Muhammad Asif Noor
The visit of Chinese Premier Li Qiang to Pakistan from October 14 to 17, 2024, marks a significant chapter in the strategic and economic relations between the two nations. The timing of this visit, coinciding with the Shanghai Cooperation Organization (SCO) summit, elevates its importance of both bilateral and multilateral dimensions of cooperation. Premier Li’s visit, his first to Pakistan in over a decade, was undertaken at a crucial juncture as China and Pakistan continue to deepen their cooperation across diverse sectors. This partnership is not only about economic collaboration under the China-Pakistan Economic Corridor (CPEC) but also touches on security, diplomatic alignment, and multilateral engagements. The visit is a new chapter in the robust and multifaceted alliance between Pakistan and China that has withstood the test of time.
The joint statement issued at the conclusion of Premier Li’s visit referred to a broad scope of the China-Pakistan partnership. It reaffirms the commitment of both nations to further strengthen their “ironclad” friendship, with a focus on economic, security, and diplomatic cooperation. The statement highlights the importance of creating an “upgraded version” of CPEC, with both leaders expressing their determination to build a closer China-Pakistan community with a shared future. This vision is not only about economic prosperity but also about ensuring regional peace and stability, with both nations pledging to work together to address global challenges such as terrorism and climate change.
At the heart of the visit was the deepening of CPEC, the flagship project under China’s Belt and Road Initiative (BRI), which has been pivotal in transforming Pakistan’s economic landscape. Since its inception, CPEC has injected over $25 billion into Pakistan’s economy, with 38 projects completed, and focusing on energy, infrastructure, and social development. With another 26 projects worth $26.75 billion in the pipeline, CPEC is moving into its second phase. Premier Li’s visit highlighted this transition, with both leaders expressing their commitment to an “upgraded version” of CPEC that emphasizes industrial cooperation, agricultural modernization, and technological advancement. This evolution from infrastructure development to more diverse sectors such as industry and IT indicates a shift toward creating a sustainable economic ecosystem for Pakistan, while also serving China’s long-term strategic goals in the region.
One of the most significant moments of Premier Li’s visit was the signing of 13 agreements. The visit also included the virtual inauguration of the New Gwadar International Airport. This $230 million project, funded by China, symbolizes Gwadar’s growing importance as a global logistics and industrial hub. For Pakistan, Gwadar holds enormous potential. Gawadar is a gateway for regional connectivity, linking South Asia with the Middle East and Central Asia. The airport’s completion also a strategic intent behind CPEC, further integrating Pakistan into the global supply chain while offering China a direct route to the Arabian Sea. Gwadar is not just an economic project but a geopolitical asset, and its development will enhance Pakistan’s standing as a critical player in regional trade and logistics.
From an economic perspective, during the Premier Li’s visit the two nations signed a currency swap agreement between the State Bank of Pakistan and the People’s Bank of China. This is a crucial step toward reducing Pakistan’s dependency on the U.S. dollar. By facilitating trade in local currencies, this agreement offers Pakistan much-needed financial stability, especially in light of the economic challenges it faces. Furthermore, both nations are interested to insulate their economies from global currency fluctuations which can help in the long-term benefits for Pakistan’s trade balance and fiscal health.
Security cooperation also played a central role in the discussions between the two leaders. Recent terrorist attacks targeting Chinese nationals in Pakistan have raised the need for robust security arrangements to protect Chinese investments and personnel. Premier Li’s visit has also shown the China’s trust and resolve to foster forward relations with Pakistan despite these challenges. Both leaders discussed joint security measures, including the possibility of a joint security company for the protection of CPEC projects.
In terms of economic potential, the visit has opened new avenues for cooperation in sectors that have traditionally been underexplored. For instance, the agreements signed during this visit regarding agricultural cooperation, with plans to improve Pakistan’s agricultural resilience through technological exchange and capacity building. Second phase has agriculture as its important component. Additionally, the exploration of investment opportunities in Pakistan’s mining sector, including the establishment of mining industrial parks, reflects China’s long-term interest in harnessing Pakistan’s natural resources. The Smart Classrooms project and agreements related to co-production of television programs reflect a growing interest in soft power collaboration, which is essential for fostering long-term goodwill between the two nations.
Premier Li Qiang’s visit to Pakistan is a testament to the enduring strength of the China-Pakistan relationship. It represented a strategic recalibration of their partnership, moving beyond traditional areas of cooperation to embrace new sectors that will define their shared future. As they move forward together, China and Pakistan are well-positioned to navigate the challenges of a rapidly evolving geopolitical landscape, ensuring that their partnership remains a cornerstone of regional stability and global cooperation.
The writer is Founder of Friends of BRI Forum, Senior Advisor to Pakistan Research Centre at Hebei Normal University in China, Co-Founder of the Alliance of China-Pakistan Research Centres, and Senior Fellow at the Centre for CPEC Studies at Kashi University in China.
