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The relationship between Pakistan and China underwent a strategic transformation in 2016 with the launch of the China-Pakistan Economic Corridor (CPEC), which reinforced the already strong ties between the two countries. Initial investment under the CPEC banner helped Pakistan overcome chronic electricity shortage and led to the upgradation of the country’s road networks. However, CPEC projects have also been associated with a strain on both the fiscal and current accounts, dragging down the pace of development during 2018. Although the current Pakistani government seeks a greater emphasis on industrial cooperation, we expect the original framework of the CPEC to remain largely intact with a strong focus on physical infrastructure.
With a total estimated value of around US$64bn, intended for dozens of projects spanning the energy, infrastructure and industrial sectors, the CPEC is China’s largest bilateral partnership under its Belt and Road Initiative (BRI). It was touted by the former PML (N) government as an economic lifeline which promised to deliver sorely needed foreign investment to the country. However, when the PTI formed a coalition government after the general election in July 2018, it tried to renegotiate the terms of certain projects and to reshape others. So far there have only been limited changes and the CPEC plans have largely been retained. Since coming into power, the PTI, led by Premier Imran Khan, has had to deal with harsh economic realities while deciding the future course of engagement with China.
China’s Belt and Road Awakens With a Push Through Pakistan
By Faseeh Mangi (Bloomberg.com) July 21, 2020, 4:00 PM GMT+5
When China’s President Xi Jinping announced its ambitious Belt and Road Initiative in 2013, Pakistan was one of the first to welcome it with open arms. The two have gotten together again to revive the project from hibernation.
Dawn.com 10 Jul 2020
Prime Minister Imran Khan on Friday announced a subsidy of Rs30 billion for the Naya Pakistan Housing Project (NPHP), urging the construction industry and investors to "take advantage of the opportunity", as the government tries to mitigate the economic impact of the coronavirus outbreak.
Belt and Road initiative termed beneficial for Pakistan
PPI August 19, 2019
:Former Sindh Governor Muhammad Zubair has said that Chinese government’s Belt and Road initiative under China Pakistan Economic Corridor (CPEC) is in the larger interest of our country, therefore, it has become very necessary for us to complete all CPEC projects here as soon as possible in order to achieve our goals for economic development and prosperity.
FDI jumps 88pc to $2.561bln in FY20
The News, July 18, 2020
Foreign direct investment (FDI) in Pakistan jumped 88 percent in the fiscal year of 2019/20, with most of the inflows going into power and communications sectors, led by China, numbers released by State Bank of Pakistan (SBP) showed on Friday.
Govt bonds attract $700mln net foreign investment
The News, July 4, 2020
Foreigners invested a huge $3.81 billion in rupee-denominated bonds, but made panic withdrawals following the coronavirus pandemic, which reduced the net investment to $700 million in Pakistan in the last fiscal year ended June 30, 2020.