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Crack in China-Pakistan relations! Dragon withdraws from multi-million dollar project

Crack in China-Pakistan relations! Dragon withdraws from multi-million dollar project 1 - image

China-Pakistan Relationships: China is Pakistan's best friend. At present, relations between the two countries do not look normal. The reason for this is that Pakistan has decided to seek help from the Asian Development Bank (ADB) instead of China to upgrade its old railway network. Pakistan has sought a loan of $2 billion from the ADB to improve the Karachi-Rohri railway section. This is the same ML-1 project, which was once considered the biggest and most ambitious project of the China-Pakistan Economic Corridor (CPEC).

China invested billions of dollars in Pakistan

China's withdrawal from the project reflects concerns about Pakistan's economic situation. There has been much speculation about why China withdrew from the Pakistani project. However, China has not suddenly decided to withdraw from the project. It is believed that Pakistan's weak economic situation and problems in repaying loans could create problems for China. China has invested billions of dollars in Pakistan, where China is facing serious problems in getting the money back from Pakistan. China is withdrawing from more risky investments in view of the pressure on its economy. This makes it clear that when the economic situation is at risk, even lifelong friends can withdraw.

The importance of Reko Dik mine and ML-1

The Reko Dik copper and gold mine in Balochistan could prove crucial for Pakistan's economy. The mine has the potential to extract large quantities of minerals, but the old railway line is not strong enough to transport large quantities of minerals. For this, upgrading the ML-1 railway line for the mine is very important. For this reason, ADB has not only shown interest in the ML-1 project, but has also pledged $410 million for the Reko Dik mine.

China, America and ADB

The growing role of ADB means that Pakistan no longer wants to rely solely on China. According to sources, Pakistan took China's consent before taking this step, so that relations do not sour. Pakistani Army Chief Asim Munir said, 'We will not sacrifice one friend for another friend.' On the other hand, America is also showing interest in Pakistan's record. This suggests that Pakistan is now moving towards a multi-dimensional foreign policy, which will include China, America and multilateral institutions (ADB, IMF). Relations between Pakistan and America seem to be improving, as US President Donald Trump has announced the creation of Pakistani oil reserves.

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