Islamabad: Pakistan is reviewing a proposal to deposit 20 per cent of the total cost of five projects of the China-Pakistan Economic Corridor (CPEC) with the central bank amid a fall in foreign exchange reserves.
This information has been given in the newspaper ‘The Express Tribune’ quoting a member of the Pakistani cabinet. The minister said that the proposal has been discussed at the highest level and Prime Minister Shahbaz Sharif has given instructions to rectify it further.
According to this report, at least five CPEC projects with an estimated value of $7 billion were discussed. Under this proposal, Pakistan can get at least $ 1.4 billion in its central bank out of the total cost of $ 7 billion. If this happens, these projects pending for many years will be implemented at a faster pace.
The Pakistani newspaper quoted sources as saying that Finance Minister Miftah Ismail has some concerns about this proposal, including the priority given to these schemes. Due to this, Pakistan may also have to face the displeasure of the International Monetary Fund.
According to this proposal, the Chinese company sponsoring the CPEC project will bring in 20 percent of the total cost in US currency and deposit it in a special account. There has been an initial level discussion between Pakistani and Chinese officials in this regard, only after which it was sent to the Prime Minister.
The report said that Chinese companies will not be allowed to withdraw this money under any circumstances. With this money, Pakistan, which is facing cash crisis, can get some relief. In return for this money, Pakistan will remove the obstacles in the way of five projects.
