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Chinese President Xi Jinping on Saturday called for pushing forward the construction of the China-Pakistan Economic Corridor (CPEC), Xinhua News Agency reported.
Xi made the remarks in his meeting with Prime Minister Nawaz Sharif, who along with a high-level delegation is in Beijing to attend the Belt and Road Forum, which is focused on boosting regional development through China's new Silk Road plan.
The Chinese president welcomed Sharif and his delegation upon their arrival at Beijing's Great Hall of the People.
A Radio Pakistan report said President Xi in his meeting with Sharif expressed satisfaction over the pace of bilateral Sino-Pak ties and communicated his resolve to further strengthen the relationship through increased cooperation in various fields.
Pakistan and China have more potential to cement bilateral cooperation regarding implementation of CPEC and other regional connectivity projects, the report quoted Xi as saying.
Prime Minister Nawaz Sharif, who attended the meeting along with the four chief ministers, said Pakistan would support China in the promotion of its 'One Belt, One Road' (OBOR) initiative.
He said CPEC is a core component of OBOR plan, and the Pakistani government is making "strenuous efforts" for speedy implementation of CPEC projects.
Sharif congratulated the Chinese president on hosting the Belt and Road Forum, saying the participation of a large number of world leaders in the summit is a "testimony of China's growing stature in the international community".
Agreements signed
Pakistan and China earlier inked a number of agreements aimed at boosting cooperation in various sectors between the two countries, Radio Pakistan reported.
The Memorandums of Understanding (MoUs) were signed on the sidelines of the Belt and Road Forum in the presence of Prime Minister Nawaz Sharif and Chinese Premier Li Keqiang. Federal ministers and the chief ministers of Sindh, Punjab, Khyber Pakhunkhwa and Balochistan were also present on the occasion.
According to Radio Pakistan, the agreements signed by Chinese and Pakistani officials on Saturday include:
- An MoU regarding bilateral cooperation within the framework of the Silk Road initiative
- An agreement for the upgradation of the main railway track ML-I
- MoU for the establishment of a dry port in Havelian
- Three agreements concerning economic and technical cooperation worth 3.4 billion yuan for the Gwadar port and East Bay expressway.
PM, Chinese premier meet
Earlier, Sharif held a meeting with the Chinese premier, who welcomed the Pakistani delegation's participation at the forum, a statement issued by the Prime Minister's Office said.
Sharif congratulated Premier Li on the organisation of the summit, saying: "Pakistan fully supports China's vision of the Belt and Road Forum".
"Pakistan considers China its most valuable friend," the prime minister said, adding that the participation by chief ministers of all four Pakistani provinces at the forum is an indication that "we are all one for [the success of] the China-Pakistan Economic Corridor".
He reaffirmed Pakistan's commitment for the completion of early harvest projects under CPEC.
New Silk Road summit
Delegates will hold a series of sessions on Sunday afternoon to discuss the Silk Road plan in more detail, including trade and finance. China has given few details about attendees.
Leaders from 29 countries will attend the forum in Beijing on May 14-15, an event orchestrated to promote Xi's vision of expanding links between Asia, Africa and Europe underpinned by billions of dollars in infrastructure investment.
Some Western diplomats have expressed unease about both the summit and the plan as a whole, seeing it as an attempt to promote Chinese influence globally.
China has rejected criticism of the plan and the summit, saying the scheme is open to all, is a win-win and aimed only at promoting prosperity.
In an English-language commentary on Saturday, China's state-run Xinhua news agency said the new Silk Road, officially called the Belt and Road initiative, would be a boon for developing countries that had been largely neglected by the West.
“As some Western countries move backwards by erecting 'walls', China is contriving to build bridges, both literal and metaphorical. These bridges are China's important offering to the world, and a key route to improving global governance,” it said.
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On DawnNews
Comments (73) Closed
May 13, 2017 11:57am
More loans.
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May 13, 2017 12:01pm
Without showing what we are borrowing and what terms and conditions... I believe we will have to use Chinese companies to spend the loans. What a shame
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May 13, 2017 12:05pm
Tajikistan gorged itself on Chinese investment with much fanfare more than a decade ago. There too the arrival of the Chinese was hailed as a ‘game changer’ when the enterprise got under way. By 2009 or so, they had difficulty meeting their debt-service obligations. They had to give up land in exchange.The territory represents one per cent of the country’s total land area.At the time, more than a third of the country’s total external debt was owed to China.The land that was ceded is now being tilled by Chinese farmers.
