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China on Saturday described the visit of Pakistan's Prime Minister Imran Khan as the starting point for a new phase of relations, based on a consensus to rename the China-Pakistan Economic Corridor (CPEC) and
financial injection to help heal the struggling Pakistani economy.
"The country (Pakistan) has entered a new phase of social and economic development … It is therefore fair to keep the current Sino-Pakistani relationship as a new starting point. This requires a new dynamic. In such a context, the Prime Minister's visit is extremely significant, "said Chinese Vice Foreign Minister Kong Xuanyou after talks between Khan and his Chinese counterpart Li Keqiang. The two leaders signed 16 agreements, including the establishment of a strategic dialogue between the foreign ministers of both countries.
The visit began with the foresight of a generous China that would open its wallet to bail out Pakistan – its "all time" ally – and help it recover from a near-economic collapse. Pakistan's foreign exchange reserves have reached an alarming level of about $ 8 billion – hardly enough to finance about two months of imports. The current account deficit for the year ended June was about $ 18 billion.
China announced Saturday support, but has not confirmed its intention to provide an amount of $ 6 billion, as reported a section of the Pakistani press the day before.
For more discussion
"During the visit, both parties made it clear in principle that the Chinese government would provide the necessary support and assistance to Pakistan to cope with the current economic difficulties. As for
specific measures to be taken, the competent authorities of both sides will have an in-depth debate, "Kong said.
The Chinese official also said that, apart from the current economic and fiscal difficulties of Islamabad, "China will provide aid and assistance to Pakistan to the extent of its means".
Kong confirmed that the two countries were fine-tuning the multi-billion-dollar project of China, Pakistan and Pakistan's economy (CPEC), giving citizens a favorable orientation as part of the commitment. huge amount of $ 62 billion. This included the establishment of a new institutional mechanism for steering the CPEC. "Both sides will gradually bring the dimension of industrial cooperation to the CPEC and extend it to other parts of Pakistan," Kong said.
He added: "Both parties have decided to establish a working group on social and livelihood issues in the framework of the CPEC Joint Cooperation Committee."
No change in CPEC projects
Kong said the number of projects covered by the CPEC would remain unchanged. In addition, the political enthusiasm for the creation of the CPEC – the flagship product of the ambitious belts and roads project
Initiative (BIS) to revive the ancient Silk Road – has not diminished.
"The Pakistani side has reaffirmed that Pakistan-China relations are the cornerstone of Pakistan's foreign policy, and Pakistan remains committed to the friendship between the two countries and the Pakistan Committee.
advance the CPEC. "
The CPEC's consensus on adjustment follows earlier objections in Pakistan that the financial burden of the project, which is mainly focused on infrastructure, is pushing Pakistan into a "debt trap". During his stay, Mr. Khan met Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB), and Song Tao, Minister of the International Department of the Chinese Communist Party (CCP).
Prior to Khan's arrival in Beijing, Saudi Arabia provided $ 6 billion in financial assistance to Pakistan. This included a $ 3 billion deposit for a period of one year, to help Pakistan out of its immediate balance of payments crisis.
Despite Riyadh's urgent support, Pakistan is likely to seek financial support from China to minimize its lending needs from the International Monetary Fund (IMF).
"What we hope is that we do a little bit of both, get an IMF loan and other loans from friendly governments," Khan said at a conference on investments in Riyadh last month.
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