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Visit of Premier Jiabao

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Please post all discussions related to the visit of Premier Jiabao in this thread including any basic economic news. Any big economic news might be posted in the separate economy section, otherwise reserve this thread for all news articles and debate.

 
Jiabao’s visit: Agreement on Thar coal expected

ISLAMABAD: An agreement between Pakistan and China on the exploration and production of power from the Thar coal reserves is expected to be signed during Chinese Prime Minister Wen Jiabao’s visit to the country. Jiabao is scheduled to arrive in Pakistan on December 18.

Chin Wa, a Chinese company, has already completed a survey of two blocks of Thar coal and the agreement is expected to cover the exploration, mining and the proper use of coal. The World Bank has said that a draft of a feasibility report will be prepared based on survey results.

Sources have said that various Chinese companies had expressed interest in generating electricity from Thar’s coal reserves in the past and China had approached Pakistani officials about this issue in the past.

Sources added that Chinese companies are willing to invest in coal exploration and this view had been expressed by China Coal Technology and Engineering Group President Wang Jinbao in a meeting with Prime Minister Yousaf Raza Gilani. In response, President Asif Ali Zardari had also directed the Thar Coal Energy Board to prepare an updated report on the situation.

A Pakistani delegation had earlier gone to China in preparation for the prime minister’s visit and completed preparations for announcements and memorandums of understanding that are expected to be finalized during the prime minister’s visit.

Thar coal specifics

Total reserves of coal in eight blocks in Tharparker are approximately 175 billion tons and are contained in an area of around 9,000 square kilometres, according to sources.
Sources from the ministry of commerce informed that a survey of coal blocks 1-4 had been completed by the geological survey of Pakistan. According to the survey, the first four blocks contain 2,567 million tons, 1,558 million tons, 2,008 million tons and 2,471 million tons of coal respectively. Blocks 5-6 of Thar coal, surveyed by Chin Wa, contain 1,394 million tons and 1,656 million tons of coal respectively.

Engro Chemical is due to start mining activity in block 2 of Thar coal in collaboration with the Sindh government. Block 6 has been given to a Pakistani company, Orical Coal Field, which has completed preparations for coal excavation and power generation.

According to a briefing given to the Economic Coordination Committee, the reserves in each block of Thar coal are enough to generate up to 10,000 megawatts of power within 2.5 years.

Published in The Express Tribune, December 16th, 2010
 
Pakistan Air Force will escort the plane of the Chinese Prime Minister to Islamabad when it enters Pakistani airspace. A great symbol of respect and honour.
But sir, why would there be any need for fighter escorts since the distance between your two countries is very limited, most of the distance being within Chinese territory. Would not the Chinese air force escort their premier if necessary?
 
But sir, why would there be any need for fighter escorts since the distance between your two countries is very limited, most of the distance being within Chinese territory. Would not the Chinese air force escort their premier if necessary?

It is a symbolic gesture. The escort is not meant for protection but to honour the distinguished guest.
 
Pakistan not to compromise ties with China: expert - People's Daily OnlineDecember 16, 2010

Chinese Premier Wen Jiabao's upcoming visit to Pakistan indicates that Pakistan would not compromise its relations with its best friend, despite the war on terror, a Pakistani expert said Thursday.

"We are not ready to compromise our relations with China despite the war on terror," Dr. Shaheen Akhtar, a senior research fellow at the Institute of Regional Studies, said in a recent interview with Xinhua.

Pakistan and China have also been conducting joint counter-terrorism exercises since 2004. President Asif Ali Zardari visited the northwestern Chinese Ningxia autonomous region earlier this year. Controlling terrorism and extremism also came under discussion during that visit.

"China's commercial and economic interests and political relations are very much intact with Pakistan," Akhtar said, "There is a basic understanding on geo-political interests."

Talking about Pakistan's six decades of time-tested friendship with China, Akhtar said, "China wants both political and economic stability in Pakistan, as a strong Pakistan is in its interests and essential for regional peace and stability."