Sri Lanka has borrowed billions of dollars from China to build domestic infrastructure. For the Hambantota Port project, Sri Lanka borrowed US$301 million from China with an interest rate of 6.3 per cent, while the interest rates on soft loans from the World Bank and the Asian Development Bank are only 0.25–3 per cent. Sri Lanka is very deep in a debt crisis now. Sri Lanka is currently unable to pay off its debt to China now and planning to give its land for lease.
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May 13, 2017 12:07pm
Good initiative for Pakistan ...
Hope extremism takes a backseat and economy drives in pak
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May 13, 2017 12:16pm
@AJAY India recorded a government debt equivalent to 69.50 percent of the country's Gross Domestic Product in 2016. It is actually more than Pakistan...
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May 13, 2017 12:19pm
What will be the cut/commission of PML-N in all this?
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May 13, 2017 12:23pm
Chinese people say: "India is our historic 2,000 years friend and brother ."" Culutraly, religiously and historically we are brothers."
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May 13, 2017 12:24pm
China is the only country who help her friend without any conditions. They are helping many countries in East and Central Africa also.
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May 13, 2017 12:32pm
What is our country's contribution to the the Chinese other than providing personal needs and comforts on the road at various places of halts to the crews...
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May 13, 2017 12:34pm
Again MoU's. It seems our governments are in a race of signing MoU's.
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May 13, 2017 12:37pm
By America sending a powerful delegations to the OBOR conference India is completely isolated with its failed foreign policy, Long live Pakistan China friendship.
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May 13, 2017 12:39pm
@Saif zulfiqar without any conditions? Time to wake up my friend.
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May 13, 2017 12:41pm
@Saif zulfiqar without any condition ?? WOW !
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May 13, 2017 12:42pm
Pakistan has to do its part to ensure the strategic balance in the interests of the two countries.
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May 13, 2017 12:44pm
@N.S Maybe your figures are true NS. But the cost of servicing these debts is much lower than Pakistan, which is paying over 8% interest on many. Indian government is not borrowing to pay back current loans or service them. It's borrowing for development and investment in projects where returns are coming from. Unlike Pakistan where the majority of borrowing is for servicing or repaying earlier loans and the rest for meeting day to day current expenses of the government and it's very costly military and military spend.
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May 13, 2017 12:52pm
India is now isolated completely...
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May 13, 2017 12:54pm
OBOR is a debt trap to make countries dependent on China.
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May 13, 2017 01:02pm
N.S38 MINUTES AGO
"@AJAY India recorded a government debt equivalent to 69.50 percent of the country's Gross Domestic Product in 2016. It is actually more than Pakistan..."
Completely agree with you that India is a very poor country and billions of its citizens are below poverty line. India's growing economy and growth rate of 7.5%+ is mere hype and propaganda, whereas Pakistan's growth rate in double digit (35 ignore the dot between) is true and would become the second largest economy after China when the CPEC is completed. Pakistani people are highly intelligent, talented, hardly working would propel their economy to numero uno position.
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May 13, 2017 01:02pm
@Truth, its all due to leaders who kept thier own interests before thier countries.
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May 13, 2017 01:06pm
Out of 20+ participating countries how many signed MOUs?
Only one!!!
This meet is a PR exercise where china is using Pakistan just like we use worms at the end of a hook while fishing.
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May 13, 2017 01:13pm
@vikas Quote from the write up "But the three key ratings agencies — Moody’s, Standard & Poor’s and Fitch — have not upgraded India, contending that the government needs to do more. In November, Moody’s refused to upgrade India, and said the economic initiatives of Mr Modi’s government are yet to produce results, NDTV said."
https://www.dawn.com/news/1332518
The mark up rate for loans to India and Pakistan from intl' donors like IMF, ADP, and others are same as the credit rating for Pakistan and India is same. It is not 8% as you mentioned. Somewhere around 1.5-2% in most of the cases, and slightly higher in other loans.
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May 13, 2017 01:19pm
DAWN, it is a request by a common taxpayer citizen of Pakistan, to please get us into the bottom of these MoUs, what are the terms and conditions? CPEC seems to be a oerfect net to catch Pakistan
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May 13, 2017 01:20pm
china is helping india ! we are endebted to chinese for 60 billion loan to particular country !
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May 13, 2017 01:28pm
@Truth You seems to be following to much Indian media which gives one sided, doctored and lopsided picture of China and Pakistan. Need to balance your view...try to get the other side of the story, Indian media gives a lot of fudged and doctored news to its readers in India.
Tajikistan looks to China as Russian investment dries up.
