ISLAMABAD: A number of road projects related to the $52 billion China-Pakistan Economic Corridor (CPEC) are said to be in doldrums as the National Highway Authority (NHA) faces financial crisis.

Sources told Dawn that contractors have stopped work on several CPEC projects after their cheques worth over Rs5 billion had bounced a couple of days ago.

It is for the first time that CPEC projects faced such a situation because of financial reasons.

The projects which have been hit by the situation include Hakla-Dera Ismail Khan, Western Route of CPEC and all sections of Karachi-Lahore Motorway (KLM).

According to the sources, seven packages of Hakla-DIK measuring 400km roads all projects of KLM have been affected.

The firms whose cheques have bounced include SKB, ZKB, Noman Construction, ACGC Chinese, Sardar Ashraf D Baloch, China Railway 17 Group and Matracon.

The sources said that not only the CPEC projects but local industries related to construction and a large workforce of engineers and labourers have also been hit by the situation.

When contacted, NHA spokesman Kashif Zaman said the authority issued cheques of Rs5bn on June 29 to the firms against the sanction by the government.

He said cheques worth Rs1.5bn were cleared by the same day and “the remaining cheques that were deposited the next day could not be cleared”.

Mr Zaman said the matter had been taken up with the government and hopefully it would be resolved soon.

When asked about suspension of work by the contractors, he said: “The progress on the project had not been affected. Same is true for Hazara Motorway and other sections.”

He said most of the projects in question would be completed by December 2018.

However, it has been learnt that the CPEC projects would be delayed further if the situation continues and outstanding dues of contractors are not paid.

Published in Dawn, July 23rd, 2018

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.