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China-Pakistan Economic Corridor promotes cooperative projects

Updated: May 10,2017 9:33 AM

Pakistan’s Prime Minister Nawaz Sharif will take part in the upcoming Belt and Road Forum for International Cooperation in Beijing, with his country set to play an important role in the initiative, thanks to close cooperation with China.

President Xi Jinping promised to invest $46 billion in the China-Pakistan Economic Corridor (CPEC) when he went to Pakistan in 2015, with the project set to be an important part of the China-proposed Belt and Road Initiative.

The CPEC was first proposed by Premier Li Keqiang during a visit to Pakistan in 2013. One goal of the project was to help Pakistan build up its infrastructure and economy through the construction of modern transport networks, energy projects, and special economic zones.

Pakistan’s consul general in Shanghai said that the CPEC has expanded cooperation in the energy industry among others, even though most of the projects are far from complete.

Shanghai Electric is currently building a coal-fired power station in Pakistan. The company says the deal is good for both companies, and was made possible by a number of favorable policies negotiated between the two countries, including tax rates and cheap land.

The power station will cost more than $1.5 billion to build, with Shanghai Electric footing the bill in return for the right to run the plant for 30 years.

The station is part of the first phase of the economic corridor, which focuses on energy and infrastructure projects. The second phase is about trade, and the third will focus on education and cultural exchanges.