Contributed by: Xu Huixi

Reviewed by: Hassan Arshad Chattha

ISLAMABAD (China Economic Net) - On February 17, the construction of the China-Pakistan Economic Corridor ushered in good news. During the visit of Saudi Crown Prince Mohamed bin Salman to Pakistan, the two sides signed agreements to invest in the construction of a number of energy and chemical industry projects in Gwadar Port, amounting to near 20 billion US dollars of investment. This is a huge investment from a third-party in the construction of the China-Pakistan Economic Corridor, benefiting all parties and creating a win-win situation. The China-Pakistan Economic Corridor definitely welcomes investment from Saudi Arabia.

Projects of tens of billions of dollars are treated as massive for any country. As for Pakistan, this is one of the largest foreign investment projects in its history and carries extraordinary significance. For Pakistan, which is short of foreign exchange, such a massive foreign investment is a windfall. The project will bring advanced technology, management and talents to Pakistan, as well as provide energy and chemical industrial products, as well as create employment opportunities. At the same time, the large-scale investment projects will set a good example, helping attract more foreign investment to Gwadar Port and Pakistan.

The traditional friendship between Saudi Arabia and Pakistan is profound. They have always supported each other in various fields. Saudi Arabia is Pakistan's largest trading partner in the Middle East. Pakistan is short of domestic energy; its oil is mainly imported from Saudi Arabia and other Gulf countries. In recent years, the US shale gas revolution has subverted the traditional energy landscape. The dominant position of Saudi Arabia in the international crude oil supply market has been challenged, bring more uncertainties to its energy security. Saudi Arabian investment in building large-scale energy and chemical projects in Pakistan will help to lock in Pakistan's oil demand for Saudi Arabia, ensuring stable and reliable buyers, and bringing Saudi Arabia a sustained “petro dollar” cash flow. On the other hand, the added value of petrochemical projects is much higher than that of exporting crude oil. The construction of refinery infrastructure and capability in Gwadar Port will help increase the “gold content” of Saudi crude oil exports, bring more economic returns, and also help export its petrochemical products to other markets.

As the Chinese saying goes, when everybody adds fuel, the flames will rise high. China is pleased to see Saudi Arabia's large-scale energy and chemical projects be based in Gwadar Port, making it a demonstrative example project in the construction of the China-Pakistan Economic Corridor. The “Belt and Road” initiative is open; it is not a “solo” undertaking of China, but a “symphony” for all countries to participate in. It aims to benefit countries and regions at different stages of development and embrace prosperity. The focus of the B&R construction is policy coordination, facilitate connectivity, allow unimpeded trade, financial integration and enhance people-to-people bonds. The “2030 Vision” formulated by the Saudi government focuses on economic diversification, focusing on the development of petrochemicals, infrastructure, modern technologies and socially transformative business development. The four key areas of China-Pakistan Economic Corridor are energy, infrastructure such as Gwadar Port, and industrial cooperation, followed by technical cooperation and job creation. It is easy to see that Saudi Arabia’s investment in large-scale energy and chemical projects in Gwadar Port is fully compatible with the B&R, the China-Pakistan Economic Corridor and the “2030 Vision”. It is in the common interest of all parties.

As the construction of the China-Pakistan Economic Corridor enters a new stage of enrichment and expansion, Saudi Arabia’s participation in the construction of corridors by investing in Gwadar Port enriches the content of corridor’s construction and reflects the openness and transparency of the B&R, highlighting the charm and global influence of the China-Pakistan Economic Corridor. Based on the principle of seeking shared benefits through consultation and collaboration, China is pleased to join hands with all parties to jointly build the China-Pakistan Economic Corridor and play the "One Belt, One Road" symphony.