By WION Web Team
From the article:
Pakistan today cut the size of China's "Silk Road" by $2 billion due to rising debt constraints, Railways Minister Sheikh Rasheed said.
"Pakistan is a poor country that cannot afford huge burden of the loans," Rasheed said, adding,"therefore, we have reduced the loan from China under CPEC for rail projects from $8.2 billion to $6.2 billion."
The project was hit over cost leading the Pakistan government to rethink the 1,872 km road infrastructure deal.
...
Pakistan's Army chief General Baig who had recently visited China had assured government officials in China on over the viability of the CPEC.
But US Senators last month had flagged concern over risk of debt distress due to rising current account deficit and external debt obligations stemming from the CPEC project. The Centre for Global Development has estimated that of the 68 countries currently hosting BRI-funded projects, 23 countries are at risk of debt distress.
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