Skip to main content

Et tu, Brute? Chinese banks looking to end investments in CPEC due to political instability in Pakistan

DNA Web Team | Updated: Aug 28, 2020, 02:21 PM IST
Representational image
File Photo (Representational image)

The multi-billion-dollar project has grabbed eyeballs with China looking to expand its influence in another country, and Pakistan looking for economic modernization

In what comes as a blow for Pakistan, the dream project of the country-China Pakistan Economic Corridor (CPEC) seems to be in a fix as many financial institutions and banks of China are showing reluctance in investing in the project.

The matter was discussed with the Chinese authorities when Pakistan Foreign Minister Shah Mehmood Qureshi visited the country last week.

The multi-billion-dollar project has grabbed eyeballs with China looking to expand its influence in another country, and Pakistan looking for economic modernisation.

However, the project has attracted a fair share of controversies


India has been boycotting the BRI to protest over the CPEC being laid through the Pakistan-occupied Kashmir.

Meanwhile, many Baloch political activists have alleged that the people in Balochistan are paying a heavy price for the multibillion-dollar China-Pakistan Economic Corridor (CPEC). Incidents of enforced disappearances, tortures and killings have seen a sharp rise in Balochistan since the launch of the CPEC project. 

Pakistan's army has carried out operations in the areas where the project passes through as they have to provide a clean path to China. Balochistan is a resource-rich region with huge reserves of minerals and gas, but it remains poor because of exploitative policies of Islamabad. It has given birth to freedom movement in Balochistan.

Moreover, Pakistan was hit by a scam of $630 Million scam in May last year.

A committee looking into the losses in Pakistan's power sector dug out the scam.

Two Chinese power sector companies working on the CPEC project--Huaneng Shandong Ruyi energy (HSR) and Port Qasim Electric Power Company Limited were accused of corruption.

They were accused of violating standard procedure and malpractices, by showing excess set-up costs for extra profits, raking up a profit of up to 50 to 70 percent.

Moreover, there were reports of CPEC Chinese workers, most of them belonging to the military, trafficking of Pakistani women to China, and clashing with Pakistani locals.

The CPEC project is crucial considering this comes at a time when Saudi Arabia ending loan and oil supply to Pakistan.Pakistan was also made to pay back USD 1 billion to Saudi Arabia, which was part of a $6.2 billion package announced by Saudi Arabia in November 2018, which included a total of $3 billion in loans and an oil credit facility amounting to $3.2 billion.

The CPEC, worth USD 60 billion, connects Gwadar Port in Balochistan with China's Xinjiang province, is the flagship project of Chinese President Xi Jinping's ambitious Belt and Road Initiative (BRI).


Popular posts from this blog

SSG Commando Muddassir Iqbal of Pakistan Army

“ Commando Muddassir Iqbal was part of the team who conducted Army Public School operation on 16 December 2014. In this video he reveals that he along with other commandos was ordered to kill the innocent children inside school, when asked why should they kill children after killing all the terrorist he was told that it would be a chance to defame Taliban and get nation on the side. He and all other commandos killed children and later Taliban was blamed. Muddassir Iqbal has deserted the military and now he is  with mujahedeen somewhere in AF PAK border area” For authenticity of  this tape journalists can easy reach to his home town to interview his family members or   ISPR as he reveals his army service number” Asalam o Alaikum: My name is Muddassir Iqbal. My father’s name is Naimat Ali. I belong to Sialkot divison (Punjab province), my village is Shamsher Poor and district, tehsil and post office  Narowal. Unfortunately I was working in Pakistan army. I feel embarrassed to tell yo

RWR Advisory: Belt and Road at a Glance

This edition covers developments from March 12 - March 26..  Belt and Road at a Glance   Subscribe to the Belt and Road Monitor Top Developments China National Machinery Industry Corporation, commonly known as Sinomach, has agreed to  build  a $845 million, 255-mile railway across  Iran , building upon a sustained period of growth for Chinese investment in Iran that accelerated after Xi Jinping’s state visit to the country in January 2016. The railway will link the cities of Tehran, Hamedan and Sanandaj. China Civil Engineering Construction, a subsidiary of CRCC, is currently also  building  a 263-km railway line from Kermanshah to Khosravi. According to Chinese entrepreneur Lin Zuoru, who  owns  factories in Iran, “Iran is at the center of everything.”On March 23, China’s Ministry of Commerce announced that foreign direct investment by Chinese companies in 50 Belt and Road countries fell by 30.9% year-on-year. While the Ministry stated that this number covers investment across al

CPEC Jobs in Pakistan, salary details

JOBS...نوکریاں چائنہ کمپنی میں Please help the deserving persons... Salary: Salary package in China–Pakistan Economic Corridor (CPEC) in these 300,000 jobs shall be on daily wages. The details of the daily wages are as follows; Welder: Rs. 1,700 daily Heavy Duty Driver: Rs. 1,700 daily Mason: Rs. 1,500 daily Helper: Rs. 850 daily Electrician: Rs. 1,700 daily Surveyor: Rs. 2,500 daily Security Guard: Rs. 1,600 daily Bulldozer operator: Rs. 2,200 daily Concrete mixer machine operator: Rs. 2,000 daily Roller operator: Rs. 2,000 daily Steel fixer: Rs. 2,200 daily Iron Shuttering fixer: Rs. 1,800 daily Account clerk: Rs. 2,200 daily Carpenter: Rs. 1,700 daily Light duty driver: Rs. 1,700 daily Labour: Rs. 900 daily Para Engine mechanic: Rs. 1,700 daily Pipe fitter: Rs. 1,700 daily Storekeeper: Rs. 1,700 daily Office boy: Rs. 1,200 daily Excavator operator: Rs. 2,200 daily Shovel operator: Rs. 2,200 daily Computer operator: Rs. 2,200 daily Security Supervisor: Rs.