China and Pakistan are set to enhance and renovate Pakistan’s railway infrastructure while also advancing the development of Gwadar port. Additionally, Chinese firms are invited to invest in offshore oil and gas projects within the South Asian country, as reported by the official Xinhua news agency on Thursday.

These announcements coincide with the visit of Pakistan’s President Asif Ali Zardari to China from February 4-8, during which he will participate in the opening ceremony of the Asian Winter Games.

Since 2013, Chinese investments and financial assistance have significantly benefited Pakistan’s struggling economy. The two nations have maintained a close relationship, driven by mutual concerns regarding their shared neighbor, India, and a strategic aim to counterbalance U.S. influence in the region.

According to a joint statement cited by Xinhua, both countries acknowledged the critical role of Gwadar Port and committed to maximizing its potential as a vital hub for connectivity and trade.

Chinese-funded enterprises will be encouraged to engage in mining investment collaborations in Pakistan and to explore terrestrial and marine geological resources. Furthermore, Pakistan has expressed its openness to Chinese companies participating in the development of its offshore oil and gas resources.

China, a long-standing ally of Pakistan, has thousands of its nationals involved in various projects under the China-Pakistan Economic Corridor (CPEC).