Pakistan was very much occupied with external affairs that compromised its internal affairs, she said. Therefore, she said, China wants a stable Pakistan.

China may have limited gains but in the regional scenario, Pakistan is important, Akhtar said.

"An internally stable, energy secured and strategically sound Pakistan is in the best interest of China," she said.

Citing a brilliant example of the Chashma nuclear power projects, the scholar said despite some fuss created by Western lobbies about the peaceful civilian power projects, "the Chinese will go ahead with it."

That's because, she said, the power projects were safeguarded by the International Atomic Energy Agency and crucial to an energy-hungry Pakistan.

Referring to the U.S.-Indian energy deal in 2008, Akhtar said China flagged it that there should be no discrimination.

"This is the Chinese way of doing it, as China would never let Pakistan's interests get hurt," she said.

Elaborating on China's interests in this regard, Akhtar said Pakistan-China relations are important due to commercial interests and that China wants to participate in helping out Pakistan in many ways.

Furthermore, she said, Pakistan relies on China strategically.

China is paying due attention to the trade and energy corridor, Akhtar said, in the backdrop of India's multimillion-dollar development projects in Afghanistan.

"China is not ignoring Pakistan's concerns," she said.

Akhtar said that even if China's economic and commercial interests increase in Afghanistan, "it would be in the interest of Pakistan."

Although bilateral trade was limited, she said, there is a possibility of expansion and diversification.

Until the 1990s, bilateral cooperation between Pakistan and China had concentrated more on the political and defense sectors. With the start of the new millennium both countries have realized the need to enhance trade and commerce. Frequent visits by the Pakistani president to China have been an indication of that, she said.

The annual trade between Pakistan and China has increased many folds since 2001, and recently reached seven billion U.S. dollars.

Wen is on an official visit to India. He will start a three-day official visit to Pakistan on Friday.

Source: Xinhua
 
China to help enhance steel production
Published: December 16, 2010

BEIJING (APP) - Pakistan, China cooperation in the area of expansion of steel production is part of the 5-year Development programme, said Ambassador of Pakistan to China Masood Khan.

In an interview to APP ahead of the Chinese Premier Wen Jiabao 3-day official visit to Pakistan starting from Friday, the Islamabad envoy to Beijing said that "specifics have to be discussed by the two sides. We would look at the entire steel production picture," Khan said when asked to comment on media report about expansion of Pakistan Steel Mills.

Ambassador Khan suggested that to enhance Pakistan's export to China there is need of visit of more buying missions from China to Pakistan; greater number of Pakistani traders participating in trade fairs/exhibitions being held in China; trade seminars in Pakistan and China; visa facilitation; establishment of an Electronic Database Interchange for clearance of FTA goods; and establishment of cross-border supply chains.

He, however said that the second session of Pakistan-China Free Trade Commission held in Beijing last month has taken decisions to address this aspects comprehensively.

More than a dozen MoUs/Agreements and over 20 business to business MoUs/Agreements are likely to be signed during Premier Wen visit to China, said Ambassador Khan.

The agreements, he pointed out will assist us with the flood reconstruction as well as launching of a new Pakistan-China energy cooperation mechanism so that we can look holistically at the energy requirements of Pakistan in short and long term time periods.

This strategy will be useful in bridging current energy deficit and undertaking projects that would make Pakistan self-sufficient in all categories of energy - hydel, thermal, coal-fired, and alternate energy, he said.

"We are also expecting a breakthrough in area of banking and finance. ICBC, China (and the world's largest ) bank is expected to announce opening of new branches in Pakistan" Khan observed. To a question, Khan said that Pakistan expects during Premier Wen visit the investment in electric transmission, electronics, remote sensing, commodities and alternate energy (solar and wind), among others.

"A purchase mission is part of the 260-member business delegation accompanying Chinese Premier," he said.

Ambassador Khan said that Premier Wen will have very important talks with the President and the Prime Minister on the strategic, economic, and cultural issues.

In addition to that, Premier Wen will inaugurate Pakistan-China Friendship Center, address a joint session of Pakistan Parliament, and deliver a key note address at the Business Cooperation Summit.

