China reluctant to lend $6 bn for Pakistan infra project
China has for the first time shown reluctance to approve a $6 billion loan for an infrastructure project in Pakistan, on concerns over its growing debt. The railway sector project is under the China Pakistan Economic Corridor (CPEC), the crown jewel under Beijing’s Belt and Road initiative.
China recently expressed concern about Pakistan’s mounting debt, including the International Monetary Fund’s requirements for the Pakistani government to avail loans, ET has learnt from informed sources. The project has been delayed by over three years against the original timeline agreed between Beijing and Islamabad.
