Pakistan’s media say a Chinese company involved in a key power project at the heart of an ambitious economic corridor between the two countries has suspended the work over funding issues.
The project would involve investing as much as $2 billion into the construction of a high-voltage direct current transmission line from Lahore to Matiari.
The work was halted over differences with Pakistan’s government, reported the media in Islamabad. The Chinese firm has cited the size of revolving fund, delay in building of power plants as main reasons for the slowdown, reports added.
The transmission line which is 878 kilometers long is part of the China-Pakistan Economic Corridor (CPEC).
Reports also say the government of Pakistan will not enter into a new agreement with the Chinese company until it completes the first line (between Lahore and Matiari).
The project was started in February after the company received a letter of interest from the government.
China came up with the CPEC in 2013. The project comprises a network of railways, roads and pipelines that would connect Pakistan’s port city of Gwadar in the province of Balochistan, with the Chinese city of Kashgar in landlocked Xinjiang Uyghur Autonomous Region.
Originally valued at $46 billion, the value of CPEC projects is now worth $62 billion. It is intended to rapidly modernize Pakistani infrastructure and strengthen its economy by the construction of modern transportation networks, numerous energy projects, and special economic zones.