On 17th June 2023, Pakistan received a $1 Billion loan from China in addition to the previous bailout received in February wherein China had lended $700 million to P

On 17th June 2023, Pakistan received a $1 Billion loan from China in addition to the previous bailout received in February wherein China had lended $700 million to Pakistan to shore up its foreign reserves.

Pakistan has called China its “all weather friend” as China has been responsible for various infrastructure projects in the country. Part of China’s Belt and Road Initiative (BRI), China - Pakistan Economic Corridor (CPEC) was estimated to be completed at a cost of $65 billion, leading to an inflow of $65 billion towards developing Pakistan’s crumbling infrastructure.

Beijing is not only investing in Pakistan’s economic hubs, but also in the places like Pakistan Occupied Kashmir, Northwestern Khyber Pakhtunkhwa, Sindh and Balochistan. 

The Pakistan Government in 2020 signed a Rs. 442 billion project with a Chinese State run firm to develop

 in Pakistan Occupied Kashmir, becoming Pakistan’s third largest dam with the capacity of generating 4,500 MW of electricity. 

, known as New Gwadar International Airport, which is expected to be completed this year in September. In addition, it has been focussing on Pakistan’s green energy. Under CPEC, 

 in the province of Sindh, with an estimated cost of $150 billion, were completed. 

, developed by the state owned Chinese ‘Three Gorges Company’, started operating, built at a cost of $1.72 billion. Recently in June 2023, China and Pakistan have signed a

One of the game changing moves, Pakistan had leased its strategically located Gwadar port to China in 2017 for 40 years. China is massively developing and expanding the port city of Gwadar where China is seeking a 

China has become a lifeline for Pakistan’s economic and infrastructure development, the continuous money in the form of loans and investments is keeping the cash strapped country running at a time when the Western institutions are giving Pakistan a hard run for its money.

Chinese investments in Pakistan

1 Comment