"We are all-weather political allies. Since September 2008, Pakistani President Zardari came to China almost every four month, beating any heads of state in terms of frequency of visiting China," said Pakistan's ambassador to China, Massood Khan, "China has a very positive image in Pakistan. We support China's policy on Tibet, Xinjiang and human rights," said Khan.

"But we also need to have an all-weather highway between our two countries," he said. Two years ago, Chinese and Pakistani engineers and road builders started extending the width of the Karakorum Highway from 10 meters to 30 meters.

Chinese engineers have completed a feasibility study for the building of a railroad and an oil pipeline to link Kashi in Xinjiang and Gawadar in Pakistan's Balochistan Province at the mouth of Gulf.

Sixty percent of China's imported oil comes from the Middle East and 80 percent of that transported to China through the Straits of Malacca.

With the construction of the Kashi-Gawadar railroad and oil pipeline, Gawadar, a warm-water and deep-sea port, will handle most of the oil tankers to China.

It will provide China with the shortest possible route to the oil -rich Middle East, replacing the dangerous maritime route through the South China Sea, East China Sea and the Yellow Sea.

"Through Gawadar, oil will come to China and goods will go to West Asia and the Gulf, bringing China closer to countries such as Turkey and Iran," Khan said. "The highway will stimulate the economic growth in Pakistan. With the recovery of the legendary Silk Roads through Pakistan, Pakistan will become an economic hub once more." "If China joins Pakistan in building its desperately-needed power stations, Pakistani people will feel the warmth and brotherhood every night when they turn on the light in their home," Khan said.

"In the streets of Pakistan, it seems that everyone knows Wen is coming," said Khan.
 
250 Chinese businessmen arriving | Business Recorder

ISLAMABAD (December 16, 2010) : A 250-member Chinese businessmen team is accompanying Prime Minister, Wen Jiabao, to Pakistan for his three-day official visit, commencing from December 17. Chinese businessmen will participate Pak-China business co-operation summit to be held on December 18. The business summit will be jointly presided over by the Prime Ministers of the two countries. Board of Investment (BoI) is organising the summit.

BoI chief Salim Mandiwala will deliver welcome address to formally inaugurate Pak-China business co-operation summit. Federation of Chambers of Commerce and Industry (FPCCI), co-organiser of the summit, has prepared a priority list to offer the Chinese businessmen opportunities for joint ventures in a number of areas to enhance two way trade. Its president Sultan Chawala former president Tariq Sayeed and Iftikhar Ali Malik will also address the summit. FPCCI has appointed Zubair Ali Malik as a co-ordinator to contact Pakistani businessmen and help them set their priorities for Pak-China summit.

FPCCI's priority areas include energy, textile, agriculture, mining, food, chemical, horticulture, cotton and its entire value-added chain and supply of services for oil and gas sector and several other Pakistani sectors. FPCCI leadership considers Pak-China business summit as a great opportunity to open up the new areas for promoting trade and businesses between the two countries.

The private sector of the two countries is already depending heavily on each other, to meet their requirements. Many big Chinese business houses are importing raw materials from Pakistan and likewise Chinese exports are steadily growing into Pakistan.

FPCCI former president, Iftikhar Ali Malik, hopes that Pak-China business summit is going to give the new impetus to two-way trade and investment. "We are ready to welcome Chinese businessmen with offers to join hands for co-operation in many new areas besides strengthening existing trade between Pakistan and China, Malik said. He also believes that being close and trusted friend of Pakistan, China can help Pakistan get more shares in the world market to substantially increase its exports in the future.

Copyright Business Recorder, 2010​
 
Looking back at thoses recent visitors of india only china is going to pakistan afterward, this shown how important pakistan is to china
:china::pakistan:

hope chinese focus more on economies then defence this time, and by this i dont mean we shouldnt give importace to defence, hope to see chinese railway agreements, esp after success of china in saudi hajj projects
 
Trade disparity to be taken up with Chinese premier | DAWN.com

Friday 17th December 2010
ISLAMABAD: Pakistani officials have made up their mind to discuss with their Chinese counterparts ways to reduce a burgeoning bilateral trade deficit which crossed $3 billion last year in Beijing’s favour despite a free trade deal struck four years ago amid assurances that it would increase Pakistan’s exports to China.

