Caixin
Oct 02, 2018 06:23 PM
FINANCE

Pakistan Downsizes ‘Belt and Road’ Rail Line on Debt Concerns

Construction takes place at the Gwadar Port facility that is part of the China-Pakistan Economic Corridor. Photo: VCG
Construction takes place at the Gwadar Port facility that is part of the China-Pakistan Economic Corridor. Photo: VCG

Pakistan has cut the size of a key Chinese railway project “of strategic nature” by $2 billion, a government minister said Monday, amid a growing wave of similar scale-backs by countries worried about assuming heavy debt burdens under China’s “Belt and Road Initiative.”

“Pakistan is a poor country that cannot afford huge burden of the loans,” Railways Minister Sheikh Rasheed told a news conference in Lahore, according to a Reuters report. “Therefore, we have reduced the loan from China under CPEC for rail projects from $8.2 billion to $6.2 billion,” he added, referring to the China-Pakistan Economic Corridor (CPEC), a 15-year project valued at over $62 billion.

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