When Imran Khan went to China
Pakistan Prime Minister Imran Khan’s maiden visit to China has come under scrutiny for many reasons — primarily because he left the country at a time when violent protests had erupted in the aftermath of the Asia Bibi verdict. Another reason is that the details of a much-awaited financial package from China are not yet out.
Before the visit, Prime Minister Khan and Information Minister Fawad Chaudhry had said that China would give the same financial package as the one announced by Saudi Arabia to help Pakistan ease its balance of payments crisis.
Saudi Arabia had earlier announced a $6-billion package — $3 billion in foreign currency support and $3 billion in loan. “But since the visit, we haven’t been clearly told how much money has been given,” said senior journalist Shahzad Iqbal.
“Finance Minister Asad Umar has given us some indications but has maintained that they cannot share the exact details with us. Mr. Umar quoted an incident where President Xi (Jinping of China) assured the Pakistani delegation that they will help us financially. Mr. Chaudhry has said the same thing,” said Mr. Iqbal.
Though the aid package’s details have not been released, the government has said that it has signed 15 memoranda of understanding with China. This includes agreements for poverty alleviation and agricultural cooperation, according to Foreign Minister Shah Mehmood Qureshi.
Another benefit that Pakistan got, according to Mr. Iqbal, was a currency swap deal. Trade between China and Pakistan will now be in local currency. Pakistani exports to China will also double by 2019, which will be a huge benefit to the country. The government narrative is that the visit was a “great success”. “It was extremely successful. We have strategic and economic ties with China and our relationship is growing day by day,” said Information Minister Chaudhry.
CPEC controversy
Hasaan Khawar, an expert on the China-Pakistan Economic Corridor (CPEC), is of the view that the visit had a greater significance because of a recent controversy. Mr. Khan’s adviser Abdul Razak Dawood had given an interview to the Financial Times regarding the CPEC in which he said the China-funded project “unfairly benefits Chinese companies”.
Mr. Khawar added that since the new government came in, there had been rumours about the CPEC’s future, partly owing to some statements from Ministers. So the visit helped in clarifying the confusion and reinforced Pakistan’s commitment. “Most importantly, it was agreed that the next meeting of the JCC (Joint Coordination Committee) will be held by year-end, which will help in clarifying a lot of operational issues around CPEC.” It is too early to judge whether Pakistan will receive immediate support from China or not, said Mr. Khawar.
Mr. Khan’s first visit to Saudi Arabia was also termed a failure, until the second visit happened and a generous package was announced.
The State Bank of Pakistan’s Governor and the Secretary of Finance are in China to follow up on the Prime Minister’s visit, which shows that some serious discussion is under way, he added. “I still have hope that we might get some immediate financial support. The chapter is not closed yet.”
According to businessman Waleed Saigol, asking if Prime Minister Khan’s visit to China is a success or a failure is a binary question. “Pakistan-China relationship is multidimensional. It cannot be viewed through the prism of just one or two visits.”
(Originally published in The Hindu)
Before the visit, Prime Minister Khan and Information Minister Fawad Chaudhry had said that China would give the same financial package as the one announced by Saudi Arabia to help Pakistan ease its balance of payments crisis.
Saudi Arabia had earlier announced a $6-billion package — $3 billion in foreign currency support and $3 billion in loan. “But since the visit, we haven’t been clearly told how much money has been given,” said senior journalist Shahzad Iqbal.
“Finance Minister Asad Umar has given us some indications but has maintained that they cannot share the exact details with us. Mr. Umar quoted an incident where President Xi (Jinping of China) assured the Pakistani delegation that they will help us financially. Mr. Chaudhry has said the same thing,” said Mr. Iqbal.
Though the aid package’s details have not been released, the government has said that it has signed 15 memoranda of understanding with China. This includes agreements for poverty alleviation and agricultural cooperation, according to Foreign Minister Shah Mehmood Qureshi.
Another benefit that Pakistan got, according to Mr. Iqbal, was a currency swap deal. Trade between China and Pakistan will now be in local currency. Pakistani exports to China will also double by 2019, which will be a huge benefit to the country. The government narrative is that the visit was a “great success”. “It was extremely successful. We have strategic and economic ties with China and our relationship is growing day by day,” said Information Minister Chaudhry.
CPEC controversy
Hasaan Khawar, an expert on the China-Pakistan Economic Corridor (CPEC), is of the view that the visit had a greater significance because of a recent controversy. Mr. Khan’s adviser Abdul Razak Dawood had given an interview to the Financial Times regarding the CPEC in which he said the China-funded project “unfairly benefits Chinese companies”.
Mr. Khawar added that since the new government came in, there had been rumours about the CPEC’s future, partly owing to some statements from Ministers. So the visit helped in clarifying the confusion and reinforced Pakistan’s commitment. “Most importantly, it was agreed that the next meeting of the JCC (Joint Coordination Committee) will be held by year-end, which will help in clarifying a lot of operational issues around CPEC.” It is too early to judge whether Pakistan will receive immediate support from China or not, said Mr. Khawar.
Mr. Khan’s first visit to Saudi Arabia was also termed a failure, until the second visit happened and a generous package was announced.
The State Bank of Pakistan’s Governor and the Secretary of Finance are in China to follow up on the Prime Minister’s visit, which shows that some serious discussion is under way, he added. “I still have hope that we might get some immediate financial support. The chapter is not closed yet.”
According to businessman Waleed Saigol, asking if Prime Minister Khan’s visit to China is a success or a failure is a binary question. “Pakistan-China relationship is multidimensional. It cannot be viewed through the prism of just one or two visits.”
(Originally published in The Hindu)
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