Pakistan slashes annual funding for Belt and Road projects

Government struggles to balance finances under IMF bailout program

Karachi construction 20190617

Cuts to annual budgets for China-linked infrastructure projects in Pakistan come as Beijing seeks to encourage a more sustainable approach. © Reuters

ADNAN AAMIR, Contributing writer

QUETTA, Pakistan -- Pakistan, a leading showcase for China's Belt and Road Initiative program of infrastructure development, will slash spending on BRI-related projects over the coming year as the government struggles to balance its finances.

With its foreign reserves dwindling, Pakistan signed a staff-level bailout agreement with the International Monetary Fund in May under which it will receive $6 billion in support but will submit to strict fiscal discipline for 39 months.

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