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China-Pakistan: Beijing to "Further Deepen and Expand" Ties, Support Pak "Financial Stability"
Top Chinese officials have committed to “further deepen and expand” ties with Pakistan at meetings at the highest levels between the military and civilian leaderships of the two nations. Chinese Prime Minister Li Qiang assured Prime Minister Shehbaz Sharif of his country's support for Pakistan's "financial stability". Also in the news this week is a Chinese government commission report recommending the construction of a 3,000 kilometer long railway link between China and Pakistan at an estimated cost of $57.7 billion, making it the most expensive infrastructure project in the Chinese-sponsored Belt and Road Initiative (BRI) to date. The railroad will connect Pakistan's Gwadar Port on the Arabian Sea with the western Chinese city of Kashgar in Xinjiang province. This appears to be a part of the Chinese response to the US-led Indo-Pacific strategy which Beijing sees threatening its interests in the region. Will India allow itself be used as a US proxy against China? Will the US-China rivalry force India and Pakistan to choose sides as it plays out in South Asia? Will China's assistance now push Pakistan further into the Chinese camp?
US-India Ties:
US President Joseph R. Biden is pursuing close strategic ties with Indian Prime Minister Modi. The false rhetoric of "democracy" and "shared values" is often used to disguise Washington's true intent to use India to counter China's rise as a global superpower. Meanwhile, China with its long land border with India has warned New Delhi that it "will be the biggest victim" of the US proxy war against China. In a recent Op Ed in Global Times, considered a mouthpiece of the Beijing government, Professor Guo Bingyun has wrote as follows:
"Inducing some countries to become US' proxies has been Washington's tactic to maintain its world hegemony since the end of WWII. It does not care about the gains and losses of these proxies. The Russia-Ukraine conflict is a proxy war instigated by the US. The US ignores Ukraine's ultimate fate, but by doing so, the US can realize the expansion of NATO, further control the EU, erode the strategic advantages of Western European countries in climate politics and safeguard the interests of US energy groups. It is killing four birds with one stone......If another armed conflict between China and India over the border issue breaks out, the US and its allies will be the biggest beneficiaries, while India will be the biggest victim. Since the Cold War, proxies have always been the biggest victims in the end".
US-Pakistan Ties:
After assuming office as President of the United States, Joe Biden called many world leaders. But he did not bother to call then Pakistani Prime Minister Imran Khan, nor has he made a call to the current Prime Minister Shehbaz Sharif. This has sent a clear signal to Islamabad that Washington doesn't see it as important. This prompted Brookings' Bruce Reidel and Madiha Afzal to write: "Biden did not call Khan while he was prime minister. Last fall, we argued he should. Khan in turn declined to attend Biden’s Summit for Democracy. The White House should call Shahbaz Sharif".
Madiha Afzal of Brookings Institution again reminded Biden this year that "Pakistan, the fifth-largest country in the world and a nuclear-armed nation, ought to be seen by the United States on its own terms and not through the prism of its neighbors. A cold shoulder risks pushing Pakistan further toward China — which is neither an inevitable nor desirable outcome for the United States".
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| CPEC and BRI |
CPEC Transforming Pakistan:
Back in 2018, former US Ambassador to Pakistan Richard G. Olson wrote in a New York Times Op Ed titled "How Not to Engage With Pakistan" that "(CPEC's) magnitude and its transformation of parts of Pakistan dwarf anything the United States has ever undertaken". Olson went on to warn the Trump Administration that "Without Pakistani cooperation, our (US) army in Afghanistan risks becoming a beached whale". Among the parts of Pakistan transformed by China Pakistan Economic Corridor (CPEC) are some of the least developed regions in Balochistan and Sindh, specifically Gwadar and Thar Desert.
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| Source: China Daily |
Pakistan's Economic Crisis:
Some blame Pakistan's current balance of payments crisis on Chinese debt taken on to fund CPEC projects. The evidence does not support this. The fact is that Pakistan failed to grow its exports while its imports boomed for over 5 years on Prime Minister Nawaz Sharif's watch from 2013-2018. It forced Pakistan to seek an IMF bailout which came with its own tough conditions to compel economic reforms and greater fiscal discipline. Geopolitics has also played a role in it. The Ukraine War pushed the energy and other commodity prices higher, exacerbating Pakistan's trade deficits. At the same time, the Biden administration has shown little support for Pakistan's bailout by the IMF. China's latest commitment to support "Pakistan's financial stability" will help, pushing Pakistan further into the Chinese camp.
