LAHORE – Single biggest CPEC project in Pakistan is being cut down by $2billion and further cut of $2 billion is also talked about.
Railways Minister Sheikh Rasheed revealed on Monday that $8.2 billionPakistan Railways mega up gradation project is being sized down.
Minister cited government concerns about the country’s debt levels.
The megaproject to revamp the colonial-era line stretching 1,872 km (1,163miles) from Karachi to the northwestern city of Peshawar was initiallypriced at $8.2 billion but wrangling over costs has led to delays.
The changes are part of Islamabad’s efforts to rethink key Belt and RoadInitiative (BRI) projects in Pakistan, where Beijing has pledged about $60billion in financing, but the new government of populist Prime MinisterImran Khan appears to be more cautious about the Chinese investment.
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“Pakistan is a poor country that cannot afford the huge burden of theloans,” Rasheed told a news conference in the city of Lahore.
“Therefore, we have reduced the loan from China under CPEC for railprojects from $8.2 billion to $6.2 billion,” he added, referring to theChina-Pakistan Economic Corridor (CPEC).
Rasheed said the government remains committed to the Karachi-Peshawar MainLine-1 (ML-1) project but added that he wishes to further reduce the costto $4.2 billion from $6.2 billion.
