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P-I

Pak-China Economic Corridor project to hit new marks: Ahsan

By Uzma zafar and asghar ali mUBarak EDERAl Minister F for Planning,

One Belt and One Road is an amazing concept: Sarwar By asghar ali mUBarak AlkInG to the media T team of The

Development and Reform, Prof Ahsan Iqbal, expressing his views over One Road and One Belt and over Pak-China Economic Cooperations to the m,edia team of The Daily Mail, Pakistan and People’s Daily, China, said that Pak-China Economic Corridor project would lift friendship to new heights as this project would have profound impact not only on Pakistan and China but entire region. He termed Chinese leadership’s vision of One Road and One Belt as well as that of Silk Route Economic Belt as sensational projects that were set to change the shape of the economy in the region. He said the One Belt and One Road like projects were clear proofs of the level of perception for tomorrow’s economy on part of Chinese leadership.

“Pak-China Economic Corridor project will lift friendship to new heights as this project will have profound impact not only on Pakistan and China but entire region.

Pakistan is a hub of business activities for South Asia, Central Asia and China. The corridor project will impact lives of three billion people in Asia”, the Minister asserted. He said, “China-Pakistan economic corridor projects envisage $34 billion investment in energy sector and around $11 billion in infrastructure sector. These projects offer immense opportunities to businesses in both countries and will give boost to Pakistan’s economy.

“All energy projects are investment mode by Chinese side and will give tremendous boost to investment climate in Pakistan.” He said “Pakistan has been given GSP plus status by EU, which has opened new vistas of co-operation between Pakistan and China for joint production facilities. A free trade zone is being established in Gawadar port, which offers very attractive prospects to Chinese investors.

Gawadar port is being developed to become a leading port in the region.

Through Gawadar port, the cost of transportation for western China will be reduced by five times. Ahsan Iqbal said, “People of Pakistan are eagerly looking forward to

Daily Mail, Pakistan and People’s Daily, China over One Belt and One Road and expressing his views over Pakistan-China Economic relations, Governor Punjab, Chaudhary Muhammad Sarwar said the One Belt and One Road was a spectacular concept on part of Chinese leadership and that the same would help enhance Pakistan- China economic cooperation. “ through such an activities, Pakistan and China would be able to enhance not only their trade balance but such a move would also enhance people to people contact between the two nation while it will also provide job opportunities to millions’, Said Governor Sarwar. He said that there was great potential in Pakistan-China economic sectors to produce amazing results and Pak-China Economic Corridor and Free Trade Agreement between the two countries were going to emerge as real game changers in not only the regional economy but on global level as well. “ I really see a completely changed dynamics of regional and global economy after projects like Pak-China Economic Corridor, Pak-China Free Trade and One Belt and One Road start to deliver. These projects will also emerge as great gifts to people across the world with regard to strengthened economies while people on the Silk Road Economic Belt and particularly those from Pakistan and China would be top beneficiaries,” asserted the Governor.

Governor of the Punjab province, a province that is already hectically engaged in comprehensively enhancing cooperation with China in all fields and specially in the field of energy, urged up[on Chinese businessmen to explore Punjab in particular and Pakistan in general for their future ventures and joint ventures as there was a great opportunity was awaiting them there. “ As the leadership of China is urging upon its entrepreneurs from all fields to go global, I believe that Pakistan should be the first destination in their journeys of going global as in Pakistan, every Chinese is considered as a VVIP and thus they will get lot of experience with lot of ease with regard to

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Pak-China economic ties to benefit more people: Sun Weidong By yang XUn (PeoPle’s daily, China) A k CHInA “P relationship

Pakistan anxiously awaits President Xi's visit: Spokesperson

By Uzma zafar pokesperson of S Pakistan's

Joint security must for mega economic projects: DM Chief By dU haitao Wang JUe yang XUn XU Wei, (PeoPle’s daily, China)

currently keeps a positive development trend.

