Chinese companies have invested around $18.9 billion in Pakistan as part of the China-Pakistan Economic Corridor which includes regions in the POK.
These energy and infrastructure projects are being undertaken even in Pakistan Occupied Kashmir. A hydroelectric project which costs around $2 billion is being carried out by Chinese companies in POK. This project is being built on the banks of the Jhelum river bordering Kashmir, India.
Apart from the direct investments by the Chinese companies, Chinese banks are also providing loans worth billions to Pakistan to undertake the transportation infrastructure development program. All these loans are assured with a sovereign guarantee by the government of Pakistan, which they have to repay within a period of 20-25 years with an interest rate of 2 per cent.