Prime Minister Shehbaz Sharif and Chinese Premier Li Qiang reaffirmed on Thursday to work together on the China-Pakistan Economic Corridor’s (CPEC) second phase in a meeting that the former termed “most productive” as business firms inked memorandums of understanding (MoUs) worth $4.2 billion.
Pakistan and China share a longstanding strategic partnership with ties that span various sectors, including trade, energy, defence, and infrastructure. PM Shehbaz is currently on a six-day visit to China, where he attended the Shanghai Cooperation Organisation (SCO) summit[1] held from August 31-September 1.
“Both sides also agreed to continue working closely on the next phase of upgraded CPEC 2.0, with its five new corridors,” said a statement[2] today by the Press Information Department (PID) following the meeting in Beijing.
The prime minister highlighted the “significant contribution” of the CPEC in Pakistan’s socio-economic development in the past decade. He also stressed the need for early implementation of the Main Line-1[3] (ML-1) railway project, the Karakoram Highway realignment[4] and operationalisation of the Gwadar Port[5].
In a post on X, PM Shehbaz termed the meeting “warm and most productive”.
“I also invited Chinese companies to enhance their investment footprint in Pakistan,” the premier said, noting the leaders’ agreement on advancing cooperation in information technology, agriculture, minerals, textiles and industry.
PM Shehbaz said: “I thanked the Chinese leadership & the people for their steadfast support to Pakistan’s socio-economic development, particularly through the successful implementation of CPEC, which was now entering its next phase.
“Inspired by President Xi Jinping’s visionary leadership, we remain committed to building a stronger Pakistan-China community with a shared future,” he added.
The PID statement noted the meeting was “warm and friendly”, with both leaders expressing their satisfaction at the positive trajectory of Pak-China relations.
PM Shehbaz expressed his “deepest gratitude to the Chinese leadership and nation for their unflinching support to Pakistan’s territorial integrity, sovereignty, and socio-economic development”.
Both leaders also attended the ceremony of sharing of MoUs and agreements signed related to the “development of CPEC 2.0, science and technology, IT, media, agriculture, etc”.
Recalling the “important consensus” reached between PM Shehbaz and President Xi Jinping in their Tuesday meeting[6], the statement noted that both premiers reaffirmed their “shared resolve to further strengthen the iron-clad, all-weather strategic cooperative partnership between Pakistan and China”.
“The signing of the Joint Action Plan 2024-2029 was deemed as an important step in this regard.”
The prime minister asserted that the government’s “tireless reform efforts were yielding promising results, made possible through China’s strong support”. In June, China rolled over[7] $3.4 billion in loans to Pakistan to help boost Islamabad’s foreign exchange reserves.
PM Shehbaz also shared Pakistan’s intent to float Panda Bonds[8], a type of debt security issued by foreign entities denominated in Chinese yuan (RMB), in the Chinese capital market soon.
The prime minister briefed the Chinese premier on the Pakistan-China Business-to-Business Investment Conference held earlier today, where “more than 300 Pakistani and 500 Chinese companies were in attendance”.
He stressed the vast potential for B2B cooperation and investment, identifying agriculture, mines and minerals, textile, industrial sector and IT as priority areas for mutually beneficial economic collaboration.
PM Shehbaz reiterated Pakistan’s support for President Xi’s landmark initiatives to strengthen multilateralism, including the Global Governance Initiative, Global Development Initiative, Global Security Initiative and the Global Civilisation Initiative.
The delegation-level talks were followed by a sumptuous luncheon, hosted by Premier Li in honour of PM Shehbaz and his team, PID added. Both countries would celebrate the 75th anniversary of the establishment of Pak-China diplomatic ties next year, it noted.
The premier’s ongoing visit was expected to mark the formal launch[9] of the second phase of the CPEC-II, which focuses on industrial cooperation.
PM Shehbaz later met Chinese Minister for Information Technology and Industry Li Lecheng and reiterated Pakistan’s vision of deepening bilateral cooperation with China in industries, agriculture, trade, ICT, mining and minerals.
PM Shehbaz hailed CPEC as a central pillar of Pakistan’s socio-economic development and expressed satisfaction at its steady progress in its second phase.
Admiring the government’s economic reform agenda, Minister Li emphasised that China regarded Pakistan as an “ironclad brother and All-Weather Strategic Cooperative Partner”.
