China- Pakistan CPEC agreement

On February 4, 2022, Pakistan signed a new agreement with China to start second phase of USD 60 billion China-Pakistan Economic Corridor (CPEC).

Key Points

• On the occasion, Prime Minister Imran Khan praised the controversial projects, stating that it has strategic significance for Pakistan and China. It will also deliver tangible benefits to the people.
• Prime Minister arrived in China, on a four-day visit for attending the opening ceremony of 2020 Beijing Winter Olympics.
• He held virtual meeting with He Lifeng, Chairman of China’s National Development & Reform Commission (NDRC) and held discussion on expansion of Chinese investments in Pakistan.

Framework Agreement on Industrial Cooperation

On the occasion, Framework Agreement on Industrial Cooperation was also signed with the aim of:

1. Attracting Foreign Direct Investment (FDI)
2. Promote industrialisation and development of economic zones, and
3. Initiating, planning, executing and monitoring projects in public as well as private sector.

China–Pakistan Economic Corridor (CPEC)

CPEC is a collection of infrastructure projects, which are under construction throughout Pakistan. It started in 2013. This project was originally valued at USD 47 billion. Its value has increased to worth USD 62 billion as of 2020. CPEC project focuses on rapidly upgrading Pakistan’s required infrastructure and strengthening its economy by constructing modern transportation networks, special economic zones and numerous energy projects. It is a 3,000-km long route of infrastructure projects, to connect China’s northwest Xinjiang Uygur Autonomous Region to Gwadar Port in western province of Balochistan in Pakistan.