The strategic mutual trust is continuously strengthened and the practical cooperation is deepened day by day. The two countries keep close communication and collaboration in regional and international affairs. To promote the construction of “One Belt and One Road” and Pak-China economic corridor need adopt a long-term perspective and take down-to-earth attitude simultaneously, says Sun Weidong, Ambassador of People’s REepublic of China to Islamic Republic of Pakistan In an interview over the One Belt and One Road and Pakistan-China Economic Cooperation, he said, ‘Adopt a long-term perspective, is to make top design and plan a direction and target. We should promote the construction based on the principle of positive and stable way, scientific planning, steady advancement, mutual benefit and win-win result. In the past year, Pak-China economic corridor construction keeps a good general trend. China and Pakistan has established a far-seeing plan and collaboration committee on economic corridor. The committee has three working groups, including energy, transportation devices and comprehensive planning. The two parties hold many discussions on corridor planning and constructions and reached important consensus. This will clarify the future construction of the corridor and laid relevant foundation. “ He further said, “Take down-to-earth attitude, is endeavor to get early harvest and more practical achievements. ChinaPak economic corridor relates to many perspectives as energy, transportation, industrial park, and communication, and has correlation with livelihood improvement and social development. We should promote the construction procedure and early implement these people-benefit projects, bringing tangible benefits to ordinary people.

For those projects with common consensus, foundation and security guarantee, we should accelerate the negotiation and

Foreign office Ms. Tasnim Aslam, in her exclusive conversation with the team of The Daily Mail, Islamabad and People’s Daily Beijing, that met her over the topic of Pak-China economic cooperation and China’s Silk Road Economic Belt, said that there was a huge potential of economic co operation between Pakistan and China and the high profile of China economic corridor project was all set to bring a dramatic economic uplift between the two countries and in the region as well. She said that economic activity at full pace was very much required to eliminate poverty and to ensure lasting peace and development in this part of the world.

To a question about Chinese leadership's project of Silk Road Economic Belt or One Road - One Belt, she said that it was a proof of far sightedness and great vision of the Chinese leadership with regard to economic uplift and regarded it as a step of enhancing relations through added trade on part of Chinese leaders/She expressed that the Silk Road Economic Belt project would bring about revolutionary economic changes in the region as well as across the globe. “We take immense pride in our exemplary friendship with China and thus, we are sure that Pakistan would be among the top beneficiaries of the positive outcomes of Silk Road Economic Belt project,” asserted Tasnim Aslam .To another question she said that people of Pakistan were deeply in love with people of China and that is why Chinese investors, workers and professionals were very much welcomed by the people of Pakistan in every walk of life. She said that since the real force behind Pakistan, China relations were the peoples from both the countries ,therefore, there were never any obstacles in the line of strong growth of ties. She said that Pakistan was just like another part of the home for Chinese nationals and apart from government it was over 180 million people of Pakistan that were guarding the Chinese nationals in Pakistan and ensuring their safety and security day and night. “Enemy

Media Friendship Association and Editor-in-Chief of The Daily Mail Mr. Makhdoom Babar, in his exclusive interview to the team of The Daily Mail, Islamabad and People’s Daily, Beijing said that Pak-China ties were beyond merely friendship as people from both nations were actually locked in a bond of love.

"Pakistani nation has friendship with a very large number of nations across the world but people of Pakistan and people of China are having a relation of deep love which is simply unique", said Makhdoom Babar.

Makhdoom said that he and rest of the Pakistani Editors were having a lot of hopes of the beginning of a new era of PakChina economic cooperation with the upcoming visit of Chinese President Xi Jinping to Pakistan which was temporarily postponed and was being re-scheduled by Islamabad and Beijing. He said a lot of Chinese investment in a variety of sector and especially in the energy sector was set to take place in President Xi's upcoming Pakistan visit while a number of follow up visits by a host of Chinese investors were also in the pipeline. "Both the Pakistani and Chinese leaders have come up with a great vision to enhance economy in the region. If Pakistani leadership has shown a tremendous vision in this regard by announcing projects like Pak-China Economic Corridor, the Chinese leaders have come up with a greater vision of launching the Silk Road Economic Belt and I very seriously believe that both the Pak-China Economic Corridor and Silk Road Economic Belt are the projects that will bring miraculous economic turnaround not in China and Pakistan but in the entire region," said Makhdoom Babar.

