China to Invest Billions of Dollars in Pakistani Kashmir Amid Tensions with India

Pakistan and China have signed an agreement to build a hydropower project worth $1.5 Billion at Azad Pattan in Kashmir under the CPEC project.

The hydropower project is a part of China’s Belt and Road Initiative that aims to connect Europe, Asia, and Europe through efficient commercial routes.


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According to details, Gezhouba Group, a Wuhan-based construction and engineering company, will construct the Azad Pattan project that will add 700 MW of cheap and green power to the national grid.

Last month, Pakistan, China, and the Kohala Hydropower Company, a subsidiary of China’s Three Gorges Corporation, had inked a historic tripartite agreement under the CPEC to build a hydro power project worth $2.4 Billion at Kohala in Kashmir.

Once completed, the Kohala hydro project will add 1100 MW power to the national grid.

The latest projects under CPEC are a testament to the long-established relationship between China and Pakistan. It also shows the commitment of the federal government to adopt to clean and indigenous energy sources.


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Moreover, the projects come weeks after the Chinese Army killed 20 Indian soldiers, including several high-rank officers, in a violent clash at the Line of Actual Control. (LAC).

India has always been against the construction of CPEC projects in Azad Kashmir, claiming that no projects should be undertaken by China in a region contested by Pakistan and India.

However, defense experts suggest increasing Chinese investment in Azad Kashmir is effectively countering India’s stance regarding the CPEC project, as the collaboration between China and Pakistan will only continue to grow in the coming years under the CPEC project.