• Raises concerns over financial viability of KKH, Chakdara-Timergara projects
• Bars foreign-funded schemes that lack revenue generation
• Approves incentives for banks, exchange firms to boost remittances

ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Thursday approved exemptions from procurement rules for the execution of a framework agreement with China for the realignment of the $2billion Karakoram High­way (KKH) and the Chakdara-Timergara High­­way with South Korea, due to their tied credit. The committee, however, decided to bar foreign-funded projects that lack self-sufficient revenue generation for debt servicing.

The ECC meeting, chaired by Finance Minister Muhammad Aurangzeb, also approved an attractive incentives package for banks and foreign exchange companies to enhance home remittances through official channels.

Sources said the meeting expressed concern over the financial viability of both projects — the KKH under CPEC and the Chakdara-Timergara Highway — which will be financed by foreign loans, but are unlikely to generate sufficient revenue for debt servicing, despite their strategic importance.

For both projects, the ECC allowed the National Highway Authority to invoke Rule 5 of the Procurement Rules 2004 to bypass international competitive bidding.

Under Rule 5,........

© Dawn Business