According to official sources, Prime Minister Yousuf Raza Gilani is expected to seek access for Pakistani companies during his meeting with his Chinese counterpart Wen Jiabao, who is likely to sign deals worth billions of dollars during his visit to the country this week.

China holds a massive $3.256 billion trade surplus with Pakistan, which is steadily on the rise since the signing of the free trade agreement in Nov 2006.

Statistics compiled by the commerce ministry showed that bilateral trade had grown to $5.563 billion in 2009-10.

An agreement on services was signed in February last year, giving more market access to Chinese service providers on a preferential basis.

The sources said the fact that the pace of Pakistan’s exports was not increasing under the treaty had also been realised by Chinese officials. They recently urged Pakistani authorities to explore the Chinese import basket.

According to analysts, the Pakistan’s manufacturing sector lacked sophistication and understanding of the Chinese market.

They said the country would have to diversify the basket of exports to China because at present there was little to offer to the Chinese market.

The Chinese do not eat basmati rice, Pakistan’s main farm export, nor are they interested in importing textiles and garments which were produced in much better quality in their country, an official said.

Even surgical instruments, sports and leather goods could not penetrate the Chinese market because of local production, making the free trade agreement irrelevant from Pakistan’s point of view.

According to another official, only four per cent annual growth was recorded in exports to China under the agreement to about $1 billion in 2009-10, while the imports grew by an average 12 per cent to $4.41 billion.

The official said the factors that might have hampered the exports included lack of China-specific trade specialists, lack of preparation and guidance of the business community to explore market under the free trade agreement, language issues and lack of knowledge to exploit the segmentation in Chinese market from low to high value-added products.

Some elements in the Federal Board of Revenue go so far as to question the logic of having free trade with China which has not increased exports and cost the country a large amount of revenue as a result of massive cuts in duties on Chinese goods.

They said Pakistan’s main competitor in the international market, India, was constantly opposing free trade deal offers from China fearing that Beijing might only want to dump cheap manufactured goods on its booming economy.

An official in the Board of Investment (BOI) said China was more into an investment-based economic relationship with Pakistan instead of linking trade with investment.

Consequently, the total investment by China in Pakistan was much higher at $2.205 billion — 3.6 per cent of the foreign direct investment in the country in 2009-10.

Pakistan is the largest recipient of Chinese investment in South Asia with the figure amounting to $19.042 billion during 2004-09.

China invested only $221 million in India in 2009 with a trade imbalance over $9 billion in Beijing’s favour, showing a low interest in buying Indian assets.

The commerce ministry said a project to set up special economic zones (SEZs) for Chinese investors to establish industries to exports goods had been put on the backburner.

The SEZs are in Pakistan’s interest, as among other things they may reduce the trade deficit.

On the sidelines of the visit, a summit of Pakistan-China business cooperation would be convened on Friday, a BOI official said. Almost 260 Chinese delegates and 150 representatives of different sectors in Pakistan will participate.

As many as 23 memorandums of understandings are expected to be signed at the event to be attended by the prime ministers of the two countries.

Priority sectors for business-to-business investment from China have been identified in oil and gas, mining, infrastructure, power (including coal, hydroelectric and gas-based), information technology and telecommunication, chemicals (including urea fertiliser), glass and polymers, value-added textile manufacturing, engineering goods, textile machinery, assembly of automobiles, electronics, automotives, agricultural implements, agriculture and agro-based industry, pesticides, cool chains, food and fruit processing and packaging, livestock and dairy farming.

At least 83 Chinese companies are working in Pakistan in the oil and gas, IT and telecom, power generation, engineering, automobiles, infrastructure and mining sectors.

