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China has decided to temporarily stop funding at least three major road projects in Pakistan, being built as part of the $50 billion China-Pakistan Economic Corridor (CPEC), following reports of corruption, a decision that has left officials in Islamabad “stunned”, a media report said on Tuesday, 5 December.
According to a senior government official, the funds would be released after Beijing issues ‘new guidelines’.
The nearly $60 billion CPEC, a flagship project of China's prestigious One Belt One Road, passes through Pakistan-occupied Kashmir (PoK). It links China’s restive Xinjiang region with Pakistan’s Balochistan province.
The other project which is going to be hit is 110-km-long Khuzdar-Basima Road, having an estimated cost of Rs 19.76 billion.
The third project is Rs 8.5 billion worth, the remaining 136-km of Karakarom Highway (KKH) from Raikot to Thakot.
Originally, all the three projects were part of the Pakistan government’s own development programme, but in December 2016, the NHA spokesperson had announced that they would be included under the CPEC umbrella so as to become eligible for concessionary finance from China.
The decision of the Chinese government was conveyed to Pakistan in the JWG meeting and the existing procedure for release of funds had been abolished, he said.
The official said the Pakistani side was left “stunned” when informed about this development, as it was the first time they were hearing it.
CPEC was launched in 2015 when President Xi Jinping visited Pakistan and it now envisages investment of around USD 50 billion in different projects of development in Pakistan.
(The article has been edited for length.)
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