GILGIT, June 3: The closure of the border with China at Sost entry point in the Khunjerab valley will badly hit the trade and mega projects in the Northern Areas.

At least three projects — the 18 megawatt Naltar power project, Karakoram Highway rehabilitation project of over 200km near the Pakistan-China border and 4 megawatt Guru power project (phase II) — will suffer the most.

For the Naltar power project Rs1.33 billion had been approved, whereas the Chinese government had approved Rs6 billion for the Karakoram Highway rehabilitation project. Not only the two projects but also the Guru power project would suffer owing to the border closure, what to say of the trade and other economic activities.

The Sost portal was to open on June 1 as it was closed for a month in May by the government after taking into consideration the pattern of epidemiology of the severe acute respiratory syndrome (Sars) in China. The governments of Pakistan and China had mutually agreed for the closure.

Recently, the government had decided to keep the border closed for another one month owing to the fear of the viral infection, which is still raging havoc in China.

Sources in the Northern Areas Public Works Department (NAPWD) said that nearly an half a dozen Chinese engineers had reached Gilgit a month back and were waiting for the machinery to arrive to kick start the rehabilitation work at the Karakoram Highway.

The Chinese government had approved Rs6 billion for the project, which included building and repairing bridges, and constructing protective walls along the sliding areas in upper Hunza. The mud sliding had frequently hindered trade conveys between the two states.

The sources said that the Naltar power project may suffer a sever blow and might be shelved as banks had lent money for its execution and would not want to get their money stuck in a delayed project.

Similarly, the sources said, the KKH rehabilitation project might be cancelled owing to the border closure.