China and Pakistan have agreed to enhance mining cooperation and advance the implementation of a pact aimed at bolstering mining development and industrial collaboration, as stated in a joint declaration from the two nations.
During Pakistani Prime Minister Shehbaz Sharif’s visit to Beijing from June 4 to 8, efforts were made to elevate cooperation under the multi-billion dollar China-Pakistan Economic Corridor (CPEC), a pivotal component of Beijing’s Belt and Road Initiative.
Under the agreement, Chinese firms will be encouraged to invest in Pakistan’s mining sector, and there will be a focus on enhancing the development of mining industry parks, including the deep processing of ores, as outlined in the joint statement issued by China’s foreign ministry.
Furthermore, China pledges to strengthen collaboration with Pakistan in marine oil and gas resources, as well as natural gas hydrates. Chinese companies will be urged to engage in the exploration and development of offshore oil and gas blocks in Pakistan.
China’s substantial investment and financial support for Pakistan since 2013 have provided a significant boost to the South Asian nation’s struggling economy, including measures such as loan rollovers to help Islamabad address external financing requirements during a period of critically low foreign reserves.
As part of the Belt and Road initiative, Beijing has allocated over $65 billion towards various road, infrastructure, and development projects under the China-Pakistan Economic Corridor.
