Prime Minister Shehbaz Sharif in a bid to seek more cooperation is on a five-day official visit to China. This diplomatic engagement with the country’s oldest friend and closest regional partner is of prime importance when Pakistan has multiple challenges to support its fragile economy.
This visit was made at the invitation of the President of the People’s Republic of China Mr. Xi Jinping. It was started on June 4 and will end on the 8th of this month. so far, the outcomes of this visit look positive, but how Pakistan will respond to them in the future is a question. This visit aims at the launch of phase II of the CPEC, but what happened to its first Phase will hopefully not happen again. Previously multiple of its projects were closed. China is said to be moving forward in this regard but it has some concerns.
The nation is hopeful this visit will mark positive impacts in the coming days if there remains stability. Currently, the institutions of the state are standing head-to-head and so is the situation of the ruling and the opposition parties. Harmony among the state institutions and a healthy political atmosphere are linked with the economy. Hopefully, nothing wrong will happen to the positive efforts for the economy, it depends on how everyone here responds to each other and what role the government plays to pacify the situation. Pakistan is now on the right track in its economic efforts and it should remain here in the future. However, during this visit, a piece of positive news came that is directly linked to the common public.
Huawei to train 200,000 Pakistani youngsters in IT and artificial intelligence
A world-renowned Chinese secular company – Huawei – pledges to train 200,000 Pakistani youngsters in IT and artificial intelligence without charges. It commits digitization of the economy of Pakistan. The PM upon his arrival met with Chairman Huawei, Mr. Liang Hua in Shenzhen seeking a bigger role for Huawei in the country’s Safe City projects and involvement in taxation and e-governance sectors. He urged the need for business-to-business cooperation between Pakistan and China and assured Chinese investors and their investment-oriented projects of all-out facilitation and foolproof security. He invited the company to invest in Pakistan’s taxation and e-governance sectors besides enhancing its presence in the various Safe City projects. He invited Huawei to invest in modern technology in the agriculture sector. He also invited Chairman Huawei to visit Pakistan. Huawei would impart free-of-charge training to around 200,000 youngsters in information technology including artificial intelligence. It pledged to support Pakistan in establishing Safe Cities, e-governance, and the digitization of the economy.
Later the PM addressed the Pakistan-China Business Forum in Shenzhen. He highlighted bilateral trade and investment potential in key sectors including the transfer of Chinese technology, industry, and partnership in IT, agriculture, mining, steel, textiles, and renewable energy. Referring to the Bisham incident, the PM conveyed condolences stating that his government would ensure foolproof security to the Chinese in Pakistan. The PM hopes for further cooperation from China in key sectors. He expressed this in a meeting with the top leadership of Chinese agencies responsible for strategic planning, foreign trade, aid, and investment. Today he met with the Chairman of China Export-Import Bank (EXIM), Dr. Wu Fulin, and the Chairman of China International Development Cooperation Agency (CIDCA), Luo Zhaohui in Beijing.
He highlighted the Pakistan government’s agenda over governance, taxation, and business to attract Foreign Investments. The PM arrived in Beijing a day earlier following his meetings with the representatives of Chinese tech companies in Shenzhen on the second day of his five-day visit to China. The PM and the CIDCA Chairman discussed further enhancing the strong mutual relations between the two countries in terms of development and security. They described CPEC as a symbol of friendship between the two countries and discussed its positive outcomes. They also expressed confidence that this cooperation will continue in phase II of CPEC to improve the lives and economies of the people of both countries,” a statement said.
Investment in health and special economic zones
The PM in this meeting spoke on the Chinese investment in the Main Line 1 railway upgrade project and called for significant cooperation with China in vital economic sectors like agriculture, information technology, communications, and mining. The CIDCA chairman said his agency was interested in investing in special economic zones and the health sector in Pakistan and accenting bilateral cooperation for joint benefits. The PM meeting with Chairman EXIM, spoke on the Government’s reform agenda stating these steps are producing results as food inflation had been positively addressed. He discussed the possible role of the EXIM Bank in financing Pakistan-China joint venture projects and trade financing to boost Pakistan’s exports to international markets. He is also scheduled to address the Pakistan-China Friendship and Business Reception in Beijing today and meet the heads of China Power, China Road and Bridge Corporation, and China Construction and Communication Corporation.
Pakistan and China signed 32 MoUs
Pakistan and China have signed 32 memorandums of understanding (MoUs) to promote trade and investment between the two countries. Minister for Board of Investment Aleem Khan and Minister of Commerce Jam Kamal also met with the CEOs of major Chinese enterprises. The minister said it was the best chance for the Pakistani business community to tap their Chinese companions to invest there. He said Pakistan will fully encourage Chinese companies to set up business activities in Pakistan. importantly, China has invested billions of dollars in various power projects and road networks in Pakistan, but the implementation of multiple projects has slowed in recent months. Beijing pressed Pakistan to guarantee the safety of Chinese organizations and personnel working in Pakistan. Pakistan announced it had arrested 11 terrorists involved in the Bisham attack in which five Chinese engineers and a Pakistani driver lost their lives. The PM has ensured that the Chinese in Pakistan would be protected at any cost.
Some hidden and announced agenda
It was reported that the PM’s visit to China is also to have secured delays in pending contractual obligations to Chinese companies, rescheduled rollovers, and budget support loans till the end of the under-consideration Extended Fund Facility Program. This visit is to seek the launch of phase II of the CEPEC. Delays in pending contractual dues to Chinese companies are linked to the launch of this Phase. There are reports that the Chinese have told previous high-level Pakistani delegations that they will not renegotiate the terms of the contracts as China’s projects in other countries would then be up for renegotiation. It was also reported that the PM will negotiate with two Chinese banks – Industrial Corporation Bank and the Bank of China – over seeking a loan of 600 million USD to meet the external financing needs. The conditions of the banks were stringent and the PM will now seek relaxation in them.
Chinese Ambassador to Pakistan Jiang Zaidong was reported saying in an interview that he hopes Sharif’s visit further promotes the high-quality development of the all-weather strategic cooperative partnership between China and Pakistan. he said it would assist in Pakistan’s economic and social development and demonstrates strong China-Pakistan unity and cooperation to the international community.
The PM on Tuesday arrived in Shenzhen, China. Upon his arrival, the PM and his delegation were warmly welcomed by the Vice Mayor of Shenzhen city of China Luo Huanghao, the Chinese Ambassador in Pakistan Jiang Zaidong, Pakistan’s Ambassador in Beijing Khalil Hashmi, and senior officials. Deputy PM Ishaq Dar, Defence Minister Khawaja Muhammad Asif, Planning Minister Ahsan Iqbal, Finance Minister Muhammad Aurangzeb, Petroleum Minister Dr Musadik Malik, and Information and Broadcasting Minister Attaullah Tarar are accompanying him. The PM is also scheduled to meet with President Xi Jinping, Premier Li Qiang, and M., Zhao Leji, chairman of the Standing Committee of the National People’s Congress.
(Senior journalist Rana Kashif has authored this article)
