Pakistan says no to Chinese funding on PoK dam

Reports on 20 June indicated that China had offered to fund the construction of Diamer-Bhasha dam on the Indus basin in PoK under the China-Pakistan Economic Corridor.

Islamabad had so far been unable to secure funds from the World Bank and the ADB due to India's sovereignty concerns.

Pakistan's planning minister Ahsan Iqbal had earlier hinted that Pakistan expects Chinese funding for the project.

Pakistan occupies a central place in China's schemes for its One-belt One-road (OBOR) initiative.

According to Pakistani media reports, China may have suffered a blow to its ambitions after Islamabad refused Beijing's aid to construct the $14 billion Diamer-Bhasha dam.

India had earlier signalled its opposition to the project located in Pakistan-occupied Kashmir (PoK).

Why is Pakistan saying no to China? Read on.

The Diamer-Bhasha dam was announced in 2006. The foundation stone was laid in 2011 and the financial plan was announced in December 2016.

While World Bank pulled out of the project over Pakistan's reluctance to get a no-objection certificate from India; the Asian Development Bank pulled out in November 2016.

The US had also withdrawn last year after India made its annoyance clear.

According to Pakistani daily, Express Tribune, Muzammil Hussain, the Chairman of Water and Power Development Authority in a parliamentary briefing stated, Chinese conditions for funding were "against Pakistan's interests."

Hussain added that Beijing wanted Islamabad to pledge another dam in exchange for funding the Diamer-Bhasha project.

Sources further revealed that Islamabad prefers to self-finance the project rather than abide by China's tough conditions.

According to a Beijing-based Chinese expert, Pakistan's refusal cannot be taken to mean that it's unhappy with China.

He adds that Pakistan's planning minister had recently sought funding for several dam projects including the Diamer-Bhasha project.

Providing an alternative viewpoint, former-Indian ambassador, MK Bhadrakumar opines that Beijing had already left it to Pakistan to decide whether the project should be carried on under OBOR.