FB   
 
Powered bysps
        Society for Policy Studies
 
 

 
China halts funding, Pakistan left stunned
Updated:Dec 19, 2017
 
Print
Share
  
increase Font size decrease Font size
 
By Anil Bhat
 
The media reported on  December 05, 2017 that China has temporarily stopped the funding of some projects particularly those related to the road network under the China-Pakistan Economic Corridor (CPEC), begun over two years ago, pending a further decision on 'new guidelines' to be issued from Beijing.
 
At least three road projects of the over Rs 1 trillion worth programme of the National Highway Authority’s (NHA) road projects are expected to be delayed.  Include (a) the 210 km Dera Ismail Khan-Zhob Road, at an estimated cost of Rs 81 billion, of which Rs 66 billion will be spent on construction of road and Rs 15 billion on land acquisition, (b) the Rs 19.76 billion 110 km Khuzdar-Basima Road project and (c) the Rs 8.5bn 136-km remaining portion of Karakarom Highway (KKH) from Raikot to Thakot.
 
All these three projects were originally part of Pakistan's own development programme, but in December 2016, the NHA announced that they were to be included under the CPEC umbrella to become eligible for concessionary finance from China. The funding of the three projects was expected to be finalised during the Joint Working Group (JWG) meeting held on November 20, but Pakistan was informed that the existing procedure for release of funds had been ended and that Beijing will issue 'new guidelines' under which a new procedure will be made  for release of the funds. The new guidelines would be applicable for future projects of the CPEC.
 
The reason for China has temporarily halting release of funds for the corridor seems to be that it is quite disturbed with increasing news reports being published in Pakistan about corruption in CPEC projects.
 
Several CPEC projects including an USD 8.2 billion project for upgrading main railway lines and a scheme for setting up special economic zones face delays or are in danger of being closed due to the inability of Pakistan’s federal and provincial governments to overcome their inefficiencies.
 
A major Chinese firm bailed out of the USD 590 million 330MW power project for Pakistan’s Punjab province which was scheduled to start electricity production by end-2017.
 
The CPEC is intended to rapidly modernise Pakistan's infrastructure and strengthen its economy by the construction of modern transportation networks, numerous energy projects, and special economic zones.
 
This move by China has left Pakistan stunned, to say the least.
 
(Anil Bhat is a retired Indian Army officer. He can be contacted at wordsword02@gmail.com)
 
 
 
 
Print
Share
  
increase Font size decrease Font size
 

Disclaimer: South Asia Monitor does not accept responsibility for the views or ideology expressed in any article, signed or unsigned, which appears on its site. What it does accept is responsibility for giving it a chance to appear and enter the public discourse.
Comments (Total Comments 0) Post Comments Post Comment
Review
 
 
 
 
spotlight image Thailand will be the coordinating country for India within ASEAN from July. In an exclusive interview with INDIA REVIEW & ANALYSIS, the fortnightly journal of the Society for Policy Studies (SPS),  Thailand’s Ambassador to India, Chutintorn Gongsakdi, gave a comprehensive view of bilateral relations and
 
read-more
The struggle for autonomy has been going on within the Indian Institutes of Management (IIMs) from their inception, writes P.D. Rai
 
read-more
As India and the 10-nation ASEAN bloc culminate the commemoration of 25 years of their dialogue partnership with a summit in New Delhi January 25 that all the leaders will attend, India is laying out the crimson carpet to ensure that the first ever Republic Day celebrations at which 10 ASEAN leaders will be Chief Guests, jointly, is a
 
read-more
At a high-level Security Council meeting, Pakistan has raised the case of Kulbhushan Jadhav, whom Islamabad has accused of being an Indian spy and given him a death sentence. “Those who speak of changing mindsets (about terrorism) need to look within and their own record of subversion against my country as our capture of an India
 
read-more
The long range surface-to-surface ballistic missile, Agni-5, was successfully flight tested for its full range on January 18, 2018 from Dr Abdul Kalam Island, Odisha. This was the fifth test of the missile and the third consecutive one from a canister on a road mobile launcher. All the five missions have been successful.
 
read-more
“We have a very solid commitment to climate action,” he said. “We cannot be defeated by climate change and we are not yet winning this battle” and the biggest victims of climate change are the developing countries that are members of the Group of 77 (G77).
 
read-more
In a bid to promote trilateral innovation and business opportunities between the US, India, and Israel, Israel-India Technology Group has launched a trilateral fund of $50 million. "We ar...
 
read-more
Column-image

The Tehreek-e-Taliban Pakistan (TTP) has for the first time claimed responsibility for the assassination of former Pakistani Prime Minister Benazir Bhutto in a new book in written by Taliban leader Abu Mansoor Asim Mufti Noor Wali.

 
Column-image

Title: Salafi-Jihadism -The History of an Idea; Author: Shiraz Maher; Publisher: Penguin Random House UK: Pages: 292; Price: Rs 499

 
Column-image

A Review of Anatomy of Failure by Harlan K. Ullman (Naval Institute Press, 242 pages)

 
Column-image

Title: The Beckoning Isle; Author: Abhay Narayan Sapru; Publisher: Wisdom Tree; Pages: 157; Price: Rs 245

 
Column-image

Title: India Now And In Transition; Editor: Atul Thakur ; Publisher: Niyogi Books: Pages: 448; Price: Rs 599