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".  

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. 

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://youtu.be/wvw-85CC1t4

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


    However, despite the official reports of no casualties among Chinese personnel, the VOA deliberately only cited the terrorist BLA statement in its Chinese language coverage of the accident, saying that at least four Chinese nationals and nine Pakistan security troops were killed. 

    In the VOA English report of the same event, no exact number of casualties was mentioned, and it even slammed the outlawed group, saying that it often releases inflated claims. 

    Moreover, the VOA Chinese report stuffed in a paragraph saying that the construction of the China-Pakistan Economic Corridor project has faced opposition from the local population in Balochistan, where Gwadar Port is located, as they feel they do not benefit much from it. 

    "Radical groups like the BLA have continuously attacked Chinese personnel and facilities to express their opposition and protest against the China-Pakistan Economic Corridor project," the VOA stated, as it seeks to link the tragedy with so-called local opposition against the CPEC with the Sunday attack. 

    Spreading such false information that smears the BRI flagship project is a pure distortion of facts, Chinese analysts pointed out, saying that the extreme actions by terrorist militants by no way represent the will of local people. 

    It is a stubborn internal illness in Pakistan, said Wang Yiwei, director of the Institute of International Affairs at the Renmin University of China, commenting on the latest terror attack. 

    It shows differences between the local provincial government and the Pakistani central government stemming from the imbalance of development. Therefore, such attacks should not be interpreted as opposition against the BRI flagship CPEC, Wang told the Global Times on Monday.

    The US hyping of the so-called opposition against the BRI just proves that projects have attained major progress, Wang said.

    Launched in 2013, the CPEC is a corridor linking Gwadar Port in southwestern Pakistan with Kashi in Northwest China's Xinjiang Uygur Autonomous Region, which highlights energy, transport and industrial cooperation

    The CPEC, which is marking its 10th anniversary this year, has played an important role in bilateral cooperation between China and Pakistan and created over 155,000 local jobs for Pakistani people, China's National Development and Reform Commission (NDRC) said in May. 

  • 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.”

  • 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.