February, 23, 2024
China-Pakistan CPEC Progress and Circular Debt Solution

China-Pakistan CPEC Progress and Circular Debt Solution

Infostani International: China and Pakistan are set to enhance the China-Pakistan Economic Corridor (CPEC) as part of their enduring strategic cooperation. Caretaker Prime Minister Anwaarul Haq Kakar highlighted the completion of CPEC’s first phase and discussed plans for the second phase, emphasizing connectivity for industrialization. The Chinese Foreign Ministry expressed commitment to collaboration. Meanwhile, Pakistan’s caretaker government, with limited time left, is addressing substantial circular debt in the power and gas sector, with PM Kakar directing authorities to formulate a comprehensive plan.

China-Pakistan Collaboration and CPEC Advancements: A Comprehensive Overview of Bilateral Relations, Economic Corridor Upgrades, and Circular Debt Resolution

China has expressed its readiness to collaborate with Pakistan for the enhancement of the China-Pakistan Economic Corridor (CPEC) and to expedite the establishment of a closer China-Pakistan community with a shared future in the new era.

Separately, caretaker Prime Minister Anwaarul Haq Kakar stated that having achieved the first phase of CPEC, Pakistan is currently reaping the benefits of its early harvest projects while maintaining engagement with China to execute the subsequent phase.

Chinese Foreign Ministry spokesperson Wang Wenbin, responding to a question during a briefing on Wednesday, mentioned that “China stands ready to work with Pakistan to deliver on the important common understandings between the leaders of the two countries, deepen political mutual trust, and expand practical cooperation.”

Regarding the recent visit of Chinese Vice Foreign Minister Sun Weidong to Pakistan, Wang Wenbin shared that the minister, during his Jan 20-22 trip, held discussions with President Arif Alvi, Prime Minister Kakar, Chairman of the Joint Chiefs of Staff Committee General Sahir Shamshad Mirza, Chief of the Army Staff General Syed Asim Munir, and Foreign Minister Jalil Abbas Jilani to exchange views on bilateral relations and mutual interests.

The spokesperson added that the Chinese minister also co-chaired the fourth meeting of the CPEC Joint Working Group on International Cooperation and Coordination with Foreign Secretary Syrus Sajjad Qazi. He reiterated that China and Pakistan are all-weather strategic cooperative partners, appreciating Pakistan’s firm commitment to the One-China principle.

China-Pakistan CPEC Progress and Circular Debt Solution
Pakistan, China trade set to flourish under mega CPEC

Progress Update on CPEC and Circular Debt Resolution Initiatives by PM Kakar in Islamabad

In Islamabad, PM Kakar, in an interview recorded by CGTN during his visit to Davos for the World Economic Forum, discussed the progress of CPEC. He emphasized that having completed the first phase, Pakistan is now entering the second phase, which requires road and air connectivity around industrialization projects. He highlighted the ongoing engagement between both sides in developing various forms of connectivity for trade.

Addressing the circular debt issue in the power and gas sector, the caretaker government, less than two weeks away from the end of its term, pledged to formulate a plan to overcome the mammoth circular debt, reported to have exceeded Rs5.73 trillion, with Rs2.5 trillion attributed to power and Rs3 trillion to gas. PM Kakar presided over a meeting, directing authorities to devise an effective, durable, and feasible plan to address the circular debt issue. He expressed dissatisfaction with the performance of Discos and instructed the power division to submit a comprehensive plan with clear targets, responsibilities, and timelines.