China endorses Pakistan's position at IMF
In October, China endorsed Pakistan’s request to the International Monetary Fund (IMF) for financial assistance for addressing its balance of payments crisis, but cautioned that the facility should not affect economic cooperation between Islamabad and Beijing.
“As a member of the IMF, China supports the organisation in making an objective evaluation of Pakistan based on professionalism and earnestly helping it properly address the current difficulty,” Chinese foreign ministry spokesperson Lu Kang said.
The same month, Chinese Ambassador Yao Jing rejecting the perception that CPEC is adding to Pakistan’s economic problems told the army chief that his country would look positively at critical questions being raised about the project.
China agrees to 'support' Pakistan through fiscal crisis
In November, China said that it is willing to offer assistance to Pakistan to help it weather its current fiscal woes, but that the terms of such aid are still being discussed.
Vice Foreign Minister Kong Xuanyou said the two sides had “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 discussions,” Kong had added.
This stance concurred with the joint statement issued by Pakistan and China at the end of PM Khan's November visit to Beijing.
The statement did not speak of any immediate assistance to Pakistan; rather, the focus remained on the expansion of ties between the two countries.
However, Finance Minister Asad Umar maintained that China has provided Pakistan a package, but did not disclose the volume of it.
He further said that the two sides would try and wrap up the second phase of the Pakistan-China Free Trade Agreement (FTA) by April 2019.
In an effort to promote people to people contact, a Pak-China luxury bus service was also kick-started this year from Lahore to the city of Kashgar in China's Xinjiang province.
The Lahore-Kashgar bus will run four days a week, on Saturday, Sunday, Monday and Tuesday, while the Kashgar-Lahore bus will run on Tuesday, Wednesday, Thursday and Friday.
The journey will take a total of 36 hours, and the bus will make five stops along the way before it crosses into China at the Khunjerab Pass.
As the year came to a close, China was said to have agreed to increase its imports from Pakistan to $2.2 billion by end of 2018-19 from the existing level of $1.2bn and to $3.2bn by end of next fiscal year.
Adviser to Prime Minister on Commerce, Industry and Investment Abdul Razak Dawood announced this development in November.
However, soon after that, it was learnt that the government’s expectation to get market access worth $1 billion in exports to China during the current fiscal year seemed to have hit an impasse.
Explore: CPEC shifts gears
Targeted attack on Chinese consulate
A terror attack targeting the Chinese consulate situated in Karachi's Clifton area was foiled by security forces in November. The attack left at least seven people dead; however all foreign staff remained safe during the incident.
All three terrorists involved in the attack — who reportedly belonged to a Baloch separatist outfit — were killed in the operation by security forces.
Deputy Chief of Mission of the Chinese Embassy in Pakistan Lijian Zhao announced that Chinese citizens had decided to donate one month's salary to the families of the policemen who were martyred in the attack as a token of their gratitude.
Investments rather than loans
Early in December, it was also announced by Chinese Consul General Long Dingbin that Beijing is investing in multiple sectors and launching business ventures instead of providing loans in order to "boost Pakistan's economy".
Dingbin revealed that during Prime Minister Imran Khan's recent trip to China, the two countries had signed 15 new agreements which will lead to increased cooperation in politics and the financial sector and will also improve cultural ties.
"Instead of hard cash, China plans to eventually provide multiple forms of bailout packages [to Pakistan] in the shape of phenomenal investments in fresh projects," he said, adding that the investments will help Pakistan "overcome its financial crunch".