He expressed China’s firm resolve to elevate bilateral relations to “new heights of cooperation and collaboration”.
The prime minister also held a series of high-level meetings with senior executives of China’s leading enterprises in Beijing.
He emphasised that industrial cooperation was the cornerstone of Pakistan-China economic cooperation and a “defining pillar” of CPEC’s development in its second phase.
He also invited Chinese companies to consider Pakistan as their preferred investment destination, particularly for relocating industries into special economic zones, saying that the country offered a “unique comparative advantage” with a large pool of skilled and cost-effective labour, competitive input costs and strategic connectivity to regional and global markets.
PM Shehbaz pledges security assurance to Chinese investors, terms it ‘paramount’
PM Shehbaz later termed the security of Chinese businesses “paramount” to Pakistan, inviting investment into the country under the banner of CPEC-2.0.
Addressing Chinese business leaders at the Pak-China B2B conference, PM Shehbaz said, “I want to make it clear before this assembly of great leaders that the security of Chinese brothers and sisters in Pakistan is paramount for all of us.”
He invited them to “come forward and change the landscape of progress and welfare” for both China and Pakistan.
Noting delays in the formal launch of CPEC-2.0, PM Shehbaz assured the potential investors that “Pakistan will not tolerate even a second’s delay” in facilitating Chinese companies.
He acknowledged that there were delays, and things had not “moved forward as per Chinese standards”; however, he stressed that Pakistan’s doors remained open to Chinese investors, adding that “we will not keep them waiting even for a second”.
The premier lauded CPEC-2.0 as a “win-win” equation for both Pakistan and China. Marking the formal launch of CPEC-2.0, he outlined B2B investment, agriculture, trade, IT, mines and minerals, and the establishment of SEZs as the main pillars of the second phase.
He added that Pakistan could fulfil China’s need for labour, suggesting that industries such as textiles, leather, among others, could be shifted to Pakistan. He recommended that the country could also produce those goods and services for China.
“This is the total crux of CPEC-2.0,” he said, noting that “if our economy strengthens, everything will fall into place”.
“I am here speaking to you first as the chief executive officer of Pakistan and then as the prime minister,” he added.
Thanking China and President Xi for their economic support, he noted that Pakistan’s economy was stable now because of it.
“Pakistan’s macro indicators continue to show progress, in the short, medium and long term,” the premier said, adding that recent progress was made due to the Chinese president’s “commitment towards Pakistan”.
He said that Pakistan was “now ready to compete with other countries in this race of economic development” with Chinese cooperation.
He and Planning Minister Ahsan Iqbal also witnessed the signing of 21 MoUs between business firms from Pakistan and China worth $4.2bn.
On Tuesday, at the sidelines of the SCO summit, PM Shehbaz and President Xi reaffirmed their commitment to strengthening their “iron-clad and all-weather strategic cooperative partnership”.
In his meeting with the prime minister, President Xi pledged support for Pakistan’s home-grown capacity for development, expressing readiness to build CPEC 2.0 and upgrade the China-Pakistan Free Trade Agreement, and step up cooperation in industries, agriculture, and mining sectors.
PM Shehbaz had stressed the “significance of the CPEC as a flagship project of President Xi’s Belt and Road Initiative[10] (BRI) to help both countries to build an even stronger Pakistan-China community with a shared future”.
During his recent address[11] at Tianjin University, PM Shehbaz reiterated that all endeavours and initiatives of the current government of Pakistan “closely align with Chinese President Xi Jinping’s vision and philosophy”.
The government has sent 1,000 agriculture graduates from Pakistan to China to learn modern techniques, while about 30,000 students from Pakistan have been getting education and training in China, the premier noted.
References
- ^ summit (www.dawn.com)
- ^ statement (pid.gov.pk)
- ^ Main Line-1 (www.dawn.com)
- ^ realignment (v)
- ^ Gwadar Port (www.dawn.com)
- ^ Tuesday meeting (www.dawn.com)
- ^ rolled over (www.dawn.com)
- ^ Panda Bonds (www.dawn.com)
- ^ launch (www.dawn.com)
- ^ Belt and Road Initiative (www.dawn.com)
- ^ recent address (www.dawn.com)