To another question, he said that the Chinese leadership's vision of Silk Road Economic Belt is set to put China in a very responsible and influential position in the region with regard to economic affairs and the vision of the Chinese leaders of introducing a sustainable economy in the entire region would be very comfortably

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HAIRC MAn of Pak-China

P-II

Pak-China Economic Pak-China economic ties to benefit more Corridor project to people: Sun Weidong hit new marks: Ahsan From Page I

From Page 1 visit of Chinese president in near future.” People of Pakistan appreciate the Chinese leadership for standing with Pakistan at a time when Pakistan is facing serious energy challenges, he said.

Pakistan, a market of nearly 200 million, is an important investment destination which offers very attractive opportunities for international investors, he added.

To a question he said that all the investment that the Chinese President would be bringing to Pakistan during his rescheduled visit in near future, would be hundred percent investment and by no means a soft or hard loans.

The Minister highly appreciated the efforts of The Daily Mail, Pakistan and People’s Daily, China for professional collaboration to highlight Pak-China economic potential and urged for even more cooperation between Pakistani and Chinese media organizations as well as individual journalists for the cause of promoting Pak-China relations and enhancing people to people contacts. ( Du Haitao Wang Jue Yang Xun Xu Wei of People’s Daily, China also contributed to this article)

One Belt and One Road is an amazing concept: Sarwar

From Page I internationalizing their business if they start the same from Pakistan. I would suggest that even the small vendors like the manufacturers of solar energy panels at the grassroots level should also shift to Pakistan and launch independent or Joint Ventures with local companies,” stressed Governor Sarwar.

Governor Punjab, while highlighting the role of both Pakistani and Chinese media to enhance mutual cooperation for bilateral benefits and for the promotion of Pakistan-China Economic projects, deeply admire the amazing step of People’s Daily China and The Daily Mail, Pakistan for initiating a joint professional project in this direction. He highly admired the efforts of the Editor-inChief of the Daily Mail and Chairman of Pakistan-China Friendship Association Mr. Makhdoom Babar for enhancing and promoting the media ties between the two exemplary friendly countries.

(Du Haitao Wang Jue Yang Xun Xu Wei of People’s Daily, China also contributed to this article)

Joint security must for mega economic projects: DM Chief From Page I transpired via this project.

Responding to another question, Editor-in-Chief of The Daily Mail and Chairman of Pak-China Media Friendship Association said that both Pakistani and Chinese media had a very great role to play in success of Pak-China Economic Corridor and Silk Route Economic Belt and to enhance people-to-people contact between Chinese and Pakistani people. He said that in this era of information, media has emerged as the basic and the most essential tool for materializing visions and ideas of leaders in all parts of the world and in case of Pakistan and China, media persons and media organizations had a great role to play for turning the dreams of the people and the leaders of both nations into realities. "Media has to be a beacon to identify the areas of investment and cooperation for both the Chinese and Pakistani investors.

It is the media that has to bring people of both countries closer to each other and this closeness will result into understating each other more effectively which will ultimately result into maximizing the economic activates and trade. I am sure that with a deeper media participation, the ideas and visions of both Pakistani and Chinese leaders would be transformed into realities with all the possible effectiveness,' asserted Makhdoom Babar. He urged

upon People's Daily to join The

many fields, especially in the

advancement, and try to implement the well-prepared projects on time. This will promote the traditional friendship and practical cooperation between China and Pakistan”. (Mr.Yang Xun is Chief Correspondent at Pakistan Bureau of People’s Daily, China)

Pakistan anxiously awaits President Xi's visit: Spokesperson

Gwadar Port to take Pak-China economies to new heights

rent jobs deficit among youth to promote anti-state activities.

