ISLAMABAD: To build an important part of Karakoram Highway, Pakistan decided to give a $2 billion contract to China. This decision was made by the Economic Coordination Committee (ECC) led by Finance Minister Muhammad Aurangzeb. The highway section is very important because it helps keep China and Pakistan connected. The road needs to be moved because new dams like Diamer-Basha and Dasu will cover the current road with water.
The ECC allowed the contract to go directly to Chinese companies without the usual bidding process. China will loan Pakistan $2 billion for the project, and Chinese companies will design and build it. In another decision, the ECC also made it easier to hire foreign consultants for another road project with a loan from South Korea.
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To help with Pakistan’s money situation, the ECC approved a Rs78 billion package to encourage banks and exchange companies to bring in more money from overseas Pakistanis. This package offers more rewards for banks and companies that help increase remittances, which are very important for the country’s economy.
