China reveals its cards for investing $20 billion in Pakistan

By Khalid Mustafa  

The News - Monday, January 20, 2014

ISLAMABAD: China is demanding that all mega power projects, including the Bhasha Dam, Gaddani and Lakhra coal plants, the Tarbela Extension project and many transmission lines, be handed over to China without any international bidding process, and Beijing will directly invest $22 billion in Pakistan.

The Nawaz Sharif government is eager to accept this huge Chinese offe, and a loophole in the PPRA rules is being used to hand over all these mega projects to China.

“Beijing will extend the preferential and medium term soft loans of $22 billion to Pakistan against the guarantees of the government of Pakistan”, a senior official who was part of the recent meeting of the Pak-China Joint Working Group (JWG) held on January 7-8 in Beijing told The News.

“We have carved out a plan to capitalise on the opportunity that Beijing has extended to Pakistan. Under the plan, Chinese companies will be offered the coal and hydropower and huge transmission line projects under a direct contracting regime which is not against the PPRA rules,” the official said.

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