After Gwadar port was handed over to China and huge investment was injected subse-

thus making a mere 3500 kilometer road for transport to China. The logistical benefits China will receive are many.

Gwadar will also cut down the port congestion in the Arabian Sea and Strait of Hormuz. At present, ships have to wait for days to get a berth. Once completed, the Gwadar port will rank among the world’s largest deep-sea ports.

Gwadar Port will also bring in a very healthy professional and commercial competition with the developing Chahbahar port of Iran which is merely 72 kilometres away from the Gwadar port, where India has also invested heavily in developing infrastructure to counter

quently, Iran also unveiled its own plans for setting up the world’s largest oil refinery there, with a production capacity of 400,000 barrels per day at the cost of $8 billion. It also expressed interest in establishing power plants at the port.

This oil refinery project, if initiated and set on track, could not only have met Pakistan’s oil needs but could also have provided surplus for exports to China.

Presently, China gets 50 percent of its oil from the Middle East. It makes for a 10,000 kilometer long road for China, from Dubai to Shanghai for oil refinery and then Urumqi. Whereas, if an oil refinery is established at Gwadar, it will provide it with the shortest oil transport road for from Dubai to Gwadar and then Urumqi,

Gwadar and create their alternate land road and corridor to and from CARs’ natural resources and businesses.

Though factually-speaking, Gwadar port is a much bigger project than Chahbahar and once fully developed will become the world’s largest deep sea-port.

Pakistan is fighting its biggest battle yet for survival in the region, with a struggling, yet reviving economy and multiple enemies. It is expected to emerge as victorious in the near future, hopefully, and set its place as a powerful economical hub over the next 20 years or so.

As soon as Gwadar port’s construction is completed and regular operations are initiated, Pakistan will emerge on the world map as a major economy in the region.

From Page I of China is considered by both the Pakistani government the people of Pakistan as the enemy of 180 million people in Pakistan, so therefore, there should be no security concerns for Chinese investors, businessmen ,professionals and other migrant workers. Every Chinese is treated as a VIP by the Pakistani nation,” she said. Tasnim Aslam said that with such an amazing atmosphere available for Chinese nationals in Pakistan there was every likelihood that not only Chinese economic peasants will grow tremendously but the situation also indicates that Pakistan chapter will emerge as a big success in China's Silk Route Economic Belt project.

To a question by The Daily Mail at the occasion the Spokesperson of the Foreign Office said that Pakistan and China have always been together against separatism , terrorism and extremism and enjoy similar thoughts and vision on these issues. She said that both Pakistan and China have been holding joint defense and security exercises and hold close intelligence sharing to address such issues and that was why Pakistani security forces always took rapid and merciless steps against the elements endangering China's security from any part of the Country at every level. To another question by The Daily Mail FO Spokesperson said that Pakistan regards Shanghai Cooperation Organization (SCO) as an august and very effective regional forum and that was why Islamabad continued to play a very active role in SCO and it was expected that within due course of time Pakistan will get a permanent SCO membership.

Tasnim Aslam highly appreciated the glowing media cooperation between Pakistan and China and lauded The Daily Mail's efforts in this regard. She said that the current visit of The People's Daily delegation to Pakistan that was jointly organized and coordinated by The Daily Mail Islamabad was a solid proof of how seriously the media organization from both the countries

had started actively and effectively participating in the cause of promoting and enhancing Pakistan China relations and increasing people to people contacts through media endeavors.

In the end, The People's Daily delegation also generously acknowledged the efforts of The Daily Mail for the success of the delegation's visit to Pakistan. ( Du Haitao Wang Jue Yang Xun Xu Wei of People’s Daily, China also contributed to this article)

By mahnoor makhdoom

G

WADAR is strategically located on the western end of Balochistan coast, opposite to the Gulf of Oman which is an important road for oil tankers bound for Japan and Western countries. The road through Gwadar to Central Asia is the most economical, with a distance of only 1400 kilometers. Since the outflow of goods from western China and Central Asia will reach Gwadar and pass through this overland trade road, Pakistan could earn millions of dollars a year in terms of port and cargo handling charges and also as freight charges for the import of cargoes and export of material goods.

