Page 600 - SSB Interview: The Complete Guide, Second Edition

Drawbacks for Pakistan

When global banks are charging interest rates at 1%, 2% or 3%, China is
providing a loan to Pakistan at a very high interest rate of 7%, which

will take the amount to be repaid closer to $100 billion

Since China is mostly giving loans on infrastructure, Pakistan has to find

alternatives to repay the loans

About 18 power plants in Pakistan will be constructed and maintained
by China and Pakistan has no involvement in this, thereby extracting no

income from this

This project is being opposed by Baluchistan because of many political

and economic issues

Response of India

According to a report, PM Narendra Modi in a bilateral meeting with

China expressed his views about CPEC to the Chinese President that
both the countries need to be ‘sensitive’ towards their respective

strategic interests, keeping in mind that this project passes through Pak-

occupied Kashmir

In response to tackle the construction of Gwadar port in Pakistan by
China, India is developing Chabahar port in Iran, which is Iran’s only

oceanic port

Future of CPEC

CPEC is definitely a good opportunity for Pakistan to develop its

infrastructure. It is a boon as well as a bane. If Pakistan makes use of SEZs
effectively, it will help them to repay the loan and build their own stable
economy. If China implements this project without hurting the interests of