Prime Minister Shehbaz Sharif recently concluded a significant visit to China that will set the direction of his government’s tenure in office. The visit, which took place from 4 to 8 June 2024, highlighted the robust cooperation between the two nations, particularly in the realms of economic development, infrastructure projects, and regional security.
During his visit, Sharif met with Chinese President Xi Jinping, Premier Li Qiang, and Zhao Leji, Chairman of the Standing Committee of the National People’s Congress. These high-level meetings focused on enhancing bilateral cooperation, particularly through the China-Pakistan Economic Corridor (CPEC), exploring new avenues of economic and technological collaboration, and strengthening our strategic security partnership.
Strengthening economic ties
Prime Minister Sharif’s visit was marked by a series of engagements aimed at bolstering economic cooperation. A key highlight was the emphasis on the China-Pakistan Economic Corridor (CPEC), a flagship project of China’s Belt and Road Initiative (BRI). The two sides reaffirmed their commitment to the timely completion of CPEC projects, which are considered vital for Pakistan’s economic growth and regional connectivity.
Infrastructure development was a critical area of focus during the visit. Both sides committed to “forging an upgraded version” of CPEC.
The discussions also extended to exploring new avenues for economic collaboration. Prime Minister Shehbaz Sharif and Chinese President Xi Jinping agreed to enhance bilateral trade and investment. They discussed potential joint ventures in various sectors, including IT, mining, steel, textiles, renewable energy, technology, agriculture, and manufacturing. The aim is to create a more diversified and resilient economic partnership that can withstand global economic uncertainties.
Meetings with executives from leading Chinese companies dealing with oil, gas, energy, ICT, and emerging technologies were central in this regard. Shehbaz Sharif addressed the China-Pakistan Business Forum, emphasising the need for business-to-business cooperation and highlighting opportunities in various sectors.
Infrastructure development
Infrastructure development was another critical area of focus during the visit. Both sides committed to “forging an upgraded version” of CPEC. Prime Minister Shehbaz Sharif lauded the progress made on CPEC projects, particularly in the energy and transportation sectors. He highlighted the transformative impact of these projects on Pakistan’s infrastructure landscape, citing improvements in road networks, energy production, and industrial zones.
Moving forward, this visit has set the stage for the second phase of CPEC, which aims to utilise existing infrastructure more effectively and attract further Chinese investment.
Agreements
During the visit, 23 agreements and memoranda of understanding (MOUs) were signed, covering various fields such as agriculture, infrastructure, industrial cooperation, market regulation, and media. A notable development was the agreement with Huawei to train 200,000 Pakistani youth in IT, including artificial intelligence, and to support Pakistan in establishing safe cities and e-governance systems.
A notable development was the agreement with Huawei to train 200,000 Pakistani youth in IT, including artificial intelligence, and to support Pakistan in establishing safe cities and e-governance systems.
These agreements are expected to pave the way for new projects, further enhancing Pakistan’s connectivity and economic integration with China and the broader region.
The Pakistani prime minister’s commitment to sending 1,000 Pakistani students to China for advanced agricultural training and inviting Chinese universities to establish campuses in Pakistan reflects a long-term vision for educational and technological collaboration.
Regional security and strategic cooperation
Beyond economic matters, regional security and strategic cooperation were pivotal points of discussion. Prime Minister Sharif and President Xi reiterated their commitment to regional stability and combatting terrorism.
Security has been a concern, particularly in light of recent attacks on Chinese nationals working on CPEC projects in Pakistan. PM Shehaz Sharif assured Chinese leaders of Pakistan’s commitment to enhancing security measures for Chinese workers and projects. The involvement of Pakistan’s army chief, General Asim Munir, in the lengthy discussions with China’s President Xi Jinping highlighted the seriousness of the security commitments.
Both sides agreed on the importance of counter-terrorism cooperation for CPEC’s protection and the enhancement of regional stability.
Conclusion
The significance of this visit is amplified by Pakistan’s current economic crisis and ongoing negotiations with the International Monetary Fund (IMF). Pakistan is grappling with a financial crisis characterised by high debt levels, a dwindling foreign exchange reserve, and a fragile economy. Amid these challenges, securing Chinese cooperation can play a crucial role in Pakistan’s debt management strategy. China’s willingness to continue investing in CPEC and other economic projects provides much-needed financial inflows and confidence to Pakistan’s economy.
Additionally, China’s support can strengthen Pakistan’s bargaining position in negotiations with the IMF, as it demonstrates a commitment from a major global power to back Pakistan’s economic stability. This strategic partnership could help Pakistan secure favourable terms from the IMF and ease the implementation of required economic reforms.
