China temporarily stops funding CPEC road projects over corruption reports

TIL Desk/World/Islamabad/ China has decided to temporarily stop funding at least three major road projects in Pakistan, being built as part of the $50 billion China-Pakistan Economic Corridor, following reports of corruption, a decision that has left officials in Islamabad “stunned”, a media report said on Tuesday.

The decision by the Chinese government is likely hit over Rs 1 lakh crore-worth road projects of the Pakistan’s National Highway Authority (NHA), and initially, may delay at least three such ventures. According to a senior government official, the funds would be released after Beijing issues ‘new guidelines’.

The nearly $60 billion CPEC, a flagship project of China’s prestigious One Belt One Road, passes through Pakistan-occupied Kashmir (PoK). It links China’s restive Xinjiang region with Pakistan’s Balochistan province.

The road projects that are likely to be affected include 210-km-long Dera Ismail Khan-Zhob Road, being built at an estimated cost of Rs 8,100 crore. Of this, Rs 6,600 crore would be spent on construction of road while Rs 1,500 crore on land acquisition.