This refers to the article, ‘Sri Lanka for sale?’ (June 4) by Farrukh Saleem. The writer has examined how Sri Lanka is weighed under a large amount of debt. The load was given by China for various development projects. These projects didn’t turn to be profitable. The failure of the Sri Lankan government to pay back loans have compelled it to request the Chinese to take over and run these projects. However, China is more interested in getting its money back.
Pakistan should learn something from this arrangement. It has also entered into a similar agreement. China is lending money to the country for various development projects. CPEC involves the investment of $46billion. After the loan term is expired, the Chinese will obviously want their money back. Even if these development projects couldn’t yield high returns in the long run, the country would still have to make loan repayments along with interest. Therefore, the country should be careful with the CPEC projects.
Sqn Ldr (r) Tarique Mahmood Malak
The article is an excellent analysis of loan taken by Sri Lanka from China for various infrastructure projects. The failure of the Sri Lankan government to generate revenue from these projects is an eye-opener for those who advocate that developed infrastructure is the way to progress. There is no doubt that infrastructure is one of the means of progress of a country. But it is not only good infrastructure that is required for progress; There is a need for the installation of more industries, improvement in technical knowledge, better human resources, good strategic planning and, above all, good law and order situation.
Just trying to develop infrastructure and not caring for other necessary factors, particularly by taking foreign loans, is a risky policy. Let us hope that Pakistan we will not end up like Sri Lanka.