Pakistan expects $50 billion investment as China's Xi Jinping embarks on visit

Chinese President Xi Jinping will arrive in Pakistan tomorrow on his maiden visit to Pakistan during which the two sides will sign several agreements, including defence, worth USD 50 billion that will stabilise Pakistan's cash-strapped economy and expand the Communist giant's influence in India's neighbourhood.

A fleet of eight JF-17 Thunder fighter jets - jointly made by the two countries - will escort the Chinese president once his plane enters the Pakistani airspace. A red-carpet welcome will be accorded to Xi who has chosen Pakistan his first destination for foreign trip in 2015 after cancelling his previous trips.

Foreign Office said that Xi will meet President Mamnoon Hussain and hold official talks with Prime Minister Nawaz Sharif. He will also meet the chiefs of three services and address a joint session of Parliament. 

President Xi, also the General-Secretary of the ruling Communist Party, will be conferred the 'Nishan-e-Pakistan', the highest civilian award, at a special ceremony. "Both countries would conclude a number of important Agreements/MoUs relating to key development projects in the infrastructure, energy, and communication sectors under the ambit of the China-Pakistan Economic Corridor," the Foreign Office said without giving details.

An official of the finance ministry told PTI that agreement and MoUs of about USD 50 billion are expected to be signed under the China-Pakistan Economic Corridor (CPEC). China has decided to go ahead with the ambitious project despite serious security concern in its restive Muslim- dominated Xinjiang as well as the Taliban threat in Pakistan.

The corridor, regarded as the biggest connectivity project between the two countries after Karakorram highway built in 1979, is a centerpiece of China's ambitions to shorten the route for its energy imports from the Middle East. The 3,000-km long corridor linking China's far-western region to Pakistan's south-western Gwadar port on the Arabian Sea through Pakistan-occupied Kashmir (PoK) is massive project of road, rail, energy schemes, pipelines and investment parks.

In the short-term plan, energy projects of about USD 35 billion are being planned for execution. It is being planned to operationalise these projects by 2018 to create about 10400 MW of electricity. Another USD 11 billion will be invested on infrastructure projects. Providing an outline of the corridor project, China played down India's concerns that it is being laid through the PoK and said that it is a commercial project.

"The project between China and Pakistan does not concern the relevant dispute between India and Pakistan. So I do not think that the Indian side should be over concerned about that," Assistant Foreign Minister Liu Jianchao said last week.