Thursday, April 30, 2015

China's big plunge in Pakistan

      The Chinese President Xi Jinping was visiting Pakistan last week and announced an investment of $46 billion dollars in Pakistan aimed at building an economic corridor linking China to Europe,Central Asia and the Middle East through Pakistan. This corridor will significantly reduce the time it takes for China to import energy as it bypasses the Straits of Malacca which could have been blocked in times of war. Pakistan will also significantly benefit from this deal as it is huge investment in improving the infrastructure of the country and it will help create jobs. However, both countries will have to deal with rampant corruption in Pakistan, militancy and separatist groups in Baluchistan, which is the province where most of the investment is occurring. If both these countries are successful in protecting their investments then the future does indeed looks bright for both these countries.  
http://www.nytimes.com/2015/04/23/opinion/chinas-big-plunge-in-pakistan.html

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