According to experts, Chinese companies are using Beijing’s “One Belt, One Road” initiative to further expansion interests in Pakistan, as the South Asian nation is part of the project. (Photo : Getty Images)
Relations between China and Pakistan are warming up as Chinese companies look forward to more business deals and investments in the South Asian country, Reuters reported.
Two major deals were sealed recently, and Chinese corporations are already exploring investment opportunities in Pakistan’s cement, steel, energy and textile sectors. These industries are major drivers of Pakistan’s economy currently worth $270 billion.
Just recently, Chinese businessmen acquired a significant stake in the Pakistan Stock Exchange. At the same time, K-Electric, one of Pakistan’s biggest energy producers, was acquired by Shanghai Electric Power for $1.8 billion.
“The Chinese have got deep pockets and they are looking for major investment in Pakistan,” said Muhammad Ali Tabba, chief executive in two of the Yunus Brothers Group’s companies, in an interview with Reuters.
Although the Yunus Brothers, in partnership with a Chinese company, lost the bid for K-Electric, the group has other plans to push their $2 billion expansion project.
According to experts, Chinese companies are using Beijing’s “One Belt, One Road” initiative to further expansion interests in Pakistan, as the South Asian nation is part of the project.
What the Chinese are doing is in stark contrast to the Western approach, as Western investors have largely avoided Pakistan in the past years despite growth and increasing stability.
The effect of Chinese investment in Pakistan is obvious. In Karachi, Pakistan’s financial center, Chinese businessmen outnumber westerners. Chinese-language brochures are being printed, and there is a newfound demand for Pakistanis who speak fluent Chinese.
Although there is cause for excitement, other groups in Pakistan are not too keen on China’s interest in the nation. Some remember China’s alleged mistreatment of African workers, accusations which Beijing and Chinese companies involved have dismissed in the past.
“We have concern and reservations that the Chinese might use the same methods in Pakistan,” Nasir Mansoor told Reuters. Mansoor is the deputy secretary general of Pakistan’s trade union body, the National Trade Union Federation.
