China-Pakistan FTA
China is investing ever more in Pakistan, particularly with regard to Gwadar in Balochistan. What the benefits for Pakistan are unclear, other than the general boost to the local economy, since most of the cash is going towards Chinese self-interest.
Asia Times Online :: South Asia news - China's growing stake in Pakistan
Under the FTA signed last week, Pakistan will gain access to the vast Chinese market, while China will sell Pakistan more and more goods, as well as get cheap raw materials and the use of Pakistani ports for the onward export of its goods to world destinations at reduced freight rates.
The biggest chunk of Chinese investment in Pakistan is being spent on development projects in the country's largest province, strategically located Balochistan. The most important projects being launched with Chinese assistance in Pakistan include construction of the Gwadar deepsea port in Mekran, the Saindak copper and gold project in Chaghm, and the lead-zinc-mining project in Balochistan's Lasbela district.
The Chinese have invested about $230 million in the Gwadar port and the Saindak copper project, which is more than 50% of their total investment in the country.
