China-Pakistan embroiled in major disagreement over CPEC funding
China and Pakistan are believed to be involved in their most serious disagreement over the mega Belt and Road Initiative following which the annual bilateral summit of the China-Pakistan Economic Corridor (CPEC) has been delayed.
Serious disagreements have surfaced between the two countries over the Main Line 1 (ML-1) railway project and special economic zones under CPEC, ET has learnt. ML-1 is the largest CPEC project and worth $6.8 billion. China is expected to lend $6 billion of this, which Pakistan wants to borrow at a concessional interest rate of less than 3%. But China is reluctant to lend money for ML-1 as it fears that local politics will delay returns on investment for China, ET has learnt.
