In recent years, the diplomatic and economic ties between Pakistan and China have witnessed a significant strengthening, underscored by the recent visit of the Chinese Prime Minister Li Qiang to Pakistan. This visit, marking his first in over a decade, has not only reaffirmed the historical relationship between the two nations but also brought forth new opportunities for cooperation. Yet, despite this goodwill and the positive momentum in Pakistan-China relations, some challenges persist. These obstacles, both internal and external, may influence the trajectory of this vital alliance.
Prime Minister Li Qiang’s arrival was a significant event, marked by an enthusiastic reception in Pakistan. During his stay, Pakistan and China signed 13 Memorandums of Understanding (MoUs) and agreements across several key sectors, including security, education, agriculture, communications, industry and trade, human resources, science and technology, and currency exchange. These agreements underscore a commitment to deepening cooperation and exploring new avenues for mutual benefit. One of the highlights of the visit was the virtual inauguration of the Gwadar Airport, a milestone for the region and a symbol of the ongoing development facilitated by the China-Pakistan Economic Corridor (CPEC).
The CPEC has been a cornerstone of Pakistan-China relations, bringing about transformative changes within Pakistan. Its second phase, which was a major topic of discussion during the visit, aims to enhance the quality of projects, focusing on sustainability and high standards. This next phase is not just about infrastructure but also about fostering greater regional connectivity and economic integration. Both leaders reiterated their support for each other on crucial issues, affirming their shared vision for development and prosperity.
This visit coincides with the Shanghai Cooperation Organization’s (SCO) Council of Heads of Government summit, which is being held at a time of considerable geopolitical tension. The summit’s timing is noteworthy, as the world grapples with multiple conflicts and challenges, from the escalating violence in the Middle East and the spreading war from Gaza to Lebanon, to the ongoing war between Russia and Ukraine. In this context, the SCO’s potential impact on global peace, security, and development is substantial, as it spans three continents and includes significant global players like China, Russia, and India.
The SCO, which was founded in 2001, aims to strengthen ties between member states, focusing on mutual trust, friendship, and regional cooperation. According to Article 1 of the SCO charter, the organization seeks to foster a stable, peaceful, and cooperative regional environment. The SCO’s objectives encompass not only security concerns, such as counterterrorism, but also economic goals. In this regard, the organization holds a strategic importance for Pakistan. The improved relations between Pakistan and China and their collaboration within the SCO could pave the way for broader regional stability and economic growth.
Pakistan’s strategic position as a gateway between South Asia, Central Asia, and the Middle East provides it with unique opportunities to contribute to regional trade and connectivity. Pakistan’s proximity to the Indian Ocean allows it to offer access to landlocked Central Asian countries, enhancing its potential role as a trade hub. The Gwadar Port, developed with Chinese investment, serves as a crucial link in this vision, facilitating trade between Central Asia, the Middle East, and beyond.
The Prime Minister’s visit has strengthened hopes for Pakistan’s economic stabilization. The MoUs and agreements signed are expected to boost various sectors of Pakistan’s economy, from agriculture to industry and trade. This progress is, in part, a testament to the efforts of Prime Minister Shehbaz Sharif and his economic team, whose policies have laid the groundwork for economic growth. These developments signal a promising future for Pakistan’s economy, suggesting a pathway towards greater prosperity.
Pakistan-China relations have always been strong, characterized by mutual trust and support since their inception in the 1950s. The two countries’ friendship has been hailed as a model for bilateral relations worldwide. Over the decades, Pakistan and China have stood by each other, extending support across political, economic, and defense spheres. Their relationship is rooted in historical and geographical realities, and has weathered various global and regional changes. The 1960s, for instance, marked a pivotal moment when Pakistan signed a border agreement with China, setting the stage for deeper cooperation.
