PM’s China visit: Has Pakistan failed to get $6.3b debt rollover?

BEIJING/ISLAMABAD: For strengthening the Pakistani economy, Prime Minister Shehbaz Sharif has made a formal request for $6.3 billion debt rollover from the Chinese authorities during his visit to China, however, no clear position has come out from Beijing regarding its approval or rejection.

The economic circles of the country said that the developments between Pakistan and China are being kept secret in connection with the support of $6.3 billion debt rollover request from Islamabad as it is still in the initial stages.

Pakistan has sought $6.3 billion debt rollover from China for reducing external payment pressure.

Finance Minister Ishaq Dar had proudly mentioned China’s support of $6.3 billion in his important meetings with businessmen and investors during his last visit to Karachi which gained the attention of the international media.

In the 47-point joint declaration after the conclusion of PM Shehbaz Sharif’s China visit, there is no mention of $6.3 billion debt rollover.

Economic circles said that the finalisation of the major economic aid will take time to materialise and until then, the development would be kept confidential from both countries.

The Ministry of Foreign Affairs has issued a joint statement regarding PM’s China visit. It stated that China has agreed to include the largest railway project in Pakistan, ML-1, in the China-Pakistan Economic Corridor (CPEC) project.

The initial cost of the project has also increased by 33%, from $6.8 billion to $9.8 billion.

During PM Sharif’s visit to China, there has been an agreement in principle for the implementation of the Karachi Circular Railway (KCR) project. The cost of this project is over Rs292 billion.

It was the first official visit of PM Sharif to China after assuming his office. During his visit to China, the premier held separate meetings with the Chinese president, his counterpart and chairman standing committee.

PM Shehbaz Sharif congratulated Chinese President Xi Jinping on being elected for the third time. Pakistan and China expressed satisfaction with the strategic dialogue of the foreign ministers and agreed to hold the next meeting soon.

Pakistan and China also agreed to further enhance strategic partnership, dialogues and arms control.

The prime minister reiterated his government’s commitment to the high-quality development of the Belt and Road project. According to the declaration, PM Sharif extended congratulations on the successful conclusion of the 20th CPC National Congress.

The premier praised the central role of Chinese leadership in China’s development and prosperity. The Chinese leadership appreciated the long-standing commitment of PM Shehbaz Sharif regarding Sino-Pak friendship.

The premier reiterated his determination to further strengthen the Pakistan-China strategic partnership and increase cooperation in diverse fields.

Pakistan and China agreed on the importance of the China-Pakistan all-weather strategic partnership amid emerging global challenges. Traditional warmth, mutual strategic trust and shared views were expressed in the meetings.

According to the declaration, the close strategic relations and deep friendship between China and Pakistan are time-tested and resilient and the Pakistan-China friendship is the historic choice of the people of both countries.

According to the joint declaration, China is determined that relations with Pakistan will always be the first priority in its foreign policy.

Pakistan and China reiterated their mutual support on issues related to each other’s core interests, Pakistan expressed its support for the One China policy on the issues of Taiwan, South China Sea, Hong Kong, Xinjiang and Tibet.

China reiterated its support for Pakistan’s sovereignty, territorial integrity, security, socio-economic development and prosperity.

PM Sharif appreciated the timely assistance provided by China to the flood victims. The provision of relief goods during natural disasters and the services of Chinese experts to the victims are commendable, he added.

Pakistan thanked China for its assistance in post-disaster reconstruction and rehabilitation and Beijing’s assistance to the victims was a clear reflection of the all-weather strategic partnership between the two countries.

According to the declaration, China has agreed to increase mutual cooperation under CPEC for the upgradation of Khunjerab port and to facilitate trade through it.