ISLAMABAD, Oct 29 (Wealth Pakistan) – China has disbursed $2 million to Pakistan in September 2025 for the Economic and Technical Cooperation Project in Punjab, according to the Monthly Foreign Economic Assistance Report released by the Ministry of Economic Affairs. The assistance reflects Beijing’s continued financial engagement in Pakistan’s provincial development and institutional capacity-building programs.
The project, funded through a Chinese grant, aims to strengthen Pakistan’s technical infrastructure, enhance institutional linkages, and promote development cooperation between the two countries. The latest disbursement underscores China’s commitment to practical, province-level initiatives under its bilateral framework with Pakistan, beyond the major infrastructure ventures associated with the China–Pakistan Economic Corridor (CPEC).
Continued Chinese assistance
During September 2025, China’s total disbursements to Pakistan amounted to approximately $2 million, while cumulative assistance for the first quarter of FY2025–26 (July–September) reached $9.75 million, combining both grants and loans.
In addition to the Punjab project, China continued funding reconstruction and rehabilitation programs across several regions. These included rebuilding fully damaged schools in Bara District, Khyber Pakhtunkhwa, valued at $4.47 million; construction of housing projects in Balochistan worth $6 million; and establishment of the New Generation Geodetic Datum of Pakistan under the Defense Division, amounting to $1.08 million.
Broader development partnership
China remains engaged in multiple large-scale projects of national significance, including the relocation of the Karakoram Highway (Thakot–Raikot section), establishment of the Pakistan Space Center (SUPARCO), and the creation of the China–Pakistan Joint Research Centre on Earth Sciences at Quaid-e-Azam University.
These initiatives form part of a broader bilateral partnership focused on modernizing Pakistan’s infrastructure, enhancing technological capacity, and fostering scientific research collaboration.
Support for financial stability
China’s contribution to Pakistan’s financial stability also extends beyond project aid. The country maintains a SAFE China Deposit of $4 billion, a vital component of Pakistan’s external financing structure that supports macroeconomic stability and the balance of payments.
The latest disbursement for Punjab’s Economic and Technical Cooperation Project underscores Beijing’s diversified engagement strategy, reflecting its commitment to both grassroots development and national-scale investments.
Analysts see these flows as a sign of Pakistan’s enduring partnership with Beijing, emphasizing shared objectives of sustainable growth, regional connectivity, and economic cooperation.