The Gwadar port is important not only for Pakistan, but also for China, the Central Asian Republics (CARs) and the entire region as a whole. The port provides China with a powerful strategic foothold in the Arabian Sea and the Indian Ocean also. It will also place the Pakistan navy in a very strong position and will help to further strengthen its capabilities. The port will be a corridor for the billions worth of trade to and from its docks.

It is expected to generate at least two million jobs for the deprived people of Balochistan.

Of the planned Chinese investment in Gwadar port, Balochistan has a share of 38 percent: for infrastructure development, creating jobs for the people of Balochistan and putting an end to elements which exploit the cur-

Pak-China Economic Corridor – a game changer in Making

E

Daily Mail in joint projects to enhance people to people contacts. He termed Pakistani and Chinese media as the symbols of success for Pak-China economic cooperation To a question, Makhdoom Babar said that both Pakistan and China should form a joint intelligence mechanism to secure the bilateral economic projects as the enemies of PakChina friendship have always been targeting such projects not only to disturb relations but also to dent the economic cooperation between the 2 sides. Makhdoom also called for a very effective joint Customs intelligence network to encourage smuggling as the trade between Pakistan and China was suffering a lot due almost free movement of smugglers.

To another question, he said that although China has been assisting Pakistan in

economy and defense sectors, yet there was a need of a greater cooperation in the directions of energy sector and also in the global diplomacy.

He said that there was a great need in Pakistan from Chinese investor to invest in the energy sector and especially to introduce the solar energy at the grassroots levels while he expressed his desire of introduction of high quality electronic energy vehicles in Pakistan and suggested Chinese companies should introduce these cars in Pakistani market through leasing process via local Pakistani banks.

It is worth mentioning here that People's Daily Beijing and The Daily Mail Islamabad are bonded by an agreement of professional collaboration since 2006. (Uzma Zafar and Asghar Ali Mubarak of The Daily Mail also contributed to this article)

COnOMIC corridor is not only the road to economic prosperity of Pakistan, it can be termed as future of the world. It is estimated that about 3 billion people from China, South Asia and Central Asia, would be benefited from the economic corridor. It has the potential to empower half of the world’s population living in Asia, by developing special trade roads between China and Pakistan. Economic Corridor is the most important agreement signed between Pakistan and China till now.

Pakistan’s prosperity is no more a longer journey as the current leadership is working diligently on such projects whose outcomes would be visible and bright in a shorter period of time.

China-Pakistan Economic Corridor is a development programme to connect Gawadar Port in southern Pakistan to China’s northwestern region of Xinjiang via highways, railways and pipelines to transport oil and gas. Chinese Premier li keqiang was among the first advocates of the project. Chinese President Xi Jinping, former Pakistani President Asif Ali Zardari and Pakistan Prime Minister nawaz Sharif have become strong supporters of the project.

The corridor, after completion, will serve as a primary gateway to trade among China, Middle East and Africa through Pakistan. Particularly, the oil from the Middle East could be offloaded at Gawadar, which is located just outside the mouth of the Persian

Gulf. The oil would be transported to China through the Baluchistan province in Pakistan. Such a link would vastly cut the 12,000-kilometres road that Mideast oil supplies must now take to reach Chinese ports.

The government endeavors regarding Economic corridor should not be taken as Chauvinism. This is not the matter of any political party. It is the case of Pakistan’s economic prosperity, which would get a double- triple boost if the Economic Corridor project is implemented in its true spirit. It is worth mentioning that, this year Federal government had announced six development schemes costing Rs130 billion under the Pakistan-China Economic Corridor, marking the beginning of a process that will transform the country into a transit hub for the second largest economy of

the world. The reason behind this vital importance is that 60 per cent of oil is being imported from gulf countries that reaches China after covering the distance of 16,000 kMs, and after the completion of Gawadar port project, the distance will reduce to 2500 kMs only which is, from all aspects, more safe and feasible.

