China hikes investment in CPEC to $62bn from $55bn
NEW DELHI: China has again upped its investment in Pakistan in the China Pakistan Economic Corridor (CPEC), this time t $62 billion from $55 billion, The Express Tribune reported.
The additional financing is for infrastructure projects and industrial zones in Pakistan under CPEC. The volume of China’s investment in Pakistan would be significantly higher than $62 billion if its private sector investment is also counted.
China’s initial investment for CPEC in Pakistan was $46 billion in 2015; that number has been steadily going up with increasing investments required in Pakistan’s infrastructure and power projects. A major chunk of the multibillion-dollar investment, $34 billion, is going into electricity production and distribution.
“This [$62 billion investment] is good news. People will reap dividends of the investment… CPEC will create massive economic momentum in Pakistan,” said Sindh Governor Mohammad Zubair, a member of Prime Minister Nawaz Sharif’s core economic team.
Still, it was important to utilize the investment increase properly, said a Pakistan Credit Rating Agency official.
“We need to make sure the process [of utilising the finances] remains transparent,” the official said.