ISLAMABAD: On Thursday, the cabinet’s Economic Coordination Committee (ECC) approved exceptions from the procurement rules for the implementation of a framework agreement with China for the realignment of South Korea’s Chakdara-Timergara Highway and the $2 billion Karakoram Highway (KKH) with China because of their tied credit. However, the committee made the decision to disallow foreign-funded enterprises that are unable to generate enough income on their own to pay off debt.
A compelling incentives package for banks and foreign currency providers to increase domestic remittances through official channels was also authorized during the ECC meeting, which was presided over by Finance Minister Muhammad Aurangzeb.
According to sources, the meeting raised concerns over the financial sustainability of the two projects, the Chakdara-Timergara Highway and the KKH under CPEC, which are expected to be supported by foreign loans but are not expected to produce enough money.
