CHINA-PAKISTAN: BEIJING SLOWS INVESTMENT IN PAKISTAN BECAUSE OF CHINESE COMPANIES ARE NOT BEING PAID
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A report in the Asia Times (December 2) said Pakistan’s repayment problem is reflected in the pace of the China-Pakistan Economic Corridor (CPEC), as Beijing slowed further investment given the difficulties faced by Chinese companies in getting their financial matters settled with Islamabad. It said Chinese state insurer Sinosure had already blocked $13 billion worth of CPEC energy and infrastructure projects due to non-payment of capacity dues. Sinosure’s lethargy to underwrite the CPEC projects has delayed the much-touted 1,733-kilometer railway track linking Pakistan’s seaport with the northwestern parts of the country and about half a dozen energy-related projects that should have been started generation by the end of June. Special Assistant to the Prime Minister on CPEC Khalid Mansoor told journalists on November 30 that the Chinese ambassador in Islamabad has been briefed on the Sinosure issue and urged to intervene. Mansoor hoped that strategically important projects like the ML-1 railway line and six energy projects including Gwadar, Karrot, Kohala and Azad Pattan, Thar and Thal-Nova would be prioritized.
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