ISLAMABAD: The coronavirus pandemic has resulted in a delay of at least eight weeks in the implementation of the multibillion-dollar China-Pakistan Economic Corridor (CPEC) projects, a senior government functionary said on Friday, as he hoped that the problem would be fixed through effective mobilization of resources.
Thousands of Chinese workers have returned to Pakistan through special flights to resume work on different infrastructure projects after spending the Chinese new year holidays in their hometowns.
“We are estimating a maximum eight weeks of delay in different development projects due to the coronavirus pandemic,” Dr. Liaqat Ali Shah, CPEC’s Project Director, told Arab News on Friday.
The Chinese workers, who have been dealing with different CPEC projects, were stuck in different cities of their country when Beijing suspended the international flight operation in January due to the spread of the virus.
China has already developed a “double quarantine policy” for all its engineers and other workers in Pakistan.
“The Chinese travelling to Pakistan spend fourteen days in quarantine in China, and then they are also placed in quarantine for another fourteen days in Pakistan,” Shah said, adding that “effective measures” were in place to stem the spread of the virus in Pakistan's cities.
The project director said that the Chinese companies would place their workforce in quarantine at their respective project sites. “We don’t allow them to mix with the local population,” he said.
About the number of Chinese returning to Pakistan since February, he said that they were “in the thousands,” though he did not have the exact statistics.
Pakistan and China signed the $46 billion CPEC agreement in 2015 which later expanded to at least $62 billion. The infrastructure development projects include roads, railways, seaport, pipelines, industrial units and airports.
China plans to link its landlocked western region of Xinjiang to the Arabian Sea through the corridor project.
Shah said that Pakistan was mobilizing all the available resources to cover the time gap of eight weeks in different projects. “The work on all projects, including the transmission lines, roads and hospitals, is now in full swing,” he said.
The government has also constituted joint working groups and task forces to expand the scope of development projects by negotiating new schemes with the Chinese government.
In the next phase, Pakistan is planning to include development of agriculture, science and technology and petroleum sectors to boost its fragile economy and create job opportunities for both skilled and unskilled labor.
“At the moment, different studies are underway to include new projects related to agriculture and oil refineries in CPEC,” Shah said while dispelling the impression of any undue slowdown in the development schemes.
Coronavirus delays CPEC projects for about eight weeks — official
https://arab.news/mecav
Coronavirus delays CPEC projects for about eight weeks — official

- Says thousands of Chinese workers have returned to Pakistan to resume work
- Chinese workers dealing with corridor projects in Pakistan are quarantined at their project sites for fourteen days
PM Sharif calls for economic policies to revive Pakistan’s export competitiveness

- The PM outlines the goal during a meeting with Dr. Stefan Dercon, a prominent British economist
- He calls for deep-rooted reforms to steer Pakistan’s economy back toward export-led growth
ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday stressed the need for balance across all economic policies to revive Pakistan’s export potential, saying his government wanted to take the country back to a place where its products were once again in global demand.
The remarks came during a meeting with Dr. Stefan Dercon, a prominent British economist and professor of economic policy at Oxford University.
Dercon, who previously served as the UK Department for International Development’s (DFID) chief economist, is widely recognized for his work on poverty, institutional reform and economic development in low- and middle-income countries.
“A sound balance across all policies is essential to promote business,” the prime minister was quoted as saying in an official statement circulated by his office. “For Pakistan’s economic development, alignment between fiscal policy, taxation policy and production policy is necessary.”
“In the past, Pakistani products were in high demand globally and the country was counted among the world’s major exporters,” he continued. “We want to bring Pakistan back to that place.”
Sharif’s meeting with the British economist took place at a time when Pakistan seeks to strengthen its economy through increased exports and foreign investment, following signs of stabilization under an IMF-supported economic program.
He maintained that deep-rooted reforms were required to transition the national economy back toward export-led growth.
Dercon praised the direction of Pakistan’s economic policy and reform agenda, noting improving investor sentiment toward the country.
He particularly lauded Pakistan’s tariff rationalization efforts, which aim to simplify and streamline import duties to support industrial competitiveness.
The meeting was also attended by top members of the government’s economic team, including Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal and senior officials from relevant departments.
IMF defends $1 billion disbursement to Pakistan amid India’s objections