They include the ZTE, China Mobile, Huawei Technologies, BGP (Pakistan) International, Metallurgical Construction Corporation of China (MCC), China Harbour Engineering, China Petroleum, Dong Feng and Haier.​
 
Sino-Pak trade to touch US $ 15 billion by 2012

ISLAMABAD (17th December 2010) (APP) The upcoming visit of Chinese Premier Wen Jiabao to Pakistan targets to set the trade volume between the two friendly countries at US$ 15 billion by 2012.

Under the 5 years Development Programme launched in 2006 for strengthening of economic relations, the existing trade is to be enhanced to $ 15 billion by 2012.

More than 62 different projects have been identified under this programme for investment in various economic fields and are at different stages of completion.

In the last few years, investment of more than $1.3 billion was made by China in Pakistan.

Over 120 Chinese companies have invested in oil, gas, IT and telecom, power generation, engineering, automobiles, infrastructure and mining sectors of Pakistan.

The companies included ZTE, Huawei Technologies Co Ltd, China National Machinery Imp/Exp Corporation, Metallurgical Construction Corporation of China, China International Water and Electric Corporation, China Mobile, China Petroleum, Sino hydro. TBEA, Dong Fang. China Roads and Bridge Corporation, China Harbour Engineering and Haier etc.

Important projects which had been completed with Chinese assistance included construction of large number of Hydel power stations.

Fertilizer plants, Heavy Mechanical Complex, Heavy Electrical Complex, KKH, Gwadar port, Ghazi Barotha Power Station and auto manufacturing while quite a few are likely to be added.

China being the second biggest economy of the world finds immense business opportunities in Pakistan as bilateral trade between the two countries had crossed the figure of US $7 billion. Despite economic crisis, the positive trend of growth was maintained as the bilateral trade grew more than 30%.

Sino-Pak mutual experience of growth in trade is positive due to convenient trade flows and openness measures. Trade and investment policies are liberal and generally WTO compliant.

China has become one of the top five import sources of Pakistan. Major imports from China are machinery, chemicals, garments and other textile products, stationery, construction materials like tiles, sanitary and crockery, etc.

Machinery and electrical appliances are the major parts of overall exports (imports?) while Pakistan exports are dominated by fisheries, minerals, stones, textile products & cotton yarn etc.

Pakistan enjoys huge export potential to China due to advantages in agriculture, mineral, chemical, textile, fisheries and leather products.

Besides, Pakistan has comparative advantage in oil seeds, fruits, base metals, plastic goods and perfumery etc.

There are clear possibilities of active Sino-Pak co-operation in the sectors like oil and gas, mining, financial sector, infrastructure, power (coal, hydel, gas based) IT and telecom, chemicals, fertilizer, glass, polymers, textile manufacture (value added), engineering goods, textile machinery, assembling of hybrid automobiles, electronics, automotives, fisheries, agricultural implements, agricultural and agro-based industry, food and fruit processing and packaging, livestock and dairy farming and pesticides.

A few most ambitious projects for the future are: the establishment of a railway link, development of a energy corridor, establishment of transit/trade corridor by using KKH as alternate trade route and collaboration in major infra structure projects like development/processing of coal on a large-scale and construction of big dams etc.

On account of the mutual common understandings, developed over a long period of economic co-operation, China and Pakistan have signed many bilateral agreements, like Free Trade Agreement, Bilateral Investment Treaty, Double Taxation Agreements, Customs related agreements/procedures, establishment of Pak-China Joint Investment Company, bilateral contracts, 5-Year Framework, MOUs in various fields & between various Ministries/Divisions of two countries and the Agreement on Trade in Services.

This involves a wider impact than the other trade and investment agreements. The trade and investment volume is going to increase after the implementation of this agreement, particularly in financial and technical services.

Many public/private enterprise have signed agreements and MOUs worth billions of dollars to cooperate and undertake joint ventures in various sectors, such as infrastructure, mass transit, communication network, finance, science & technology, chemicals, fertilizer, automobile, energy, and development of water resources and agriculture etc.

A few more are likely to be signed during the current visit of the Prime Minister to Pakistan.

