China to Invest $46B in Pakistan

China’s President Xi Jinping is on a two-day visit to Pakistan, where he is expected to announce investment of $46bn (£30.7bn).

The focus of spending is on building a China-Pakistan Economic Corridor (CPEC) – a network of roads, railway and pipelines between the long-time allies.

They will run some 3,000km (1,865 miles) from Gwadar in Pakistan to China’s western Xinjiang region.
The projects will give China direct access to the Indian Ocean and beyond.

This marks a major advance in China’s plans to boost its economic influence in Central and South Asia, correspondents say, and far exceeds US spending in Pakistan.

“Pakistan, for China, is now of pivotal importance. This has to succeed and be seen to succeed,” Reuters quoted Mushahid Hussain Sayed, chairman of the Pakistani parliament’s defence committee, as saying.

Pakistan, for its part, hopes the investment will boost its struggling economy and help end chronic power shortages.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza