Shehbaz Sharif to visit China next week to further boost bilateral ties; launch 2nd phase of CPEC

Islamabad: Pakistan Prime Minister Shehbaz Sharif will embark on a five-day visit to China on Tuesday to further strengthen bilateral ties, the Foreign Office announced on Friday, as the all-weather allies seek to upgrade cooperation under the multi-billion dollar China-Pakistan Economic Corridor.

Sharif will be in China from June 4 to 8 on the invitation of Chinese President Xi Jinping, Foreign Office spokesperson Mumtaz Zahra Baloch said at her weekly briefing.

The visit aims to increase cooperation under the China-Pakistan Economic Corridor (CPEC) project, as the two sides look forward to launching the second phase of the project.

The CPEC was launched a decade ago and several projects related to energy and infrastructure had been already completed.

The Prime Minister chaired a meeting in Islamabad on Friday on his upcoming China visit directed to prepare an action plan to encourage Chinese companies to set up industries in Pakistan, assuring that Pakistan will provide all possible facilities to Chinese industrialists and investors.

Radio Pakistan reported that a detailed briefing was given to the Prime Minister on the preparations for his visit to China, during which a delegation of industrialists, investors and entrepreneurs from Pakistan will also accompany him during his visit to Chinese city Shenzhen.

The delegation will meet the Chinese business community and discuss the promotion of business-to-business relations between the two countries.

The Prime Minister directed to formulate a comprehensive plan regarding productive business-to-business meetings between the two countries during his visit to China. He also directed the Pakistani Ambassador to China to provide all possible facilities to the Pakistani business delegation in China.

Meanwhile, The Express Tribune reported that the government approved the construction of another road project under the CPEC at a cost of USD 2 billion, paving the way for the signing of its framework agreement during Prime Minister Sharif’s visit to Beijing.

The Central Development Working Party (CDWP), the body mandated to recommend mega schemes for higher forum approval, sanctioned the construction of the Thakot-Raikot 241-kilometer section of the Karakoram Highway, according to an announcement by the Ministry of Planning after the meeting.

The CDWP approved the project at a cost of Rs 567.5 billion (USD 2 billion), with the direction that the price tag should be further reduced by rationalising overhead expenses.

The Karakoram Highway was originally built with the help of China about 50 years ago, and due to the difficult terrain, scores of people died during the construction phase.

A fully functional all-weather Karakoram Highway is critical for China-Pakistan economic and commercial relations. This is the third major road infrastructure project both nations aim to build under CPEC, following the Multan-Sukkur motorway and the Havelian-Thakot section of the Karakoram Highway.

The Deputy Chairman of the Planning Commission, Jehanzeb Khan, chaired the CDWP meeting.

Khan’s position in the government may further be strengthened after the budget due to certain administrative changes that Prime Minister Sharif's government is considering implementing.

Pakistan and China have already agreed to complete the remaining missing link of over 800 kilometres of the Karakoram Highway during the 10th Joint Cooperation Committee meeting. The 241-kilometre missing link is planned to be constructed with a Chinese soft loan, according to Ministry of Planning officials.

Out of the USD 28 billion investment under CPEC, so far, USD 6.7 billion has been made in infrastructure projects.

Last week, Pakistan requested Beijing to fund nine more projects under CPEC worth USD 17 billion, including the road missing link.

If China agrees to finance the project, it will be completed on an engineering procurement and construction modality, and the approval of the federal cabinet will also be required. There were also issues with financing the project from the Public Sector Development Programme (PSDP), as the National Highway Authority’s financing requirements for ongoing projects have already gone up to Rs 1.7 trillion.

The country also needs Rs 250 billion annually if it wishes to complete the Mainline-I project of CPEC in the next eight years.