Analysts proclaim that, the proposal, when implemented, ‘will re-open the economic artery blocked for years, realize the interconnection in transport, trade, investment and finance and build a new Euro-Asian economic roadmap benefitting countries along the Silk Road and even more.” There is no dearth of energy and recourses in Central Asia which would be available to others in the region, which is likely to become the biggest market in the world

and would contribute to regional stability and prosperity.

Recently China has commissioned a preliminary research study to construct an international rail link connecting its province Xingjian’s border to Pakistan. According to Chinese officials, this new rail link, which runs through the Pamir Plateau and karakorum mountains, will be one of the hardest to build.

Pakistan is considering to provide shortest access and transit corridor for kashghar goods. Apart from karachi and Port Qasim sea ports, Gawadar developed in cooperation with China will provide an additional gateway and for this, China is developing in its west “kashghar’s Special Economic Zone”, which would link China further on the western side with Central Asia and on its south with South Asia.

China has planned numerous mega projects to be started at Gawadar that would be tremendously beneficial for both countries. In this regard China is planning to replicate the model of Shanghai free Trade Zone at the sideways of Economic Corridor. Remarkably, Under the Early Harvest Program, China had planned to pump $50’billion up to 2017 into a host of projects in Gawadar including coal, solar and wind energy units enabling Gawadar to create a nexus between Pakistan, Iran, China and Central Asian States that would ultimately generate billions of dollars in revenues of Pakistan’s kitty besides creating endurable job opportunities.

P-III

Lessons to be learnt from Pak-China China’s Economic policies Economic Relations

P

AkISTAn was the third noncommunist and the first Muslim country to recognize China in 1950. The diplomatic relations between China and Pakistan were established in May 1951.The friendship between China and Pakistan is all weather and everlasting. The relationship is deeper than the oceans and higher than the mountains. The bolstering relations of China and Pakistan have become a model for a friendly co-existence of developing neighboring countries. China and Pakistan are enjoying strong bilateral cultural, economic and military relationships. Both of the countries are striving together for promoting peace, stability and economic prosperity in Asia. In the past, China-Pakistan ties were mainly of military and strategic importance.

But now the economic relations of China-Pakistan are strengthening specially after the conclusion of Free Trade Agreement (FTA) in 2007. In this paper we would focus upon the economic relations of China and Pakistan. We also used the granger causality test to understand the relationship between Chinese Inward FDI and Economic Growth.

Growth in China caused inward FDI. Furthermore, it has been discussed that what Pakistan can learn from the miraculous economic progress and prosperity of China?

The Islamic Republic of Pakistan came into being on 14th of August, 1947 and the People’s Republic of China on 1st of October; 1949. Pakistan recognized China in 1950. The diplomatic relations between China and Pakistan were established in May 1951. In 1961, the relations were further strengthened when Pakistan voted for a bill concerning the restoration of China’s legitimate rights in the Un. In 1963, China-Pakistan signed the agreement for settling the border issues and for the construction linking China’s Xinjian-Uygur autonomous region with the northern areas of Pakistan. Chinese diplomatic assistance during the Indo-Pakistan War of 1965, further solidified the China-Pakistan relationships. Afterwards the state visits by different leaders of both sides kept on cementing the mutual ties. Particularly, in 1996, a state visit by Chinese President Jiang Zemin to Pakistan helped in establishing a comprehensive friendship. In 2005, China and Pakistan signed a landmark Treaty of Friendship and Co-operation.

Close China-Pakistan ties have been

istan Free Trade Agreement is supposed to be a stepping stone in augmenting the economic relations between China and Pakistan.

China-Pakistan Free Trade Agreement was signed on 24 november 2006 and entered into force on 1 July 2007.

The Agreement comprised of phased and gradual program of elimination of tariff on substantially all bilateral trade.

