February 13, 2023
2 mins read

Economic Crisis Disrupts CPEC Projects in Pakistan

Some analysts have argued that Beijing views the current Pakistani government as too unstable to be a viable partner…reports Asian Lite News

A reactor that was recently inaugurated by Pakistan Prime Minister Shehbaz Sharif was funded by China to strengthen Pakistan’s energy security. The work on the reactor began in 2016 after the launch of the China-Pakistan Economic Corridor (CPEC). The reality is Pakistan has been slow to complete infrastructure projects and China has been slow to fund new ones, reported Foreign Policy.

The slowing pace of the CPEC projects is not only because of the ongoing economic crisis in Pakistan as it cannot afford the infrastructural loans extended to it, but also due to Beijing’s own economic slowdown. When Sharif visited Beijing last November, he formally requested a loan grant of USD 6.3 Billion. However, China has yet not approved any loans requested by Sharif, the report claimed. However, it is not just the first setback in long-standing China-Pakistan ties on the diplomatic front. Last year, China didn’t oppose India’s move to exclude Pakistan from a high-level meeting on the sidelines of a virtual BRICS summit that included other emerging economies. China which hosted the event might have stepped in to help Pakistan in such circumstances, the report claimed.

Some analysts have argued that Beijing views the current Pakistani government as too unstable to be a viable partner, the Foreign Policy said.

Further, China has also been worried about the security risks that are on a rise in Pakistan. A few recent attacks have targeted Chinese investments and nationals in Pakistan including at a dental clinic in Karachi last September, a Confucius Institute in Karachi last April, and a luxury hotel in Baluchistan hosting a senior Chinese delegation in 2021, the report said.

The report claims that during the November meeting last year Chinese President Xi Jinping also expressed concerns regarding many of these recent attacks on Chinese Investment in the country.

These investments of China in Pakistan may not be for long especially as Pakistan’s crisis continues to worsen. Last month, inflation reached its highest level since 1975; its foreign reserves currently cover less than three weeks’ worth of imports. On Thursday, Islamabad announced that the most recent round of talks with the International Monetary Fund had failed to produce an agreement to release new funds. As an investing country would like to engage with a more stable government in Islamabad, according to the report. (ANI)

ALSO READ: Will Pakistan go for debt restructuring?

Previous Story

Shaukat Tarin at Risk of Arrest For Derailing IMF Deal

Next Story

Environment Agency warns of drought in 2023

Latest from -Top News

UN urges restraint in Pak-Afghan clashes

Bennett’s statement came after Taliban spokesperson Zabihullah Mujahid said that 12 Afghan civilians were killed and over 100 others injured in recent attacks…reports Asian Lite News UN Special Rapporteur on human rights

Pakistan-Afghanistan border Attack kills 12

Mujahid said that multiple Pakistani soldiers were killed in retaliatory action by Afghan forces…reports Asian Lite News At least 12 people were killed and more than 100 injured in a Pakistani military

India, UK military conduct joint exercise

The exercise also reaffirmed the shared commitment of India and the United Kingdom towards maintaining regional peace, security, and stability. The Indian Air Force (IAF) conducted a joint exercise with the United

16 dead in Dhaka factory fire

The death toll in the blaze is likely to rise, warned another fire official, who did not want to be named….reports Asian Lite News At least 16 people have died after a

India wins unopposed seat on UNHRC

India last served on the HRC in 2024, completing a second consecutive term….reports Asian Lite News India has been elected unopposed to the UN Human Rights Council (HRC) for the seventh time,
Go toTop

Don't Miss

China to hike defence budget

Under Xi Jinping’s leadership, China has continued to significantly expand

Two more arrested on charges of spying for China

The Dutch intelligence agency AIVD on Tuesday identified China as