Prime Minister Shehbaz Sharif is all set to embark on his maiden visit to China on November 1. The visit will focus on the immediate ‘restart’ of the multibillion-dollar CPEC initiative and the swift completion of the pending large infrastructure projects.
According to the government, the Joint Cooperation Committee meeting held after a long time has cleared several projects and a formal announcement will be made during PM Sharif’s visit. The JCC, where both sides discussed ‘missed opportunities’ and ‘prolonged delays’ in the execution of schemes like SEZs agreed upon eight years ago, also decided to include water resources management, business-to-business investments in the energy and industrial sectors and climate change concerns in the new phase of cooperation.
With Pakistan in dire need of foreign loans and investments to shore up its dwindling foreign exchange reserves to stabilise its currency and external sector, the resumption of CPEC will provide relief to its teetering economy.
Begun in 2015, so far 28 projects worth $18.8bn have been completed. Other schemes worth $34bn are under different phases of execution or at various stages of planning. It was unfortunate that the initiative lost its momentum under the Imran Khan administration due to lack of foresight; by the time the government realised its potential for Pakistan’s economy and people it was already too late.
Ever since its formation, the new coalition government has repeatedly emphasized the importance of the initiative and expressed high-level political commitment to the revival of Chinese investments on multiple occasions. Mr Sharif has himself been taking an interest in resolving the payment and approval issues facing Chinese companies. That his efforts now seem to be bearing fruit is a positive sign for Pakistan as the CPEC schemes can help us bridge our infrastructure gaps and revive Pakistan’s moribund economy.
The visit will help in clearing unnecessary controversies around the CPEC initiative and as well as in futher strengthening relations between China and Pakistan.
