Pakistan and China’s economic cooperation

[S_O_C_O_M]

Pakistan and China’s economic cooperation​

By Ismat Sabir

China is a friend and a strategic partner promoting stability and economic progress in Pakistan, said Chinese President Hu Jintao. While responding to this statement, President Asif Ali Zardari said, “It is our belief that Pakistan can act as a force multiplier for China and we will continue to work towards this end.”

These views were expressed at the time of the president’s fifth five-day visit to China, since assuming presidential office in 2008. He said Pakistan is determined to strengthen relations with its neighbouring country through people-to-people contacts. This visit would enhance bilateral trade and commercial ties between the two countries and reach new heights, as both the countries are partners in the economic growth of the region.

Chinese interest in Pakistan’s economic growth is growing day by day. For instance, in Pakistan there are more than 120 companies and about 10,000 Chinese working in different sectors like mining, energy exploration and infrastructure building.

Energy: The Chinese government reconfirmed to carry out its project of installing two nuclear reactors in Pakistan. China said these projects are in total compliance with all international obligations.

Presently, China and Pakistan are cooperating in civilian nuclear energy. The cooperation is exclusively for peaceful purposes and to accept International Atomic Energy Agency safeguards. The agreement was signed during the president’s visit last year. The Chinese president and president of Pakistan were present at the signing ceremony of the Sino-Pakistani economic and technological cooperation agreement. The other agreements were in the field of agriculture, health, justice and information.

Zardari met representatives of different sectors, in particular, wind, solar, and renewable energies to seek solutions to overcome energy crisis in Pakistan.

A Chinese firm would invest $10 billion in hydro power projects in Pakistan. The company would build dams in Bunji and Kohala areas. The dams would generate 7,000 megawatts (MW) and 12,000MW, respectively.

In his last visit to China, Zardari emphasised on implementation of all agreements signed between the two countries. It is pertinent to mention that during the last two years of the Pakistan People’s Party government, more than five-dozen new projects have been undertaken and nearly 40 MoUs signed.

Under the Five-Year Programme for trade and economic cooperation 62 projects have been identified, out of which 27 have been launched, 26 are being examined and 12 are being reviewed. Pakistan also offered China access to emirates through Pakistani ports. Pakistan always encourages China to reap maximum benefits from Gwadar Port.

A Chinese firm has finalised a deal with the Pakistan Stone Development Company. China is the largest importer of chromites. The black coloured stone contains around 55 percent steel properties and is used in steel making and steel material for tank making. Chinese investors are showing great interest in Pakistani marble due to its quality and demand in the international market.

Chinese firms have signed agreements to buy 2,000 tonnes of Cotan beige and two grades of Mastung beige quality marble, found in Balochsitan. It is expected that China will become the largest buyer of stone in the coming years.

Another Chinese firm will invest $50 billion in Punjab during the next 10 years. The investment will be done to build a state-of-art industrial city, along with an industrial estate on 100,000 acres.

Trade: In 2009 the total foreign trade of China declined by 13.9 percent but trade value between Pakistan and China declined only 2.9 percent, reaching $6.8 billion. The total export of China declined by 16 percent but reduced by 7.7 percent only with Pakistan, at $5.5 billion. China imported $1.3 billion from Pakistan, showing an increase of 25.3 percent, which was the result of the Free Trade Agreement (FTA).

China-Pakistan trade in the first five months of this year reached $3.3 billion, up 31 percent. Chinese commerce minister said that bilateral trade could hit $15 billion in 2015.

Hu Jintao said that China had become Pakistan’s second largest trading partner and gave assurance to make steady progress in cooperation with Pakistan in energy, telecom sectors, Neelum-Jhelum project and Pakistan’s telecommunication satellite project.

Pak-China bilateral trade touched $7 billion from $2 billion in 2002. China has granted four types of trade concessions to Pakistan, one-sided, which would help increase Pakistan’s exports to China by $1 to $1.5 billion annually. China would provide duty concessions on tariff lines not covered under Pakistan-China FTA.

The two states signed an agreement to establish a joint venture company in the private sector to promote sale of certified hybrid seeds and other varieties of seeds, which are to be developed according to the soil conditions and environment of Pakistan.

Pakistan and China would cooperate in the fields of water conservation, water resource management, hybrid seed technologies, drip and sprinkling irrigation systems.

During the visit, Zardari also stressed the need to set up railway line and a pipeline from Gwadar to China to connect the two countries. Importance of connectivity through railway link was felt in the recent disruption in the Karakoram Highway due to a landslide that blocked the road transportation.

China said that cooperation for the construction of railway link between the two countries is because China and Pakistan are strategic partners; have a deep traditional friendship cooperating in various fields. The cooperation would not only benefit the two countries but also help regional stability, common development and prosperity and not against any third country.

Zardari said that a road connection with China is one of his ideas to be realised. The travelling time, by sea, from China to Pakistan or Southeast Asia takes months, but by road transportation to Pakistani port, is only 1,100 miles from the Chinese border. The construction of road link with China would surely boost bilateral trade.

