ISLAMABAD: China has temporarily stopped funding of some projects particularly those related to the road network under the China-Pakistan Economic Corridor (CPEC) till further decision regarding ‘new guidelines’ to be issued from Beijing, a senior government official told Dawn on Monday.
The decision could affect over Rs1 trillion road projects of the National Highway Authority (NHA). It was not clear how wide the impact of the delay will be, but initial reports confirm that at least three road projects are going to experience a delay.
The projects to be affected include the 210-km Dera Ismail Khan-Zhob Road, at an estimated cost of Rs81 billion. Of this, Rs66bn will be spent on construction of road and Rs15bn on land acquisition. Also the Rs19.76bn 110-km Khuzdar-Basima Road has also been affected.
The Rs8.5bn 136-km remaining portion of Karakarom Highway (KKH) from Raikot to Thakot is also impacted.
All three projects were originally part of the government’s own development programme, but in December 2016, the spokesman of the NHA announced that they are to be included under the CPEC umbrella to become eligible for concessionary finance from China.