World

China's CPEC Investment in Pakistan Reaches to $62B

By | Apr 14, 2017 02:16 AM EDT
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Pakistan President Mamnoon Hussain Visits China

Pakistan President Mamnoon Hussain (L) attends a signing ceremony with Chinese President Xi Jinping at the Great Hall of the People on February 19, 2014 in Beijing, China. (Photo : Getty Images)

China will finance more infrastructure projects in Pakistan under its China-Pakistan Economic Corridor, with investment reaching $62 billion from $55 million, Sindh Governor Mohammad Zubair said.

"New investment has been approved for projects in various sectors including [development of] industrial zones," Zubair while speaking at a conference on Wednesday. "We are also in talks to place the Karachi Circular Railway under the CPEC banner."

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China has been heavily investing in Pakistan since it launched the $46 billion CPEC program in 2015. The investment volume grew to $55 billion when several Pakistan officials visited China earlier this year.

Zubair described the new $62 billion investment as good news as citizens could gain dividends from the investment. More than half of the investment ($34 billion) will be allocated into electricity production and distribution. The project aims to add more than 10,000 MW electricity to the national grid by the end of next year.

He also revealed that several other countries have expressed interest on the CPEC project and could become part of the initiative through investments in the industrial sectors.

Other than the infrastructures, CPEC has also brought indirect advantages to Pakistan. Zubair said that foreign information technology firms have started sprouting in the country as China's investment requires IT assistance. China also plans to build industrial parks and railways and roads that will link its western region to Gwadar port on the Arabian Sea via land route.

Meanwhile, the governor also noted that China's investment volume in Pakistan would be higher than $62 billion if private sector investments are included.

"CPEC will create massive economic momentum in Pakistan," Zubair said.

Dagong Chairman Guan Jianzhong is also positive that China's infrastructure development and economic growth support in Pakistan would open Islamabad to the world and bring in more investment.

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