The CPEC project is expected to take the relationship between Pakistan & China to new heights.
Pakistan has secured an additional $8.5 billion of investment from Beijing as part of the countries’ joint energy, transport, and infrastructure plan, says Planning Minister Ahsan Iqbal.
As part of the $46 billion Economic Corridor between the two countries, the additional investment secured by Pakistan is meant to build a key gas pipeline with Iran to end chronic power shortages in the country.
According to Ahsan, some $4.5 billion of additional investment will be spent on upgrading railway tracks and signaling from Karachi to Peshawar. Part of the upgrade process will also include increasing the speed on the line to 160 km per hour from the current 60-80 kph.
Another $4 billion will be spent on LNG terminal and transmission line, he added.
“This has now all been approved, so this is an additional $8.5 billion to the $46 billion we had already, so we are now close to $55 billion,” Iqbal said.
Despite the prediction of medium to long term risks associated with large scale investment such as CPEC, Iqbal expresses his confidence in the economic boost that is likely to come out of it across most large scale industries such as steel, construction, and engineering.
China-Pakistan Economic Corridor is a framework of regional connectivity that focuses on the enhancement of geographical connection between the two countries. The project aims to improve the standard of living of people of Pakistan and China through upgrading the road, rail and air transportation system in Pakistan and facilitating the free exchange of people and resources to radically improve lives in both the countries.
This mega project is also expected to take the relationship between the two countries to new heights.
Prime Minister Nawaz Sharif formally inaugurated the Gwadar port as key project under CPEC on 13 November 2016. A trade caravan reached Gwadar from China on the same day after the first agreement in 2013.