March 16, 2023
2 mins read

Chinese firm eyes $2bn investment in Pak telecom sector

The deployment of an optical fiber network will cover an area of 100,000 km over a period of time in Pakistan…reports Asian Lite News

China’s Sunwalk Group intends to invest USD 2 billion in Cash-Strapped Pakistan’s telecom sector for the deployment of an optical fiber network, Business Recorder reported.

The deployment of an optical fiber network will cover an area of 100,000 km over a period of time in Pakistan. A high-level delegation of the Sunwalk Group led by chairman HOU called on Pakistan’s Minister for IT and Telecom Syed Aminul Haque on Tuesday.

The meeting discussed about investment in telecom infrastructure, optical fiber cable (OFC), and right of way (RoW).

Sunwalk (Pvt) Ltd, is a telecom and technology-based multinational private Chinese enterprise that has developed multiple telecoms, and communication infrastructure projects in China and has acquired the TIP License in Pakistan, reported Business Recorder.

The company started deployment and invested about USD 5 million and has the plan to deploy 5,000 km OFC as the next step, according to Business Recorder.

In the meeting, Pakistan’s minister briefed the delegation that consultation with the Ministry of Railways and Highways Authority is ongoing regarding the Right of Way to laying OFC. He assured all obstacles in this regard will be removed soon.

HOU said that they have a longstanding relationship with Pakistan and also provide services to different sectors.

Beijing’s actions are proving that China and Pakistan are all-weather friends. As reported earlier, the Commercial Bank of China (ICBC) approved the rollover of USD 1.3 billion facilities for Pakistan.

Taking to Twitter, Pakistan Finance Minister Ishaq Dar announced, “Formalities completed [and] Chinese Bank, ICBC approved rollover of USD 1.3 billion facilities which has been repaid by Pakistan to ICBC in recent months.”

He further said that the facility would be disbursed in three installments, and the first one of USD 500 million has been received by the State Bank of Pakistan.

He added, “It will increase forex reserves!”

Pakistan is currently facing growing economic challenges, with high inflation, sliding forex reserves, a widening current account deficit, and a depreciating currency, reported Geo News.

Foreign exchange reserves were at USD 3.8 billion as of February 24, just enough for less than a month of imports. While the liquid foreign exchange reserves stand at around USD 9 billion which includes USD 5.5 billion in net reserves held by commercial banks. (ANI)

ALSO READ: China holds the key for Pakistan’s relief: US bank

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