China to give $500 million: Shah Mahmood
ISLAMABAD (April 18 2008): China will provide Pakistan 500 million dollars concessional loan for improving its balance of payments position and will strengthen defence and strategic co-operation along with guarding regional instability.
This was stated Minister for Foreign Affairs Shah Mahmood Qureshi in his weekly press briefing after returning from China on Thursday. "External forces will not be allowed to dent our close strategic co-operation. We strongly believe in one China policy," he asserted.
In defence, Pakistan and China are jointly developing JF-17 Thunder, FC-20 and Hawks aircraft to make air defence impregnable. Recognising the energy needs of Pakistan, he said a number of projects were discussed to meet the demand-supply gap, including hydel, thermal and nuclear power generation. Prospect of developing Thar coal mining were explored, he said, adding that if it was not possible, imported coal could be used as an alternate prior to tapping resources in Thar to start power generation.
He said China also showed keen interest in construction of Basha Dam as the country had enough technological expertise and financial resources to undertake the project of this magnitude with the generation capacity of 5,500 MW and water storage capacity would be 6.5 million acres feet and its debt return would be 25 percent per annum.
Heavy Mechanical Complex upgradation also came under discussion to produce power plants locally, he said, and added that about 4,000 Chinese workers were engaged in different mega projects and a joint taskforce would be established to ensure their security. The Minister that Pakistan had 6.8 billion-dollar bilateral trade with China, which would increase to 15 billion dollars by 2011.
Negotiations on free-trade agreement (FTA) in services were also under way, he said, adding that China would be allowed to use Karachi and Gwadar as transport base for export of goods to other countries. It could also use Pakistani soil as a base for undertaking development projects in Afghanistan.
In banking sector, co-operation would also be enhanced and Beijing would be asked bring down steep assets limit to open new Pakistani bank branches in China, he said. In communication sector, he said China Mobile had made an investment of 800 million dollars, which would expand employment opportunities in the communication sector.
He said China also wanted to cooperate in housing and construction sector, along with agro-based industries.
A LOT MORE WAS DESIRED TO FURTHER ENHANCE ECONOMIC TIES BETWEEN THE TWO COUNTRIES. THE FOLLOWING ARE MAIN POINTS:
-- Joint five-year plan and availability of credit to make it viable.
-- Joint Pak-China investment company.
-- Free Trade Agreement to further promote trade.
-- Special incentives for setting up industrial zones.
-- Developing of shipyard at Gwadar, which will initially undertake repair followed by the construction of ships.
-- Railway connection will be developed between Gwadar and China for increasing Chinese trade with Central Asian State.
-- China also showed desire to be part of the IPI.
-- Laying optic fibre link between the two countries was also discussed along with upgradation of Karakurram Highway.
-- It was also agreed to increase people-to-people contact for promotion of tourism between the two countries.
-- About six Chinese universities have agreed to set up centre of excellence in Islamabad, besides building a university here.
The Minister said the Chinese Foreign Minister had agreed to visit Pakistan from April 25 to 26.
He said China was happy with the political developments in Pakistan and smooth transaction to democracy, and added Beijing would invite Prime Minister of Pakistan to visit China at a convenient date and time.
Responding to a question about Iran, Pakistan, India, China (IPIC) gas pipeline project, he said China termed it viable project.
About the feasibility of laying gas pipeline from Iran to China, he said that the Chinese would pump up gas in the mountain region and down hill cost would be too less. Answering a question, he said that imbalance in trade would be rectified as China was sending a mission to study what its businessmen could buy from Pakistan. To another question about nuclear co-operation, he said Pakistan needed 8800 MW of electricity in 2030, so more co-operations and help from China was required.
To yet another question about China's response on political situation in Pakistan, he said Beijing had a policy of non-interference in political matters of other countries.
He said, he would form two task forces in the Ministry of Foreign Affairs, ie economic diplomacy for establishing economic linkages and to ensure security of Pakistan. A new direction would be given to foreign policy as far as geo-political situation was concerned, he said.
Replying to a question that in case of US attack on Pakistan, China assured its support, he said, adding: "The use of force would be devastating. Moreover, this matter can't be discussed in a press briefing." Responding a question about Chinese role in energy crisis in Pakistan, he said thermal, nuclear and hydel power could be produced to overcome energy crisis as China had 1.8 trillion-dollar liquidity and was a consistent and reliable friend of Pakistan.
Business Recorder [Pakistan's First Financial Daily]
