China and Pakistan will upgrade and reconstruct Pakistan’s railway network and further develop its Gwadar port, while Chinese companies can invest in the South Asian nation’s offshore oil and gas developments, the official Xinhua news agency reported yesterday.
The comments came as Pakistan’s President Asif Ali Zardari visits China from February 4-8, where he will also attend the opening ceremony of the Asian Winter Games.
Chinese investment and financial support for Pakistan since 2013 have been a boon for the South Asian nation’s struggling economy.
The two countries have had close ties underpinned by long-standing wariness of their common neighbour, India, and a desire to hedge against US influence across the region.
Pakistan and China recognised the importance of Pakistan’s “Gwadar Port and agreed to fully unleash its potential as a key node for connectivity and trade,” Xinhua said quoting a joint statement from the two countries.
Chinese-funded enterprises would be encouraged to “carry out mining investment co-operation in Pakistan” and co-operate in terrestrial and marine geological resources. “Pakistan welcomes Chinese companies to participate in the development of offshore oil and gas resources in Pakistan.”
Longtime Pakistan ally China has thousands of nationals working on projects grouped under the China-Pakistan Economic Corridor (CPEC).
The $65bn investment is part of President Xi Jinping’s Belt and Road Initiative, designed to Beijing’s global reach by road, rail and sea.
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