Pakistan’s new government is looking to revitalize projects under China’s Belt and Road Initiative (BRI) to bolster its struggling economy. CPEC is Pakistan’s $50 billion part of China’s Belt and Road Initiative (BRI). A 3,000-kilometer Chinese infrastructure network project under construction in Pakistan aims to link Pakistan’s ports of Gwadar and Karachi by land to China’s Xinjiang Uyghur Autonomous Region.
Prime Minister Shehbaz Sharif is seeking to revive economic cooperation with China, building on efforts initiated by his brother Nawaz Sharif when he signed the BRI in 2013. Sharif is reportedly scheduled to make an official visit to China from June 4 to 7. ARY News According to sources, the prime minister will meet the Chinese president and prime minister during his four-day state visit and discuss matters related to the second phase of the China-Pakistan Economic Corridor (CPEC) and other issues.
Pakistan’s Minister of Federal Planning, Development and Special Initiatives Ahsan Iqbal expressed optimism about renewed momentum for the China-Pakistan Economic Corridor (CPEC) following recent talks with Chinese leaders.
Iqbal, who also co-chairs the committee in charge of the China-Pakistan Economic Corridor, said in an interview: Bloomberg “Yes, I visited China recently and met with senior Chinese officials and I am very hopeful,” Iqbal said in his Islamabad office, decorated with a large map showing the China-Pakistan Economic Corridor. “The Chinese side seems very interested in reviving the momentum of CPEC and taking it to its second phase.”
The first phase of CPEC involved projects worth $25 billion, including power plants to ease Pakistan’s electricity shortage. Recently, a long-delayed railway upgrade project was approved, scaled down from $10 billion to $6.8 billion to ease Pakistan’s financial burden. The first phase of the project will link Karachi with Multan.
The Sharif government has also completed key BRI projects, such as the Gwadar water project and a power transmission line from Iran, restoring Chinese confidence in Pakistan’s involvement in the CPEC. China, a major lender to Pakistan, has helped the economically struggling country avoid bankruptcy.
To mark the 10th anniversary of CPEC, China announced five new corridors to boost economic activity in Pakistan, focusing on growth, livelihoods, innovation, green energy and regional connectivity. Prime Minister Sharif is scheduled to visit China soon to further these efforts.
In the second phase of CPEC, Pakistan plans to encourage private sector partnerships with Chinese companies to attract Chinese businesses that want to relocate due to rising labor costs and geopolitical tensions. Iqbal cited overcrowding in countries such as Vietnam, Laos and Cambodia as examples to highlight the possibility of attracting jobs relocating from China.
With input from the agency.
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