The IMF acknowledges that CPEC related growth could cover these payments over the longer term, but warns that this is not guaranteed. “During the investment phase, as the ‘early harvest’ projects proceed, Pakistan will experience a surge in foreign direct investment (FDI) and other external funding inflows,” says the IMF in a short evaluation of the impact of China-Pakistan Economic Corridor (CEPC) related investments on Pakistan. Both of these, repayments and profit repatriation, “could reach about 0.4% of GDP per year over the longer run”. The IMF acknowledges that CPEC related growth could cover these payments over the longer term, but warns that this is not guaranteed. It connects China’s Xinjiang province with Pakistan Gwadar port, providing access to China to the Arabian Sea.

Source: Mint October 17, 2016 13:52 UTC