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Work on three CPEC projects halted till China’s approval, says planning minister
ISLAMABAD: China has halted the release of funds for three projects under the China-Pakistan Economic Corridor (CPEC) till the revision of its ‘financial mechanism’ by Beijing, Minister for Planning and Development Ahsan Iqbal confirmed on Monday.
According to an official press release issued by National Assembly Secretariat, the minister informed the 25th parliamentary committee meeting on CPEC that the Chinese side was reviewing the financial mechanism of these projects and work on them would restart after receiving approval from Beijing.
Mr Iqbal could not convince the committee members as to why the Chinese government had opted for a new financial mechanism and scrapped the previous one which was agreed upon by both countries.
Also read: CPEC delay a setback or ‘operational hiccup’?
It was reported that China had temporarily stopped funding some projects, particularly those related to the road network under CPEC, till a further decision on ‘new guidelines’ by Beijing.
When contacted, Pakistan Tehreek-i-Insaf (PTI) leader Asad Umar, who is also a member of the parliamentary committee, said he had raised the issue of suspension of Chinese funds at the meeting, which was chaired by Senator Mushahid Hussain Syed.
The members, he said, were informed that China was revising the infrastructure projects under its “financial review”.
Another member of the committee, Al-Haj Gul Khan Afridi, said they were told that China had not stopped financing the CPEC projects but raised some ‘technical objections’ to three NHA road projects. A team of Chinese experts would arrive in the country soon to inspect the three NHA projects, he added.
However, a senior NHA official rejected the government claim that work on the three road projects of the authority had been halted on technical grounds. “It is not true that China raised objections to the projects because these had already been approved at the 6th Joint Cooperation Committee (JCC) meeting held last year,” he said.
Ahsan Iqbal informed the committee that the Karachi Circular Railway project had been approved for CPEC, while similar projects for Quetta and Peshawar would be reviewed in accordance with the technical feasibility reports.
Published in Dawn, December 12th, 2017
Comments (25) Closed
We need to convince the Chinese that all this dharna and sit in just for elections in coming year and security is in support of the project. Otherwise we r in deep trouble o v from all sides. Pakistan Zindabaad
For whatever reasons, the project has been halted. I dont find fault with China as right from the day one, they have been keen on investing in pakistan in a big way. What made this sudden change needs to be investigated and cleared so that the CPEC is implemented without hiccups or cost overruns. All the best.
Don't worry. It is ONLY due to financial review. They will release funds asap.
Expected
Just China wants to dictate terms on their favour.this is what happens when the country have weak government. No Pakistan has no other way than accepting all terms of China's dictatorship.
Ahsan Iqbal appears to be the most incompetent man in the government.
Now there is no need of putting money Rupee down fall will take care and profit come automatically.
Out of $60 billion worth of dollars projects, was it not inevitable that a few would fall through?
PTI and AU don't care if economic development projects are halted or delayed.
Our PMLN government is very extravagant with funds. They ride around in motorcades of dozens of cars, live in palatial houses - perhaps some stringent financial discipline would do this corrupt political lot some good.
Chinese companies and individuals also take advantage of this corruption, some were involved in stealing ATM funds from hundreds of residents in Karachi, we should not loot nor let anyone else loot.
Sri Lanka on Saturday formally handed over the southern sea port of Hambantota to China on a 99-year lease because they could not repay the debt.China lent Venezuela $63 billion which is gone in bad loan as Venezuela economy has crashed and its currency is of virtually no value.May be China now wants to proceed with caution and will make more checks and mortgages before committing loans!
@Nuer Rupee devaluation only means more Rupees have to be paid to repay the loan in Dollars or Yuan. With interest rates already higher than other soft International Loans, Pakistan needs to be more careful it does not end up having to hand over Gwadar as happened with Habentota in Sri Lanka
Why we are interested in Karachi Circular Railway? Developments and population growth areas are not align with Karachi old circular railway track. It will be useless project.
If government want to impress Karachiites than it should clean the city.
China rethinking charity funds for Pakistan. IMF should come to the rescue
China is $11.2 trillion economy. Can't they just give meager $60 billion to their younger brother? US used to do that for years!
@Raj The result probably is the realisation by the Chinese. No one in Pakistan wants to develop and these Chinese were trying their best, ofcourse for their own interest. But now they realise their fault.
Most likely this may be in response to dharnas & negative talk about the CPEC. Political instability might be another reason. Wish China's review is in favor of Pakistan. Frankly we are thankless people, see statements of many politicians on CPEC since this project was launched.
@Azmeen its not us the common people who are thankless, it's our corrupt rulers and I can confidently say that rulers include boys and politicians form all parties.
One who spend the money really knows the pain of corruption
I personally think that's good, it will instill some fiscal discipline in our "politicians" because nothing ever works under them...
@Hayim Don't blame the man blame your system and faulty policies
Due to current political and financial instability, china hate some project , they are reviewing the situation . We hoperate they will release funds soon if the stipe funds the cost of the project may go over projected
Let it halt. The loss is greater for China.
@Ashok Saigal Gwadar is already 90% Chinese property.....
@Azmeen Scrutiny is not bad. In such huge projects, hiccups and delays are always expected. I believe Chinese are worries more about corruption than anything else....