Karachi/Islamabad, 10 September Pak’s criticism of CPEC rattles investors

A Pakistani official’s critical comments about projects funded by China to the tune of billions of dollars rattled investors and sparked worries on Monday of a souring in ties, a day after Beijing’s top government diplomat concluded a visit.

Abdul Razak Dawood, the Pakistani cabinet member for commerce, industry and investment, suggested that all projects in the $57-billion China Pakistan Economic Corridor programme could be eligible for suspension in a review to be conducted this week under the orders of new Prime Minister Imran Khan.

“I think we should put everything on hold for a year, so we can get our act together,” Dawood told the Financial Times in an interview. “Perhaps we can stretch CPEC out over another five years or so.”

He added that he thought China had been granted toofavourable terms in many projects by the former government of Nawaz Sharif. “Chinese companies received tax breaks, many breaks and have an undue advantage in Pakistan; this is one of the things we’re looking at because it’s not fair that Pakistan companies should be disadvantaged,” Dawood said.

Dawood’s comments were “mind-boggling” and rare public criticism of China, said Mohammad Zubair, privatization minister in the previous government. “This is probably the harshest statement about the Chinese in the last 50 years or so,” Zubair told Reuters. “Even if there are issues with the Chinese, those issues could be dealt with in private rather than being made public.”

Later on Monday, Dawood told domestic broadcaster Geo TV that his statements had been misconstrued and he would clarify them later.

Abdul Razak Dawood, a Pakistani minister, suggested all projects in the $57-bn CPEC programme could be eligible for suspension