Spotlight on China-Pak economic 'mistrust' | Terror attacks, financial woes dent Cooperation

A Pakistani court recently imposed a $2.48 million fine on China National Petroleum Corporation. The case relating to the violation of contract norms has again brought forth increasing economic mistrust between the two countries. Remember, many projects under the so-called China-Pakistan economic corridor have been stalled, turning into financial liabilities. There have been unresolved differences between the Pakistani and Chinese governments. China has slowed investments in large infrastructure projects. Beijing reportedly sees key projects in Pakistan as vulnerable to local politics, and the returns on investments have been delayed. The differences between the two governments, though not new, have been kept behind closed doors. Terror attacks aimed at Chinese projects have also impacted economic cooperation between Beijing and Islamabad. Pakistan’s financial woes have further decreased its capacity to fulfil financial obligations in various projects.