Dr. Mehmood Ul Hassan Khan
Despite western baseless accusation and planned media trail the China-Pakistan Economic Corridor (CPEC) has become a “life line” to Pakistan. Many latest reports of IMF, World Bank, Asian Development Bank and State Bank of Pakistan have already removed smoke screen about strategic utility of the CPEC. It has now been further expanded with the recent visit of Chinese Vice President official visit to Pakistan.
Recent visit of Vice President of the People’s Republic of China, Wang Qishan to Pakistan will add new vistas of economic cooperation and a milestone in further cementing bilateral relationship between both the friendly countries on sound footings. The government of Pakistan offers vast scope for Chinese private and public sector investment especially in the fields of energy, agriculture, livestock and IT. It is recommended that China should also help explore the rich natural resources of Pakistan which will better the national economy and provide ample job opportunities. Moreover, transfer of the modern technology for exploiting the indigenous resources must be pursued and implemented in its true spirits.
Pakistan may also seek Chinese assistance and expertise to modernize agriculture. It is hoped that establishment of industrial facilities and upgradation of communication infrastructure, besides boosting trade between the two countries, would also enhance regional connectivity.
Vice President of the People’s Republic of China, Wang Qishan visit to Pakistan was in continuation of high-level exchanges between the two countries, which have acquired an increased momentum since the Prime Minister’s visit to China in November 2018 and his participation in the 2nd Belt and Road Forum in Beijing in April 2019. A number of Memoranda of Understanding and Agreements were inked during the visit of Chinese vice president, who also inaugurated various projects to enhance bilateral cooperation.
The visit of the Vice President underscored the vitality of the time-tested and all weather relationship between Pakistan and China. It has reinforced the strength of bilateral ties and imparted further impetus to the growing, multi-faceted cooperation between the two countries in diverse fields.
Prime Minister Imran Khan and Chinese Vice President Wang Qishan launched four mega development projects in the fields of energy, technology and education under China-Pakistan Economic Corridor (CPEC).
Both leaders inaugurated transmission line of 660kv which would be laid between Matiari and Lahore to transmit power from coal based plants located at Thar, Port Qasim and Hub. The project would have the capacity to supply 2000 MW with 10 percent overloaded capability for two hours. Inauguration of Rashakai Special Economic Zone (RSEZ) project was also held which would promote industrialization through optimally priced, world-class industrial infrastructure in Khyber Pakhtunkhwa province. The RSEZ is situated centrally in the CPEC at the junction of Karakoram Corridor and ML-1 development corridor. It is set to become, and will be designed, to be the Key Trade and Logistics Hub connecting Kashgar, Kabul and Gwadar on the Belt and Road, and be a high-end host of international commercial, technological and manufacturing hub.
Both the leaders inaugurated the Confucious Institute at the University of Punjab. The institute mainly provides Chinese education, cultural promotion and cultural exchanges and other projects and activities.
The ceremony also marked the launching of Huawei Technical Support Center to be established in Pakistan as part of Chinese tech giant’s commitment to make massive investment in the country.
During delegation-level talks with Chinese Vice President Wang Qishan Prime Minister of Pakistan Imran Khan, both leaders reaffirmed ‘all-weather strategic cooperative partnership’ between Pakistan and China and exchanged views on the entire gamut of bilateral relations and expressed the resolve to further strengthen their ties in all spheres.
Chinese Vice President Wang Qishan had also a meeting with President Dr Arif Alvi who conferred Pakistan’s highest civil award Nishan-e-Pakistan upon the Chinese Vice President Wang Qishan. In Lahore, the Chinese Vice President met with the Chief Minister of Punjab Sardar Usman Buzdar and held a meeting with the Governor Punjab Chaudhry Sarwar who hosted a banquet in his honour.
In a statement, the Foreign Office said that the interactions of the Chinese Vice President Wang Qishan with the Pakistani leadership were marked by traditional warmth and cordiality. The visit provided the opportunity to the leadership of the two Countries to review the entire gamut of bilateral relations and exchange views on important regional and international issues of mutual interest.
The two sides held in-depth discussions on Phase-II of CPEC including industrial and agricultural cooperation and socio-economic development, and on deepening practical cooperation in tourism and people-to-people exchanges. Both countries underscored their firm commitment for early completion of ongoing CPEC projects and to further expanding CPEC.
The two Countries also agreed to enhance bilateral trade volume in a balanced way. In this respect both countries resolved to implement the recently concluded 2nd Phase of China Pakistan Free Trade Agreement (CPFTA) at the earliest. Both countries further agreed that the early development of prioritized Special Economic Zones (SEZs) will play an important role in further enhancing economic relations between the two countries.
The Chinese Vice President’s visit has imparted a strong impetus to the further deepening of the time-tested friendship between Pakistan and China. It has reinforced the consensus reached between the leadership in their earlier interactions on the multiple dimensions of bilateral cooperation and set the tone for future trajectory of mutual engagement.
Most recently, Chinese cities Urumqi, Puyang and Xian have been declared as sister cities to Karachi, Gwadar, and Multan respectively at a forum on cooperation between China and Pakistan friendship and cities to further enhance the bond of friendship between China and Pakistan. The Pakistani and Chinese officials signed separate agreements in this regard in the presence of Federal Minister of Inter Provincial Coordination, Dr Fehmida Mirza, Pakistan Ambassador to China, Masood Khalid, Vice President, Chinese People’s Association for Friendship with Foreign Countries, Lin Yi and Executive Vice Governor of Xinjiang Uyghur Autonomous Region.
Under the umbrella of CPEC the development of export orientated industry will enhance Pakistan’s competiveness and improve economic situation. Socio-economic development in agriculture, education, medical treatment and healthcare, poverty alleviation, water supply and technical education training would accelerate trickle down positive effects of CPEC on local community.
The China-Pakistan Economic Corridor (CPEC) will serve as a lifeline for Pakistan’s crippling economy. According to Economic Affairs Division of Pakistan, the Chinese loans only account for 10 percent to 11 percent of Pakistan’s total foreign debt. Moreover, the money spent by China is used to develop infrastructure projects, which would mitigate various economic issues of Pakistan. Earlier, the Ministry of Planning, Development and Reform said that China invested in Pakistan at a time when no foreign investment was coming in. Furthermore, CPEC repayment will not begin before 2021, giving Pakistan ample breathing space in repaying these loans.
China is investing $62 billion in Pakistan through the China Pakistan Economic Corridor (CPEC) as part of its Belt and Road initiative, which the government and public believe as a game-changer for the country’s destiny and senior government officials frequently speak highly of at local and international fora.
During the last five years since its advent in Pakistan, CPEC has enabled the country to avert its energy crisis, besides building an elaborate network of roads and other infrastructure in its various parts. With increasing energy and diminishing distances, not only the lifestyle of people has changed, but economic activity also got a phenomenal boost.
The China-Pakistan Economic Corridor (CPEC) is a blessing which has multiplier effects for our economy, industry, education, tourism, energy and above all people to people contacts. Phase II of the CPEC has been initiated having main focus on social development which has further enhanced its strategic importance. Relocation of industries has further increased its diversity and dynamics. Provision of transfer of technology has now become mantra of Government of Pakistan which needs to be resolved as soon as possible. Moreover, prospects of joint ventures in renewables energy especially solar and wind must be priority of both the countries and their private sectors in the days to come. Inclusion of Pakistan qualified engineers and technicians in ongoing projects of the CPEC are the need of the hour. Further imposition of the US economic sanction/tariffs on various Chinese products may be blessing for private sector of Pakistan.