Here's a Wall Street Journal video on US-China Rivalry and Pakistan:
https://www.youtube.com/embed/wvw-85CC1t4"; title="YouTube video player" width="200"></iframe>" height="40" src="https://img1.blogblog.com/img/video_object.png" width="200" style="cursor: move; background-color: #b2b2b2;" />
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Riaz Haq
China says bond with Pakistan strong
https://tribune.com.pk/story/2430791/china-says-bond-with-pakistan-...
China reaffirmed its unwavering commitment to its strong friendship with Pakistan and the China-Pakistan Economic Corridor (CPEC), declaring that any attempt to disrupt these bonds would be unsuccessful.
The Chinese Foreign Ministry's spokesperson, Wang Wenbin, delivered this resolute message during a routine media briefing. “No attempt to sabotage the friendship between China and Pakistan and the China-Pakistan Economic Corridor will succeed.”
This statement comes a day after terrorists targeted a military convoy safeguarding Chinese workers on their way to a port project in Gwadar. Despite the attack, no civilian or military casualties were reported, and the swift response led to the elimination of two assailants.
“Due to the efficient and swift response, two terrorists were sent to hell with no harm to any military or civil persons,” the army’s media wing had said in a statement, without mentioning the presence of Chinese nationals.
The Chinese consulate in Karachi had said at the time that a Chinese convoy from the Gwadar port project “was hit by roadside bombs and gunfire on its way back to the port area from the Gwadar Airport”.
The consulate had confirmed that no Chinese citizens were killed or injured in the attack. It had also asked Pakistan to “severely punish the perpetrators and take concrete and effective measures to ensure the safety of Chinese citizens, institutions and projects”.
The Majid Brigade, a wing of the banned Baloch Liberation Army, had claimed responsibility for the attack.
In the statement today, the Chinese spokesperson reiterated that “no Chinese citizens were killed or injured”.
While strongly condemning the attack, Wenbin asked Pakistani authorities to “bring the perpetrators to justice and take actions to keep Chinese nationals safe”.
He added that the Chinese embassy and consulate in Pakistan “immediately activated the emergency response mechanism”, reminding Chinese nationals, companies and project construction teams in Pakistan to stay alert.
It also asked them to “upgrade security measures, closely follow the security situation on the ground, guard against security risks and keep themselves safe”, the spokesperson said.
Wenbin went on to assert: “China will continue to work with Pakistan to jointly guard against and counter the threats of terrorism and effectively protect the safety of Chinese personnel, institutions and projects in Pakistan.”
When asked about China’s response to recently sworn-in Anwaarul Haq Kakar assuming the role of Pakistan’s caretaker premier, Wenbin said China congratulated Kakar on the appointment.
He added, “No matter how the international landscape and the domestic situation in Pakistan may change, the ironclad friendship between China and Pakistan will always remain rock-firm and unbreakable.”
Wenbin asserted, “China stands ready to work with Pakistan to advance our all-weather strategic cooperative partnership, build an even closer China-Pakistan community with a shared future in the new era and bring more benefits to the two countries and two peoples.”
Aug 16, 2023
Riaz Haq
SIFC to continue working for fast-track foreign investment: PM
https://www.pakistantoday.com.pk/2023/08/16/sifc-to-continue-workin...
Lauds vision of Saudi leadership, saying KSA can always count on Pakistan as trusted partner
Says looking forward to working with UAE on advancing cooperation in various fields
ISLAMABAD: Caretaker Prime Minister Anwaarul Haq Kakar on Wednesday said that the recently-instituted Special Investment Facilitation Council (SIFC) would continue to work as before to lay the foundations to fast-track foreign investments, particularly from Saudi Arabia.
The prime minister, in a meeting with Saudi Ambassador Nawaf bin Saeed Ahmad Al-Malkiy, who called on him, highlighted energy, infrastructure, agriculture, IT and manpower as potential sectors of cooperation.
The Saudi ambassador congratulated the prime minister on assuming office and conveyed the best wishes and greetings on behalf of the Custodian of Two Holy Mosques, as well as Crown Prince Mohammed Bin Salman, and the people of Saudi Arabia.
The prime minister said that Pakistan and Saudi Arabia enjoyed historic and deep-rooted ties.
He thanked the Saudi government for its consistent support for Pakistan’s economic stability and development.
He particularly mentioned the large number of Pakistanis working in Saudi Arabia and requested the Saudi side to continue to extend all possible facilitation to them.