Also Hambantota port in Sri Lanka is up and running and China is planning further investment and expansion. Check the links below.
https://www.ft.com/content/2c87ee20-58f9-11e4-9546-00144feab7dehttp://www.storageterminalsmag.com/news-2/hambantota-up-and-running/
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May 13, 2017 01:34pm
@ajay ...you are absolutely right. Govt claiming every success because of CEPC although it is still under construction. Govt putting all eggs in one basket which is a dangerous step and could have an adverse outcome in the future. Politics is unpredictable especially when future of a Nation is concerned. Time will tell as to the Actual size of loans taken by this govt and how much has gone in their own pocket via off shore accts. When a PM lies and a govt has a self confessed money launderer as Finance Minister then there is no chance in hell for a country to move forward.
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May 13, 2017 01:47pm
@N.S You are wrong. I got the input from dawn news. Please read the blog- "Sighting land" written by Khurram Husain published on March 23rd by Dawn.
https://www.dawn.com/news/1322243
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May 13, 2017 01:55pm
@NS wow what a manipulation of data,brother.The percentage of debt you are citing is for domestic debt which never pose serious threat for India as it is growing with 7.3%. But have you looked upon size of foreign debt? It is 68 billion (Pak) versus 85 billion (India) if only government debt is considered.Overall external debt for both countries are 79 b (Pak) and 435 b for India where as Forex reserves are 15 b and 373 b respectively of both countries.You can also compare it with GDP size of both countries-285 b Pakistan and 2360 b of India.
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May 13, 2017 01:57pm
@Truth You nailed it. very nice. lol
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May 13, 2017 01:59pm
@N.S India's Reliance gets Loans at much less interest rates then Gov. of Pakistan.
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May 13, 2017 02:08pm
@viv 485 billion USD is the total external debt of India and not local public debt...
http://economictimes.indiatimes.com/markets/stocks/news/with-485-billion-external-debt-can-india-weather-currency-storm/articleshow/53017673.cms
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May 13, 2017 02:15pm
@viv The current GDP growth rate for Pakistan is 5.2% and with power sector investment and the projected road and rail infra coming up, economists are predicting a 2% addition to its overall GDP growth rate, this will make it 7.2% in coming years.
Also about 45-47% of Pakistan economy is undocumented and informal economy, tax to GDP ratio is low, so actual GDP is much higher, if half the economy is undocumented it means current GDP is just half of the actual GDP of Pakistan, also the year of measuring it was 1990, it will increase substantially with new calculations...
http://nation.com.pk/business/08-Oct-2016/cpec-to-boost-pakistan-gdp-growth-to-7-5
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May 13, 2017 02:18pm
Pakistan can convert its debt to equity.
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May 13, 2017 02:22pm
@N.S wow loving your replies, with authentic stats and sources
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May 13, 2017 02:23pm
Long live PAK CHINA friendship!!!!
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May 13, 2017 02:27pm
@N.S do u have more figures ? Japan's debt is about 2-3 times of its GDP? So does that mean Japanese r living pitiful lives ?
Don't believe the rhetoric coming out of ur "intelligent and informed" media anchors and "analsysts" at face value
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May 13, 2017 02:29pm
@SAEED MASOOD can you name any other country other than China that supports Pakistan?? Infact China is the only nation that supports north Korea.. speaks volumes about not only China, but Pakistan too
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May 13, 2017 02:51pm
A new loan agreement worth of USD 50 billion was signed by Pakistan with China in addition to the CPEC agreement of USD 46 Billion under terms and conditions which are confidential. This amount is to be invested in setting up Hydro Power Projects on Indus River and other infrastructure. The rate of interest and repayment period are all confidential.
Pakistan with a Foreign Currency reserves of USD 20 Billion is able to attract loans of almost USD 100 Billion from China. This is really a great news for Pakistan and the future generations of Pakistanis who will have to repay all this money with interests ranging from 6% to 17%. Now it is sure that Pakistan is going to become the colony of China and another slavery is on cards for the future generation of Pakistanis.
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May 13, 2017 03:07pm
@Srinath "can you name any other country other than China that supports Pakistan?? "
Pakistan has good diplomatic relations with all the countries of the world, be it Germany, France, UK , other EU nations.
It has good relations with US, strategic also, extra good relations with Turkey, good relation with 39 member Islamic countries, GEC countries, Latin American and African countries as well.
Yes Sino-Pak relations are not just good, here both countries goes the extra mile. It's strategic, friendly, economically strong and time tested. Unlike any other relationship...as for the perception China is the only investor in Pakistan, look for investment figure of other countries, here.
https://www.dawn.com/news/1308895
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May 13, 2017 03:11pm
@Srinath Saudi Arabia, Turkey, Central Asian countries, Russia, Belaraus are some of the countries that are friends of Pakistan.
