China rejects reports of seeking guarantees from Pakistan for approving $6 billion loan

WION Web Team
New Delhi, Delhi, India Published: Dec 28, 2020, 07:08 PM(IST)

File photo. Photograph:( Zee News Network )

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Chinese Foreign Ministry spokesman Zhao Lijian said despite the global economic recession, 'China's input in the Belt and Road Initiative (BRI) including the CPEC' has increased. 

China on Monday dismissed reports that it asked Pakistan of additional guarantees for approving a USD 6 billion loan for a railway line project and moving away from its financial commitments to the ambitious China-Pakistan Economic Corridor (CPEC). 

Chinese Foreign Ministry spokesman Zhao Lijian said despite the global economic recession, "China's input in the Belt and Road Initiative (BRI) including the CPEC" has increased. 

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"I would also like to stress that against the global economic recession, China's input in the Belt and Road Initiative (BRI) including the CPEC has not reduced but rather increased against the odds," Zhao was quoted as saying by news agency PTI.  

Also read | China seeks additional guarantees before sanctioning USD 6 billion loan for rail project in Pakistan

"Over the first three quarters, China's direct financial investment in BRI countries increased by around 30 per cent, offering China's support to many BRI partner countries in their effort to fight the epidemic and recover their economy."

CPEC is a crucial part of Chiná's multi-billion-dollar BRI.

The corridor which connects China's Xinjiang province to Gwadar Port in Pakistan's Balochistan has been opposed by India as it passes through Pakistan-occupied Kashmir (PoK). 

Recently, Pakistani media has reported that China has asked Pakistan to provide additional guarantees before sanctioning the 6 billion dollar loan for the Main Line-1 (ML-1) railway line project due to Islamabad's vulnerable economic condition. 

Zhao also rejected claims that China is moving away from its initial commitments to Pakistan under the CPEC due to a rise in corruption and militant attacks. 


 

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