Through bilateral efforts, the bilateral trade of goods between China and Pakistan is expected to reach 15 Billion US Dollars in 2011. Pakistan’s trade deficit with China is expanding. Pakistan’s economy is seriously struggling at the moment. In this paper we would also discuss that what Pakistan can learn from the economic development of China since 1978.

After more than three decades of opening up China has achieved remarkable economic growth. From 1980-2005, the annual GDP growth rate of China averaged 9.4%.World Bank projected Chinese GDP growth of 8.5 percent for 2011. In 2009 The Exports of China were $1.204 trillion. The exports commodities of China are electrical and other machinery, including data processing equipment, apparel, textiles, iron and steel, optical and medical equipment. In 2009 the Imports of China were $954.3 billion.

The Imports commodities of China are electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicals. The labor force of China is 813.5 million (2009 Estimated). The labor force by occupation for agriculture is 39.5%, industry: 27.2% and services: 33.2% (2008 Estimated).

China is the largest and third largest country in the world in terms of population and area respectively. Its population is1.3 billion and its area is 9.6 million square kilometers.

In 1978, the Chinese government decided to move away from Soviet-style economic policies and to gradually reform the economy towards free market principles. As the architecture of Chinese economic reforms Deng Xiaoping said “It doesn’t matter if the cat is black or white as long as it catches mice”. In 2008, foreign direct investment (FDI) in China totaled $108312 million, making it the hottest destination for FDI. China opened its borders for foreign firms in 1979 with the creation of Special Economic Zones in Guangdong and Fujian Provinces with an objective to attain high-tech technology from the advanced

mainly of military and strategic importance. Pakistan always stands up to India against his hegemonies over the region, thus fulfilling the key objective of China’s South Asia policy. As long as Pakistan and India are preoccupied with one another China would be at peace on the Tibetan borders. China wants to focus more and more upon economic progress and prosperity by avoiding the confrontations with India.

A strong Pakistan is in the interest of China as it ensures that Indian dreams of regional lordship will not go unchallenged China-Pakistan political relations are extremely deep but economic relations are shallow. China-Pakistan “all-weather” friendship requires the strengthening of the bilateral economic relationship. In this regard China-Pak-

countries for improving the domestic capabilities. SEZs offered tremendous advantages to foreign investors, including export and import duties exemptions for equipment and instruments (Chen, 1997b). Chinese FDI is ever increasing and mushrooming at tremendous pace. It is obvious from graph that FDI inflow in 2005 was 74406 million and 108312 in 2008. The reasons of high FDI in China are mainly the availability of cheap labor and the domestic market of 1.3 billion people. Further the provision of excellent infrastructure by China is also a one of the reason of high FDI, it can be said that growth in China is caused due to inflow of FDI. Pakistan is the sixth-largest population with an estimated population of 180 million. Despite a weak economic base

at the time of independence; Pakistan’s growth record is quite acceptable. On average the growth rate of GDP has exceeded 4 percent. In 2009, economy grew by a 4.1 percent. The agriculture contributes for 21 percent of GDP and is the second largest sector of Pakistan’s economy. It also employs 45 percent of the country’s total labor force. Manufacturing accounts for 18.5 percent of GDP and is the third largest sector of economy. Pakistan is 4th largest producer of cotton. In terms of foreign currency earnings and job creation, the textile and clothing industry has been the main driver of the economy.

It is important to note that Pakistan’s industrial base at the time of independence was almost non-existent. The manufacturing sector contributed only 1.83 percent of GDP. keeping this thing in context, it is praiseworthy that Pakistan has made major strides in the industrialization process since its creation. For the period July to April 2010, Pakistan received US$ 1.8 billion as a FDI as compared to US$ 3.2 billion in the same period of 2009.This represents a decline of 45 percent. The low FDI in Pakistan is attributed to two main factors. Firstly, poor law and order situation in the country especially in the form of terrorism events over last 10 years. Secondly, the lack of better infrastructure is also a hurdle in attracting the foreign investors. Comparatively China is the success example of FDI attraction because it provided better infrastructure and world’s best law and order environment to the investors. In 2009, the exports and imports of Pakistan were US$ 18.44 billion and US$ 28.47 billion respectively.

