ISLAMABAD, April 26: China has expressed its inability to fund any new projects in Pakistan for the time being, foreign office sources told Dawn on Friday.
However, the projects on which commitments have already been made or pacts have been signed would continue as per schedule.
Pakistan has also been told to concentrate on the completion of ongoing projects, and on implementation of the existing agreements before proposing fresh projects to China, the sources say.
China, they say, has quoted its limited resources and commitment for economic help to other developing countries in Asia and Africa, besides slow progress on the implementation of existing agreements as reasons for its difficulty to undertake any fresh plan with financial commitments.
Accordingly, the foreign office has communicated to the Chief Executive Secretariat and all the economic ministries—- commerce, water and power, food and agriculture, science and technology, petroleum—, economic affairs division and board of investment to expedite work on the ongoing projects and to remain careful in submitting fresh proposals to the Chinese government, especially those requiring sizable financial commitment.
But when Dawn contacted Foreign Office spokesman Aziz Ahmad Khan, he did not respond to comment despite repeated calls. Finance Ministry Spokesman Dr Waqar Masood was not available for comments.
Foreign Office documents suggest that China has committed over $1.5 billion in economic assistance, credits and investments to Pakistan over the last two years.
The cost of projects currently underway is estimated at $700 million while those in pipeline are estimated at 800 million dollars.
Two coal mine projects worth $1 billion are currently under discussion on which an understanding may be reached shortly, and the projects are expected to be completed in almost 8-10 years.
The sources, however, say the Chinese companies, particularly in the oil and gas sector, were seriously considering the possibilities of involvement in the privatisation and development of the oil and gas sector in Pakistan.
They have conveyed their keen interest, through unofficial channels, in the privatisation of big oil and gas units through negotiations instead of open bidding, they say.
China has also provided $500 million to Pakistan as temporary balance of payment support through a recently rolled over cash deposit with the National Bank of Pakistan for three years ending 2005.