China investing billions in CPEC projects: PM Shehbaz Sharif

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday expressed the confidence that his meetings with the Chinese leadership during his visit to China would be helpful in promoting strategic, economic and cultural ties between the two countries.

Addressing the first meeting of Pakistan China Business and Investment Forum here, the prime minister stressed for building strong business to business partnership between Pakistan and China to further expand bilateral relationship and augment China-Pakistan Economic Corridor’s dividends. 

“I look forward to meeting the Chinese leadership for a series of productive and fruitful meetings aimed at boosting business and people to people relations,” the prime minister said.

The prime minister, who is set to leave on two-day visit to China today (Tuesday), said that there was need to double efforts to connect with the Chinese business houses and create an enabling environment to attract Chinese investments and emphasized creating favourable environment for building business to business relationship.

The prime minister said he strongly believes that the CPEC has been a game changer in building our business relations and so far billions of dollars of investment has already been committed by the Chinese companies and investing billions of dollars on CPEC projects.

He recalled that Pakistan was able to address the issue of loadshedding due to the energy projects completed under the CPEC. He noted that given our comparatively cheaper labour, relocation of Chinese industries to Pakistan by establishing Special Economic Zones will be a win-win situation for the businesses of both the countries.

The prime minister said Pakistan can enhance its agriculture yield by taking advantage of the Chinese modern technology and techniques. He said we can then install agro based industrial houses and export agriculture production to the Middle East and other countries.

Talking about Chinese achievements under President Xi Jinping, Shehbaz Sharif said Pakistan needs to emulate and learn from Chinese model. The prime minister thanked the Chinese government and companies for their valuable support to the flood-affected people of Pakistan. He said China is at the moment one of the largest donors to the flood victims.

He pointed out China created an air bridge between Beijing and Islamabad, sending important items such as food and tents, adding that the way Chinese companies and individuals contributed in a big way in the flood relief show the depth and strength of this friendship.

Minister for Planning and Development Ahsan Iqbal said Pakistan wanted to enhance partnership with China to bolster its exports and become part of its global supply chains. He said the government was committed to removing all the bottlenecks which can stand in the way of attracting investment in the country.

Ahsan Iqbal said Pakistan China Business and Investment Forum has to lay the path that bulk of the Chinese investment starts flowing into Pakistan. Minister for Board of Investment Salik Hussain said his department is leading the phase two of industrial cooperation under the CPEC which envisages establishment of SEZs and fostering business to business cooperation.

Chinese Ambassador in Islamabad Nong Rong said that Pakistan and China supported each other no matter what the international or domestic situation turned into. The CPEC is now moving towards high quality development focusing on industrial, agriculture, technical and socio-economic cooperation.

He maintained that China was committed to play the role in development under the umbrella of China-Pakistan Economic Corridor (CPEC). Referring to Chinese investments in different projects, the ambassador said a Chinese company is constructing a textile industrial zone on one hundred and 50 acres of land in Lahore with total investment of one hundred and 50 million dollars. “This will achieve an annual foreign exchange income of four hundred million dollars and provide twenty thousand jobs,” he said.

Nong Rong said during the visit of Prime Minister Shehbaz Sharif to Beijing, the Chinese side would announce further assistance in this regard to help Pakistan overcome the difficulties posed by the floods.

Prime Minister Shehbaz Sharif will pay a two-day official visit to China form today (Tuesday) at the invitation of Chinese Prime Minister Li Keqiang. This will be PM Shehbaz Sharif’s first visit to China since assuming office in April 2022 and follows his meeting with President Xi Jinping in Uzbekistan on September 16, 2022.

A high-level delegation will accompany the prime minister, the PM Office said in a statement on Monday. The prime minister will be among the first leaders to visit China following the historic 20th National Congress of the Communist Party of China.

“The prime minister’s visit represents the continuity of frequent leadership level exchanges between Pakistan and China,” the PM Office said. During his stay, the prime minister will meet President Xi Jinping and hold delegation-level talks with Premier Li Keqiang. The two sides will review the All-Weather Strategic Cooperation Partnership and exchange views on regional and global developments.

“The visit is also expected to advance the wide-ranging bilateral cooperation agenda with the conclusion of a number of MoUs/Agreements in diverse areas, and consolidate the momentum of CPEC cooperation in the wake of the 11th meeting of the CPEC Joint Cooperation Committee (JCC) on October 27, 2022,” the statement added.

Meanwhile, Prime Minister Shehbaz Sharif on Monday held an in-depth meeting with Chinese ambassador Nong Rong encompassing diverse matters ahead of his two-day official visit to China starting Tuesday.

It was highlighted in the meeting that the visit of Prime Minister Shehbaz Sharif to China would further strengthen trade and economic ties, the PM Office said. Special Assistant to PM Tariq Fatemi also attended the meeting. Pakistan will seek rescheduling of its bilateral debt from China to the tune of $14.6 billion during the upcoming visit of Prime Minister Shehbaz Sharif, it was learnt.

Out of the total outstanding loans of Non- Paris Club countries to the tune of $26.9 billion, Pakistan owed $23 billion to China in the shape of loans and deposits, $961 million from the Kingdom of Saudi Arabia (KSA), and $2.7 billion deposits from UAE and Kuwait. “Of a total of $23 billion from China, the due repayments stand at $5.8 billion as bilateral loans from Beijing, another $4.5 billion due as SWAP agreement and finally $4 billion as State Administration of Foreign Exchange (SAFE) deposits, totalling the repayment due amount up to $14.6 billion during the current fiscal year 2022-23” top official sources confirmed while talking to The News here on Monday.