BEIJING: The huge investment package amounting to $20 billion signed between Pakistan and Saudi Arabia during the visit of Saudi Crown Prince Mohammed bin Salman is the largest in the history of Pakistan and carries extraordinary significance.
During the visit of the Saudi crown prince to Pakistan, the two sides signed agreements to invest in the construction of a number of energy and chemical industry projects in Gwadar Port, amounting to near $20 billion of investment, according to an article published by China Economic Net here on Monday.
This is a huge investment from a third-party in the construction of the China-Pakistan Economic Corridor (CPEC), benefiting all parties and creating a win-win situation.
Projects of tens of billions of dollars are treated as massive for any country. As for Pakistan, this is one of the largest foreign investment projects in its history and carries extraordinary significance.
For Pakistan, which is short of foreign exchange, such a massive foreign investment is a windfall.
The project will bring advanced technology, management and talents to Pakistan, as well as provide energy and chemical industrial products, as well as create employment opportunities.
At the same time, the large-scale investment projects will set a good example, helping attract more foreign investment to Gwadar Port and Pakistan.
The traditional friendship between Saudi Arabia and Pakistan is profound. They have always supported each other in various fields. Saudi Arabia is Pakistan’s largest trading partner in the Middle East. Pakistan is short of domestic energy; its oil is mainly imported from Saudi Arabia and other Gulf countries. Saudi Arabian investment in building large-scale energy and chemical projects in Pakistan will help to lock in Pakistan’s oil demand for Saudi Arabia, ensuring stable and reliable buyers.
As the Chinese saying goes, “when everybody adds fuel, the flames will rise high”. China is pleased to see Saudi Arabia’s large-scale energy and chemical projects be based in Gwadar Port, making it a demonstrative example project in the construction of CPEC. The “Belt and Road” initiative is open; it is not a “solo” undertaking of China, but a “symphony” for all countries to participate in.
It aims to benefit countries and regions at different stages of development and embrace prosperity. The focus of the B&R construction is policy coordination, facilitate connectivity, allow unimpeded trade, financial integration and enhance people-to-people bonds.
The “2030 Vision” formulated by the Saudi government focuses on economic diversification, focusing on the development of petrochemicals, infrastructure, modern technologies and socially transformative business development.
The four key areas of CPEC are energy, infrastructure such as Gwadar Port, and industrial cooperation, followed by technical cooperation and job creation.
It is easy to see that Saudi Arabia’s investment in large-scale energy and chemical projects in Gwadar Port is fully compatible with the B&R, the CPEC and the “2030 Vision”.
It is in the common interest of all parties. As the construction of CPEC enters a new stage of enrichment and expansion, Saudi Arabia’s participation in the construction of corridors by investing in Gwadar Port enriches the content of corridor’s construction and reflects the openness and transparency of the B&R, highlighting the charm and global influence of CPEC. Based on the principle of seeking shared benefits through consultation and collaboration, China is pleased to join hands with all parties to jointly build CPEC and play the “One Belt, One Road” symphony.