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

Hamas Heads to Egypt for Gaza Talks

The negotiation will focus on the details of enacting the first phase of the plan…reports Asian Lite News A delegation from the Palestinian group Hamas arrived in Egypt on Sunday ahead of

Multi-alignment, upgraded

With US ties strained and China tense, New Delhi taps Europe’s harder edge for co-development, clean tech and strategic autonomy, writes Manoj Menon India is recalibrating its great-power hedging as frictions with

India-EU Trade Deal Breakthrough Soon?

Negotiators report increased momentum in discussions, which have been given a boost from US President Donald Trump’s tariff offensive…reports Asian Lite News India and the European Union aim to finalise a trade

Europe Seeks Peace in Gaza

European countries condemn Israeli interception of Gaza-bound flotilla, demand safety of citizens…reports Asian Lite News Israel’s interception of an international flotilla carrying humanitarian aid to Gaza has sparked condemnation across Europe, with

GAZA: Egypt to Host Peace Talks

Egypt hopes the discussions will help “end the war and the suffering of the brotherly Palestinian people, which has continued for two consecutive years…reports Asian Lite News Egypt will host Israeli and
Go toTop

Don't Miss

Chinese EV maker BYD far ahead than Tesla

BYD’s top three models — BYD Song, BYD Qin and

Quetta crackdown boots out 30k Afghans

Pakistan has repatriated over 30,000 illegal Afghan nationals from Quetta