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May 13, 2017 03:20pm
OBOR is more like a wishful thinking than anything else. You know it takes around 150 train trips from China to London to match the freight of a single ship. I am sure it's no way economical for freights, let alone the investment for these infrastructure which run into billions.
Hope China and other corroborators plans it well, because, ironically, most of them are gonna borrow money from China for this. I only hope it doesn't become one of the Ghost cities in China.
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May 13, 2017 03:39pm
@RAVEENDRA NATH : poorly executed sarcasm by Indian
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May 13, 2017 03:42pm
@N.S - "@AJAY India recorded a government debt equivalent to 69.50 percent of the country's Gross Domestic Product in 2016. It is actually more than Pakistan..."
The difference is ability to pay back, the risk involved in projects, chances of success and returns expected from the projects. Give this data on CPEC and I will take back my comment.
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May 13, 2017 03:58pm
@N.S. brother I am talking about external debts only and not local debt. For your info external debt of India is decreased to 456 b in fourth quarter of 2016 due to rise in rupee against dollar.There after Indian rupee rose further and as on date external debt hovers around 435 b including all components.
www.tradingeconomics.com/india/external-debt
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May 13, 2017 04:00pm
@Pulakeshi ... .... Extremism is not taking a backseat. Extremism is in the driver's seat.
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May 13, 2017 04:03pm
@John The ability to pay back loans for India is actually low hence the low credit ratings for India from Moodi's and Standards& Poor's. India income from exports is getting low, 260 billion USD from a projected 500 billion USD in 2016, remittances has declined 8% this year. IT exports are declining and large lay offs in sight, Cognizant, Wipro and infosys are laying off thousands of techies. H-1B declining visas, large lay offs from middle eastern countries, earlier 50,000 Indians were deported from Saudia, now 30,000 more are deported, Check Indian media. If you think foreign exchange reserves can be used for loans than this is not correct.
https://www.dawn.com/news/1332518
"But the three key ratings agencies — Moody’s, Standard & Poor’s and Fitch — have not upgraded India, contending that the government needs to do more. In November, Moody’s refused to upgrade India, and said the economic initiatives of Mr Modi’s government are yet to produce results, NDTV said."
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May 13, 2017 04:11pm
Every effort must be put in to complete the project because it is the last train that we have. it is a blessing in disguise and we must cash it.
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May 13, 2017 04:25pm
How much more loans at what interest and will all the work be done by Chinese! But still believe in CPEC will change our future but we need clarity ! Nawaz is the Best !!
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May 13, 2017 04:43pm
@N.S
India will be joining OBOR .When it comes to Pakistan your calculations are all about future after factoring CPEC which is providing accessibility to expand market reach. Have you thought about manufacturing for export or all this is for facilitating movement of import only ?
India has under implementation various projects and the target is. 1) Make in India 2) Generate employment with support of skill development schemes being implemented across the country. GDP growth is aimed at above 7.50% India will join CPEC to expand the reach of her export market more than facilitating Chinese imports in India.
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May 13, 2017 04:44pm
@N.S Why do you think India is demonetising and pushing for cashless economy, because significant portion of Indian economy is also undocumented.
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May 13, 2017 04:55pm
@RAVEENDRA NATH "Pakistani people are highly intelligent, talented, hardly working would propel their economy to numero uno position."
Inshallah. Without a doubt.
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May 13, 2017 04:57pm
Well done government..taking all premiers...hope for best and be positive.
Some never think positive.
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May 13, 2017 05:13pm
@N.S - What about friendly relations with Israel ? When will that happen
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May 13, 2017 05:46pm
@Saif zulfiqar seriously?? How can anyone in the world be so ignorant?
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May 13, 2017 05:57pm
OBOR is definitely a sweet deal(only for the Chinese).
1. First lend money to the tunes of billions in the name infrastructure.
2. Bribe and get the contracts awarded to its own companies.
3. Get the money back immediately as a service/cost of the contracts.
4. Get the interest paid for years, and capital, if the country isn't bankrupt yet.
5. Dump these countries with cheap products and kill their small industries(if any) forever.
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May 13, 2017 06:21pm
All four MOUs concern the projects which have already been agreed long ago.
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May 13, 2017 06:55pm
Chinese leaders are great statesmen and visionaries and are working for the betterment of the region and the world. Unfortunately, leaders in the West are building walls, reminiscent of the Berlin Wall to keep people apart? Unbelievable transformation and role reversal.
