Prime Minister Shehbaz Sharif recently visited China for the first time since his election victory in February. During the visit, Pakistan and China announced plans to upgrade the China-Pakistan Economic Corridor (CPEC) and begin Phase II of the initiative.
CPEC, a $62 billion project, links Pakistan’s Gwadar Port with China’s Xinjiang region through roads, railway lines, and power projects. The initiative aims to boost Pakistan’s economy, but has faced challenges gaining momentum.
Sharif’s visit focused on assuring China of Pakistan’s commitment to providing security for CPEC projects. Discussions between Sharif and President Xi Jinping included aligning the Belt and Road Initiative (BRI) with Pakistan’s development plans and expanding cooperation in various sectors.
China’s support for Pakistan’s development is crucial amid Pakistan’s financial crisis. The meeting emphasized the importance of a safe business environment for Chinese projects and personnel in Pakistan.
China has expressed concerns about security and political stability in Pakistan, following incidents like the 2024 bomb attack on Chinese engineers. The meeting highlighted the need for Pakistan to address these concerns to attract investments and ensure a stable environment for Chinese operations.
Despite calls for action from China, Pakistan is making efforts to address security and investor concerns. The presence of Army Chief Lt. General Asim Munir during Sharif’s visit aimed to show solidarity with China and address concerns over political stability and security.
While no new investments were announced during the visit, Pakistan is seeking support from China for its budget and negotiations with the IMF. China and the IMF will likely evaluate Pakistan’s reforms and debts owed to China before providing support.
To restore Chinese confidence and secure support for CPEC, Pakistan must address concerns about reforms, stability, and security. Sharif’s visit was a step in the right direction, but further efforts are needed to strengthen ties with China.