China strengthens relationship with Pakistan
The Chinese government has promised $45.6 billion (29.1
billion pounds) that will be used to finance energy and infrastructure projects
in Pakistan.
The China-Pak Economic Corridor (CPEC) project will take place
over the next six years. The project is likely to strengthen an already robust
relationship between the two states, while also providing a much needed energy
source for Pakistan as well as strategic and economic value for China.
“Pakistan and China, both nuclear-armed nations,
consider each other close friends. Their ties are underpinned by common
wariness of India and a desire to hedge against U.S. influence in South Asia.” -
Reuters
Pakistan's minister for water and power Khawaja Asif said "Pakistan
will not be taking on any more debt through these projects," China’s banks
will be loaning money to Chinese companies to invest in the projects.
China will be developing Gwadar port which is in a strategically
important location close to the Strait of Hormuz, a key oil shipping lane that
could secure the transportation of oil from the Gulf States, across Pakistan,
and into western China. The route will bypass India. Although allies India and
China are still economic competitors.
Khawaja Asif went on
to say "In total we will add 16,000 MW of electricity through coal,
wind, solar and hydroelectric plants in the next seven years and reduce power
shortage by 4,000 to 7,000 megawatts,"
