SIFC intervention sought as CAREC project stalls | The Express Tribune

A Chinese company has approached the Special Investment Facilitation Council (SIFC) as delays cast a shadow over the Rs146 billion CAREC Tranche-3 project, raising concerns about Pakistan’s ability to deliver on international commitments.

The project, part of the Central Asia Regional Economic Cooperation (CAREC) programme, is being co-financed by the Asian Development Bank (ADB) and the government of Pakistan. Despite its inauguration by the prime minister in February 2025, work has yet to begin, creating frustration among stakeholders and international financiers.

In a discussion with journalists, Imdad Ullah, spokesperson for the Chinese consortium leading the project, warned that unnecessary hurdles are holding back one of Pakistan’s most significant infrastructure initiatives. He confirmed that the consortium has formally written to the SIFC, urging immediate intervention to prevent further delays that could harm Pakistan’s credibility with donors.

In its letter, the NXCC consortium, along with local partners Rustam Associates and Dynamic Constructors, stressed, “This is a contract already vetted and approved by ADB and NHA, and inaugurated by the prime minister. Any effort to reopen or redistribute it is nothing but political interference.”

The CAREC Tranche-3 project, worth $471.9 million, includes an ADB loan of $360 million and $111.9 million from the Pakistani government. It aims to upgrade the 326-kilometre Rajanpur-Dera Ghazi Khan-Dera Ismail Khan section of the Indus Highway (N-55) with climate-resilient works and capacity building for the National Highway Authority (NHA).

The consortium reminded the SIFC that it had been “lawfully declared the lowest evaluated bidder, with a margin of Rs13.2 billion, for all four construction lots after a transparent and ADB-approved process.”

The letter warned that further delays could result in the loss of 25%-30% of allocated funds, escalating costs, and a negative signal to international investors. “For foreign partners, this raises a very worrying question: if even after winning fairly, with donor approval and the prime minister’s inauguration, a project can still be blocked, how can companies feel secure investing in Pakistan?” it stated.

The spokesperson stressed that prolonged delays and uncertainty jeopardise Pakistan’s standing with development partners, discouraging investors, and undermining national development priorities. He said the Indus Highway upgrade is vital for regional trade and connectivity, and delays could slow the country’s progress on critical infrastructure.