China’s chipping in

China and Pakistan have taken a leap forward in economic cooperation. Beijing’s resolve to support Islamabad in stabilising its financial situation has come at a time when Pakistan is on the verge of bankruptcy. The understanding was reached during Prime Minister Shehbaz Sharif’s debut visit to the People’s Republic of China, wherein broad-based cooperation in the economy and investment was on the agenda. A rejuvenated Chinese President, Xi Jinping, in the backdrop of his unprecedented re-election for another five-year term as secretary general of the Communist Party reportedly deliberated over the evolving regional and global developments, and committed to buoy the strategic equation — especially one that encompasses security concerns. This is a shot in the arm as far as diplomacy is concerned, and dispels worries that Pakistan is isolated in the comity of nations.

The stress, nonetheless, was on timely completion of China-Pakistan Economic Corridor (CPEC), and ensuring that the fruits of the flagship initiative flows down to the entire region. The Chinese authorities had exhibited utmost resilience in coping with security somersaults in the wake of attacks on their interests in Pakistan at the hands of disgruntled elements, and this aspect has endorsed the all-weather friendship between the two neighbouring countries. What is needed at the moment is strategic reorientation of CPEC, and to ensure that the second phase of the gigantic initiative, consisting of industrialisation and logistics, take roots without any ado. In this regard, the Railway Mainline-1 upgrading also came under discussion between Shehbaz and Xi, which will act as a catalyst in synergising timely movement of goods across Pakistan. Fast-tracking agreed projects such as a 160 km/hour high-speed railway train and investment for the government’s 10,000 megawatts solar and other renewable energy projects were underscored. The two sides also agreed to actively advance the Karachi Circular Railway, an urgent requirement for the biggest and the most populous city of Pakistan.

Struggling to avoid a financial default, Pakistan is in need of capital from Chinese banking avenues in the form of investment. The RMB clearing arrangement is a step in the right direction, and it will not only pool in commercial banks to Pakistani projects, but also help China cement its fiat as an international trading currency. This makes a case for Beijing rising as the next superpower, dethroning the United States, and Pakistan courting its dilapidated economy too to new strengths. Pakistan, meanwhile, was also forthcoming on core Chinese interest in the realm of global diplomacy, expressing its clear commitment to the one-China Policy and support on issues of Taiwan, South China Sea, Hong Kong, Xinjiang and Tibet.

Published in The Express Tribune, November 5^th, 2022.

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