Pak-China’s Game Changer Relationships

Prime Minister Muhammad Nawaz Sharif and Punjab Chief Minister Muhammad Shahbaz Sharif termed their recent visit to China as “game changer”. Projects worth billions of rupees were inked during their visit to China which would open new vistas and avenues for business, trade, investment and economic opportunities in Pakistan.

Corner Stone
The friendship and economic cooperation between Pakistan and China is underpinned by mutual trust and confidence. Development of relations with China has been the corner stone of Pakistan’s foreign policy. The construction of the KKH Highway, Heavy Mechanical Complex at Taxila and Chashma Nuclear Plants (III and IV) are prime examples of the strong and strategic bilateral relations.

New Phase of Economic and Strategic Partnership
In recent years both sides started new phase/chapter in their bilateral relations. The start of new economic and strategic partnership represents a pragmatic and visionary approach that would put the two countries on the road to eternal friendship. It would build better understanding about emerging geo-politics and geo-strategic issues in the region. It would enhance security cooperation and strengthen our collective fight against terrorism.

Pakistan and China signed as many as 19 MoUs worth billions of dollars; these include the Pak-China economic corridor, energy projects, including Thar coal mining, power plants, hydel power projects, Muzaffargarh power project, wind power project and solar power project besides other technical assistance.

Important Projects

Wider Spectrum

• An economic and technical cooperation agreement between the government
of the People’s Republic of China and the Government of Pakistan.
• A framework agreement on the provision of a concessional loan by China to Pakistan.
• Minutes of the 3^rd JCC of the China-Pakistan Economic Corridor.
• An MoU on the outline of the long-term plan of the CPEC.
• An MoU on capacity building for development of CPEC between the NDRC of
China and Ministry of Planning, Development and Reform of Pakistan.

1. Energy Mix
Pakistan badly needs energy production because our business, industrial productivity, societal stability, and national survival are at stake. We need diversified energy resources for achieving desired socio-economic prosperity, high rates of exports, job generation, reduction of budget deficit and above all normalcy in the hottest season of summer in the country. The government of Pakistan is doing its level best to tape the domestic as well as external window of opportunities to control the looming energy deficits, so, the recent visit of Prime Minister Nawaz Sharif would a game changer for our country in the days to come. It is hoped that under given energy projects would collectively add 16520MW electricity to the system on completion.

2. Infrastructures & Roads
In modern economics, world class infrastructures and roads play very important role for doing business, attracting foreign direct investments and generation of jobs. ICT, railways, dry port and motorways are the carrier of national economy because cluster of these facilities provide strategic cushion, reduce distances, connect people, businesses and overall increase the prospects of high growth rates. It is hoped that diversified of MOUs inked during the three day official visit to China world bring dividends in the days to come.

Chinese Green Channel
The Chinese government also promised to open the green channel for facilitating quick release of funds for the implementation of investment in Pakistan. The Chinese president and prime minister, during their interaction with Prime Minister Nawaz Sharif, promised continued support for economic development and stability in Pakistan. Prime Minister Nawaz also assured Pakistan’s unflinching support for quelling acts of terrorism in Xinjiang province which has been a cause of worry for China for quite some time now.

Establishment of Infrastructure Fund
Chinese President Xi Jinping has announced the establishment of a $40 billion infrastructure fund to build a new Silk Road. He made this announcement at a dialogue meeting in Beijing on strengthening connectivity and improving cooperation in the country’s neighbourhood. The given below diagram clearly shows the strategic importance of Silk Road and its multiplier socio-economic benefits for all the connected countries in the region and especially Pakistan. It proposed Silk Road would connect Asia, Central Asia and Europe which would be game changer in all respects.

Pak-China Economic Corridor
The highly discussed and showcased mega project “Pak-China Economic Corridor” in the national media could not be finalized and unfortunately Chinese focus has shifted to the west, mega project i.e. Silk Road (it would connect Central Asia to Europe). It has the potential to create strong economic bonds between the countries of Central Asia and South Asia where nearly half of the world’s population resides and are a thorn in the side of the west.

Prime Minister Nawaz Sharif while addressing a dialogue on “Strengthening Connectivity Partnership” maintained that Pakistan views the China-Pakistan Economic Corridor as a catalyst for the development of the two countries and for regional economic cooperation, which reflects President Xi Jinping’s vision of building a Silk Road Economic Belt and a Maritime Silk Road.

Valuable Dialogue
Prime Minister Muhammad Nawaz Sharif also attended the event. In his address on the occasion, he appreciated China for taking a remarkable initiative to host such a valuable dialogue. Nawaz Sharif also lauded China’s role in helping Pakistan to meet its development needs.

Prime Minister Nawaz different spells of High Official Meetings
During his three day stay Prime Minister Nawaz Sharif met his Chinese counterpart Li Keqiang and President Xi Jinping. The meeting between the two prime ministers took place at the Great China Hall. Issues of mutual interest including development of power sector and infrastructure, bilateral relations and regional situation came under discussion.

