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Realizing the Future Collectively

Pakistan set for investment boost with visit of China's President Xi


Source : Channel NewsAsia   Date : 19-04-2015   

Pakistan set for investment boost with visit of China's President Xi
Pakistan set for investment boost with visit of China's President Xi

ISLAMABAD: After cancellations and delays owing to political instability in Pakistan, Chinese President Xi Jinping is finally set to visit Pakistan in a trip that is expected to herald major economic projects between the two countries.

Mr Xi will arrive on Monday (Apr 20) and will be accompanied by a large delegation, including senior ministers and CEOs of various Chinese businesses.

The Chinese President's visit is set to mark a new page for the government of Prime Minister Nawaz Sharif. Beijing said it is ready to announce a huge amount of financing for infrastructure and energy projects in Pakistan during Mr Xi's trip.

This will give a boost to the government of Mr Sharif. But many challenges remain for his government. High unemployment rates, inflation and underdevelopment plague the current administration. But the government says the country’s fortunes are about to change, as the Chinese are finally coming with an expected investment of around US$46 billion.

China is looking to boost ties with its closest ally in South Asia and expand influence in the region. President Xi was scheduled to visit Islamabad in September 2014. But the trip was cancelled due to major anti-government street protests.

This time, Mr Xi will be in the Pakistani capital for two days. “He will be accompanied by a high-powered delegation and a number of important agreements, MoUs are expected to be signed during the visit,” said TasnimAslam, Ministry of Foreign Affairs spokesperson.  

China’s Ambassador to Pakistan said the MoUswill cover a broad range of interests. “It will cover areas like energy, infrastructure and industrial parks,” said Sun Weidong. “We have also established the joint cooperative committees between the two governments.

“The planning and construction of the economic corridor will benefit the two countries as well as the region.”

The Chinese President will be conferred the country’s highest civil award, the ‘Nishan-e-Pakistan’ at a special ceremony. During the visit, Mr Xi will also address the Joint Session of Parliament.

Some analysts say Pakistan has a lot of potential for economic growth but it needs to redefine its foreign policy focus.

“I think Pakistan has to be clearer in its strategic policies; for instance it needs to have a very clear strategic partnership with China,” said Professor ZafarJaspal, Quaid-e-Azam University.

He added: “On India we have clarity. On Afghanistan clarity is coming. But in the context of Iran and the rest of the Gulf region, there is still need for clarity.

“We have to focus on our strategic interests. We have to come out of this ideologically-driven type of foreign policy.”

Analysts and observers say Pakistan needs to set economic development as its priority and boost trade and cooperation with its partners.