AgenciesChina in a significant move has held off on projects under the $62 billion China-Pakistan Economic Corridor (CPEC) including a $6.8 billion railway renovation plan following the recent political turmoil and covid situation in Pakistan.
The move came after the recent political unrest led by the Opposition as well as handling of the Covid-19 pandemic both of which have slowed down the flow of Chinese investment in Pakistan, ET has reliably gathered.
However, PM Imran Khan and Pakistan Army’s top brass are planning to approach Chinese President Xi Jinping to expedite CPEC projects that Islamabad claims can create local jobs and boost faltering economy, according to experts who follow latest trends in Sino-Pak relations.
Khan soon after being voted to power in 2018 put on hold several CPEC projects on the suspicion of corruption under the previous government and sought to renegotiate terms and sectors under CPEC. Ironically, Khan’s Cabinet colleagues are now being named in big corruption scandals in some of projects under CPEC.
Before visiting China in October 2019, Khan promulgated an ordinance to establish a CPEC Authority (CPECA) and made Lt Gen (retd) Asim Saleem Bajwa as its chairperson. A recent report in Pak media claimed to expose Bajwa’s many offshore businesses, including over 100 companies and franchises in the US, UAE and Canada in which his family members are also involved.
These allegations came as surprise for China which was banking on the Army to deliver CPEC, according to persons familiar with the developments. The allegations reportedly contributed to the postponement of President Xi Jinping’s scheduled visit to Pakistan in September this year, though Covid-19 was cited as the official reason.
Pakistan is also facing pressure on its coffer as it has to provide security to Chinese nationals involved in the CPEC. The Baloch groups have stepped up their attacks on CPEC projects in Balochistan. China has put the entire onus on Pakistan to provide security for CPEC even as the Khan government sought to blame India for the terror attacks. Pakistan has reportedly requested a 1% interest rate on the Chinese loan for some of the CPEC projects, but Chinese authorities have been reluctant to extend credit at such a low rate, sources indicated to ET.
The move came after the recent political unrest led by the Opposition as well as handling of the Covid-19 pandemic both of which have slowed down the flow of Chinese investment in Pakistan, ET has reliably gathered.
However, PM Imran Khan and Pakistan Army’s top brass are planning to approach Chinese President Xi Jinping to expedite CPEC projects that Islamabad claims can create local jobs and boost faltering economy, according to experts who follow latest trends in Sino-Pak relations.
Khan soon after being voted to power in 2018 put on hold several CPEC projects on the suspicion of corruption under the previous government and sought to renegotiate terms and sectors under CPEC. Ironically, Khan’s Cabinet colleagues are now being named in big corruption scandals in some of projects under CPEC.
Before visiting China in October 2019, Khan promulgated an ordinance to establish a CPEC Authority (CPECA) and made Lt Gen (retd) Asim Saleem Bajwa as its chairperson. A recent report in Pak media claimed to expose Bajwa’s many offshore businesses, including over 100 companies and franchises in the US, UAE and Canada in which his family members are also involved.
These allegations came as surprise for China which was banking on the Army to deliver CPEC, according to persons familiar with the developments. The allegations reportedly contributed to the postponement of President Xi Jinping’s scheduled visit to Pakistan in September this year, though Covid-19 was cited as the official reason.
Pakistan is also facing pressure on its coffer as it has to provide security to Chinese nationals involved in the CPEC. The Baloch groups have stepped up their attacks on CPEC projects in Balochistan. China has put the entire onus on Pakistan to provide security for CPEC even as the Khan government sought to blame India for the terror attacks. Pakistan has reportedly requested a 1% interest rate on the Chinese loan for some of the CPEC projects, but Chinese authorities have been reluctant to extend credit at such a low rate, sources indicated to ET.
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