Pakistan, China ink framework agreement on industrial cooperation under CPEC

China and Pakistan signed a new agreement on industrial cooperation as part of the China Pakistan Economic Corridor (CPEC) plan during Prime Minister Imran Khan’s on-going visit to Beijing.

Key-highlights of the Agreement

• The industrial cooperation agreement is a key part of what is being called “phase two” of CPEC.
  • First Phase: The first phase primarily involved Chinese investments in energy projects as well as road infrastructure.
• The agreement between Pakistan’s Board of Investment and the NDRC is aimed at boosting Chinese investment in Pakistan as well as transferring Chinese industrial capacity.
• The framework will “promote industrialisation and development of economic zones, and initiate, plan, execute, and monitor projects, both in public as well as private sector”.

What is CPEC?

• China has described CPEC as a “flagship project” of the Belt and Road Initiative.
• The corridor links Xinjiang with Gwadar, and also passes through Pakistan-occupied Kashmir (PoK) where China is investing in a number of projects.
• The Belt and Road Initiative, reminiscent of Silk Road, is a major infrastructure project that will travel from East Asia to Europe.
  • Launched in 2013, he program has two sides:
    • Silk Road Economic Belt
    • Maritime Silk Road