China-Pakistan ties scaling new highs: envoy

ISLAMABAD: Chinese Ambassador to Pakistan Jiang Zaidong has said the China-Pakistan relations are further strengthening, with enhanced cooperation across various sectors that will boost Pakistan’s economy which is already stabilising.

He made these remarks during the launch of two reports by the China Chamber of Commerce in Pakistan (CCCPK).

The reports, titled “The Glorious 11 Years – How Chinese Companies Reshaped the Power Sector in Pakistan” and “Business Climate Index of Chinese Companies in Pakistan,” drew considerable participation from both Pakistani and Chinese stakeholders and other foreign participants.

Ambassador Jiang highlighted the growing collaboration between the two nations and shared that China’s prime minister was visiting Pakistan to further boost high-quality cooperation and international ties, including attending the Shanghai Cooperation Organization (SCO) summit.

“We have seen that under Shehbaz Sharif’s leadership, Pakistan’s economy has undergone a transformation,” Ambassador Jiang said. “GDP has rebounded from negative growth to 3.4 percent, while inflation has dropped from 28.7 percent to 6.9 percent.”

He also noted that Pakistan’s foreign reserves had improved, which he described as an encouraging development for the country’s economic outlook.

The event commenced with a moment of silence to honor the fallen heroes, emphasizing the deep respect shared between the two nations for those who have made sacrifices.

The ambassador’s remarks reflect the ongoing strategic partnership between China and Pakistan, built on economic cooperation, infrastructural development and regional stability.

Chairman Senate Yousaf Raza Gilani, who was the chief guest, emphasized the importance of economic integration amid rapid geo-economic and geo-strategic transitions, urging regional connectivity and cooperation for sustainable growth. “It is high time to harness our collective strengths,” Gilani said.

“Pakistan seeks to strengthen regional cooperation by fostering economic ties with our partner nations, and China stands at the very top,” he said. He praised CCCPK’s efforts, noting the contribution of 122 Chinese companies operating in Pakistan and underscoring the importance of business-to-business linkages for foreign direct investment and technology sharing.

Gilani also pointed to the transformative impact of the China-Pakistan Economic Corridor (CPEC) and expressed optimism for phase two, which will expand into agriculture, industry, mining and technology. He commended China’s Global Development Initiative, led by President Xi Jinping, for aligning with Pakistan’s goals of achieving the Sustainable Development Goals (SDGs). “The Belt & Road Initiative and CPEC have shaped Pakistan’s energy and infrastructure landscapes,” he added, noting the need for people-to-people connectivity to foster peace and cooperation.

Finance Minister Muhammad Aurangzeb also commended the Chinese companies for their role in addressing Pakistan’s energy security, noting that China had been supporting Pakistan’s energy sector long before CPEC, citing Tarbela Dam as an example.

He emphasized that China’s $20 billion investment in Pakistan’s energy sector, which included the establishment of 9,000 megawatts of power projects and 4,000 megawatts of transmission lines, was the largest investment in Pakistan’s history. “These projects will be crucial for achieving economic stability,” Aurangzeb said.

Senator Saleem Mandviwalla, former deputy chairman of the Senate, acknowledged China’s support, noting that Chinese government, banks and companies had played a key role in Pakistan’s infrastructure and energy projects.

“It’s not just business; it’s a strategic relationship,” Mandviwalla said. “This relationship will endure.” He also expressed sorrow over the loss of Chinese nationals in a terrorist attack in Karachi, stating, “We are not only sad but also deeply hurt.”

Federal Minister for Information and Broadcasting Attaullah Tarar described China as Pakistan’s “all-weather friend”. He recalled that during the severe energy crisis in 2013, with power outages lasting up to 19 hours costing the economy Rs500 billion, China stepped in to help.

“China supported us by establishing various power plants, including hydropower, coal and nuclear projects. Without China, we wouldn’t have achieved this growth,” Tarar said, adding that CPEC projects were instrumental in the country’s recovery. Discussions have now begun on CPEC’s second phase, which will focus on business-to-business cooperation.

The Chinese companies have invested in 46 power projects across Pakistan since 2013, including coal, nuclear, hydro, wind, solar and transmission and distribution facilities, according to the report titled, “The Glorious 11 Years: How Chinese Companies Reshaped the Power Sector in Pakistan”.

By the end of September 2024, Chinese investment in Pakistan’s energy sector totaled $13.28 billion, with an additional $6.96 billion planned.

Chinese-funded projects account for 8,752 MW, or 19.07 percent of Pakistan’s total installed power capacity of 45,885 MW. While adding engineering contracting projects by Chinese companies, it reaches 11,103 MW, making up 24.19 percent of the total.

The report also noted that electricity generation costs for CPEC projects are significantly lower, at Rs8.80 per kilowatt-hour (kWh), compared to Rs19.66/kWh for Merit Order projects and Rs20.46/kWh for non-CPEC projects. Chinese projects have generated 229.8 billion units of electricity as of September 2024. A senior Chinese official said Pakistan’s cost of power generation is decreasing as the country’s economy stabilizes and business conditions improve.