By Farooq Awan

Several development projects supported by China received foreign financing during the first seven months of the current fiscal year, highlighting continued cooperation between Pakistan and China in such areas as energy infrastructure, satellite technology, and development assistance.

According to the Ministry of Economic Affairs’ monthly report on foreign economic assistance, China remained one of Pakistan’s bilateral partners providing financial support for development initiatives during July–January FY2025-26.

Among the largest China-supported projects receiving disbursements during the reporting period is the Chashma Nuclear Power Plant Unit-5 (C-5) project. The report shows that the project received disbursements totaling $269.42 million during July–January FY2025-26. Of this amount, $255.59 million had been disbursed during July–December while an additional $13.84 million was received in January.

The Chashma Nuclear Power Plant Unit-5 project is being implemented by the Pakistan Atomic Energy Commission (PAEC) and represents one of the major energy sector projects financed through bilateral cooperation.

Another project supported by China is the PAKSAT-MM1 Satellite System Project. According to the report, the project received disbursements of $61.71 million during July–January FY2025-26. The project is being executed by the Pakistan Space and Upper Atmosphere Research Commission (SUPARCO).

The satellite system project forms part of Pakistan’s efforts to strengthen its satellite communication capabilities and expand technological infrastructure through international cooperation. In addition to loan-financed projects, the report also indicates that several initiatives supported through Chinese grants received funding during the reporting period.

One such initiative is the construction of houses in Balochistan under a development assistance program. The report shows that the project received disbursements of $6.00 million during July–January FY2025-26. Another Chinese grant-funded project is the reconstruction of fully damaged schools in the former Federally Administered Tribal Areas (FATA). According to the report, this initiative received $0.92 million during the reporting period.

The report also lists disbursements for the project titled “Economic and Technical Cooperation between Pakistan and China,” which received $2.00 million during July–January FY2025-26. Another Chinese-supported initiative receiving financing during the reporting period is the project to establish a new generation national geodetic datum system. The report indicates that the project received $1.65 million during the seven-month period.

According to the report, bilateral assistance from various countries totaled $931.88 million during July–January FY2025-26. The report notes that foreign economic assistance includes funds disbursed in cash, kind, third-party payments and capitalization for development initiatives being implemented by federal and provincial agencies.

The data highlights the ongoing cooperation between Pakistan and China through projects in energy infrastructure, space technology, and development assistance programs.

Credit: INP-WealthPk