China gives tacit nod to Pak’s move to scrap CPEC Authority

Contact Counsellor

Last Updated21/08/2022

China tacitly endorsed Pakistan’s decision to scrap the China-Pakistan Economic Corridor (CPEC) Authority amid reports of growing rift between the two.
The discord is over the slow pace of the USD 60 billion project and Islamabad’s failure to provide credible security to Chinese personnel working on a host of projects.
In April, three Chinese were killed in a suicide bombing in Karachi University by Baloch Liberation Army (BLA), which opposed China’s investments in Balochistan.

The two sides had an in-depth exchange of views on China-Pakistan relations, counter-terrorism and security cooperation between the 2 countries.
Recently, media reports from Pakistan said the Prime Minister has decided to abolish the CPEC Authority.
But the decision is subjected to getting the consent of China, which has spent about USD 28 billion on a host of CPEC projects.

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Launched in 2015
It connects Gwadar Port in Pakistan’s Balochistan with China’s Xinjiang province.
It is the flagship project of China’s ambitious multi-billion-dollar Belt and Road Initiative (BRI).
India has objected to CPEC as it is being laid through Pakistan-occupied Kashmir (PoK).


Grounds for Chinese armed forces	With recurring attacks, China is reportedly pressing Pakistan to permit the Chinese agencies to provide security for their personnel. Islamabad is resisting it as it means boots on the ground for Chinese armed forces.
Acute financial crisis for Pak	Beijing is also concerned over financial restraints of Pakistan, prompting it to step in periodically to bail it out with induction of foreign exchange loans.
‘Procrastinating’ CPEC	The Chinese authorities are reportedly irritated because of Pakistan’s decision to put CPEC on the back burner over the past four years. The CPEC projects were facing delays because of the change in taxation policies by the last government in violation of commitments given to China. The previous government had last year withdrawn the sales tax exemption on imports.