Pakistan reconsiders its plans for the "Silk Road", fearing a Chinese debt trap

Pakistan has become the latest addition to countries that are reviewing China-funded projects in his country. The $ 8.2 billion project to connect the Oman Sea to the foothills of the Hindu Kush has experienced long delays that have forced the new government to review the viability of the project.

The ambitious railway project linking the coastal metropolis of Karachi to the city of Peshawar, in the northwest of the country, is the largest BRI (Belt and Road Initiative) initiative in Pakistan, China. The administration has raised serious concerns about costs and funding. The voice of dissent against Chinese projects has been strengthened under the new government of populist Prime Minister Imran Khan, who has himself questioned the rising level of debt in the country.

It should be noted that the new government of several countries, including Sri Lanka, Malaysia and the Maldives, is reconsidering the agreement reached by its predecessors with China. In addition to this list, the new government is changing the idea of ​​reviewing all BIS contracts. Officials are of the opinion that the agreements have been badly negotiated, too expensive or too favored by China.

According to the Chinese Ministry of Foreign Affairs, quoted by Reuters, the two countries pledged to continue working together to carry out BIS projects and "to ensure that the projects already built are functioning normally and that those under way construction proceed smoothly ".

On the other hand, the Pakistani counterparts said that they remained committed to Chinese investments, but at the same time wanted to renegotiate the agreements in terms of price and affordability. China has pledged about $ 60 billion in infrastructure funding for the project across Pakistan.

The Chinese ambassador to Pakistan said that Beijing is open to the changes proposed by the Pakistani government and "we will certainly follow their agenda" to develop a roadmap for BIS projects based on "mutual consultation". . Yao added that "this is a process of discussion between us on this type of model, on this type of roadmap for the future".

Pakistan will have to find a balance between securing funds for its infrastructure projects and imprisoning heavy Chinese debts.