China demands outstanding due of USD 55.6 million from Pakistan
Apr 01, 2022
Beijing [China], April 1 : China has demanded an outstanding due of USD 55.6 million from Pakistan related to the Lahore Orange Line Project and has asked Islamabad to clear it by November 2023.
M/S China Railway-North Industries Corporation (CR-NORINCO), while highlighting the delay in various payments despite the timely completion of the "Lahore Orange Line Project" has demanded the Punjab Mass Transit Authority (PMTA) release the outstanding due of USD 45.3 million by March and the remaining outstanding amount of USD 10.3 million by year-end. Reported local media.
The USD 922 million project was completed on October 8, 2020, after a 25-month delay.
The company has been insisting that all dues be cleared before the expiry of the contract or November 16, 2023, reported local media.
Meanwhile, Pakistan is in political as well as economic turmoil. The Pakistan Opposition parties have brought a no-confidence motion against Prime Minister Imran Khan and its economy is in shambles due to rising inflation, unemployment and a surge in food-item prices.
Moreover, its all-weather ally China is upset over the delay in Belt and Road Initiatives projects in Pakistan.
Meanwhile, IMF voiced concern about the February 28 relief package and the March 1 industrial package envisaging the third amnesty scheme.
They questioned over -- where would the money come from for the subsidies required for the relief package while the amnesty scheme may ensure that Pakistan remains on the Financial Action Task Force grey list which may have negative implications on attracting foreign direct investment, borrowing at cheaper rates internationally and last but not least sale prices of entities earmarked for privatization, reported Business Recorder.
