.PM and COA visit to China and its Strategic importance
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[email protected] By Dr. Syed Mehboob
Research Scholar, Analyst
Pakistan and China's friendship is all-weather, time-tested, and historical, and has deep roots in the minds and hearts of the people of both countries. Governments changed, and their policies and priorities changed but one thing remained on top agenda on the policies of Pakistan, “Strong and close relations and friendship with CHINA”. Prime Minister Shahbaz Sharif and Chief of Army Staff Hafiz Syed Asim Munir visited China on a five-day tour from 4th to 8th June 2024. This tour caught the eyes of international media and much importance was given to it. All the friends of Pakistan were happy and enemies were jealous. It was the Prime Minister’s first visit to China after assuming his office in February 2024.
China’s President Xi Jinping met the Prime Minister on Friday 7th June, 2024 which has immense importance. Both Pakistan and China expressed their firm commitment to protect the China-Pakistan Economic Corridor CPEC) from its detractors and adversaries, besides, ensuring high-quality development and timely completion of its all ongoing projects. The delegation talks between Prime Minister Shahbaz Sharif and Chinese Premier Mr. Li Quiang at the Great Hall of the People discussed bilateral ties and cooperation.
It is important to mention that Pakistan and China have signed thirty-two very important Memorandum of Understanding (MoUs) to deepen bilateral cooperation in multiple areas including transport, infrastructure, industry, energy, agriculture, media, health, water, socio-economic development, and other areas of mutual interest. The MoUs were signed after Prime Minister Shahbaz Sharif and his Chinese counterpart Li Quiang held delegation-level talks in Beijing on 7th June 2024 wherein they reaffirmed that the Pakistan-China Strategic Cooperative Partnership was characterized by mutual trust shared principles and strategic governance. Both sides also expressed unwavering support for each other's core issues. They reiterated their commitment to the high-quality development of the China-Pakistan Economic Corridor (CPEC) and the timely completion of ongoing projects. The two countries agreed to maintain high-level exchanges, including strengthening institutional linkage in all tires and spheres, besides continuing to hold consultations on matters of bilateral and global significance, particularly Pakistan’s two-year term as a non-permanent member of the United Nations Security Council (UNSC). Both sides emphasized and agreed on the timely completion of all ongoing projects with a special focus on industrial development, agriculture, modernization, science and technology, and the development of Special Economic Zones (SEZs) mutually beneficial and socio-economic development of Pakistan. The two sides also discussed the significance of Gwadar as an important pillar of the CPEC and agreed to expedite the timely completion of all related infrastructure projects to transform it into a regional economic hub. Prime Minister informed the Chinese potential investors that Pakistan had US$ 10,000 billion worth of mineral resources while the country’s export is only US$ 30 billion. The mineral deposits offer huge potential to dig out and convert them into finished goods for exports. Prime Minister Shahbaz Sharif drew a comparison between the US$ 550 billion GDP of the thirteen million city of Shenzhen and the US$ 380 billion GDP of Pakistan with a 250 million population and called it the Chinese city’s swift transformation a miracle of this country and the eighth wonder of the world necessitating for others to learn lesson from it.
Pakistan has now a strategy to focus on trade, investment, and export-led growth coupled with industrialization and import substitute-driven industry with a core idea to reduce the fiscal deficit. Pakistan has great potential in IT, Agriculture, mining, and minerals, Chinese investors should take advantage of Pakistan’s great potential and benefits of competitive labor cost here. Pakistan is seriously working to join the G20. Prime Minister urged investors to participate in the privatization process of eighty-four State Owned Enterprises (SOEs) under consideration. Pakistan’s agriculture sector which has a significant contribution to GDP grew this year by 6.5 % which is very encouraging. The country’s current account deficit is going to be less than one billion dollars. Pakistan China Business Conference was attended by 500 business leaders from China and 100 from Pakistan.
The second phase of CPEC is very important and will focus on agriculture, industrial cooperation, and trade to increase exports from Pakistan and benefit the lives of people at the gross root level. Gwadar needs to be developed as a model urban town and the new airport will provide more opportunities for increased connectivity, proper real estate development along with hotels are also needed in Gwadar. There are Chinese media outlets in Islamabad including “The People’s Daily” and “Xinhua News Agency”.
China’s Economic Advancement Journey2019-2023
Key Economic Indicators 2019 2020 2021 2022 2023
GDP US billion 14,340.6 14,862.6 17,759 17,886 17,700
GDP per Capita US$ 10,170 10,552.5 12,572 12,669 12,541
Real GDP Growth % 5.9 2.2 8.00 3.00 5.00
Total Exports US$ Billion 2,498.6 2,588.4 3,361.8 3,593.6 3,388.7
Total Imports US$ billion 2,066.5 2,057 2,675.7 2,716 2,559.3
Trade with Pakistan
Year Exports US$ billion Imports US$ billion Total Trade US$ billion BOT US$ billion Total Export of Pakistan US$ billion % in Pakistan Exports Total imports of Pakistan US$ billion % in Pakistan’s total imports
2019 1.806 16.167 19.973 14.361 23.82 7.58 50.51 32.01
2020 2.125 15.357 17.482 13.233 22.25 9.55 45.84 33.50
2021 3.585 24.24 27.826 20.656 28.88 12.41 73.11 33.16
2022 3.413 23.089 26.503 19.68 31.177 10.95 71.11 32.47
2023 3.466 17.33 20.80 13.87 28.56 12.17 50.54 34.30