Premier Li Qiang of China arrived in Pakistan today, marking a historic moment as the first visit by a Chinese premier to the country in 11 years. This visit carries immense importance, not only for the strengthening of bilateral relations between the two all-weather allies but also for the broader geopolitical and economic landscape. Li’s visit comes at a crucial juncture, with Pakistan playing a key role in the China-Pakistan Economic Corridor (CPEC), a cornerstone of China’s Belt and Road Initiative (BRI). The visit is expected to give fresh impetus to longstanding cooperation and usher in a new era of partnership at a time when global geopolitics are rapidly evolving.
The timing of Premier Li’s visit is also significant as it coincides with Pakistan hosting the Shanghai Cooperation Organization (SCO) Council of Heads of Government meeting, scheduled for October 15-16, 2024. The summit is expected to bring together prime ministers and high-level officials from member states, further enhancing Pakistan’s role as a regional hub of connectivity and diplomacy. This confluence of events highlights the multifaceted importance of Premier Li’s visit, both for bilateral ties and for Pakistan’s role in regional and global platforms.
Strategic Importance of the Visit:
Premier Li’s visit is seen as a reaffirmation of the deep strategic and economic ties between China and Pakistan. Over the years, these ties have expanded beyond traditional cooperation in defense and diplomacy, now encompassing significant economic projects under the CPEC framework. Pakistan views this visit as an opportunity to bolster economic collaboration, especially as it seeks Chinese investment in critical sectors such as energy, infrastructure, and technology. The presence of high-ranking Chinese officials, including ministers and senior representatives from various economic sectors, underscores the comprehensive agenda of this visit.
For China, Pakistan’s role in the Belt and Road Initiative (BRI) remains pivotal. CPEC, one of the flagship projects of the BRI, is essential for China’s vision of regional connectivity, linking its western regions to the Arabian Sea and beyond. Gwadar Port, the heart of CPEC, offers China a crucial maritime access point, and today’s developments underlined the strategic value of this partnership.
Gwadar International Airport: A Milestone in CPEC:
One of the most significant events during Premier Li’s visit was the virtual inauguration of the New Gwadar International Airport, a $200-million project funded by China. The airport, located in Pakistan’s southwestern Balochistan province, is set to transform the region’s economic prospects by enhancing its connectivity to global markets. Speaking at the inauguration ceremony, Premier Li described the new airport as a “world-class” infrastructure project that will act as a linchpin for trade and investment in Pakistan’s western regions, particularly Gwadar. He highlighted that the airport would not only accelerate regional trade but also contribute to the broader development of CPEC.
The completion of this airport comes at a crucial time, as Gwadar has faced security challenges in recent months due to attacks by separatist militants in Balochistan. Despite these setbacks, Premier Li expressed optimism, emphasizing that the new infrastructure would enhance security and facilitate economic activities, bringing long-term stability to the region.
Prime Minister Shehbaz Sharif, who participated in the ceremony, echoed these sentiments, hailing the project as a game-changer for Pakistan’s economy. He reaffirmed Pakistan’s commitment to safeguarding Chinese investments and citizens working on CPEC projects, a top priority given the security concerns in the region.
Key Focus Areas: Expanding Bilateral Cooperation:
Beyond the inauguration of the Gwadar airport, Premier Li’s visit focused on expanding cooperation between China and Pakistan in multiple sectors. During a formal ceremony in Islamabad, the two leaders witnessed the signing of several Memorandums of Understanding (MoUs) aimed at enhancing cooperation in areas such as agriculture, information and communication technology (ICT), and infrastructure development.
One of the key agreements signed involved a currency swap arrangement between the People’s Bank of China and the State Bank of Pakistan. This agreement will allow both countries to trade in their local currencies, the yuan and the rupee, thereby reducing their reliance on the US dollar and enhancing bilateral trade. This move is seen as part of a broader effort to strengthen financial cooperation between the two nations.
Additional MoUs covered cooperation in water resource management, disaster reduction, and the establishment of joint laboratories aimed at advancing technological and scientific collaboration. The agreements also included measures to promote smart classrooms in Pakistan, underscoring China’s focus on enhancing Pakistan’s digital infrastructure.
Premier Li reiterated China’s commitment to the second phase of CPEC, which aims to deepen industrial cooperation, boost agricultural development, and promote socio-economic development in Pakistan. He emphasized that the collaboration between the two countries would be built on the principles of “planning together, building together, and benefiting together.”
Security and Economic Cooperation:
A major focus of Premier Li’s visit was the issue of security for Chinese nationals working on CPEC projects in Pakistan. Following recent attacks targeting Chinese workers, security cooperation between the two nations has been elevated to a top priority. During the bilateral meetings, Prime Minister Sharif reassured Premier Li of Pakistan’s commitment to ensuring the safety of Chinese personnel and projects. Both leaders discussed enhancing security protocols, with some reports suggesting that China may push for a joint security mechanism to safeguard CPEC projects.
Beyond security, the visit also aimed at addressing Pakistan’s economic challenges. It was reported that China may extend a $2 billion loan to Pakistan for the construction of key infrastructure projects, including the Karakoram Highway. This comes at a time when Pakistan is grappling with an economic crisis, and China’s financial support is seen as crucial to stabilizing the economy and ensuring the timely completion of ongoing CPEC projects.
Diplomatic and Regional Implications:
Premier Li’s visit is not just about bilateral relations; it also carries significant regional and global implications. As Pakistan hosts the SCO Council of Heads of Government meeting, the visit is a signal of China’s strong support for Pakistan’s role in regional diplomacy. The SCO summit will focus on issues such as regional connectivity, trade, and security, with Pakistan positioning itself as a key player in these discussions. The summit will also allow Pakistan to strengthen its role in facilitating trade between Eurasia, the Middle East, and South Asia, while maintaining balanced relations with global powers like China and the United States.
In this context, Pakistan’s relationship with China remains central to its foreign policy. The bilateral meetings between Premier Li and Prime Minister Sharif reflected a shared vision for mutual development and strategic cooperation. Both leaders expressed a commitment to furthering regional stability and advancing their common interests in the face of shifting global dynamics.
Conclusion
Premier Li Qiang’s visit to Pakistan marks a milestone in the enduring friendship between the two nations. With the inauguration of the Gwadar International Airport, the signing of multiple MoUs, and a renewed focus on CPEC’s second phase, the visit promises to strengthen economic, diplomatic, and security ties between China and Pakistan. As both countries navigate a rapidly changing geopolitical environment, this visit is poised to cement their partnership and lay the groundwork for future cooperation in the years to come.