China and Pakistan will upgrade and reconstruct Pakistan’s railway network and further develop its Gwadar port, while Chinese companies can invest in the South Asian nation’s offshore oil and gas developments, the official Xinhua news agency reported on Thursday.
The comments came as Pakistan’s President Asif Ali Zardari visits China from Feb. 4-8, where he also will attend the opening ceremony of the Asian Winter Games.
Chinese investment and financial support for Pakistan since 2013 have been a boon for the South Asian nation’s struggling economy.
The two countries have had close ties underpinned by long-standing wariness of their common neighbor, India, and a desire to hedge against U.S. influence across the region.
Pakistan and China recognized the importance of Pakistan’s “Gwadar Port and agreed to fully unleash its potential as a key node for connectivity and trade,” Xinhua said quoting a joint statement from the two countries.
Chinese-funded enterprises would be encouraged to “carry out mining investment cooperation in Pakistan” and cooperate in terrestrial and marine geological resources.
“Pakistan welcomes Chinese companies to participate in the development of offshore oil and gas resources in Pakistan.”
Longtime Pakistan ally China has thousands of nationals working on projects grouped under the China-Pakistan Economic Corridor (CPEC).
The $65 billion investment is part of President Xi Jinping’s Belt and Road Initiative, designed to expand Beijing’s global reach by road, rail and sea.
