Economic corridor on top of agenda for Pakistan foreign minister’s Beijing visit

Pakistan Foreign Minister Shah Mahmood Qureshi speaking at China Institute for International Strategic Studies (CIISS) in Beijing on Monday. (Photo credit: PID)
Updated 18 March 2019
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Economic corridor on top of agenda for Pakistan foreign minister’s Beijing visit

  • Pakistani foreign office denies FM Qureshi will seek additional financial assistance from China during three-day talks
  • Analysts say Pakistan will take China into confidence about initiating action against banned groups and their leaders

ISLAMABAD: Pakistan’s Foreign Office said on Monday Foreign Minister Shah Mahmood Qureshi would hold strategic talks during his three-day visit to China and discuss enhancing projects under the $60 billion China-Pakistan Economic Corridor (CPEC) of infrastructure and energy projects.

Though China is Pakistan’s closest ally, the new government of Prime Minister Imran Khan has sought to re-configure the two countries’ signature CPEC deal to put greater emphasis on social development rather than purely on energy and infrastructure projects.

Qureshi arrived in Beijing on Monday for the first Pakistan-China foreign ministers’ strategic dialogue amid persisting tensions with Pakistan’s nuclear-armed neighbor India.

“China is our all-weather friend and we want to continue the process of strategic dialogue to further strengthen our bilateral relationship,” Dr. Mohammad Faisal, the spokesman for the Pakistani Foreign Office (FO), told Arab News on Monday. “Regional situation and cooperation at multilateral forums will also come under discussion, besides reinforcing efforts to deepen economic engagement under the CPEC.”

Faisal denied that Qureshi would seek economic assistance from China during the visit.

“(The subject of) economic assistance doesn’t come under the purview of strategic dialogue. Nothing like cash assistance is going to be discussed,” the spokesman said.

Last year, Pakistan received $6 billion and $3 billion loan packages from Saudi Arabia and the UAE respectively, to help cash-starved Pakistan bridge a yawning current account deficit and shore up foreign reserves. Pakistan and UAE were in talks for an additional $3 billion oil supply on deferred payments but reports now suggest the Emirates has declined to extend the facility.

Qureshi is scheduled to call on the Chinese leadership during his visit and address the Political Parties Forum on the CPEC, according to a statement issued by the FO on Monday.

He will also participate in the ruling parties’ dialogue between the Pakistan Tehreek-e-Insaf (PTI) and the Communist Party of China (CPC), the statement read. 

On Monday, Qureshi spoke at the China Institute for International Strategic Studies (CIISS) in Beijing where he reiterated that Pakistan and China are not only strong friends, but their relations are based on strategic partnership.


Deputy PM Dar, Etisalat chairman discuss investment, stake in Pakistan’s PTCL

Updated 7 sec ago
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Deputy PM Dar, Etisalat chairman discuss investment, stake in Pakistan’s PTCL

  • The development comes against backdrop of a long-running dispute over PTCL privatization
  • The issue has resurfaced in recent years as Pakistan seeks to advance privatization plans

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar met with Jassem Mohammed Bu Ataba Al Zaabi, chairman of Etisalat (e&) and the Abu Dhabi Department of Finance, and discussed with him investment prospects, including Etisalat’s stake in Pakistan Telecommunication Company Limited (PTCL), the Pakistani foreign ministry said on Saturday.

The planned meeting with the Etisalat chairman comes against the backdrop of a long-running dispute over the privatization of PTCL. The UAE-based telecom group has withheld a final payment of about $800 million linked to its 2005 acquisition of a 26 percent stake in PTCL, citing delays in the transfer of properties included in the deal, a position disputed by Pakistan.

The issue has resurfaced in recent years as Pakistan seeks to revive investor confidence, advance privatization plans and stabilize its finances under a program backed by the International Monetary Fund (IMF).

“The meeting reviewed Pakistan-UAE trade & economic cooperation, explored opportunities to enhance investment, and discussed e&’s pending issues and ongoing engagement in Pakistan, including through its stake in PTCL,” the Pakistani foreign ministry said.

Pakistan and the UAE maintain close political and economic ties, with Abu Dhabi providing critical financial support to Islamabad in recent years through deposits, loans and investment commitments as Pakistan navigates a fragile economic recovery.

“DPM/FM highlighted the Government of Pakistan’s commitment to facilitating investment by the private sector and partner countries, and to further strengthening economic cooperation between the two brotherly countries,” the foreign ministry said after the meeting.

The Pakistani deputy PM arrived in the UAE on Friday on an official visit following his participation in the World Economic Forum in Davos, according to his ministry. He will also hold meetings with other UAE officials during the visit.