PRIME Minister Shehbaz Sharif, at the invitation of his Chinese counterpart, Premier Li Qiang, recently concluded a momentous visit to China, aimed at bolstering bilateral relations. Receiving a red-carpet welcome, his visit included several high-profile meetings with top political and business leaders, underscoring Pakistan’s commitment to strengthening economic ties and exploring new avenues of cooperation with its longstanding ally. Government officials hailed the visit as “extremely successful and historic”, calling it a “milestone”.
Indeed, the Pak-China relationship exemplifies bilateral trust, often described poetically: “Pak-China friendship is higher than the Himalayas, deeper than the ocean, sweeter than honey and stronger than steel.” China, Pakistan’s largest trading partner and investor, with the CPEC as a cooperation cornerstone, has consistently supported Pakistan in economic, security and defense matters. Pakistan, in return, has prioritized its relationship with China and supported its positions internationally.
To further boost bilateral relations, Prime Minister Shehbaz Sharif visited China from June 4 to June 8, 2024. He met with President Xi Jinping, Premier Li Qiang, key government officials and business leaders. The visit is crucial for reviving Pakistan’s economy, progressing CPEC 2.0, and addressing China’s security concerns for its nationals in Pakistan. Let’s critically evaluate the key areas covered during the trip.
To begin with, the major topic of discussion during the visit was CPEC 2.0, the second phase of the China-Pakistan Economic Corridor which shifts from purely infrastructure-centric projects to a more holistic development model. This new version aims to improve people’s lives and create jobs in Pakistan, encourage Chinese companies to set up factories in Pakistan, establish and operationalize Special Economic Zones (SEZs), promote green energy and sustainable development and focus on the development of digital infrastructure and smart cities.
During the visit, economic cooperation was a major focus. Over 100 Pakistani business leaders accompanied the Premier, who addressed a business conference in Shenzhen, a key Chinese tech hub. He invited Chinese investors to engage in joint ventures in Pakistan, resulting in nearly three dozen MoUs and agreements across multiple sectors including CPEC, agriculture, industrial cooperation, infrastructure, market regulations, surveying and mapping, media, renewable energy, technology, mining, tourism, and cultural exchange.
During the visit, a critical focus was on debt relief, highlighting Pakistan’s significant indebtedness to China. With 13% of Pakistan’s foreign debt, approximately $130 billion, owed to China (IMF suggests nearly 30%), discussions centred on extending repayment deadlines and securing fresh loans to stabilize Pakistan’s economy. Additionally, Pakistan is seeking concessions from Chinese Independent Power Producers owed nearly $2 billion, to restructure this debt amidst financial challenges.
Finally, and most importantly from the Chinese perspective, a major point on the agenda during the visit was the security of Chinese nationals working in Pakistan. China has serious concerns regarding the safety of its workers. In recent months, Chinese nationals have been targeted in attacks by terrorists, aiming to disrupt Chinese-led development projects in Pakistan. In March, five Chinese workers were killed in a suicide attack in Bisham, Khyber Pakhtunkhwa. Chinese President Xi Jinping urged Pakistan to protect Chinese nationals. Prime Minister Shehbaz Sharif assured China that Pakistan would take every practical step to ensure their safety. The presence of the army chief in the visiting delegation underscores Pakistan’s commitment to addressing this issue seriously.
—The writer is currently serving as a lecturer in the KP government.
(faridullah165@gmail.com)
