Shockwaves from the blast that claimed the lives of two Chinese engineers, in Karachi last night were felt by political leaders and investors alike in Beijing.
With just a week remaining for the Chinese Prime minister’s official tour of Pakistan on October 14th, lawmakers in Islamabad scramble to protect economic ties with China to ensure the continuous flow of Yuan into CPEC projects. The initial budget that was allocated towards CPEC-related projects was $62 billion, of which $35 billion in investments remain – A sum Pakistan can’t afford to lose.
However, the damage has already been done. China strongly condemned the lethal attack on its civilians and urged its citizens to remain cautious, noting that local security measures should be strengthened.
This has hurt the confidence of already weary Chinese investors looking to invest in Pakistan as they now explore safer destinations for their investments. Somewhere, Chinese workers can safely work.
China has remained the largest single foreign direct investor in the Pakistani economy, amounting to $568 million in FY 2024 alone. In fact, China is responsible for 30% of all foreign investments in Pakistan.
With Pakistan struggling to attract foreign direct investment and with the recent attack, it can be safely said Pakistan is not moving in the right direction.
It is in the interests of the local business community to see increased collaboration with international investors. Lapses in security need to be remedied to ensure that Pakistan stops biting the metaphorical hand that feeds it.
