CHINA TO GIVE AID AS PAKISTAN AGREES TO EXPANSION OF CPEC
16 pacts inked including in farming, industrial sector
China on Saturday said it would provide assistance to Pakistan to tide over its fiscal crisis but declined to give details about the financial package it is likely to extend to Islamabad.
During the ongoing visit of Pakistani Prime Minister Imran Khan, the two sides also agreed to expand the China-Pakistan Economic Corridor (CPEC), one of the flagship ventures of the Belt and Road Initiative. A senior Chinese official rejected reports of Pakistan reducing the number of CPEC projects to avoid a debt trap.
China has not confirmed media reports from Pakistan that it would provide $6 billion in aid to Pakistan.
Khan is on four-day trip as his new government struggles with a financial crisis. He is knocking on the doors of friendly countries like China and Saudi Arabia for aid while negotiating a hefty bailout package with the International Monetary Fund.
“During the visit, the two sides have made it clear in principle that the Chinese government will provide necessary support and assistance to Pakistan in tiding over the current economic difficulties. As for the specific measures to be taken, the competent authorities of the two sides will have detailed discussion,” vice foreign minister Kong Xuanyou said after Khan’s meeting with Chinese Premier Li Keqiang at the Great Hall of the People on Saturday.
“In response to the current economic and fiscal difficulties Pakistan faces at the moment, China will provide help and assistance within the realm of its capability,” Kong said.
Agency reports quoted Khan as telling President Xi Jinping during their meeting on Friday about Pakistan’s difficult economic times.
“My party has only been in power for two months. Unfortunately we have inherited a very difficult economic situation. Countries go in cycles. They have their high points, they have their low points. Unfortunately, our country is going through a low point at the moment with two very big deficits, a fiscal deficit and a current account deficit,” Khan was quoted as telling Xi.
Some of the money China will provide Pakistan is likely to be channelled through the 16 bilateral agreements the two countries signed on Saturday in sectors ranging from poverty alleviation, agriculture and industry.
Talking about Xi’s vision about building the BRI, Kong said the CPEC “faces new opportunities and needs to be pushed forward.”
“There has been no change in the number of CPEC projects. If there is going to be any change, there will be an increase (in projects) going forward,” Kong said.
“The dimension of industrial cooperation will be introduced going forward. The CPEC will be introduced to more areas of Pakistan and also tilt in favour of areas relating to people’s livelihoods,” he said.
“Hence going forward, both areas of CPEC and the contents of CPEC will be enriched.”
India has declined China’s invitation to join the BRI – a multi-billion dollar connectivity project – as the CPEC passes through Pakistan-occupied-Kashmir.
Kong said both countries have reaffirmed their close ties. “China will continue to put its relation with Pakistan on a priority place on its diplomatic agenda and will continue to do what it can to provide help to Pakistan.”