ISLAMABAD: A Chinese delegation that called on President Asif Ali Zardari has expressed interest in investing $1 billion to establish a medical city in Pakistan, state broadcaster Radio Pakistan said on Thursday.

Longtime ally China has invested heavily in Pakistan through the $65 billion China-Pakistan Economic Corridor (CPEC) that encompasses infrastructure, energy and other projects and is part of Chinese President Xi Jinping’s Belt and Road Initiative.

But ties have frayed in recent months as Beijing has publicly voiced concerns about the security of its workers and projects in Pakistan amid a rise in attacks by militants on Chinese nationals and projects. Media reports in recent weeks have also widely speculated that China has said it will not continue with CPEC projects unless Pakistan can guarantee security.

“The Chinese delegation expressed interest to invest one billion dollar to establish a medical city in Pakistan to advance the country’s health care sector,” Radio Pakistan reported after a Chinese delegation led by the consul general in Karachi, Yang Yundong, called on Zardari on Wednesday evening. 

“The delegation also expressed interest to invest in diverse sectors of Pakistan’s economy, especially agriculture, livestock, energy, transport, and manufacturing.”

“Pakistan is committed to facilitating and supporting Chinese investors in every possible way,” the report quoted the president as telling the delegation. “He emphasized the need for enhanced interaction between the people of the two countries, especially between the investors and businesses, to increase bilateral trade and economic relations.”

Zardari also spoke about the southwestern deep-sea port of Gwadar that China is developing under CPEC, saying it would soon become a “regional trade and economic hub that would not only improve regional connectivity but would also boost regional trade and economic cooperation.”

Gwadar is on the Arabian Sea in the Pakistani province of Balochistan, a mineral-rich region plagued by a decades-long separatist insurgency. China has invested heavily in the province, including by developing Gwadar, which is key to CPEC.

The China Overseas Port Holding Company (COPHC), which operationally handles Gwadar, plans to eventually expand the port’s capacity to up to 400 million tons of cargo per year. Long term plans for the port require a total of 100 berths to be developed by 2045. For now, Gwadar is underutilized for commercial import and export due to reasons such as distance from the marketplaces of the country, security and services availability.

Earlier this year, Prime Minister Shehbaz Sharif had ordered that 50 percent of all public sector cargo be brought to Pakistan through Gwadar. The instructions subsequently received cabinet approval in September.