ISLAMABAD, Nov 2 (Wealth Pakistan): China has disbursed USD 2 million for the Economic and Technical Cooperation Project in Punjab, according to the latest Monthly Foreign Economic Assistance Report issued by the Ministry of Economic Affairs. The funding reflects Beijing’s ongoing financial engagement in Pakistan’s provincial development and institutional capacity-building programs.
Strengthening Technical Infrastructure
The Punjab project aims to strengthen Pakistan’s technical infrastructure, enhance institutional linkages, and support long-term development cooperation between the two countries. The latest disbursement underscores China’s focus on practical, results-driven initiatives within its bilateral development framework with Pakistan.
This collaboration goes beyond the large-scale infrastructure projects linked to the China–Pakistan Economic Corridor (CPEC). During September 2025, China’s total disbursements to Pakistan reached USD 2 million, while cumulative Chinese assistance for the first quarter (July–September) of FY2025–26 amounted to USD 9.75 million, combining both grants and loans.
Continued Support Across Provinces
In addition to the Punjab project, China has continued funding several reconstruction and rehabilitation initiatives across Pakistan. These include:
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Reconstruction of fully damaged schools in Bara District, Khyber Pakhtunkhwa (USD 4.47 million)
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Construction of houses in Balochistan (USD 6 million)
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Establishment of the New Generation Geodetic Datum of Pakistan (USD 1.08 million) under the Defense Division
These projects highlight China’s broad-based development approach, targeting education, housing, and technical capacity across multiple provinces.
Major Ongoing Projects
China also remains engaged in several large-scale projects of national importance. Key initiatives include the Relocation of the Karakoram Highway (Thakot–Raikot section), the Pakistan Space Centre (SUPARCO), and the China–Pakistan Joint Research Centre on Earth Sciences at Quaid-e-Azam University.
These ventures are part of a wider development partnership aimed at modernizing Pakistan’s infrastructure, improving logistics, and building scientific capacity for sustainable growth.
Financial Stability and Strategic Partnership
Beyond development assistance, China continues to play a key role in Pakistan’s financial stability. The country maintains a SAFE China Deposit of USD 4 billion, which forms a critical component of Pakistan’s external financing structure and supports macroeconomic stability and balance-of-payments management.
The latest disbursement for Punjab’s Economic and Technical Cooperation Project highlights Beijing’s diversified development engagement, balancing grassroots technical support with large-scale economic collaboration.
Strengthening Bilateral Ties
Analysts view China’s continued financial inflows as a reaffirmation of Pakistan’s enduring partnership with Beijing. The relationship aims to promote sustainable growth, institutional reform, and greater economic integration between the two countries.