China-Pakistan relations have held their luster never waning through thick and thin. China and Pakistan are celebrating the 69th anniversary of their diplomatic relations, which were established on 21 May 1951. Focusing on the deep-rooted Sino-Pak ties, Chinese ambassador to Pakistan, Yao Jing was interviewed by China Today.
The CPEC Gwadar Port Project has totally changed the former fishing town of Gwadar, which is now well on its way to becoming one of the busiest ports in the world.
China Today: What are your comments on China-Pakistan relations and the cooperation between China and Pakistan in the fight against COVID-19?
Yao Jing: China and Pakistan are true friends and brothers sharing weal and woe. The cooperation between China and Pakistan in the fight against COVID-19 is a model of international cooperation. Our all-weather strategic and cooperative partnership is consolidated in addressing this common challenge.
China is deeply touched by the firm support it received from Pakistan in its efforts to curb the epidemic. President Arif Alvi and Prime Minister Imran Khan sent letters of solidarity to President Xi Jinping and Premier Li Keqiang respectively. President Arif Alvi paid a special visit to China in March this year. Prime Minister Imran Khan made a phone call to President Xi Jinping to express his support for China. Foreign Minister Qureshi held two telephonic conversations with State Councilor and Foreign Minister Wang Yi. The National Assembly and the Senate of Pakistan respectively passed resolutions to support China's fight against COVID-19. Meanwhile, Pakistan has tried its best to mobilize anti-epidemic materials nationwide to support China. Many Pakistani people, including Pakistani students studying in China, expressed their support in various ways, reflecting the rock-solid friendship between China and Pakistan.
In return, after COVID-19 broke out in Pakistan, China rushed to its assistance. The Chinese central and local governments, the Red Cross Society of China, and civil society continued to provide Pakistan with urgently needed anti-epidemic materials, including large quantities of testing kits, masks, ventilators, personal protective equipment, medicines, and financial aid to assist Pakistan in establishing a new isolation hospital. China has also held video conferences with Pakistan and sent medical teams to Pakistan to share invaluable expertise in disease prevention and control. Meanwhile, China and Pakistan have overcome difficulties to promote the construction of the China-Pakistan Economic Corridor (CPEC), and maintained good communication and cooperation in international and regional affairs.
I would like to thank Pakistan for recognizing the outstanding contribution of China to the international anti-epidemic cooperation and its firm opposition to the stigmatization of China by certain countries. I have every reason to believe that our friendship and cooperation will grow stronger in the post COVID-19 era.
China Today: How does CPEC support livelihood of Pakistani people and what is the nature of its openness to third party participation?
Yao Jing: CPEC is a major pilot project of the Belt and Road Initiative (BRI). It has achieved fruitful results in the development of Gwadar Port, in the energy sector, infrastructure, and Special Economic Zones (SEZs) over the past six years. According to incomplete statistics, the number of Pakistani employees directly employed by the CPEC projects has reached over 75,000.
Since early this year, both sides have worked closely to mitigate the challenge posed by the COVID-19 outbreak on the sustainable development of CPEC. There are zero infections in CPEC projects due to strict measures taken by both sides. The Chinese companies have not withdrawn themselves nor did they lay-off local staff.
Meanwhile, progress is underway. Joint working groups on energy, agriculture, social and economic cooperation, and science and technology have convened video conferences respectively to review progress made so far. The energy projects guaranteed a third of the total electrical supply in Pakistan. Phase II of KKH is almost ready for traffic. The integrated test and commissioning inspection for the Lahore Orange Line Project have been successfully completed and passed. The construction of the new airport in Gwadar has entered the second phase. The construction of Karot Hydropower station is in full swing. We are happy to hear that the Pakistan government has allowed transit trade of Afghan bulk cargo of wheat, sugar, and fertilizer to go through Gwadar Port.
In the next stage, both sides will focus more on industrial, social, and economic cooperation. We are confident that CPEC projects will provide fresh impetus to Pakistan’s economy and help to stabilize its financial condition in the midst of COVID-19.
China Today: How can CPFTA Phase-II help Pakistan strengthen its economy during the COVID-19 pandemic?
Ambassador Yao Jing: The pandemic has severely disturbed global trade, and China-Pakistan trade cooperation was impacted as well. However, I have full confidence in the future of bilateral trade cooperation, especially because of China-Pakistan Free Trade Agreement (CPFTA) Phase-II.
CPFTA Phase-II came into effect in Jan 1, 2020, and the level of liberalization between the two countries more than doubled, tariffs have been reduced sharply. Under the CPFTA Phase-II, 90 percent of China's imports from Pakistan will enjoy duty-free treatment, while Pakistan will enjoy zero tariff on 67 percent of its trade volume.
The duty-free products from Pakistan include cotton yarn, textiles, nuts, and household accessories. China will also include some advantageous export items from Pakistan, such as leather, clothing, shoes, hats, aquatic products and so on. That will give a huge boost to Pakistan’s exports to China.
Moreover, it will help to stimulate the trade and investment linkage between China and Pakistan, attracting more Chinese enterprises as well as other foreign investors to invest in Pakistan, so as to promote the development of export-oriented industries in Pakistan and expand its exports.
This pandemic will pass and the world economy and global trade will recover. The huge market demand accumulated during the pandemic will be fully unleashed and bilateral trade will rebound strongly.
China Today: What will China do for Pakistan’s debt relief?
