Pakistan’s Efforts to Revive China Belt and Road Initiative Projects: An Economic Boost in the Making

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📷 Image Credits: The Times of India

Pakistan is looking to reinvigorate projects under China’s Belt and Road Initiative, aiming to give a much-needed boost to its economy. The efforts come as Pakistan’s new government seeks to enhance collaboration in key areas such as renewable energy projects, agriculture, and attracting Chinese companies to invest in the country. Ahsan Iqbal, Pakistan’s federal minister for Planning, Development, and Special Initiatives, emphasized the positive reception from China during recent meetings, indicating a willingness to reignite momentum in the China-Pakistan Economic Corridor (CPEC).

CPEC, which includes infrastructure projects such as a port in Gwadar and power plants, had initially positioned Pakistan as a significant participant in the Belt and Road Initiative. However, progress on new ventures had slowed due to the impact of the COVID-19 pandemic and Pakistan’s economic challenges, prompting the need for external financial assistance, including support from the International Monetary Fund (IMF).

Prime Minister Shehbaz Sharif, re-elected for a second term, is keen on revitalizing economic ties with China, following in the footsteps of his brother Nawaz Sharif, who first engaged with the BRI in 2013. Previous investments of around $25 billion in CPEC’s first phase, which included crucial energy projects, helped address Pakistan’s chronic power shortages.

Recent approvals for a scaled-down railway upgrade project and the completion of pending ventures in Gwadar signify the government’s commitment to reinforcing the partnership with China. By easing financial burdens and demonstrating seriousness in project execution, Pakistan aims to restore China’s confidence and commitment to the CPEC initiatives.

Looking ahead, Pakistan aims to leverage the private sector to foster collaborations with Chinese companies as part of the next phase of CPEC. Additionally, efforts are being made to attract Chinese businesses seeking alternative locations due to rising costs and geopolitical challenges in their home country. By offering conducive business environments and investment opportunities, Pakistan aspires to create a win-win situation for both nations. As bilateral engagements between the two countries strengthen, the economic landscape in Pakistan is poised for a potential transformation, paving the way for enhanced growth and development.