- IMF communications director says the board approved funding as Pakistan had ‘met all of the targets’
- She clarifies EFF disbursements go to the central bank and are not used to fund the national budget
KARACHI: The International Monetary Fund (IMF) this week defended its decision to release a $1 billion tranche to Pakistan, despite India’s concern over its potential misuse, by pointing out the country had met all requisite targets under the Extended Fund Facility (EFF).
India had raised objections to the IMF’s disbursement amid a military confrontation with Pakistan, saying the funds could be diverted to support activities that it described as detrimental to regional stability. New Delhi abstained from the IMF Executive Board vote on May 9, highlighting apprehensions about the timing and potential implications of the financial assistance.
During a news briefing in Washington on Thursday, IMF Communications Director Julie Kozack addressed these concerns, saying the international lender provided financing to member states for the purpose of resolving balance of payments problems.
“In the case of Pakistan … the EFF disbursements … are allocated to the reserves of the central bank,” she said. “Under the program, those resources are not part of budget financing … [and] are not transferred to the government to support the budget.”
The IMF official further emphasized the Fund’s decision was based on Pakistan meeting all the targets set under the loan program.
“Our Board found that Pakistan had indeed met all of the targets,” she continued. “It had made progress on some of the reforms, and for that reason, the Board went ahead and approved the program.”
Kozack also outlined the safeguards to prevent any potential misuse of funds, including targets on the accumulation of international reserves and a zero target for central bank lending to the government.
She also noted the program includes substantial structural conditionality aimed at improving fiscal management.
The IMF’s disbursement this month was part of a broader $7 billion support program aimed at stabilizing Pakistan’s economy. The Fund has said future disbursements will depend on Pakistan’s continued adherence to the program’s conditions and reforms.
PM Sharif tells business leaders private sector key to economy ahead of June 10 budget

- The prime minister assures chambers of commerce representatives of his administration’s full support
- He promises to reduce cost of doing business in the country, highlights zero tolerance for tax evasion
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday emphasized the pivotal role of the private sector in driving economic development, asserting that a robust public-private partnership was essential for the country’s emergence as a strong global economy.
Sharif made these remarks during a meeting with presidents of chambers of commerce from across the nation, coinciding with the government’s announcement to present the next federal budget on June 10.
The government has consistently stressed the need for the private sector to lead in strengthening the national economy, assuring it of state support.
Sharif reiterated this stance, highlighting the necessity of collaboration between the government and private enterprises in the country.
“There is a need to mobilize the private sector to achieve economic self-reliance,” the Prime Minister’s Office quoted him as saying during the meeting.
“Protecting the rights of the Pakistani business community and providing them with a conducive environment for profitable business are among the top priorities of the government,” he continued.
Sharif also pledged to reduce the cost of doing business in Pakistan, noting that measures were being implemented to facilitate access to loans and reduce electricity prices.
Addressing tax compliance, he emphasized a zero-tolerance policy toward tax evasion. Pakistan has historically one of the lowest tax-to-GDP ratios in the region.
The government has tried to addressed the situation by reforming its tax collection body through increased automation to improve collection and compliance.
The official statement said the delegation of business leaders commended the government’s economic policies, citing gradual improvements in the national economy and business environment.
They also presented budget proposals for the upcoming fiscal year.
Pakistan is scheduled to release a comprehensive economic survey for the outgoing fiscal year on June 9, only a day ahead of the budget preparation.
Pakistan says 25,698 pilgrims to perform Hajj under private quota in 2025