In subsequent decades, both nations have expanded their cooperation to include a range of fields. Economic cooperation has been a major focus, with the CPEC emerging as the flagship project. Part of China’s Belt and Road Initiative, the CPEC has facilitated the construction of roads, power plants, and industrial zones across Pakistan. By providing Pakistan with critical infrastructure, this project has been a major driver of economic development. At the same time, it has also provided China with a shorter and more secure route for transporting its goods to international markets.
The defense relationship between Pakistan and China is equally significant. The two countries have conducted joint military exercises, and China has supplied Pakistan with advanced weaponry, including fighter jets and submarines. This military cooperation reflects a deep strategic alignment and underscores the importance both nations place on security and defense.
However, despite these successes, challenges remain. One of the primary obstacles is the strained relationship between Pakistan and India. The longstanding tensions between these two neighbors often have implications for Pakistan-China relations, particularly given China’s own complex ties with India, which include border disputes. These geopolitical challenges underscore the need for a careful balancing act as Pakistan seeks to strengthen its ties with China while managing its relationship with India.
Pakistan’s economic challenges, including a high debt burden, also pose a significant hurdle. While China has been a crucial source of economic support, Pakistan’s fiscal constraints and reliance on foreign assistance remain points of concern. The CPEC projects, while promising, have faced delays due to security threats, particularly in regions like Balochistan. These threats, driven by terrorism and separatist movements, have disrupted the progress of development initiatives. Nevertheless, the resilience and commitment of both governments and their people are evident, as they continue to work towards overcoming these challenges.
The importance of Pakistan-China relations extends beyond the bilateral level. These ties are essential for the stability and prosperity of the entire region. The SCO and BRICS platforms, which include major global economies and account for over 40% of the world’s population, offer avenues for promoting peace, security, and economic cooperation. For Pakistan, active engagement in these organizations represents an opportunity to enhance its global standing and contribute to regional and global stability.
To maximize its role within these platforms, Pakistan must implement effective foreign policy and economic strategies. The recent $7 billion loan from the IMF, secured with U.S. support, underscores the importance of achieving political stability and sound governance. In this context, Pakistan’s efforts to improve the business environment, foster industrial growth, and facilitate trade are essential for sustainable development.
Pakistan has introduced several reforms aimed at modernizing infrastructure, enhancing regulatory frameworks, and creating a business-friendly environment. Amidst global economic challenges and uncertainties, SCO member states must strengthen solidarity to face these issues together. As the current chair of the SCO Council of Heads of Government, Pakistan has a crucial role in hosting discussions on economic, trade, social, cultural, and human issues, as well as budgetary matters. The SCO platform provides Pakistan with opportunities to safeguard its interests and forge stronger economic ties.
Through CPEC and the BRI, Pakistan can establish trade connections with other nations, while the SCO member countries, rich in energy resources, offer opportunities for meeting Pakistan’s energy needs on favorable terms. Additionally, the SCO fosters opportunities for Pakistan in areas like cultural, educational, and scientific collaboration, enabling it to enhance its global position and regional influence.
As the SCO summit progresses, proposals for future initiatives and regional cooperation among member states will be discussed. Pakistan has previously played a significant role in areas such as food security, climate change, and counterterrorism at the SCO. Furthermore, Pakistan has advocated for expanding SCO cooperation in areas like border security, cyber collaboration, digital connectivity, poverty alleviation, and youth empowerment.
For Pakistan, the SCO platform is invaluable, as it seeks to address issues like terrorism, extremism, and economic instability. A regional approach to these challenges can be highly effective, offering solutions that go beyond the limitations of unilateral action. By contributing to regional connectivity and addressing environmental concerns, Pakistan can further establish its importance within the SCO framework.
The potential of the Pakistan-China relationship, bolstered by platforms like the SCO, reflects a vision for a stable, prosperous, and interconnected region. As Pakistan navigates its challenges and opportunities, the deep-rooted friendship with China serves as a pillar of support, offering pathways to development and regional leadership. Through continued collaboration and strategic alignment, Pakistan can aspire to a future of economic resilience and geopolitical significance.