Both the leaders also reviewed Economic Corridor project which Nawaz Sharif said was manifestation of strong relationships between Pakistan and China. “Relations with China are basic component of our foreign policy, Pakistan supports one-China policy and we want trade and economic partnership with Beijing,” Mr. Sharif told Li Keqiang.

The Chinese prime minister said that Nawaz Sharif’s visit would pave for the completion of Economic corridor and it would further strengthen relations between both the countries. After meeting with his counterpart, the Pakistani prime minister also called on President of China Xi Jinping.

Business Community
The business community of Pakistan and traders said that Prime Minister Nawaz Sharif’s visit to China would help Pakistan bring Chinese investment worth billions of dollars in different sectors which would help strengthen the national economy. Trade Development Authority of Pakistan (TDAP) Chief Executive, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), United Business Group Chairman and SAARC CCI VP told that China, in response to current visit of Prime Minister Nawaz Sharif, has announced substantial investment in Pakistan for further improving economic ties between the private sectors of the two countries, besides enhancing volume of trade. They were of the opinion that Pakistan, with Chinese investment, would achieve sustained growth in key sectors, including increase in per capita income and improvement in micro-economic conditions in the years to come, he added.

Chinese Strategic Wisdom
The west led by USA has been rigorously pursuing the “containment China” policy for so many years. The game of hide-seek has been played on different fronts and US-Asia rapprochement is the prime example of USA aim to block the Chinese onslaught in West Africa, Latin America as well as South East Asia region. On the other hand, the China Silk Road, activation of BRICS (development bank) and Asia infrastructures Bank initiatives are likely to neutralise US attempts to block Chinese access to the Malacca Strait by providing it a dependable and safe alternate outlet to the Arabian Sea. So, revival of Pak-China Economic Corridor is the need of the hour which may further enhance the strategic depths of China and its economy would be better connected and safe.

Chinese Paradigm Shift
There is a paradigm shift in Chinese foreign policy and now, China has gradually increased its diversified interests in Pakistan, Vietnam, Sri Lanka, Malaysia, Singapore, Myanmar and the Philippines. The Chinese are interested in building ports in Pakistan, Sri Lanka, Bangladesh and Kenya. It has dual purpose i.e. trade and commerce and military applications too. The Chinese navy participated in the anti-piracy operation in the Somalian Sea in 2011 which proved effective to deter the sea pirate’s wrongdoings. Its well- equipped submarines and first aircraft carrier has already given comparative advantage in the region.

Beijing Roadmap for APEC
Ministers of the Asia-Pacific Economic Cooperation (APEC) members reached consensus on the Beijing Roadmap for APEC to push forward the Free Trade Area of the Asia-Pacific (FTAAP) process. They agreed to “launch and comprehensively and systemically push forward the FTAAP process. They also agreed to try to formulate the post-Bali work program and take substantial actions for strengthening regional integration and advancing the FTAAP building. It is estimated that when established, the FTAAP would be one of the largest FTA in the world, covering about half of global economy and trade.

Chinese president proposes Asia-Pacific dream
While addressing the Asia-Pacific Economic Cooperation (APEC) CEO Summit, Chinese President Xi Jinping called for efforts to create and fulfill an Asia-Pacific saying China’s economy will bring huge opportunities and benefits to the region and the world. The summit attracted over 1,500 business leaders from 21 APEC member economies and 17 other countries and regions.

The Asia-Pacific has a strong impetus for development and a bright future, with a rising standing in the world, Xi said.

“The development prospect of our region hinges on the decisions and actions we take today,” he said. “We are duty-bound to create and fulfill an Asia-Pacific dream for our people.” The Asia-Pacific dream is about achieving socio-economic prosperity, stability, development, peace and mutually beneficial cooperation, and jointly working for the prosperity and progress of the region, Xi told the summit. He elaborated that the dream is about staying ahead of global development and making greater contribution to the well-being of mankind.

The dream is also about having more economic vibrancy, free trade and investment facilitation, better roads, and closer people-to-people exchanges, the president said. Moreover, the dream is about ensuring greater security and prosperity for the people and giving children a better environment to grow, work and live, he said.

The President said that in order to comprehensive deepen reform, China needs to stimulate the market vitality, broaden the path for innovation, advance opening-up at a higher standard, as well as improve people’s well-being and promote social equity and justice.

Concluding Remarks
Pak-China bilateral relations have multidimensional aspects and not confined to security, politics, economy, trade & commerce but also people-to-people contacts. It has strategic orientation and game changer in the region. It provides strategic equalizer in the region. The Chinese proposals to promote the building of the Silk Road Economic Belt and 21^st Century Maritime Silk Road and its willingness to take up its responsibility to contribute to the inter-connectivity in Asia would be beneficial for Pakistan.

The government under the leadership of Prime Minister Nawaz Sharif is doing its best to cater to the energy deficit, budget deficit and stability in the country. In essence this must be the joint and giant political efforts of all the parties so as to achieve the desired destination of socio-economic prosperity and dignity in the days to come. There must be an international regulatory authority/mechanism to look after all the approved Chinese projects in the country. Finally, there must be political stability and an end to self-generated chaos out of egos for people of Pakistan.