Warming up Pak-China relations

President Asif Ali Zardari has recently concluded his second official visit to China and otherwise fifth visit to the country since he took the office. During his first visit he had desired to visit various provinces once a quarter to learn from Chinese experience in economic development. In the same context he visited China thrice during last year. It speaks of the importance he attaches to economic relations with China. Though China is a tested friend of Pakistan but over the years Pakistan has neither benefited from Chinese experience to the extent it should have nor developed strong economic relations that would guarantee Chinese support in changing global environment.

In the changed global state economic interests has greater influence on a countries foreign policy than mere political affiliations. President Zardari’s efforts to develop strong economic relations with China at one end will encourage Chinese investment in the country generating economic activity and jobs that Pakistan badly needs and on the other end will ensure Chinese political support that Pakistan needs to endure present difficult times.

The real development of a country takes place once there is transfer of technology. In this context China has already helped Pakistan a lot in military and industrial fields. President Zardari’s visits to China have initiated discussions for cooperation in multiple fields. A concrete step forward is signing of accord at Shanghai on June 8, 2010 to set up two nuclear power plants at Chashma.

Although objections were mildly raised by the USA, China brushed aside all speculations by informing Nuclear Suppliers’ Group (NSG) during its recent meeting at Christ Church, New Zealand, of its decision to supply Chashma IV and V to Pakistan. There was no formal objection to the Chinese move. An arrangement for a soft Chinese loan to fund the construction has also been made. It is assumed that civil nuclear cooperation between the two countries fall beyond the purview of NSG as the broader agreement was reached before China join the NSG in 2004. That opens possibility of further cooperation between the two countries in nuclear field.

As a result of president’s visit to China a meeting of Pakistan-China Joint Economic Forum is being urgently convened at Islamabad. That will decide on setting up of Chinese banks and relocating industries to special industrial zones in Pakistan. In 2006, China and Pakistan has set up a Pakistan-China Haier Ruba Economic Zone (HREZ) in the outskirts of Lahore at Manga Mandi covering 1.03 square kilometres of area exclusively for Chinese investment. Setting up more economic zones will boost economic and technological cooperation between the two countries. This cooperation can only take roots if the two countries have a well-developed communication infrastructure.

During recent visit proposals for improving connectivity were also discussed. That included upgradation of KKH at an approximate cost of $500 million. Reportedly a contract was also signed for China to build 165 km Jaglot-Skardu and 135 km Thakot-Sazin roads in Gilgit-Baltistan at the cost of Rs45 billion. China would pay 85% of the cost while Pakistan will contribute another 15%. Besides the road network there are plans to build rail link between the two countries. Establishment of industrial facilities and upgradation of communication infrastructure besides boosting trade between the two countries will also enhance regional connectivity.

President Zardari is seeking whole hearted Chinese cooperation to resolve Pakistan’s energy crisis. During his recent visit he addressed alternative energy forum emphasizing the need to harness new sources of energy. During his August 2009 visit to China he had sought their participation in development of hydel, thermal and solar energy projects in Pakistan. The Chinese are already working on number of projects including Neelum-Jhelum project. Hopefully there support will be forthcoming once projects to construct smaller dams are initiated. Dams principally are the water storage facilities primarily facilitating agriculture. Being conscious of the needs of Pakistan’s agro based economy and water shortage the president held separate meetings with Chinese ministers for Water Resources and Agriculture to learn about progress on the hybrid seeds and sprinkle irrigation projects.

President’s inquisitive engagement covering wide range of fields is a good omen. These exercises will open up new avenues of cooperation between the two countries. Developing strong economic ties with China will help Pakistan wriggle out of present economic stagnation. Reinvigoration of commercial and industrial activities and setting up of new facilities will create additional jobs. It will also restore confidence of international community in Pakistan as a safe place to invest.

The combined effect certainly will be Pakistan’s economic revival. Improved relations with China will also contribute towards Pakistan’s security in the changing regional geo-political environment.

By Alam Rind

Short URL: http://www.daily.pk/?p=19261

on Jul 28 2010. Filed under Editorials, World. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry