China and Pakistan are strengthening economic ties with new infrastructure investments focused on upgrading Pakistan’s railway network, expanding Gwadar Port, and boosting offshore oil and gas exploration.
The $65 billion China-Pakistan Economic Corridor (CPEC), a flagship project under China’s Belt and Road Initiative (BRI), continues to reshape Pakistan’s economic landscape, with Beijing increasing its financial footprint in the South Asian nation.
Amid Pakistan’s economic challenges, Chinese investment has played a critical role in stabilising its infrastructure and energy sectors.
With thousands of Chinese nationals working on CPEC projects, Beijing is deepening its strategic influence in the region.
The developments come as Pakistani President Asif Ali Zardari is on a visit to China from February 4-8.
China ramps up investment in Pakistan’s infrastructure
China’s financial backing has been instrumental in modernising Pakistan’s infrastructure, with recent agreements focusing on railway upgrades and the development of the Gwadar Port.
Gwadar, a deep-sea port on the Arabian Sea, is a crucial component of CPEC, serving as a key gateway for trade between China and the Middle East.
The two countries have committed to maximising the port’s commercial potential, positioning it as a strategic hub for connectivity.
Pakistan’s energy sector is also a major focus of China’s investment.
Chinese companies have been invited to participate in offshore oil and gas exploration, diversifying Pakistan’s energy sources and reducing its reliance on imports.
This aligns with China’s broader goal of securing energy supplies while expanding its economic influence in South Asia.
In addition, Beijing has pledged support for Pakistan’s railway infrastructure, aiming to modernise the network and improve connectivity across the country.
This upgrade is expected to enhance trade efficiency, strengthen regional integration, and boost economic growth.
Strategic implications of China’s expanding role in Pakistan
China’s deepening involvement in Pakistan is not just an economic partnership but a strategic move in regional geopolitics.
The two nations share a long-standing alliance, partly shaped by their mutual concerns over India’s regional influence.
By strengthening economic ties, Beijing reinforces its foothold in South Asia, countering Western influence and securing critical trade routes.
With the US-India partnership growing, China’s support for Pakistan serves as a counterweight to Washington’s regional strategy.
The infrastructure agreements signal Beijing’s long-term commitment to Pakistan’s economic development, ensuring that its investments are protected and expanded.
Pakistan, on the other hand, benefits from Chinese financial aid and infrastructure development, which are essential for stabilising its struggling economy. However, the reliance on Chinese capital raises questions about debt sustainability and economic sovereignty.
The expansion of CPEC comes at a time when Pakistan faces mounting fiscal challenges, with external debt and trade deficits posing significant risks.
While the latest deals bolster Pakistan’s infrastructure and energy sectors, they also reinforce China’s strategic position in South Asia, ensuring that its influence remains firmly embedded in the region.
The post China, Pakistan push for deeper economic ties with new infrastructure deals appeared first on Invezz
