western and central corridors, the initial focus seems to be on the eastern corridor only. Special efforts should be made to accelerate the construction of the western route and implement the accompanying investment needed for the economic uplift of the backward areas, keeping in view local comparative and competitive advantages.