Prospects of further consolidation of economic relations are bright as the two sides have a lot of potential for developments in a number of fields.​
 
China PM to bolster strong Pakistan ties after India

(Reuters) - Chinese Premier Wen Jiabao will aim to reassure Pakistan on a visit beginning on Friday that energy, military and economic ties remain tight, despite China's warming relations with India.

Wen, who flies in after a two-day visit to India, is expected to sign off on trade deals officials estimated at between $10 billion and $14 billion with impoverished Pakistan, and is likely to pledge Chinese help to develop a strategic port.

Ties between nuclear-armed rivals India and Pakistan remain tense over a host of issues, and China's ties with Pakistan irk India.

Wen used more than $16 billion in trade deals and promises of political support to charm India into temporarily setting aside disputes with China.

He will want to assure old friend Pakistan that China's improving ties with India do not come at Pakistan's expense.

"China still looks at Pakistan and India through the same lens," said Hamayoun Khan, an independent analyst and former China-Pakistan expert at the Institute of Strategic Studies. "Whereas the U.S. considers Pakistan as part of ****** and India as a separate country, which is not taken well in Pakistan."

According to a Pew survey of Pakistan public opinion last year, 84 percent of respondents said they had a favorable few of China, and 16 percent had a favorable view of the United States.

TIES THAT BIND

Pakistani diplomats like to refer to China as an "all-weather friend," whose needs -- strategic and economic -- fit in with what Pakistan wants and has to offer.

"It's a question of where each country finds itself and gets the most out of the other," said Talat Masood, an independent defense analyst.

While China is India's largest trade partner, it invests seven times more in Pakistan and is helping it build nuclear reactors, despite grave misgivings in the West.

China wants to use Pakistan as a gateway to the Muslim world and as a new Silk Road for China's energy-hungry interior, as well as a balance against India's military rise.

Pakistan, in turn, plans to further rely on China for the bulk of its weapon systems, as a major investor for its ports and roads, and as a counter-weight to American demands and conditions in the fight against Islamist militancy.

Wen is expected to spend almost exactly the same amount of time in Islamabad that he did in New Delhi.

A key topic will be Pakistan's deep-water, strategic Gwadar port, on the Arabian Sea coast, in which China has already invested $200 million.

Singapore's state-owned PSA International Ltd. was given a 40-year contract to run the port, but Pakistan is contesting that in court, and wants more Chinese involvement, officials said.

The port will help Pakistan, struggling to revive its debt-laden economy, to become a conduit for trade to landlocked Afghanistan and Central Asia. It would also enable China to ship oil from the Gulf to its interior more directly.

India, of course, will loom large during talks: both Pakistan and China want to hem in India as a rising military power.

"In a way they give us (Pakistan), say, annually $2 billion," said analyst Khan. "What do we do? ... We're a pain in the *** for the Indians."

Chinese weapon sales to Pakistan, which make up a significant chunk of its annual arms exports, focus less on counter terrorism and counterinsurgency as favored by the United States, and more on fighter jets, air-to-air missiles, tanks and other conventional weapons systems.

Such sales, as well as close diplomatic ties, mean China encourages Pakistan's military focus on India, to the annoyance of the United States, Pakistan's other major ally.

The United States wants Pakistan to rein in its homegrown militants and tackle sanctuaries for al Qaeda, the Afghan Taliban and other groups on its western border with Afghanistan.

But Pakistan appears more willing to help out China with its militant concerns than the United States in its war against the Taliban in Afghanistan, a country where Pakistan is seeking a prominent role in shaping any post-conflict government.

China is facing separatist demands from Muslim ethnic Uighurs in its western Xinjiang province, which borders Pakistan. On July 5, 2009, deadly clashes broke out between Uighurs and Han Chinese in Xinjiang, killing 197 people.

Though it usually champions Muslim separatists around the world, Pakistan deplored the riots and declared them an internal matter, winning praise from China.

The United States, however, says Pakistan is not doing enough: in a U.S. review of the war in Afghanistan, Pakistan's struggle to crack down on militants was cited as a major concern.


China PM to bolster strong Pakistan ties after India | Reuters
 

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