ISLAMABAD – Pakistan, grappling with an Islamic insurgency and massive poverty, was hoping for an economic boost as Chinese Premier Wen Jiabao made a rare visit Friday aimed at expanding trade ties and the flow of Chinese investment into the country.
Wen's trip — the first by a Chinese premier in five years — is also an opportunity for Islamabad to showcase its relationship with an ally it sees as offering consistent, no-strings-attached support.
The Chinese leader's plane landed under heavy security at a Pakistan air base Friday afternoon, where a red carpet was rolled out and a full honor guard was on display. Pakistan's top civilian and military leaders, and nearly its full Cabinet, were on hand to greet Wen and his hundreds-strong delegation.
Wen, who is visiting Islamabad after a three-day stop in Pakistan's archrival India, is expected to meet with Prime Minister Yousaf Raza Gilani and sign a number of business agreements.
The two governments will sign deals worth $14 billion for 36 projects in Pakistan, while businesses in the two countries will agree to deals worth another $10 billion, Pakistani Information Minister Qamar Zaman Kaira said.
As much as Wen's three-day visit will be about investment and bilateral trade, it will also be used to reaffirm the countries' so-called "all-weather" friendship that has endured and even flourished despite Pakistan's troubles and Beijing's improved ties with New Delhi.
China is Pakistan's closest friend in the region, giving Islamabad military aid and technical assistance, including nuclear technology. Crucially, Beijing is perceived by many here as treating Pakistan as its equal and — unlike Washington — doesn't demand anything in return for assistance.
Policymakers in Islamabad are concerned that Washington groups Pakistan with Afghanistan in foreign policy discussions — as exemplified by U.S. officials using the term "AfPak" for the region — rather than as an individual nation. This is in contrast to the view that the U.S. treats India as a single entity.
While China doesn't make the conditional demands the U.S. does in its relationship with Islamabad, Beijing is not left empty-handed from its ties with Pakistan. The country serves as China's gateway to the Muslim world, and is a close and cheap source of natural resources to fuel its growing economy.
Pakistan is desperate for foreign investment to help create jobs for its 175 million people, and Pakistan's Foreign Ministry spokesman Abdul Basit said a push for greater business links will be a big part of Wen's visit.
"Lately we have been trying to expand the scope of this relationship because our economic and trade relations do not really depict or portray the strength of our political relationship," he said. "Our bilateral trade is close to $7 billion, which is nothing."
While that number is up from $1 billion in 2000, much of the new trade consists of cheap Chinese imports into Pakistan. Islamabad will be looking for ways to balance that.
Pakistan believes China can help with a pressing need: providing electricity for its growing cities.
Islamabad has agreed in principle to a controversial deal to purchase two nuclear reactors from China, and the two countries are working out the financial details. Beijing sees Pakistan as a future energy corridor due to its proximity to natural gas-rich Central Asian states, as well as a link to the Arabian Sea.
Kaira, the information minister, said the 13 agreements signed Friday included a $229 million donation from China to help with reconstruction from the devastating floods Pakistan suffered in July, as well as a $400 million soft loan for Pakistan.
As with any discussion involving Pakistan, security issues will also be on the agenda. The threat posed by Taliban and al-Qaida fighters in Pakistan is a growing concern for China given that the countries' share a common border and China is dealing with its own Muslim separatist movement that is simmering in its western Xinjiang region.
Wen's visit to Islamabad follows his stop in India, where New Delhi and Beijing agreed to boost trade between the two countries from $60 billion a year to $100 billion by 2015.
They also discussed India's tense relations with Pakistan.
Pakistan was relishing it's chance to play host to a world leader. High-profile visits have become rare as the security situation in the country has deteriorated.
No comments:
Post a Comment