The repayment of China Pakistan Economic Corridor loans will begin from 2022 with total amount to be repaid is $ 7.457 billion which includes principal of $ 6.035 billion and interest of $ 1.422 billion with an annualized payment of $ 350 million. This was stated by the Economic Affairs Division in a statement that stated infrastructure holds primary importance for economic growth and prosperity of Pakistan, says a press release.
The government of China has committed an amount of $ 6 billion concessional loans for five CPEC infrastructure projects. These are low interest rate preferential loans with 20 years tenor and five years of grace period. Out of these committed loans US$ 4 billion has been received so far. In addition to this, government of China has approved US$ 375 million grant projects which include mega infrastructure projects like Gwadar International Airport and Gwadar hospital. Similarly, Eastbay Expressway project is being financed through interest free loan of US$ 168 million. The net effective rate of interest on CPEC infrastructure projects is around 2 percent per annum, the EAD added.-PR