current affairs MCQ #6808

In the context of CPEC financing, what is the primary instrument used by Chinese state banks to fund Pakistani infrastructure projects?

current affairs MCQ #6808

  1. Question 1

    Q1. In the context of CPEC financing, what is the primary instrument used by Chinese state banks to fund Pakistani infrastructure projects?

    • A) Sovereign-backed commercial loans at concessional rates
    • B) Equity financing through joint venture arrangements
    • C) Islamic sukuk bonds traded on Shanghai Exchange
    • D) Direct budget support grants from Chinese treasury

    Answer: Sovereign-backed commercial loans at concessional rates

    Explanation: Chinese state banks such as China Development Bank and Exim Bank of China primarily use sovereign-backed commercial loans at concessional rates to finance CPEC infrastructure, creating long-term debt repayment obligations for Pakistan.