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22 April 2015

China’s landmark investments in Pakistan

April 21, 2015

The writer is a retired lieutenant general of the Pakistan Army and a former federal secretary. He has also served as chairman of the Pakistan Ordnance Factories Board 

Hype aside, a seminal shift is taking place in Pakistan’s strategic orientation, as it dramatically enhances its cooperation with China in the economic, political and defence areas. With the US thinning its presence in Afghanistan and the region, China’s footprint will be fast increasing.The projected investment of $45 billion in various projects — spread over 10 to 15 years — that China is pledging is a manifestation of its expanding interest in Pakistan. For China, this would be the biggest investment it has made in any country, if it were to fully materialise. China’s investments are in line with its overall political and strategic goals, and are a demonstration of its confidence in Pakistan’s future. 

These investments, if properly executed, could be transformational. Pakistan’s greatest weakness is its dilapidated infrastructure. China’s investment aims at improving infrastructure, opening up of the neglected province of Balochistan and development of Gwadar as a strategic and commercial port. This in turn is likely to increase China’s and Pakistan’s presence in the Gulf of Oman and the Arabian Sea. The economic corridor will open up new business opportunities for both countries. Pakistan’s close alignment with China should partially contribute to countervailing India’s growing economic and military power. 

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