Pakistan gears up for PM Sharif’s visit to China in May

This handout picture taken and released by the Pakistan Prime Minister Office on November 2, 2022, shows Pakistan Prime Minister Shahbaz Sharif (C) inspecting the guard of honour on his arrival at Great Hall of the People, ahead of his meeting with Chinese Premier Li Keqiang (2L) in Beijing, China. (AFP/File)
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Updated 27 April 2024
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Pakistan gears up for PM Sharif’s visit to China in May

  • Planning minister says China has invested $25 billion in infrastructure projects in Pakistan since 2013
  • However, the undertaking has been affected by Pakistan’s financial woes, attacks on Chinese in recent years

ISLAMABAD: Pakistan is preparing for a possible visit by Prime Minister Shehbaz Sharif to China next month and the 13th meeting of a joint cooperation committee (JCC) on the China-Pakistan Economic Corridor (CPEC), the Pakistani planning ministry said on Friday.

The statement came after Planning Minister Ahsan Iqbal presided over a meeting with regard to the prime minister’s visit and preparations for the 13th JCC meeting.

Sharif is expected to visit China in May to restore Beijing’s confidence in Islamabad with regard to various Chinese-funded projects, Pakistani state media reported this month, citing a senior official.

“The federal minister said that the prime minister’s visit to China will be of great importance and China wishes that the 13th JCC [meeting] is held before this visit,” the Pakistani planning ministry said in a statement.

“So that projects, including five new economic corridors, can be accelerated and the desired results can be obtained from the visit.”

Beijing is investing over $65 billion in energy and infrastructure projects in Pakistan as part of CPEC, a major segment of Beijing’s Belt and Road infrastructure initiative, which will connect China to the Arabian Sea and help Islamabad expand and modernize its economy through a network of roads, railways, pipelines and ports in Pakistan.

Since its initiation in 2013, CPEC has seen tens of billions of dollars funnelled into massive transport, energy and infrastructure projects. But the undertaking has also been hit by Pakistan struggling to keep up its financial obligations as well as militant attacks on Chinese nationals in Pakistan.

From 2013 to 2018, Iqbal said, China invested $25 billion in Pakistan under CPEC that improved economic condition of the country.

He said his government was currently taking steps to implement CPEC projects and was determined to soon complete them.


Pakistan stocks edge higher as export financing, industrial power tariffs are cut

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Pakistan stocks edge higher as export financing, industrial power tariffs are cut

  • KSE-100 index gained 1,607.26 points, or 0.88%, to close at 183,945.38
  • Rebound follows steep sell-off a day earlier amid regional geopolitical tensions

ISLAMABAD: Pakistan’s stock market rebounded on Friday, with the benchmark index gaining more than 1,600 points, as analysts pointed to cuts in export refinancing rates and lower electricity tariffs for industrial consumers as key drivers of the recovery.

The KSE-100 index rose 1,607.26 points, or 0.88%, to close at 183,945.38, up from 182,338.12 a day earlier, according to Pakistan Stock Exchange (PSX) data.

The uptick followed Prime Minister Shehbaz Sharif’s announcement of a Rs4.4 per unit cut in electricity tariffs for industrial consumers, alongside a reduction in the export refinance rate from 7.5% to 4.5%.

“Stocks staged an early recovery at the PSX on institutional buying in oversold scrips after the prime minister’s assurance to renegotiate the IMF deal, along with cuts in the export refinance rate to 4.5% and industrial power tariffs by Rs4.4 per unit,” Arif Habib Commodities Chief Executive Officer Ahsan Mehanti told Arab News.

He added that higher global crude oil prices and earnings-season speculation also acted as catalysts for bullish activity.

According to local media reports last week, Pakistan is seeking flexibility in IMF lending conditions for the 2026–27 budget and aims to renegotiate its agreement to complete the remaining $7 billion under the Extended Fund Facility (EFF) and a $1.4 billion Resilience and Sustainability Facility (RSF) by September 2027.

The rebound came a day after Pakistani stocks plunged 6,042.26 points on Thursday, a drop analysts attributed to heavy selling and heightened geopolitical tensions between Iran and the United States.

Those concerns intensified after US President Donald Trump warned Iran this week that “time is running out” to reach a deal on its nuclear program, amid a steady buildup of US military forces in the Gulf.