Pakistan Gets No Funding for 4 CPEC Projects From China in H1 FY22

Nine ongoing development projects, including four under the umbrella of the China Pakistan Economic Corridor (CPEC), received no funding from China, out of total budget estimated financing of $60 million for the current fiscal year.

According to an official document, the Government of Pakistan had estimated receiving a loan of $6.250 million from China for the Havelian-Thakot KKH Phase-II project during the current fiscal year. Contrary to the budget estimation for the project of CPEC, the financing from China could not material during the first half of the current fiscal year. As per the official documents, the National Highway Authority (NHA) was the executing agency for the project, which was supposed to be completed in five years on 30 April 2021.

The up-Gradation of Pakistan Railway’s Existing Mainline-1 (ML-I) and Establishment of Dry port near Havelian (2018-2022) was also a project under the umbrella of CPEC. The government had estimated a loan of $18.684 million in the budget, but this project also did not receive any interest from the Chinese side so far.

Another important project of the CPEC, which did not receive financial support from China, was the construction of the Expressway on Eastbay of Gawadar Port. The government had an estimated loan of $11.603 million from China, however, the government could not get any funds in this regard. The document shows that the original date of completion of the project was 31 Dec 2021. Sources privy to the matter say that this project is still under process.

The government also failed to get any funds for the project of NHA, namely, “the Dualization of Yarik-Mughalkot-Zhob section of N-50 (210 km) CPEC Western Alignment,” including “Zhob Bypass and Land Acquisition,” during the first half of the current fiscal year. The government was hopeful for availing $3.75 million loan from China during FY22.

The government had also estimated a loan of $ 11.875 million for the project of Pakistan Space Center (PSC) Islamabad, Lahore, and Karachi, during the current fiscal year, but after the first half of the fiscal year, the country could not mobilize the estimated resource. The government also couldn’t get an estimated loan of $ 0.625 million for the project of the Pakistan Multi-Mission Satelite (Pak Sat. MM1), Lahore and Karachi, so far.

The other three projects which did not receive any funds include the PTV Terrestrial Digitalization of Digital Terrestrial Multimedia Broadcast (DTMB) through Grant in Aid, Reconstruction and Rehabilitation of fully damaged schools in Bara District Khyber under Chinese assistance Programme, and Gawadar Smart Environmental and Sanitation System and Landfill.

Some experts believe that the estimated amount could be materialized during the second half of the fiscal year.