Zardari met executives of NORINCO, China’s top arms manufacturer and leaders of Sino Hydro Corporation, the China’s main dam builder and China Petrochemical Corporation, SINOPEC. The president also told Chinese business tycoons that authorities had planned to feed Pakistani grid through hydro, coal, gas, nuclear and renewable energy sources.

MoUs were also signed in the fields of health and Geological Survey of Pakistan and China. An MoU was also signed for cooperation between Pakistan Broadcasting Corporation and China Radio International for Urdu service broadcasts in selected Pakistani cities on FM channel with the China Radio International (CRI). China has promised a 50 million yuan grant for new projects to be set up in Pakistan.

Zardari termed Pakistan and China as the joint cornerstone of stability in South Asia. The Chinese prime minister said Pakistan is an important country of the region and fighting war against terrorism made it even more important. The international community should come forward to help Pakistan and make the war on terror a success. He further said we can jointly think about going upward in Asia exploring new markets through Pakistan.

In the next meeting issues will be taken up including currency swap, opening of branches of Chinese banks in Pakistan and relocating industries in the special proposed industrial zones in Pakistan. It was also agreed that the China National Energy Administration would hold discussions with Pakistani authorities to solve Pakistan’s energy problem.

The Chinese PM said his country appreciated Pakistan’s policy of “One China” and assured Zardari that China would continue supporting Pakistan at the UN and multilateral forums, including SAARC and ECO.

Chinese president said that he had instructed his foreign minister to make arrangements for the exchange of youth delegations, cultural and writers’ delegations between the two countries and also increase scholarships for young Pakistanis for studies in China.

China had also offered training programmes in various industrial categories in Pakistan so that the existing gap in skilled labour could be bridged. The concessions were granted after the visit of Chinese vice premier to Pakistan.

President Jintao reiterated commitment of strengthening ties in energy, communications and infrastructure construction. However, he urged Pakistan to ensure the safety and security of Chinese nationals and companies in Pakistan following a spate of kidnappings in recent years.

Daily Times - Leading News Resource of Pakistan

 

[Chinese-Dragon]

China is a friend and a strategic partner promoting stability and economic progress in Pakistan, said Chinese President Hu Jintao. While responding to this statement, President Asif Ali Zardari said, “It is our belief that Pakistan can act as a force multiplier for China and we will continue to work towards this end.”

A Chinese firm would invest $10 billion in hydro power projects in Pakistan. The company would build dams in Bunji and Kohala areas. The dams would generate 7,000 megawatts (MW) and 12,000MW, respectively.

Excellent, I am very happy to hear this news.

The Dams are especially interesting, 19 GIGAWATTS of energy is absolutely enormous!

I hope to hear more news on the Bunji and Kohala Dams in the future. The engineering must be very impressive.

 

[S.U.R.B.]

Premier Wen to launch China’s top private bank branch in Pakistan



BEIJING, Dec 15 (APP): Chinese Premier Wen Jiabao is going to open a branch of Industrial and Commercial Bank of China (ICBC), the top private bank of China during his visit to Pakistan starting from Friday. The ICBC is the world’s biggest bank by capitalization. According to an article from a Chinese scholar published here in an English daily ahead of Premier Wen visit to all weather ally, by the end of this year, the trade between China and Pakistan will be worth $7 billion, with an annual growth rate of 29 percent. The growth rate of trade between the two countries is expected to grow by over 30 percent over the next five years and the trade volume could increase to $18 billion.

But the level of economic cooperation does not reflect the close and lasting political and military ties between the two countries, writes Li Xiguang, a professor of Tsinghua University, Beijing.
“We are all-weather political allies. Since September 2008, Pakistani President Zardari came to China almost every four month, beating any heads of state in terms of frequency of visiting China,” said Pakistan’s ambassador to China, Massood Khan, “China has a very positive image in Pakistan. We support China’s policy on Tibet, Xinjiang and human rights,” said Khan.
“But we also need to have an all-weather highway between our two countries,” he said. Two years ago, Chinese and Pakistani engineers and road builders started extending the width of the Karakorum Highway from 10 meters to 30 meters.
Chinese engineers have completed a feasibility study for the building of a railroad and an oil pipeline to link Kashi in Xinjiang and Gawadar in Pakistan’s Balochistan Province at the mouth of Gulf.
Sixty percent of China’s imported oil comes from the Middle East and 80 percent of that transported to China through the Straits of Malacca.
With the construction of the Kashi-Gawadar railroad and oil pipeline, Gawadar, a warm-water and deep-sea port, will handle most of the oil tankers to China.
It will provide China with the shortest possible route to the oil rich Middle East, replacing the dangerous maritime route through the South China Sea, East China Sea and the Yellow Sea.
“Through Gawadar, oil will come to China and goods will go to West Asia and the Gulf, bringing China closer to countries such as Turkey and Iran,” Khan said. “The highway will stimulate the economic growth in Pakistan. With the recovery of the legendary Silk Roads through Pakistan, Pakistan will become an economic hub once more.”
“If China joins Pakistan in building its desperately-needed power stations, Pakistani people will feel the warmth and brotherhood every night when they turn on the light in their home,” Khan said.
“In the streets of Pakistan, it seems that everyone knows Wen is coming,” said Khan.

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - Premier Wen to launch China’s top private bank branch in Pakistan