China

China stops funding CPEC road projects over graft issue: Report

China has decided to temporarily stop funding at least three major road projects in Pakistan, being built as part of the USD 50 billion China-Pakistan Economic Corridor, following reports of corruption, a decision that has left officials in Islamabad “stunned”, a media report in Pakistan based Dawn news said today.

The decision by the Chinese government is likely hit over Rs 1 trillion-worth road projects of the Pakistan’s National Highway Authority (NHA), and initially, may delay at least three such ventures, Dawn newspaper reported.

According to a senior government official, the funds would be released after Beijing issues ‘new guidelines’.

The nearly USD 60 billion CPEC, a flagship project of China’s prestigious One Belt One Road, passes through Pakistan administered Kashmir (PaK). It links China’s Xinjiang region with Pakistan’s Balochistan province.

 

Originally, all the three projects were part of the Pakistan government’s own development programme, but in December 2016, the NHA spokesperson had announced that they would be included under the CPEC umbrella so as to become eligible for concessionary finance from China.

 

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