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The Economic Dimension of Sino-Pakistani Relations: an overview

This study deals with the subject of growing economic ties between China and Pakistan over the past decade which have evolved to match the strong bilateral political and military relations between Beijing and Islamabad. While economic exchanges between the two countries were long colored by essentially political considerations, since 1999 two-way trade and investment have expanded and become both strategically and commercially driven. To understand what underlies this development, one must look at several significant domestic and external policy shifts that have taken place in China and Pakistan since 1999. The study overviews the nature of Chinese investment in Pakistan, notably infrastructure projects such as Gwadar Port and the upgrading of the Karakoram Highway, which have both commercial and possible geostrategic facets. It also examines the deepening and broadening of Sino-Pakistani trade, as a result of which China has become economically integrated with South Asia.