Waive debt or renegotiate loans to create a fair deal for Pak: US to China

It is really incumbent on China to take steps to alleviate the burden this predatory, unsustainable and unfair lending is going to cause to Pakistan, Alice Wells says

The United States on Wednesday asked China to take steps to ease the burden of its predatory and unfair lending to Pakistan during the coronavirus crisis.

Alice G Wells, US State Department's top official for Central and South Asia, told reporters during a conference call that be it the China-Pakistan Economic Corridor (CPEC) or any other assistance, "the US supports investment that meets international standards, upholds environmental and labour requirements and benefits the people of the region."

"I've enumerated the United States government's concerns over the CPEC, lack of transparency involved in the projects and unfair rates of profit that are guaranteed to Chinese organisations," she said in response to a question on the corridor.

"I think at a time of crisis like Covid, when the world is reeling from the economic consequences of having shut parts of the economy, it is really incumbent on China to take steps to alleviate the burden this predatory, unsustainable and unfair lending is going to cause to Pakistan," she said.

Wells said the United States hopes that China will either waive debt or renegotiate the loans to create a fair and transparent deal for Pakistani people.

"The United States is joining other voices in the region and globally calling on China to offer transparent relief from the predatory loans that the countries are now suffering from. The US will use its partnership with international financial institutions like the World Bank and IMF, to help ensure that countries reemerged from this crisis on stable footing and we urge others to join us in this global effort," she said.

Pakistan's commitment to peace 

"Pakistan's commitment to peace has grown as it has started taking steps to curtail terrorist groups and their funding, and because of that "we're seeing initial growth in our relationships, particularly in trade," she added.

"The suspension of security assistance by President Donald Trump in 2018 marked a fundamental change in the country's approach towards Islamabad. The South Asia strategy made it clear that Pakistan needed to take decisive action against these groups, particularly those who support the conflict in Afghanistan and threaten regional stability. Since then, the United States has seen constructive steps by Pakistan to encourage the Taliban to advance the Afghan peace process," Wells said.