Will Kabul join Belt and Road project?

PAKISTAN has discussed Afghanistan joining the multibillion-dollar China-Pakistan Economic Corridor (CPEC) infrastructure project, the Pakistani ambassador to the country said last Monday (27).

“Regional connectivity is an important element of our discussion with Afghan leadership and our way forward for our economic interaction with Afghanistan,” said Mansoor Ahmad Khan, Pakistan’s envoy to Kabul, in an interview.

“This project – China Pakistan Economic Corridor ... provides good opportunities, good potential for providing infrastructure and energy connectivity between Afghanistan and Pakistan ... (and) also connecting South Asia to the Central Asian region.”

CPEC is a central part of the Belt and Road Initiative, under which Beijing has pledged over $60 billion (£44bn) for infrastructure projects in Pakistan, much of it in the form of loans. Khan said discussions had been held with the Taliban-led administration on this and other ways to develop the country’s economy.

“I think there has been deep interest in terms of developing economic connectivity of Afghanistan with Pakistan through CPEC and with other neighbouring countries including Iran, China, Central Asian countries.”

In recent days, representatives from Pakistan, China and Russia have held meetings with Taliban officials. Since the Taliban took over Afghanistan on August 15, the country has been plunged into economic crisis as the nation’s international assistance has been largely cut off.

Billions of dollars in central bank assets held abroad have also been frozen, which has put pressure on the banking system and prevented most transactions involving US dollars, which Khan said was also hampering trade.

Khan said Pakistan was also trying to work with the international community to ease curbs on the banking system and several executives from Pakistani financial institutions had visited Kabul to see if the situation could be improved.