The Times of India THURSDAY, AUGUST 01, 2002
China modernising Pak infrastructure PTI BEIJING: As part of Beijing's efforts to supplement its strong political and military ties with Islamabad, China is actively helping develop Pakistan's key infrastructure sectors like roads, ports and railways. The leadership of the two countries during their recent meetings has decided to establish a "comprehensive partnership" in all fields of mutual interest, particularly in the economic field, official sources said. Under China's plans to rehabilitate and modernise Pakistan Railways, the first-batch of China-made 14 air-conditioned passenger coaches were exported to Pakistan recently. These coaches, which have arrived in Karachi, would be formally inducted in the country's railways at an independence day ceremony on August 14, when they would be used to run a "Pak-China" train service between Lahore and the port city, sources said here. A Chinese government delegation is expected to attend the function. The second batch of 26 coaches will be sent to Pakistan by the first quarter of next year as part of an agreement under which China will provide 175 coaches and 69 locomotives to Pakistan railways within three years costing nearly $200 million. According to the agreement, 40 coaches and 15 locomotives would be manufactured in China while the rest would be developed and assembled at the railway locomotive factory in Risalpur in Pakistan. EXIM Bank of China will meet 87.5 per cent of the total financial requirements on supplier credit basis. Sources said the Chinese companies have also shown keen interest in helping Pakistan in updating its worn out rail tracks as well as improving the overall railways signal system. Pakistan has also signed a contract worth $22 million with China for purchase of 52,000 metric tonnes of railways tracks. China has committed over $1.5 billion in economic assistance, credits and investments to Pakistan over the last two years, sources said. The cost of projects currently underway is estimated to be more than $700 million while those in pipeline are worth $800 million. China has also provided $500 million to Pakistan as temporary balance of payment support through a recently rolled over cash deposit with the National Bank of Pakistan for three years ending 2005. It has helped Pakistan in constructing the Karakoram highway and is now involved in developing the strategically important Gwadar deep-sea port. The work on the deep-sea port was started in March this year with a total cost estimation at $248 million. The project is scheduled to be completed in three years. Copyright © 2002 Times Internet Limited. All rights reserved.
