Dispute Surfaces over CPEC between China & Pakistan

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China has stopped funding three major road projects being built as part of the $60 billion China Pakistan Economic Corridor (CPEC). Chinese Govt. has taken this step on reports of corrupt practices in this project.

The decision by the Chinese Government will likely hit over Rs.1.00 Trillion worth road projects of the Pakistan National Highway Authority. Though funds for the three road projects were approved in the 6th Joint Co-operation Committee Meetings between China & Pakistan in 2016 still issues relating to release of funds are still pending. Now China has temporarily stopped Funds of CPEC and it would be released after Beijing issues new guidelines.

The Road projects that are going to be hit include 210 km long Dera-Ismail-Khan Zhob Road, 110 Km long Khuzdar Basima Road having an estimated costs of 100 billion.  Another project of 136 km of Karakarom Highway will also be affected due to stoppage of fund.

The CPEC is a major project of China’s prestigious “one Belt one Road” initiative. It passes through Pakistan occupied Kashmir. This is a huge project comprising the construction of grand road and Railway network connecting the Kashghar City of Xiang Region of China with the Gwader port City of Pakistan.

The CPEC a flagship project of China was launched in 2015 by President XI Jinping. It is a fusion of multiple development in the global, regional, bilateral contexts.

India is strongly opposing construction of the economic corridor since long as the CPEC allows construction of corridor i.e. “one belt one road” over POK i.e. Pakistan Occupied Kashmir which remains disputed territory between India and Pakistan.

China’s CPEC project remains a threat to the sovereignty of India as India also has claimed right over POK. Due to this reason, India has always also condemned OBOR summit in China.

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