- The annual pilgrimage is expected to take place between June 4 and June 9 this year
- Around 55,642 Pakistani Hajj pilgrims have landed in Saudi Arabia so far via 244 flights
ISLAMABAD: Pakistan’s religious affairs minister, Sardar Muhammad Yousaf, said on Friday only 25,698 pilgrims would be able to perform Hajj this year under the private scheme, after thousands of allocated slots were revoked due to non-compliance by private operators with Saudi booking rules and deadlines.
The kingdom had granted Pakistan a total quota of 179,210 pilgrims for Hajj 2025. Typically, this national quota is evenly split between the government-run and private schemes. However, the private sector failed to meet procedural requirements set by Saudi authorities, leading to a significant cut in their share, down from 89,801 to just over 25,000, leaving more than 67,000 would-be pilgrims affected.
“25,698 people will be able to go for Hajj under the private quota,” Yousaf said while addressing a press conference.
“Up until February 14, only 3,600 pilgrims had submitted their payments, but after a one-week extension, 10,000 more applications were received, bringing the total number to 13,000.”
He highlighted that private Hajj operators had registered 904 companies with the Saudi authorities, based on a list provided by the religious affairs ministry. However, some people ignored this and made payments to unregistered Hajj operators.
Yousaf assured that a committee formed by Prime Minister Shehbaz Sharif would investigate the issue.
He said Pakistan International Airlines, Saudi Airlines, Air Sial, Airblue, and Serene Air would be transporting Pakistani pilgrims for Hajj.
Earlier in May, a ministry spokesperson issued guidelines for Hajj pilgrims, including verifying the authenticity and quota approval of private tour operators before making payments, visiting the ministry’s official website to confirm registration and avoiding reliance on unverified advertisements or information.
The ministry strongly urged all prospective pilgrims to exercise utmost caution when booking Hajj packages through private tour operators.
Some registered private organizations also failed to pay dues within the timeline set by Saudi authorities, prompting Sharif to intervene and request an extension of the deadline, which was approved.
This year’s annual pilgrimage is expected between June 4 and June 9, with nearly 89,000 Pakistanis traveling to Saudi Arabia under the government scheme.
Pakistan launched its Hajj flight operation on April 29.
Around 55,642 Pakistani Hajj pilgrims have landed in Saudi Arabia so far via 244 flights.
Karachi hospital reports four COVID-19 deaths amid surprise summer surge

- A senior physician says all those who succumbed to the disease in the past fortnight were elderly individuals
- Health experts say the recent surge in coronavirus cases during the summer months is an unusual trend
KARACHI: At least four people with underlying health conditions have died of COVID-19 at a major Karachi hospital in the past two weeks, as experts report an unusual spike in infections during the city’s peak summer season.
All four fatalities occurred at the Aga Khan University Hospital (AKUH), where doctors say they are seeing a steady increase in admissions linked to the coronavirus— a trend they describe as “unexpected” at this time of year.
“In the past two to three weeks, we have seen a significant increase in COVID cases,” Prof. Dr. Syed Faisal Mahmood, a professor of infectious diseases at AKUH, told Arab News, confirming the death of four people during the past two weeks.
The surge, he said, was happening in late spring with temperatures exceeding 40 degrees Celsius.
COVID-19, caused by the SARS-CoV-2 virus, is a highly contagious respiratory illness that was first detected in late 2019 and declared a global pandemic within months. While the virus typically spreads more easily in colder months due to increased indoor activity and lower humidity, experts say its spread during summer in Karachi is a rare deviation from past seasonal patterns.
Mahmood said most infected individuals have been coming to the hospital with mild symptoms, such as sore throat, cough, body aches, and fever, but the virus remains dangerous for older adults and those with weakened immune systems.
“Like in previous years, this year the severe cases of COVID are mostly being seen in people who are older, especially those above 65, or those with weak immune systems,” he said.
“Among these COVID cases, there are some patients who have been hospitalized, and there have also been some deaths,” he added.
Mahmood added that while routine testing is no longer required for everyone with symptoms, caution is essential.
“If you suspect that you have COVID or any other cold or cough-related infection, it is better that you wear a mask,” he advised. “We recommend wearing a mask for at least five to ten days so that others do not get infected.”
The infectious diseases expert also urged caution for those in close contact with the elderly.
“If you are caring for someone who is elderly, then please do not visit them if you are feeling unwell, or at least wear a mask,” he said. “Please take care of yourself, and we hope that there will not be a major further increase in COVID cases.”