China, Pakistan forge mining co-operation pact

China and Pakistan have mutually agreed to enhance their collaboration in mining and advance the implementation of a pact aimed at bolstering mining development and industrial co-operation, as per a joint statement by both nations.

Pakistani Prime Minister Shehbaz Sharif’s visit to Beijing from June 4 to 8 focused on elevating co-operation within the multi-billion dollar China-Pakistan Economic Corridor (CPEC), a pivotal component of Beijing’s Belt and Road Initiative.

According to the joint statement from China’s foreign ministry, the two countries will facilitate investment by Chinese enterprises in Pakistan’s mining sector and intensify the design of mining industry parks, which will encompass advanced ore processing capabilities.

China pledges to deepen co-operation with Pakistan in marine oil and gas resources as well as natural gas hydrates, while actively encouraging Chinese companies to engage in the exploration and development of offshore oil and gas blocks in Pakistan, the statement outlines.

According to Reuters, the Chinese investment and financial assistance to Pakistan since 2013 have significantly bolstered the South Asian nation’s struggling economy, including the restructuring of loans to ensure Islamabad’s ability to fulfill external financing requirements amidst critically low foreign reserves.

Under the Belt and Road initiative, Beijing has injected over $65 billion into road construction, infrastructure, and developmental projects through the China-Pakistan Economic Corridor.