Pakistan Proposes China's Participation in Belt and Road Initiative Projects to the Taliban

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] It has been reported that Pakistan has proposed the inclusion of Afghanistan in the 'China-Pakistan Economic Corridor (CPEC)' project, which is being promoted by the Taliban as part of China's Belt and Road Initiative (land and maritime Silk Road). The Taliban had previously expressed their intention to participate in the project, and it is expected that future trilateral negotiations among China, Pakistan, and the Taliban will accelerate rapidly.

On the 27th (local time), Mansoor Ahmad Khan, Pakistan's envoy to Afghanistan, stated in an interview, "We discussed the possibility of Afghanistan participating in the CPEC infrastructure project with the Taliban," adding, "Regional connectivity is an important factor currently being discussed with the Afghan leadership and is the way forward for economic exchange with Afghanistan." He further emphasized, "CPEC is a great opportunity with the potential to connect infrastructure and energy between Afghanistan and Pakistan."

CPEC is an infrastructure construction project promoted as part of China's Belt and Road Initiative, currently building railways, highways, and oil pipelines over approximately 2,800 km from China's Xinjiang Uygur Autonomous Region to Pakistan's Gwadar Port. Valued at about 60 billion USD, Afghanistan, located between China and Pakistan as a transit route, is expected to have a significant impact on the project's success depending on its participation.

Ambassador Khan said, "We will have further discussions with the Taliban, Afghanistan, and neighboring countries on other ways to develop their economies," adding, "Security and economic development are the two main topics under discussion, and we expect meetings and consultations to continue."

The Taliban, whose economic difficulties have worsened due to the freezing of funds by the United States and Western countries, is also reportedly seeking to participate in the CPEC project to attract investment. Earlier, on the 7th, Zabihullah Mujahid, the Taliban spokesperson, stated at a press conference, "We hope to participate in the China-Pakistan Economic Corridor (CPEC), the central country of the Belt and Road Initiative."

Currently, Afghanistan's major foreign currency assets are all frozen, mainly by the United States and the Group of Seven (G7) countries. The Afghan central bank holds about 9 billion USD in foreign currency assets, of which 7 billion USD are held in bonds and gold in U.S. banks, and the remaining 2 billion USD are deposited with the Bank for International Settlements (BIS) and the World Bank (WB).