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Enter the Dragon: How invested is China in Pakistan? (SAMAA TV)
September 20, 2018
By Hisham Sajid
From the article:
The new government’s subtle, yet visible shift in policy has led to debate again over the short- and long-term benefits, and repercussions of the China-Pakistan Economic Corridor.
According to a report released by the Centre of Global Development, China will finance 80% of the projects under CPEC. This has to happen through loans which will have to be paid back with interest rates as high as 5%. The study evaluated the current and future debt levels of the 68 countries hosting BRI-funded projects. It found that of the 23 countries that are at a high risk of defaulting. In eight of those high-risk countries, future BRI-related financing is said to greatly increase the already high risk of default. Pakistan is one of these eight countries.