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May 13, 2017 07:14pm
@Saif zulfiqar no country helps other country without any interest. It's simple give and take policy my friend.t here is no permanent friend or enemy only national policies frame friends and enemies. India has learnt it long time ago
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May 13, 2017 07:48pm
@N.S GDP if properly measured includes undocumented income .
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May 13, 2017 08:06pm
@SAEED MASOOD we know what to do or not and by the way we cannot dictate anyone
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May 13, 2017 08:07pm
Pakistan is lucky to have a friend like China
Pakistan must show loyalty to China
China give Pakistan much offers
USA only give peanuts
Wonder why Chinese love Pakistan this much
Best wishes Pakistan
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May 13, 2017 08:36pm
@SAEED MASOOD We have rejected the invitation, it doesn't mean isolation. .
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May 13, 2017 08:39pm
@Shan, then you want Sindh Government to spend the invested Chinese money? Are the fools who cannot see why they have to be here under the terror bullets?
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May 13, 2017 08:48pm
@Truth: Pakistani financial wizards have no equal in the world. They fire their sharp-shots like boomerang. If fail one target, they return back for another shot. Remember, if buried deep in financial load, it would ensue their perpetuation because no other party would dare to replace them loaded with bad debts.
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May 13, 2017 08:50pm
The Indians are rattled when it comes to CPEC, I would advise them to Google and read some independent analysis to see what OBOR is and why India is having nightmares regarding the project or they can wait a few years for Gwardar port to finish and see 21 Chinese frigates parked there to know what CPEC is all about.
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May 13, 2017 09:07pm
@ankush " there is no permanent friend or enemy only national policies frame friends and enemies."
Yes this is an old saying used and abused a lot of times. I have one friend and on whom I can trust like anything and there is no vested interest between me and that friend, the friendship is beyond personal gains and loss.
Use that notion of friendship between China and Pakistan...also read some history about how it started, grow stronger and how it transcends governments and head of states. So when China says we are Iron brothers...and Pakistan says friendship is higher than Himalayas....and ...it means something. This is what makes it unique and different and breaks the stereotypes about what you have written about 'there are no permanent friends and enemies...only permanent interests'.
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May 13, 2017 09:11pm
@Raj True OBOR is a wishful thinking ...this is the reason 50 countries including US, Japan which has differences with China is participating in OBOR summit, 29 head of states are attending...and their combine intellect and knowledge is less than you or for that matter less than India...
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May 13, 2017 09:26pm
@N.S Seems that you are unable to tell the difference between "Loan" and "Investment"
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May 13, 2017 10:09pm
@ajay , Without loans, a poor country can not progress. I think Pakistan learned this from India, which is sitting on an External debt of over $400 billion.
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May 13, 2017 10:35pm
@S. Daniel , Many of the previous MOU have resulted in huge progress and developments. I would suggest to travel to Pakistan and see the CPEC projects in Sindh (Thar ), KPK, Punjab, and Baluchistan. MOUs are not jokes between Two Heads of Governments.
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May 13, 2017 10:39pm
@N.S Which world do you live in Mr NonSamart? Pakistan has floated bonds at over 8%. India's rating may not be upgraded but its already good. Staying at B and coming up from F to C is not the same. I am giving you examples of school level so that you may understand. By the way Reliance (A privately owned corporation of India) has borrowed money from London market at Less Than HALF the rates as compared to the "sovereign" state of Pakistan. Please google.
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May 14, 2017 06:12am
Dear Readers, There is bright future for all of us. Many people will work together in many field. I also suggested that New build Islamabad Airport can be use for Trade / Business with CHINA.
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May 14, 2017 11:29am
@vikas Moodi's has given Pakistan B-3 rating, which says outlook stable. Your knowledge about Pakistan is rudimentary and seems to be influenced by concocted and doctored Indian media. Bond floating like Sukuk and others are a different matter altogether.
https://www.dawn.com/news/1331848/moodys-gives-pakistan-b3-rating-says-outlook-stable
In a major set back for the Narendra Modi government, which came to power promising a quick turnaround of economy and jobs, global ratings agency on Wednesday said it is retaining its rating for the country at BBB-.
http://www.firstpost.com/business/sps-decision-to-hold-india-rating-for-2-yrs-hits-modi-govt-where-it-hurts-the-most-3085880.html
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May 14, 2017 01:02pm
@Saif zulfiqar WITHOUT any condition...we need to give back 3billion in debt yearly tp china for meeting with the loan demand for the next 27 years.
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