By Abdul Ghani
China has released $2 million to support Punjab’s Economic and Technical Cooperation Project, showing that Beijing’s financial partnership with Pakistan remains active beyond large infrastructure projects.
This move marks another milestone in China Pakistan Economic Cooperation 2025, reflecting how both countries continue to strengthen their long-term development ties.
Chinese Funding Strengthens Punjab Development Project
According to the latest report from the Ministry of Economic Affairs, reviewed by this reporter, the funds were disbursed in September 2025 as part of ongoing Chinese assistance for development and technical cooperation.
Focus on Technical Growth and Institutional Strengthening
This project is focused on improving Pakistan’s technical systems, strengthening institutions, and supporting cooperation between both countries.
The funding also signals that China’s development work in Pakistan isn’t limited to the big-ticket projects of the China-Pakistan Economic Corridor (CPEC) — it’s also investing in smaller, technical programs that help build local capacity.
China’s Financial Support Reaches $9.75 Million in First Quarter
During September 2025 alone, China provided around $2 million to Pakistan. For the first quarter of the fiscal year 2025–26, total Chinese assistance — including grants and loans — reached $9.75 million.
Reconstruction Projects Expand Across Pakistan
But the Punjab project isn’t the only one getting attention. China also financed several important reconstruction and rehabilitation projects across other regions.
These include rebuilding fully damaged schools in Bara District, Khyber Pakhtunkhwa, worth $4.47 million, constructing houses in Balochistan for $6 million, and funding the creation of a new national geodetic system under Pakistan’s Defense Division at a cost of $1.08 million.
Large-Scale National Projects Reflect Long-Term Commitment
China’s involvement stretches further into high-impact national projects. These include the relocation of the Karakoram Highway’s Thakot–Raikot section, the establishment of the Pakistan Space Centre under SUPARCO, and the creation of the China-Pakistan Joint Research Centre on Earth Sciences at Quaid-e-Azam University.
Each of these initiatives aims to boost Pakistan’s infrastructure, research, and technological development.
Beyond direct project funding, China continues to play a key role in Pakistan’s economic stability. It maintains a $4 billion SAFE deposit in Pakistan’s reserves — a financial safety net that supports the country’s balance of payments and helps manage external financing pressures.
The new $2 million for Punjab’s cooperation project highlights China’s broader approach to partnership — combining technical aid with long-term economic collaboration.
Analysts say the continued flow of Chinese funds underlines the resilience of Pakistan’s partnership with Beijing, one that aims to support growth, stability, and a stronger economic connection between the two nations.
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