Yao Jing: Over the years, China has carried out financial cooperation with developing countries based on the principle of equal-footed consultation, mutual benefit, and common development. Our goal is to help these countries to develop their economy and work for implementation of the UN 2030 Agenda for Sustainable Development. China never presses countries in difficulties for debt repayment.
Due to the spreading pandemic, developing countries, especially low-income countries, are facing greater challenges. China upholds the vision of a community with a shared future for mankind and follows the right approach to justice and mutual interests. It stands together with the people of developing countries. China has actively participated in international cooperation on debt relief.
Recently, G20 members adopted a Debt Service Suspension Initiative for Poorest Countries. China supported Pakistan to be included in the Initiative. China hopes G20 members can work together to implement the outcomes of the Extraordinary G20 Leaders' Summit on COVID-19, and help low-income countries properly address debt risks. China is ready to communicate and coordinate with Pakistan via bilateral channels, and to help Pakistan to concentrate resources to fight against the epidemic and stabilize the economy.
China Today: How can China help Pakistan’s social-economic development?
Yao Jing: Pakistan and China have a tradition of mutual understanding and mutual support. Over the past years, China has assisted in building infrastructure projects such as the Karakoram Highway, Pakistan Sports Center, China-Pakistan Friendship Center, and the Gwadar Faqeer School. Now, both sides are working hard to implement Gwadar East Bay Expressway, Gwadar New International Airport, and schools in the former FATA region.
Development of CPEC has facilitated fast-track implementation of our social economic cooperation. In April 2019, China and Pakistan signed a MoU on socioeconomic cooperation under the CPEC framework. After consultation with Pakistani government, both sides identified six key areas of cooperation including agriculture, education, medical care, poverty alleviation, water supply, and vocational training. Implementation of the first batch of the fast-tracked 17 projects has started within one year of the signing of the MoU.
Among these projects, the Gwadar Hospital and the Vocational Technical School have started construction. The follow-up projects include providing Pakistan with 10,000 sets of solar-powered lighting equipment, 100 sets of water purification equipment, 800 sets of solar water pump facilities, and medical equipment for 30 hospitals, as well as teaching equipment for 50 vocational and technical schools. The establishment of joint agricultural laboratories and demonstration stations in each province of Pakistan is also in the pipeline. The implementation of the projects is committed to improving the well-being of the Pakistani people, and injecting momentum into the realization of sustainable development of Pakistan.
China Today: What is the progress of the construction of the special economic zone?
Yao Jing: Industrial development is essential to Pakistan’s self-reliant development and improvement of balance of payments. Nowadays, the global industrial structure is facing new adjustments. Some Chinese companies are seeking to invest or relocate related industries in other regions. China and Pakistan have worked together to expand industrial cooperation as the main focus of CPEC in the next stage.
There is some progress after years of hard work of both sides. For example, the Franchise Agreement of Rashakai SEZ was signed in April 2019 under the witnesses of leaders of both countries. The China Road & Bridge Corporation then conducted construction drawing design, funding, and tender invitation. In December 2019, the Pakistani side started supporting works for peripheral roads, water, and electricity supply and the Chinese side started to set up the makeshift camp. So far, all relevant work is moving forward steadily despite the challenge of COVID-19.
At the same time, CPEC cooperation has also facilitated industrial cooperation between China and Pakistan in other areas. Now, there are over 400 Chinese enterprises operating in Pakistan, covering areas of IT, home appliances, finance, agriculture, and e-commerce, etc. For example, Changan Auto built a joint venture in Karachi with Master Motors. Double Star Tire and Chaoyang Tire built joint ventures respectively with MSD Tire, Service Co. Ant Financial Services Group partnered with Easypaisa to develop a Pakistani version of Alipay. Yaxing Steel built a joint venture with Al-Haj. I firmly believe that with improvement of business environment and more preferential policies put in place in Pakistan, China-Pakistan industrial cooperation will be blessed with a bright future.
China Today: What is China’s plan to help Pakistan to get rid of the locust crisis?
Yao Jing: We noted that the locust plague outbreak in Pakistan early this year has severely affected the country’s agricultural production and food security. In February, the Chinese government sent a work team of locust experts to Pakistan when China was still in the critical stage of fighting against COVID-19. The Chinese expert team carried out extensive field investigation of locust affected areas in Sindh, Balochistan, and Punjab provinces. They came up with an informative package of policy suggestions on comprehensive prevention and control for Pakistan. Later on, the Chinese government assisted 300 tons of malathion and 50 air-powered high-efficiency remote sprayers to Pakistan by the end of April to counter locust plague.
When President Arif Alvi visited China in March, Chinese President Xi Jinping told him that China would continue to provide support and assistance to Pakistan in the fight against locusts. During the visit, both countries signed an MoU on strengthening cooperation in prevention and control of plant pests and diseases. Under the MoU, China and Pakistan will jointly establish a center for sustainable management of agricultural pests and diseases in Pakistan. The mission of the center will focus on cooperation in plant protection, including monitoring and early warning, R&D, demonstration and extension, mutual recognition of standards, personnel training, and emergency response. Now, both agriculture authorities in China and Pakistan are engaged with each other to implement the MoU and strengthen our cooperation to build the sustainable and comprehensive capability for locust control.
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Yasir Habib Khan is a special correspondent of China Today. He is also founder and president of Institute of International Relations and Media Re-search (IIRMR).
