More than 30 Chinese companies working in Pakistan under the banner of China-Pakistan Economic Corridor (CPEC) have threatened to shut down operations in the country over non-payment of dues, the daily Dawn has reported.
In a recent meeting, about 25 representatives of Chinese independent power producers (IPPs) complained about outstanding dues to Pakistani Minister of Planning and Development, Ahsan Iqbal.
Complaints by the Chinese side also included high taxation, a hike in fuel prices, a complex visa process for Chinese executives, and constant pressure to maximize power generation. Highlighting 'serious liquidity issues', they said that it was impossible to meet peak summer needs.
The Chinese companies pointed out that coal prices have risen by 3-4 times and it was difficult to continue operations with the urgent need for 3-4 times greater liquidity
"One of the power producers reported that it was operating at half capacity due to low coal stocks, but the authorities' push to increase output could exhaust fuel stocks in a couple of days," Dawn pointed out.
Several Chinese firms, associated with the CPEC, pointed out that the power sector was left handicapped by the Covid-19 pandemic. Despite no forthcoming payments, the tax authorities had begun charging higher rates.
The meeting lasted for over 3 hours during which Pakistani Minister Ahsan Iqbal assured to ease the financial difficulties soon. He also assured that all issues pertaining to pending CPEC projects would also be resolved and had sought a detailed report on it.
Chinese workers and citizens in Pakistan feel insecure
In an embarrassing development for Pakistan, it is reported that the Chinese people, especially Chinese workers in Pakistan have no confidence left in the Pakistani security systems. The Chinese workers feel insecure in Pakistan and they think that the Pakistani security systems are not able to protect them in an hour of crisis. It is notable that China has made heavy investments in Pakistan in various infrastructure projects. Chinese workers and Chinese funds both constitute an important part of the projects, one of which is the China-Pakistan Economic Corridor (CPEC).
Senator Mushahid Hussain, chairman of the Senate Defense Committee, told Dawn, "The Chinese confidence in Pakistan's security system's ability to protect their citizens and their projects is seriously shaken." Mushahid Hussain led a Senate delegation to the Chinese embassy last week to express his condole nces over the loss of three Chi nese lives in a suicide att ack on their van on the university's premises last mon th.
Pakistan to pay $11.6M compensation to 36 Chinese victims of hydropower project terror attack
In a move aimed at placating China, Pakistan in a "goodwill gesture" will pay USD 11.6 million in compensation to the 36 Chinese nationals working on a major hydropower project who either died or were injured in a terrorist attack in the restive Khyber Pakhtunkhwa Province last year, according to media reports.
On July 13 last year, 10 Chinese nationals, mostly engineers, were killed and 26 others were seriously injured after a suicide attack on a bus that was ferrying
The 4,320-MW Dasu Hydropower Project is being constructed by China Gezhouba company with funding by the World Bank and is not part of the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar scheme launched in 2015. The Chinese company had suspended their activities on the site until the issue of the compensation was resolved.
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