Pakistan asks China to defer payments on power projects under BRI as it has no money

Pakistan which is going through its worst economic crisis has asked all-weather friend China for relief on payments for power projects Beijing financed over the past eight years under the Belt and Road Initiative.

This latest development has come with Pakistan not having enough any money to repay the debt and are in discussion to ease repayment of debt on about a dozen power plants.

China has invested nearly 70 billion dollars on China Pakistan Economic Corridor wherein China will have access to the warm water port of Gwadar in Balochistan.

China has been under increasing pressure that it hoped would ease after Joe Biden became President, however, the new administration has also criticized China for its debt traps policy.

For Pakistan, the idea of being part of the BRI was to not only get its antiquated railway system modernized but also develop many other infrastructures and reap the benefit of its geo-strategic location as the gateway to central Asia.

However, things have not panned out as they had planned and Pakistan will now formally make the request to defer debt payments to China.

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