CPEC suffers jolt??; China decides to temporarily halt funding
In a major jolt to the much hyped China Pakistan Economic Corridor (CPEC), China decided to temporarily stop funding at least three major road projects in Pakistan.
The projects are part of USD 50 billion China-Pakistan Economic Corridor and the funding may have stopped following reports of corruption.
The decision has however, left officials in Islamabad “stunned”, according to a media report from Pakistan.
The decision by the Chinese government is likely hit over Rs 1 trillion-worth road projects of Pakistan’s National Highway Authority (NHA).
Initially, however, at least three such ventures will get affected, according to Pakistan newspapers.
According to a senior government official, the funds would be released after Beijing issues new guidelines.
The nearly USD 60 billion CPEC, a flagship project of Chinas prestigious One Belt One Road, passes through Pakistan-occupied Kashmir (PoK). It links Chinas restive Xinjiang region with Pakistan’s Balochistan province.
The road projects that are likely to be affected include 210-km-long Dera Ismail Khan-Zhob Road, being built at an estimated cost of Rs 81 billion. Of this, Rs 66 billion would be spent on construction of road while Rs 15 billion on land acquisition.>