The economy is expected to be a key focus when Prime Minister Shehbaz Sharif embarks on a five-day visit to China next week. However, the visit’s outcomes are not anticipated to significantly influence the budget preparations.
On Friday, Chinese foreign ministry spokeswoman Mao Ning confirmed that Mr. Sharif’s trip, beginning tomorrow, will include discussions with President Xi Jinping and Premier Li Qiang. PM Shehbaz will also visit Guangdong province, China’s economic hub, and the northwestern province of Shaanxi.
“Under the guidance of the leaders of the two countries, China and Pakistan have recently engaged in close high-level exchanges, steadily advanced practical cooperation on the China-Pakistan Economic Corridor (CPEC), and maintained effective communication and coordination in international and regional affairs,” Ms. Mao stated.
The primary focus of the PM’s first trip to China in his second term will be on securing government-to-government and business-to-business investments in the energy, agriculture sectors, and Special Economic Zones.
Federal Minister for Planning and Development Ahsan Iqbal told Dawn on Sunday that the visit would not significantly impact the upcoming budget, as it has already been prepared. The annual federal budget, typically presented in the first week of June, has been delayed due to the PM’s planned trip. It is now expected to be presented in parliament on June 10 or later, after PM Shehbaz signs off on it following his return.
During the visit, Beijing is expected to formally inaugurate the second phase of the CPEC, which will involve deeper cooperation in energy, agriculture, infrastructure, and projects related to the cross-country rail line, Main Line-1.
The minister mentioned that agreements on energy-related projects would be similar to deals with Independent Power Producers and would not impact the budget. Likewise, agreements in the agriculture sector will be investment-oriented.
Mr. Iqbal, who also oversees CPEC projects in Pakistan, stated that the ML-1 project would be highlighted during the PM’s visit. The government has already allocated some funds for it in the upcoming budget. Additionally, funds have been earmarked for the realignment of the Karakoram Highway, which is expected to be discussed during the visit.
Chinese debt accounts for 13 percent of Pakistan’s total foreign debt, according to Zhao Shiren, China’s consul general in Lahore, as reported by the South China Morning Post in March.
Zhu Yongbiao, a professor at the School of Politics and International Relations at Lanzhou University, told SCMP that the main focus of the visit is still economic and trade cooperation, aimed at aiding Pakistan’s development and enhancing its capacity for self-reliance.
As of the end of 2022, the CPEC had brought in a total direct investment of US$25.4 billion to Pakistan, according to official news agency Xinhua, citing data from the Chinese embassy in Islamabad.
Another topic that could be discussed is Afghanistan. China has been urging Afghanistan’s Taliban regime to prevent cross-border attacks on Chinese personnel after Islamabad claimed that an attack on Chinese nationals in March was orchestrated from across its western border.
