China and Pakistan agree to push forward economic corridor plan after dam deal scrapped
Analysts say disputes over individual projects won’t get in the way as officials sign long-term plan for US$57 billion scheme
As China and Pakistan agreed on Tuesday to push ahead with their huge economic and infrastructure scheme, analysts said disputes over individual projects would not have a significant impact on its progress.
Officials from both sides were finalising a long-term plan to 2030 for the US$57 billion China-Pakistan Economic Corridor (CPEC) on Tuesday as they wrapped up a Joint Coordination Committee meeting in Islamabad.
The CPEC is a flagship project under Beijing’s “Belt and Road Initiative” to open up trade along land and sea corridors from Asia to Africa to Europe. China is hoping to export its infrastructure and industrial capacity and expand economic ties and influence with countries involved in the initiative.
The two nations on Monday agreed to begin the first phase of developing special economic zones, the World Tribune Pakistan reported.
But Pakistan rejected China’s demand to use the yuan in the Gwadar Free Zone, saying this would compromise its “economic sovereignty”, the Express Tribune reported.
Last week, Pakistan pulled the plug on a US$14 billion deal to build the Diamer-Bhasha Dam – excluding it from the CPEC – saying China’s conditions for funding the project were unacceptable and went against its interests.