China Pledges $50 billion Investment
China Pledges $50 billion Investment
ISLAMABAD (September 08 2006): China has pledged $50 billion investment to Pakistan to develop Gwadar port on the pattern of its Shenzhen port over the next five years. The plan referred by Beijing to Islamabad indicated that Chinese investment for this mega project will come in two phases and its lion share will go to the petrochemical industry.
Pakistan had offered China co-operation in the energy sector in a big way when President General Pervez Musharraf visited Beijing in February last. The President conveyed his Chinese counterpart Hu De Ping during the course of consultations that Gwadar port will be the best facility for his country to meet its growing energy demand.
This was followed by a Pak-China energy forum, which was held in Islamabad in April this year. The Chinese President had led a 150-member team in the forum.
These high-level negotiations led to a formal understanding between China and Pakistan that the two sides will take full advantage of each other’s potential to ensure their energy security. China pledges to make huge investment in Pakistan to develop its infrastructure and other facilities to help it become an energy corridor for the region.
Sources said Chinese investment plan was under study in Islamabad and the two sides are likely to sign a formal agreement for the Gwadar port-specific investment during the upcoming visit of the Chinese President to Pakistan.
The plan was discussed more than once at the highest level to make it work and achieve objectives in the stipulated time period.
They added the Chinese President’s visit to Pakistan is expected in November and foreign ministries of the two sides were actively busy in giving final touches to the schedule and activities of the meeting. China contributes 25 to 30 percent of Pakistan’s investment in different areas and it intends to increase this percentage in the future.
Sources said Pakistan is targeting to take Chinese investment between 120 to 150 percent in next 10 years and the Gwadar port will serve as a hub to achieve the target.
Pakistan is planning a petrochemical zone at Gwadar to attract foreign invest to promote petrochemical industry. The plan also included at least two major oil storage facilities for supply to China and other regional countries, besides meeting growing national demand of petroleum products.
Islamabad is positioning itself to become an energy corridor to ensure supply of petroleum products to China and other countries of the region. China’s energy needs are growing fast and with the development of Gwadar port Pakistan can ensure supply of oil and gas through pipelines and land route.
Copyright Business Recorder, 2006
