China’s Vice Premier and one of President Xi Jinping's close aides, He Lifeng, arrived here Sunday on a three-day visit to mark not only 10 years of CPEC but to discuss the next phase of the flagship Belt and Road Initiative (BRI) project.
He Lifeng, 68, was named in March as a key government official overseeing China’s economy.
In his new role as the vice premier, He overseas everything from industrial policy to trade negotiations. He spent the past five years as the leading central planner of China’s economy.
He has played a prominent role in China’s international economic relations and implementation of the BRI, of which CPEC is a flagship project.
Also read China’s vice premier to join CPEC celebrations
As the chairman of the National Development and Reform Commission (2017-23), he was instrumental in the planning and execution of multiple CPEC projects in Pakistan.
Given his position in China’s government and close proximity to President Xi, it was no surprise he was accorded a warm welcome by the interior and planning ministers at the airport.
Extraordinary security has been put in place in Islamabad as the local administration declared local holidays on July 31 and Aug 1.
During the visit, Vice Premier He will attend the 10th-anniversary celebrations of CPEC and call on the president and the prime minister.
He will also be the chief guest at an event celebrating a decade of CPEC.
"The visit is part of regular high-level exchanges and dialogue between Pakistan and China," a statement issued by the Foreign Office said.
"It reflects the importance attached by Pakistan and China to further deepen their ‘All-Weather Strategic Cooperative Partnership’; reaffirm support on issues of each other’s core interests; enhance economic and financial cooperation; advance high-quality development of CPEC; and explore new avenues for strengthening trade and investment ties between the two countries."
China invested close to $30 billion in 10 years mainly focusing on energy and infrastructure projects.
The second phase of CPEC envisaging special economic zones couldn't move ahead primarily because of the PTI government's policy to slow down the project.
However, CPEC gathered renewed attention since the change of government in April last year.
China has bailed out Pakistan at crucial junctures as it was on the verge of sovereign default.
Beijing rolled over and refinanced loans that helped Pakistan keep its foreign reserves at a level where it could avoid default.
Recently, China rescheduled $2.3 billion loan for two years, giving much-needed space to Pakistan against the backdrop of its dwindling foreign reserves.
The visit of the vice premier is seen as significant and will be viewed in the context of ongoing geo political developments.
Sources said apart from reviewing CPEC and bilateral ties, the two sides would discuss a potential visit of President Xi to Pakistan. President Xi last visited Pakistan in 2015.
Read more Pakistan, China reinforce commitment to CPEC
The sources said initially Pakistan was keen to invite President Xi to attend the 10-year celebrations but now is looking to invite him after the parliamentary elections.
President Xi's likely visit sometime after the elections will kick off the next phase of CPEC.
Pakistan has set up a Special Investment Facilitation Council (SIFC) to attract foreign investment to revive the economy and address the country's balance of payment crisis on a long-term basis.
China will be one of the countries Pakistan is looking towards for the success of this initiative.
The visit of the vice premier will renew Pakistani resolve to stick to its long-term strategic partnership despite concerns of the West, particularly the US.
Pakistan is trying to avoid any negative fallout of deepening the China-US rivalry.
Islamabad has publically maintained that it wants to maintain cooperative relationship with all powerful countries.
Pakistan has repeatedly stated that it doesn't want bloc politics.
Many observers, however, feel Pakistan's interest seems to be aligned with China in the long run.
It was because of this reason that Pakistan stayed away from the US democracy summit.
Islamabad twice skipped President Joe Biden’s initiative since the US invited Taiwan to the summit, something China viewed as its red line.
Meanwhile, the visit of the Chinese vice premier will be closely followed by the West and adversaries of China.
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