SIFC intervention is pursued as Carec project benches

A Chinese company has reached the SIFC Special Council (SIFC), as delays have given a shadow over the RS146 billion Carec Tranche-3 project, raising concerns about Pakistan’s ability to fulfill international commitments.

The project, part of the Central Asian Regional Economic Cooperation program (CAREC), is co -funded by the Asian Development Bank (ADB) and the Pakistani government. Despite his inauguration by the Prime Minister in February 2025, work has not yet begun, creating frustration between stakeholders and international financiers.

In a discussion with reporters, Imdad Ullah, a spokesman for the Chinese consortium leading the project, warned that unnecessary obstacles are holding one of Pakistan’s most important infrastructure initiatives. He confirmed that the consortium has officially written SIFC, urging immediate intervention to prevent further delays that could harm Pakistan’s credibility with donors.

In her letter, the NXCC consortium, along with local Rustam Associates and Dynamic Constructors, stressed: “This is a contract that has already been tested and approved by ADB and NHA and was inaugurated by the Prime Minister.

The Carec Tranche-3 project, worth $ 471.9 million, includes a $ 360 million ADB loan and $ 111.9 million from the Pakistani government. Its purpose is to upgrade the 326 kilometers of Rajanpur-Dera Ghazi Khan-Dera Ismail Khan part of the Indus Highway (N-55) with air conditioning projects and creation of the National Motorway Authority (NHA).

The consortium reminded SIFC that “the lower bidder was legally declared, with a margin of RS13.2 billion, for all four constructions after a transparent and adb -approved process”.

The letter warned that further delays could lead to a loss of 25% -30% of distributed funds, scalable expenses and negative signal to international investors. “For foreign partners, this raises a very worrying question: if even after the victory with a fair, with the approval of the donors and the inauguration of the prime minister, a project can still be ruled out, how can companies feel safe in Pakistan?” said.

The spokesman stressed that prolonged delays and uncertainty endanger Pakistan’s stance with development partners, discouraging investors and undermine national development priorities. He said the upgrading of the Indus highway is vital to regional trade and connectivity and delays could slow down the country’s progress in critical infrastructure.