China will invest a massive $45.6 billion to create an economic link with Pakistan

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The Chinese government and banks will finance Chinese companies to build $45.6 billion worth of energy and infrastructure projects in Pakistan over the next six years, according to new details of the deal seen by Reuters news agency on Friday.
China and Pakistan, are both nuclear-armed powers,and consider each other  as close allies  Their military and economic ties are cemented  by their common enemy  India, and both nations have a desire to fight against U.S. influence in South Asia.
Documents seen by Reuters news agency show that China is going to invest around $33.8 billion in numerous energy related projects and around $11.8 billion in Pakistan’s infrastructure development.

The deal says the Chinese government and banks, including China Development Bank, and the Industrial and Commercial Bank of China Ltd  one of China’s ‘Big Four’ state-owned commercial banks, will loan funds to Chinese companies, who will invest in the projects as commercial ventures.

Major Chinese companies investing in Pakistan’s energy sector will include China’s Three Gorges Corp, which built the world’s biggest hydro power scheme, and China Power International Development Ltd.

Under the CPEC agreement, $15.5 billion worth of coal, wind, solar and hydro energy projects will come online by 2017 and add 10,400 megawatts of energy to the national grid.

0311-ChinaRoute

Conclusion

So the total route from gwadar to Kashgar is 3217km vis a vis 18000km through sea

It takes close to 2 months per trip between china and Gulf

While at max if the rail link is made it will take few days.if road route than almost 1 week
if pipeline than 1-2days

Hence Gwadar in return will offer China

*Cheaper Route
*6-7 times shorter route
*will reach china within 1 week be it rail or road vis a vis 2 months through sea

It will offer Pakistan

*Development of Balochistan and specially Gwadar
*Possible naval base of PLAN beyond 2020.hence more secure coastline of Pakistan
*Economic Boom to Pakistan

Tajikistan and central Asia

*Tajikistan already has completed construction on there side of road
*Has also expressed willingness to join the Gwadar-kashgar railway line.
*More central Asian countries can get access to Gwadar against through Tajikistan



Categories: Business, Politics

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