Prime Minister Kakar lauded the vision of the Saudi leadership and said that Saudi Arabia could always count on Pakistan as its trusted and reliable partner.
Ambassador Nawaf reiterated that Saudi Arabia and Pakistan were bound together in a fraternal relationship, which was characterized by mutual trust and understanding, and close cooperation on all bilateral and regional issues of common interest.
Looking forward to advancing trade, investment ties with UAE
Meanwhile, Caretaker Prime Minister Anwaar-ul-Haq Kakar on Wednesday said that he looked forward to working with the United Arab Emirates (UAE) on advancing bilateral cooperation in various fields, especially trade, investment and energy.
The prime minister, in a meeting with the UAE Ambassador Hamad Obaid Ibrahim Salem Al-Zaabi, who called on him here, expressed gratitude for the UAE’s support for Pakistan’s economic and financial stability.
The ambassador conveyed the greetings of the UAE leadership to the prime minister on his assumption of office.
Prime Minister Kakar thanked the UAE government for the warm congratulatory messages and said that Pakistan and UAE enjoyed historic and deep-rooted fraternal ties.
He also wished the UAE success in hosting the COP28 Summit later this year.
The prime minister also emphasized the important role played by the Pakistani diaspora in the UAE and sought the UAE government’s continued support to them.
Aug 19, 2023
Riaz Haq
Pakistan’s Leap Forward Has A Chinese Engine – OpEd
By Advocate Mazhar Siddique Khan
https://www.eurasiareview.com/26042025-pakistans-leap-forward-has-a...
The China-Pakistan Economic Corridor (CPEC), often reduced to a symbol of debt diplomacy by skeptics, is in fact something far more vital: the foundation of a 21st-century Pakistan. With its vast network of roads, energy projects, industrial zones, and digital infrastructure, CPEC isn’t merely about construction—it’s about transformation. Pakistan is not just building highways; it’s building pathways to sustainable growth.
Pakistan’s transformation hinges on bold collaboration. And China’s role is not transactional—it’s transformational.
Through strategic investments in power generation, telecommunications, and transport, China has enabled Pakistan to leapfrog over structural deficiencies that once seemed insurmountable. Energy shortages that crippled industries for decades are slowly being replaced by stability. Power plants—from hydropower to renewables—are being installed with the help of Chinese expertise, addressing one of Pakistan’s most persistent bottlenecks. Every watt added to the grid is more than a statistic; it’s another hour a factory can run, another student who can study at night, another village that enters the digital age.
Critics may point to loans and liabilities, but overlook the value of infrastructure that outlasts repayment cycles. Roads that cut cross-country travel times in half. Fiber-optic backbones that connect rural towns to global markets. Special Economic Zones that bring foreign capital closer to local opportunity. These are investments not just in steel and silicon—but in Pakistan’s future.
And the future belongs to the young. With China’s investments in technical education and higher learning, Pakistan’s youth are being equipped not just to participate in the Fourth Industrial Revolution—but to shape it. Joint research initiatives, scholarships, and vocational training programs are bridging the skills gap that has long held the country back.
Pakistan is not just building highways; it’s building pathways to sustainable growth.
Pakistan’s transformation hinges on bold collaboration. And China’s role is not transactional—it’s transformational.
Through strategic investments in power generation, telecommunications, and transport, China has enabled Pakistan to leapfrog over structural deficiencies that once seemed insurmountable. Energy shortages that crippled industries for decades are slowly being replaced by stability. Power plants—from hydropower to renewables—are being installed with the help of Chinese expertise, addressing one of Pakistan’s most persistent bottlenecks. Every watt added to the grid is more than a statistic; it’s another hour a factory can run, another student who can study at night, another village that enters the digital age.
Critics may point to loans and liabilities, but overlook the value of infrastructure that outlasts repayment cycles. Roads that cut cross-country travel times in half. Fiber-optic backbones that connect rural towns to global markets. Special Economic Zones that bring foreign capital closer to local opportunity. These are investments not just in steel and silicon—but in Pakistan’s future.
And the future belongs to the young. With China’s investments in technical education and higher learning, Pakistan’s youth are being equipped not just to participate in the Fourth Industrial Revolution—but to shape it. Joint research initiatives, scholarships, and vocational training programs are bridging the skills gap that has long held the country back.
With China’s support, Pakistan isn’t waiting for change—it’s leading it. The economic corridor is not a shortcut—it’s a launchpad. And Pakistan’s leap forward, powered by Chinese engines and Pakistani resolve, may yet redefine the economic geography of South Asia.
Apr 26