China’s funding CPEC reduced by 56%
In first half of 2022, China’s funding in Pakistan for China Pakistan Economic Corridor (CPEC) had reduced by around 56% in the first half of 2022. Other countries like Russia, Egypt and Sri Lanka also witnessed a reduction by 100% in BRI engagement as compared to first half of 2021.
The CPEC project is running from Gwadar port in Pakistan to Kashgar city in Xinjiang, China. However,
- This project is not running in accordance with the initial promise, because of lack of transparency, debt problems, poor management, and corruption. Because of these issues, CPEC project is still not finished.
- It is also going through other security challenges because of local opposition and continued attack on project and personnel in Pakistan.
- Furthermore, Pakistan’s deteriorating economic situation is also impacting the project.
- As per reports, China recently asked for its military presence in Pakistan in order to look after security of its people and projects in country.
- Belt and Road Initiative (BRI) projects of China is facing global criticism as it is not offering transparency on its loans. Furthermore, its faulty design raising questions the value and sustainability of the project.
About China–Pakistan Economic Corridor (CPEC)
CPEC is a cluster of infrastructure projects under construction in Pakistan. It was started in 2013. Original value of the project is USD 47 billion but now its value has increased to over USD 62 billion. This project is aimed at upgrading required infrastructure in Pakistan and strengthen its economy by providing modern transportation networks, energy projects, and special economic zones as a part of CPEC.
Category: International / World Current Affairs
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