Posted on November 11, 2018 at 01:00 PM
Pakistan and China-focused to strengthen " China Pakistan strategic partnership". Further Prime Minister Imran Khan visited China on his four days official visit and discussed the future pathways of Pak-China cooperation.
Many people were expecting that Prime Minister Imran Khan would bring a multi-billion cheque for the balance of payments support. However, China will make some agreements on some financial institutes and modalities before any payment to Pakistan.
Prime Minister Imran Khan said that China is depositing its money in the State Bank of Pakistan according to our balance of payments. China deposited almost $2 billion during the interim setup in Pakistan and $0.5 million during May 2018 to support Pakistan's financial balance of payments. During the last five years, China has deposited almost $8 billion in the State Bank of Pakistan. These deposits financially supported CPEC projects. State Bank of Pakistan pays an annual profit against such deposits and if Saudi Arabia deposits its money in Pakistani's Banks then State Bank of Pakistan will pay three per cent annum profit to Saudi Arabia.
before granting a new amount to Pakistan China need to Know about Imran Khan's views on CPEC and Early Harvest Programs started in last government interim. According to the joint statement of Imran Khan visit to China, both sides focused on Early Harvest Programs and expressed satisfaction. China and Pakistan focused on job creation, socio-economic development, livelihoods, agricultural and industrial development.
Pakistan and China signed a free trade agreement which will increase the bilateral trade between Pakistan and China. Pakistan focused on its exports to China and other countries focusing on agricultural and ICT products from Pakistan.
Pakistan and China finalized the " Currency Swap Agreement" which will replace the dollar and both countries will be able to trade in local currency. The Currency agreement by both governments is expected to increase bilateral trade increased from 20 billion yuan and 385 billion for Pakistan. Pakistan will also be able to float yuan bonds in the international market which will reduce the dependency on euros and dollars.
Pakistan and China share its borders with Iran and Afghanistan to directly connect with Central Asian states. China also discussed the Afghan peace process and support Afghanistan as 2nd tripartite (China-Pakistan-Afghanistan) and aimed to deepen the cooperation for shared development, progress and security as well as strengthening stability and peace in Afghanistan.