Silk Road investment in Pakistan by China
Chinese companies are showing interest to land up their businesses in Pakistan. The China has already settled major deals in the recent months. The ties will undoubtedly deep. Beijing has promised to invest at least $57 billion in the trade route across the South Asian nation.
Many executives from Pakistan firms told Reuters that Chinese companies are looking for constructive materials mainly steel, energy, cement, and textile sectors. The economy of Pakistan will increase to $270 billion, which will strengthen the backbone of Pakistan.
The interest of various Chinese firms is very high, and they have given the project a name of One Belt, One road. It is a global trade network of Pakistan and one of the key project, which helps to expand the growth.
The Chinese-led consortium has taken a great stake in the Stock Exchange. The Shanghai Electric Power is one of the biggest and largest energy producers, which produces K-Electric for $1.8 Billion.
According to the Chief Executive of company Yunus Brother Group Muhammad Ali Tabba, “The Chinese have built deep roots ad pockets by investing in Pakistan.”
Tabba told that Yunus company is now partner with Chinese company and lost the battle for K-electric.the group is eyeing and making an effort to join ventures with an expansion plan in next coming years which will be an investment of $2 Billion.
The privatization Minister Muhammad Zubair told Reuters China steel giant Baosteel group is on lease for 30 years under the state-run Pakistan Steel Mills. The negotiations start when Pakistan business sentiment turns with the companies ad bet that Beijing splurge on rail, energy infrastructure and road under the CPEC project to boost the economy.
Foreign investment was around $1.9 billion during the years 2015/2016 and is below than the 2007/2008 investment around $5.4 billion. At the stock exchange signing ceremony, Chinas Ambassador to Pakistan Sun Weidong said that the deal helps to embody the continuous financial integration between the Pakistani and Chinese markets. It will provide great financial support to all enterprises.
CPEC will connect will China through the Western region with rail, pipeline projects, and the road to Pakistan Arabia Sea Port of Gwadar. The project is funded by China.
Rising skyscrapers will surely give a boom in the city. Businesses will print Chinese Language brochures along with salaries demanded by Pakistani especially those who speak Chinese.