Chinese firm lays off hundreds of workers at Pakistan's hydropower project, halts operations
A Chinese company has halted civil works and laid off workers at a hydropower project in Pakistan following a deadly suicide attack that claimed the lives of five Chinese nationals. This incident, the second attack on China-backed projects in the region since 2021, has raised security concerns. The affected project is part of the China-Pakistan Economic Corridor (CPEC).
FollowA Chinese company involved in the construction of a hydropower project in Pakistan's Khyber Pakhtunkhwa province has decided to suspend civil works and lay off hundreds of workers. The decision follows a tragic suicide attack that claimed the lives of five Chinese nationals at the Dasu hydropower project in the same region.
The incident, which saw a vehicle loaded with explosives targeting a bus carrying personnel, resulted in six fatalities. This marks the second suicide attack on individuals associated with China-backed projects in the region since 2021.
According to reports from Dawn, the Power Construction Corporation of China (PCCC), responsible for overseeing the Tarbela 5th Extension Hydropower Project in the same province, has opted to halt operations and release over 2,000 workers due to security concerns arising from the recent attack.
Despite the suspension of work, the general secretary of the Awami Labour Union at the project assured that the delay in the completion timeline of the Tarbela extension project (T5) would be minimal. Scheduled for completion by May 2026, the project receives financial backing from the World Bank and the Asian Infrastructure Investment Bank.
As per labour laws, affected workers are entitled to receive half of their salaries until they are recalled to resume their duties. The Dasu hydropower project, where the fatal attack occurred, is situated approximately 300 km north of Islamabad and is being developed by China Gezhouba with funding from the World Bank.
Chinese nationals working on this project have previously been targeted, with a similar attack in July 2021 resulting in casualties among both Chinese and Pakistani workers.
In response to the incident, China has strongly condemned the suicide bomb attack and called for a thorough investigation. Pakistan Prime Minister Shehbaz Sharif has ordered a joint investigation to identify the perpetrators and ensure the safety of Chinese personnel working on various projects in the country.
The presence of Chinese workers in Pakistan is part of the China-Pakistan Economic Corridor (CPEC), a multi-billion dollar initiative aimed at enhancing connectivity and economic cooperation between the two countries.
