Three CPEC projects to be financed by Saudi Arabia: minister
- By Web Desk -
- Sep 28, 2018
ISLAMABAD: The government of Saudi Arabia will finance three road infrastructure and energy projects under the China Pakistan Economic Corridor (CPEC), according to Information Minister Fawad Chaudhry.
He said the Saudi Arabia had signed three grant agreements with Pakistan in this regard. The agreements were signed by the Saudi envoy and the officials of Pakistan’s finance ministry.
“The first step has been taken as three grant agreements have been signed. This is a very positive step and bodes well for relations between the two countries,” the minister added.
Secretary Economic Affairs Division Syed Ghazanfar Abbas Jilani and the chief executive officer Saudi Fund for Development (SFD) signed the MoUs on behalf of their respective governments.
Earlier today, the minister said a Saudi government delegation comprising high-level officials would arrive in Pakistan on Sunday.
The visit has been in line with the previous announcement by the government pertaining to Islamabad’s invitation to Riyadh for making investments in China-Pakistan Economic Corridor (CPEC) as well as other infrastructure projects countrywide.
“The delegation will consist of the Saudi investment head, minister for petroleum and minister for energy,” he informed.
“As I had said earlier on our return from Saudi Arabia, the kingdom has expressed interest in investing with us for CPEC projects as well as infrastructure development and to that end is bringing major investments here. The first step has been taken (three grant agreements have been signed) and this is a very positive step and bodes well for relations between the two countries.”
A glance at CPEC
In April 2015, China had announced mega development projects in Pakistan worth $46-billion under CPEC project, which focuses on road building and energy infrastructure to end chronic power shortages in Pakistan and to link China’s landlocked north-west with the deep-water port of Gwadar on the Arabian Sea.
The plan, which would eclipse U.S. spending in Pakistan over the last decade or so, is part of China’s aim to forge “Silk Road” land and sea ties to markets in the Middle East and Europe.
The two sides had also agreed to strengthen cooperation in civil nuclear energy, space and maritime technology, counter-terrorism and defense.
Meanwhile China will also expand industrial capacity cooperation in diverse sectors including chemical, pharmaceutical, engineering, agro-based industries, iron and steel. The two countries will also increase exploration and development of resources.
Under CPEC, a number of new economic zones will be created along the corridor.