- A beneficial visit but
Pakistan and China have signed memorandums and agreements that could provide a boost to Pakistan’s struggling economy provided these are implemented whole-heartedly and on time.
The MoU on SEZ’s will help Pakistan develop a network of industrial estates that would expand the country’s production base and diversify its export basket.
The new Free Trade Agreement (FTA) would provide goods produced in Pakistan duty free access to 90 percent of Chinese markets thus reducing, to an extent, the big trade imbalance between the two countries.
The agreement on a technical package for upgrading Pakistan’s main railway line ML-1 would improve the speed as well as the number of trains and freight volumes thus ensuring on the one hand timely export and import of goods while also reducing the cost on transportation of goods and raw material.
China would spend $1bn on socio-economic development of Pakistan through projects related to education, health, human resource development, poverty alleviation, agriculture, and water and irrigation sectors.
The MoUs and agreements look fine on paper. Two major hindrances however stand in the way. The first is the presence of a lobby in the administration which has in the past tried to create doubts and suspicions about the CPEC. It could create hurdles in the timely implementation of the MoUs and agreements. The other is the lack of capacity in the private sector and government departments. Despite having been provided GSP+ status Pakistan failed to fulfill the export promise to the European Union. .
At a time marked by strained relations with the US and persisting tensions with India, President Xi’s reiteration of unwavering support to Pakistan’s sovereignty and territorial integrity is both comforting and heartwarming.
Before the prime minister’s departure to Beijing the FO had issued a statement maintaining that Imran Khan would not only attend the BRI forum but would also hold meetings with several heads of state/governments and corporate and business leaders on the sidelines of second BRF. Many had expected that he would at least meet President Putin but somehow or other Imran Khan could only access the PM of Ethiopia and the President of Tajikistan out of some 37 heads of state and government.
