America has warned Pakistan that it is getting trapped in the clutches of China, China is building the China-Pakistan Economic Corridor just for its benefit.
The US has warned Pakistan that only China will benefit from the China-Pakistan Economic Corridor (CPEC). In contrast, Pakistan will be burdened with heavy debt. According to Dawn’s report, while addressing attendees at the Wilson Center in Washington, the US think tank and additional minister for South Asia, Alice Wells, said the multi-billion dollar project would adversely affect Pakistan’s economy.
He said that CPEC is not a help to Pakistan. This is a financial form that will provide mandatory profits to Chinese companies and very little of it will also get to Pakistan. Wells said, ‘The most expensive project of CPEC is the up-gradation of the railway line from Karachi to Peshawar. The cost was estimated at $ 8.2 billion (about Rs 588 billion) when the project was announced. However, in October 2018, the Pakistani Railway Minister had said that the cost of the project has been reduced by two billion dollars (about 143 billion rupees) from the bargain.
He said that Pakistan is a poor country and cannot afford this much debt. Also, in a recent media report, it is being said that the project has now been worth nine billion dollars. Pakistan has to understand that China is giving loans and not a grant like the US.