Building Bridges: Impact Of PM Shehbaz Sharif’s Historic Visit To China – OpEd

Prime Minister Shehbaz Sharif’s recent five-day visit to China stands out as a landmark event, underscoring the robust and dynamic nature of Pakistan-China relations. This visit has not only cemented existing ties but also opened new avenues for cooperation across various sectors. The outcomes, including the signing of 23 Memoranda of Understanding (MoUs), signify a comprehensive and forward-looking partnership that promises to deliver significant benefits to both nations.

Reinforcing Bilateral Relations

The visit featured high-level interactions, most notably an extensive three and a quarter hour meeting between Prime Minister Sharif and President Xi Jinping. This lengthy discussion emphasized upgrading the China-Pakistan Economic Corridor (CPEC), highlighting the strategic importance both countries place on this initiative. The Prime Minister made it a point to advocate for the Karachi Circular Railway (KCR) in all his meetings, receiving encouraging responses from Chinese officials. Furthermore, a dedicated committee has been set up to advance the Main Line One project, alongside the signing of 32 business-to-business agreements, marking a significant step forward in bilateral cooperation.

Economic Milestones and Future Opportunities

One of the most notable achievements of this visit was the signing of 23 MoUs spanning multiple sectors, including transport infrastructure, industry, energy, agriculture, media, health, water, and socioeconomic development. These agreements are poised to enhance Pakistan’s economic landscape, creating new trade and investment opportunities. The Pakistan-China Business Conference, attended by 500 business personalities, underscored the economic potential of this partnership. China’s commitment to training 200,000 Pakistani youth in IT is particularly noteworthy, as it is expected to significantly boost Pakistan’s IT exports. Federal Information Minister Attaullah Tarar highlighted the positive economic indicators emerging from this visit, such as increased IT exports, a reduced current account deficit, rising foreign exchange reserves, and a stable currency. These developments suggest a promising trajectory for Pakistan’s economy, driven by strategic partnerships and international cooperation.

Addressing Security Challenges

Security concerns have been a critical aspect of the Pakistan-China relationship, especially following recent attacks on Chinese nationals in Pakistan. Prime Minister Sharif’s visit, accompanied by the army chief, Gen. Asim Munir, underscored Pakistan’s serious commitment to addressing these security issues. The Prime Minister assured the Chinese leadership of enhanced security measures to protect Chinese nationals working in Pakistan. Both sides agreed on the importance of combating terrorism, particularly preventing militants from using Afghan territory for attacks against Chinese interests.

Overcoming Criticisms and Challenges

Despite the positive outcomes, the visit has faced some criticisms and highlighted challenges. Observers note that improving the economic partnership with China is hampered by Pakistan’s economic policies. The country owes over $7.5 billion in project debt to power plants established under CPEC and nearly $2 billion in circular debt to Chinese power producers. Managing this debt burden requires careful financial planning and strategic economic management. Economist Ali Hasanain criticized Pakistan’s approach to CPEC projects, arguing that the obligations in foreign currencies conflict with the country’s domestic-oriented exchange rate and industrial policies. This misalignment has gradually narrowed Pakistan’s fiscal space, leading to a debt crisis where new loans are sought to pay off previous debts. The much-delayed Mainline-1 (ML-1) project, costing approximately $6.8 billion, exemplifies these financial strains, struggling to attract Chinese investment due to anticipated financial stress.

Strategic Vision and Future Prospects

Despite these criticisms, a strategic vision for the future of Pakistan-China relations is emerging. The renewed focus on CPEC 2.0 aims to optimize existing infrastructure and attract Chinese energy-intensive industries to Pakistan, utilizing surplus power and enhancing economic productivity. This phase emphasizes industrial cooperation, mining and exploration, and leveraging Pakistan’s strategic location for economic growth. The joint statement issued at the end of the visit highlighted China’s encouragement for companies to invest in Pakistan based on market and commercial principles. This cautious yet optimistic approach signals a pathway for sustainable and mutually beneficial investments in the future.

Conclusion

Prime Minister Shehbaz Sharif’s visit to China has indeed been a historic and successful endeavor, reinforcing the enduring and exemplary friendship between Pakistan and China. The economic, strategic, and security agreements forged during this visit lay a solid foundation for future cooperation. While challenges remain, particularly in managing debt and aligning economic policies, the visit has demonstrated a strong commitment from both sides to overcome these hurdles and work towards a prosperous and secure future. The benefits of this visit are expected to reach the Pakistani public, enhancing economic opportunities, job creation, and overall socioeconomic development. The positive trajectory of Pakistan-China relations, as evidenced by this visit, reaffirms the enduring partnership between the two nations and sets a promising course for the future. The strategic vision and collaborative efforts displayed during this visit highlight the potential for continued growth and cooperation, ensuring that the Pakistan-China partnership remains robust and resilient.