CHINA-PAKISTAN: DIVERSION OF CPEC FUNDS BY PAKISTAN

Writing in the Asia Nikkei Review on March 20, Adnan Amir stated that the Pakistani government has diverted around 24 billion Pakistani rupees ($171.6 million) in funds meant for joint infrastructure development projects with China into other construction plans, as Islamabad distances itself from Beijing. The funds were originally meant to go toward $62 billion worth of infrastructure projects to build the China-Pakistan Economic Corridor, but since the change of government in August last year, both sides have not decided on a definite future course for CPEC. He said the move highlights the tensions surrounding Chinese investment in the country. Pakistan's Ministry of Planning and Development issued an order on Feb. 19 to divert the 24 billion rupees to projects to be identified by local legislators under the U.N.'s Sustainable Development Goals program. The move was seen by some analysts as an effort by the ruling Pakistan Tehreek-e-Insaf party to please legislators by allowing them to make decisions on development projects. Other analysts said that the current government does not regard the CPEC as its top priority.







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