Chakar The Great
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Soucr: The Hindu
Atul Aneja
China on Saturday labelled the visit of Pakistan Prime Minister Imran Khan as the starting point of new phase of ties, built on a consensus to re-brand the China Pakistan Economic Corridor (CPEC), and a financial injection to help cure the ailing Pakistani economy.
“The country (Pakistan) has entered into a new stage of social and economic development…Hence it is fair to stay the current China-Pakistan relationship it as a new starting point. It needs new dynamics. Against such a backdrop the Prime Minister’s visit is highly significant,” said Chinese Vice Foreign Minister Kong Xuanyou, after Mr. Khan and his Chinese counterpart Li Keqiang held talks. The two leaders signed 16 agreements, including the establishment of a strategic dialogue between the foreign ministers of the two countries.
The visit began with anticipation that a generous China will open its wallet to bail out Pakistan — its “all weather” ally — and help it recover from a near economic collapse. Pakistan’s foreign exchange reserves have reached an alarming low of around $8 billion—barely sufficient to finance about two months of imports. Current account deficit in the financial year that ended in June was around $18 billion.
China on Saturday pledged support, but did not confirm that it would provide a $6 billion package, as reported by a section of the Pakistani media on the previous day.
To have more talks
“During the visit the two sides have made it clear in principle that the Chinese government will provide necessary support and assistance to Pakistan in tiding over the current economic difficulties. As for
the specific measures to be taken, the competent authorities of the two sides will have detailed discussion,” Mr. Kong said.
The Chinese official also affirmed that apart from the current economic and fiscal difficulties that Islamabad faces, “China will provide help and assistance to Pakistan within the role of its capability”.
Mr. Kong confirmed that the two countries are fine-tuning the multibillion China Pakistan Economic (CPEC) project, by imparting a people-friendly orientation to the massive $ 62 billion undertaking. That included setting up of a new institutional mechanism for steering CPEC. “The two sides will gradually bring the dimension of industrial cooperation to CPEC and extend the CPEC to other parts of Pakistan,” Mr. Kong observed.
He added: “(The) two sides have decided to establish a working group on social and livelihood affairs under the CPEC joint cooperation committee.”
No change in CPEC projects
Mr. Kong made it plain that that the number of projects covered by CPEC would remain unchanged. Besides, the political enthusiasm to go ahead with CPEC — the flagship of China’s ambitious Belt and Road
Initiative (BRI) to revive the Ancient Silk Road — remained undiminished.
“The Pakistani side reiterated that Pakistan’s relations with China are the cornerstone of Pakistan’s foreign policy and Pakistan remains committed to the friendship between the two countries and committee to
advancing the CPEC.”
The consensus on tweaking CPEC follows previous objections in Pakistan that the financial burden of the project, focusing heavily on infrastructure, could push Pakistan into a “debt trap”. During his stay Mr. Khan met Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB), as well as Song Tao, Minister of International Department of Communist Party of China (CPC).
Prior to Mr. Khan’s arrival in Beijing, Saudi Arabia had come to Pakistan’s aid with a $ 6 billion financial support package. That included a $3 billion deposit for a period of one year, to help Pakistan wriggle out of its immediate balance of payment crisis.
Despite Riyadh’s emergency support, Pakistan is likely to approach China for financial backing to minimise its requirement for a loan from the International Monetary Fund (IMF).
“What we are hoping is that we do a bit of both, get a loan from IMF and other loans from friendly governments,” Mr. Khan said during an investment conference in Riyadh last month.
Atul Aneja
China on Saturday labelled the visit of Pakistan Prime Minister Imran Khan as the starting point of new phase of ties, built on a consensus to re-brand the China Pakistan Economic Corridor (CPEC), and a financial injection to help cure the ailing Pakistani economy.
“The country (Pakistan) has entered into a new stage of social and economic development…Hence it is fair to stay the current China-Pakistan relationship it as a new starting point. It needs new dynamics. Against such a backdrop the Prime Minister’s visit is highly significant,” said Chinese Vice Foreign Minister Kong Xuanyou, after Mr. Khan and his Chinese counterpart Li Keqiang held talks. The two leaders signed 16 agreements, including the establishment of a strategic dialogue between the foreign ministers of the two countries.
The visit began with anticipation that a generous China will open its wallet to bail out Pakistan — its “all weather” ally — and help it recover from a near economic collapse. Pakistan’s foreign exchange reserves have reached an alarming low of around $8 billion—barely sufficient to finance about two months of imports. Current account deficit in the financial year that ended in June was around $18 billion.
China on Saturday pledged support, but did not confirm that it would provide a $6 billion package, as reported by a section of the Pakistani media on the previous day.
To have more talks
“During the visit the two sides have made it clear in principle that the Chinese government will provide necessary support and assistance to Pakistan in tiding over the current economic difficulties. As for
the specific measures to be taken, the competent authorities of the two sides will have detailed discussion,” Mr. Kong said.
The Chinese official also affirmed that apart from the current economic and fiscal difficulties that Islamabad faces, “China will provide help and assistance to Pakistan within the role of its capability”.
Mr. Kong confirmed that the two countries are fine-tuning the multibillion China Pakistan Economic (CPEC) project, by imparting a people-friendly orientation to the massive $ 62 billion undertaking. That included setting up of a new institutional mechanism for steering CPEC. “The two sides will gradually bring the dimension of industrial cooperation to CPEC and extend the CPEC to other parts of Pakistan,” Mr. Kong observed.
He added: “(The) two sides have decided to establish a working group on social and livelihood affairs under the CPEC joint cooperation committee.”
No change in CPEC projects
Mr. Kong made it plain that that the number of projects covered by CPEC would remain unchanged. Besides, the political enthusiasm to go ahead with CPEC — the flagship of China’s ambitious Belt and Road
Initiative (BRI) to revive the Ancient Silk Road — remained undiminished.
“The Pakistani side reiterated that Pakistan’s relations with China are the cornerstone of Pakistan’s foreign policy and Pakistan remains committed to the friendship between the two countries and committee to
advancing the CPEC.”
The consensus on tweaking CPEC follows previous objections in Pakistan that the financial burden of the project, focusing heavily on infrastructure, could push Pakistan into a “debt trap”. During his stay Mr. Khan met Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB), as well as Song Tao, Minister of International Department of Communist Party of China (CPC).
Prior to Mr. Khan’s arrival in Beijing, Saudi Arabia had come to Pakistan’s aid with a $ 6 billion financial support package. That included a $3 billion deposit for a period of one year, to help Pakistan wriggle out of its immediate balance of payment crisis.
Despite Riyadh’s emergency support, Pakistan is likely to approach China for financial backing to minimise its requirement for a loan from the International Monetary Fund (IMF).
“What we are hoping is that we do a bit of both, get a loan from IMF and other loans from friendly governments,” Mr. Khan said during an investment conference in Riyadh last month.
