PM Imran Khan’s China Visit: What is ahead for Energy, Business sectors
Ibn-e-Ameer
As Prime Minister Imran Khan is all set to visit China on 3 February to attend the inaugural session of the Beijing Winter Olympics, he is also scheduled to meet the top Chinese leadership during the visit for bilateral talks. As per the sources, there are various key issues on top of his agenda pertaining to this crucial visit.
Experts in diplomatic relations suggest that the visit of Iman Khan to China will also be seen as a demonstration of continued bilateral support when a small but influential group of western nations has announced diplomatic boycotts of the upcoming Beijing Winter Olympics, alleging China to be involved in human rights abuses.
Countries that have announced boycotts include the United States, Australia, Britain, Canada, and Lithuania.
According to the Foreign Office, this 3 days’ visit would reinforce strategic ties between the two countries and further advance the objective of bringing both the neighboring nations closer for mutual benefit.
Mr. Khan will also be discussing future plans to enhance cooperation in the fields of investment, trade, information technology, and exports between the two nations.
Solidarity to China
As it appears, apart from showing solidarity to China at a time when its ties with the US and other western countries are severely strained, Pakistan’s premier will look forward to expediting progress on CPEC including roads and connectivity as well as the power projects in and outside the CPEC’s ambit.
During this visit, Prime Minister is also being said to make a request for China to approve another loan of $3.0 billion to stabilize its dwindling foreign exchange reserves and also seeks investment in various sectors.
However, close circles working on the visit program also suggest that Pakistan Government will seek support from China to also bring further investments in the energy sector of Pakistan.
Different officials say that it is seemingly also a good opportunity for Pakistan to advance the discussion on Shanghai Electric Power (SEP)’s interest in acquiring Karachi’s power utility as the deal has been facing a standstill over the issue since 2016.
It is comparatively easier for the Government to lead matters pertaining to the power sector with China at this time as opposed to earlier in time, as the government has recently made considerable progress on the lingering issue of about Rs230 billion withheld payments to Chinese power producers and has so far paid Rs50 billion out of it.
The government is also likely to pay another amount of Rs 50 billion next month.
Furthermore, the government is expected to inform 75 Chinese companies that it provided access to trade routes to the Middle East, Africa, and the rest of the world – that offer major incentive on account of a reduction in the freight cost.
Similarly, Pakistani authorities firmly believe that its labor is two times cheaper than that of China which offers a greater opportunity for the Chinese industry to relocate their industry and transfer technology to Pakistan.
Sources claim that the Pakistani authorities will like to convince Chinese investors that Pakistan’s textile, agriculture, automobile, IT, and energy sector presents the most attractive opportunities for them and there is considerable growth potential.
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Within Pakistan, the Privatization Commission is already pursuing the privatization of up to 20 Public Sector Enterprises (PSEs) and has recently presented a proposal to complete 3 such projects within the calendar year 2022.
Consideration of Pakistan Steel Mills during Imran Khan China visit
Pakistan Steel Mills is the leader in this consideration these days on the privatization agenda, but the revival of large-scale manufacturing units and industrial activity as a whole will also require a robust supporting investment in the power infrastructure.
At the same time, investors have also expressed their interest in entering the privatized electricity market as Pakistan is steadily moving towards an ambitious ‘open’ electricity market, the timing of the visit can highlight prospects for more participation from foreign players, particularly from China.
According to Federal Planning and Development Minister Asad Umar about Imran’s visit to China, Pakistan was prepared to China with a structured approach.”
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Chairman Board of Investment Azfar Ahsan said they would make market textile, footwear, pharmaceutical, furniture, agriculture, automobile, and information technology sectors for Chinese investment.
All in all, this visit appears to be a good opportunity for Pakistan to build further momentum around economic and trade opportunities in a friendly environment and this government seems to have more concrete plans ahead of the visit.
