PM Shehbaz Sharif Seeks Increased Investment During China Trip

ISLAMABAD: The economy is expected to be high on the agenda when Prime Minister Shehbaz Sharif makes a five-day trip to China next week, but the outcomes of the visit are not expected to have any major impact on budget preparations.

Chinese foreign ministry spokeswoman Mao Ning confirmed on Friday that Mr. Sharif’s trip, which starts tomorrow, will include talks with President Xi Jinping and Premier Li Qiang.

PM Shehbaz will also visit Guangdong Province, China’s economic hub, and the northwestern province of Shaanxi.

“Under the guidance of the leaders of the two countries, China and Pakistan have in recent years had close high-level exchanges, steadily advanced practical cooperation on the China-Pakistan Economic Corridor (CPEC), and maintained sound communication and coordination in international and regional affairs,” Ms. Mao said.

But the PM’s first trip to China since starting his second term will be focused on government-to-government and businessmen-to-businessmen investments in the energy and agriculture sectors and Special Economic Zones.

The PM’s visit will not have a significant impact on the upcoming budget, as that has already been prepared, Federal Minister for Planning and Development Ahsan Iqbal told Dawn on Sunday.

The annual federal budget, which is usually presented in the first week of June, has been delayed due to the PM’s planned trip and is expected to be presented in parliament on June 10 or later after PM Shehbaz signs it off following his return, according to sources.

During the PM’s visit, Beijing is expected to formally inaugurate the second phase of the China-Pakistan Economic Corridor (CPEC), which will envisage deeper cooperation in the fields of energy, agriculture, infrastructure, and projects related to the cross-country rail line, Main Line 1.

The minister said the agreements regarding energy-related projects will be made along the lines of deals with independent power producers and thus will not impact the budget.

Similarly, agreements in the agriculture sector will be investment-oriented.

Mr. Iqbal, who is also supervising CPEC projects in Pakistan, said the ML-1 project would also be in the limelight during the PM’s visit, and the government had already allocated some funds for it in the coming budget.

He said funds had also been earmarked for the realignment of the Karakoram Highway, as the project is also expected to come under discussion during the prime minister’s visit.

Chinese debt accounts for 13 percent of Pakistan’s total foreign debt, the South China Morning Post quoted Zhao Shiren, China’s counsel general in Lahore, as saying in March.

Zhu Yongbiao, a professor with the School of Politics and International Relations at Lanzhou University, told SCMP, “The main area of the visit is still economic and trade cooperation, in order to help Pakistan’s development and enhance its capacity for self-reliance.”

As of the end of 2022, the CPEC had brought in a total direct investment of US$25.4 billion to Pakistan, the official news agency Xinhua reported, citing data from the Chinese embassy in Islamabad.

Afghanistan could be another topic discussed during the talks. China has started to lean on Afghanistan’s Taliban regime to prevent cross-border attacks on Chinese personnel after Islamabad claimed that an attack on Chinese nationals in March was orchestrated from across its Western border.