current affairs MCQ #6120

What is the "debt trap diplomacy" criticism levelled at CPEC and how does Pakistan's government counter it?

current affairs MCQ #6120

  1. Question 1

    Q1. What is the "debt trap diplomacy" criticism levelled at CPEC and how does Pakistan's government counter it?

    • A) The criticism argues CPEC forces Pakistan to use only Chinese companies; Pakistan counters it has allowed European firms to bid
    • B) The criticism claims CPEC transfers land ownership to China; Pakistan counters that all land remains sovereign Pakistani territory with lease agreements
    • C) The criticism argues CPEC creates unsustainable debt leaving strategic assets vulnerable to Chinese control; Pakistan counters that CPEC loans are mostly concessional and returns from energy projects justify investment
    • D) The criticism alleges CPEC bypasses Balochistan; Pakistan counters that Gwadar is its centrepiece

    Answer: The criticism argues CPEC creates unsustainable debt leaving strategic assets vulnerable to Chinese control; Pakistan counters that CPEC loans are mostly concessional and returns from energy projects justify investment

    Explanation: Critics, including the US and some Pakistani economists, argue that CPEC's power purchase agreements and loan structures create debt dependency that could give China leverage over strategic assets like Gwadar.