Pakistan is the world’s sixth most

between China and Pakistan started to begin in november, 2003 with the signing of bilateral Preferential Trade Agreement (PTA). Thereafter, a Joint Feasibility Study for a bilateral FTA was conducted and simultaneously an Agreement on an Early Harvest Program (EHP) of the FTA was also negotiated in 2005 as explained by Commerce Ministry of China and Pakistan.

Meanwhile negotiations on a comprehensive bilateral Free Trade Agreement continued. In spite of all the difficulties, the negotiations were completed in five Rounds of discussions on 11th november, 2006 at Beijing.

The China-Pakistan Free Trade Agreement covers Trade in both i.e.

Goods as well as Investment. Pakistan was the first country which had the component of Investment in the FTAs being initiated and implemented by China up to that time. The Agreement was notified to the WTO on 18 January 2008 under Article XXIV: 7(a) of GATT 1994. For both the countries tariff reductions or eliminations for the first phase have been completed. The Parties agreed to review and modify the tariff reduction modalities every five years.

The FTA between China and Pakistan would open new avenues and vistas for the investors of both the countries.

The bilateral FTA will help the two countries to fully take advantage of each other’s comparative advantages and tap the cooperation potentials up to the maximum. Pakistan will be welcoming Chinese Foreign Direct Investment in canning of fruits, vegetables, seafood and livestock products, electrical and nonelectrical machinery, electronics, automobiles, textile and engineering. Pakistani firms also need to fully exploit the

populous country. According to Economic Survey of Pakistan 2010, the estimated population of Pakistan is 169.9 million as at end June 2009.The annual population growth rate of Pakistan is 2.05 percent. It is expected that by 2050, Pakistan would become the fourth largest nation. With a median age of around 20 years, Pakistan is a young country. Approximately 104 million Pakistanis are below the age of 30 years.

Total working age population is 121.01 million. The size of the employed labor force is estimated at 52.71 million as of 2008-09. About 36% of Pakistani population is residing in urban centers. Since 1950, it is stated that Pakistan’s urban population has expanded over sevenfold.

The agriculture is the second largest sector of Pakistan’s economy. It contributes for 21 percent of GDP and absorbs 45 percent of the country’s total labor force. Around 62 percent of the Pakistani population is residing in rural areas and relies upon agriculture either directly or indirectly for their livelihood. “kharif” and the “Rabi” are the two main crop seasons of Pakistan. The sowing season of “kharif” begins in AprilJune and harvesting during OctoberDecember. The sowing season of “Rabi” begins in OctoberDecember and harvesting during April-May. Rice, sugarcane, cotton, maize, jawar and bajra are “kharif” crops. Wheat, gram, tobacco, barley and mustard are “Rabi” crops.

The four major crops i.e. wheat, rice, cotton and sugarcane on average account for 33.1 percent to the value added in overall agriculture and 7.1 percent to GDP. Pakistan is 4th largest producer of cotton and 3rd largest consumer of cotton. In terms offoreign currency earnings and job creation, the textile and clothing industry has been the main driver of the economy. There is no alternative industry or service sector. It will continue to be an important engine for economic growth of Pakistan. Due to shortfall in Chinese crop, the foreign demand for Pakistan’s cotton yarn has risen exceptionally. It is important to mention here that China is the biggest consumer and producer of cotton in the world. China procured huge quantities of yarn from Pakistan, although China is the biggest competitor of Pakistan in the world market.

The real economic engagements

opportunities being presented by China’s opening-up policy. Therefore, China and Pakistan should actively promote investment facilitation and explore new forms of investment cooperation.

Chinese economic development is attributed to the adoption of Flying Geese Model. China attracted a large amount of FDI by switching over from import-substitution strategy to exportpromotion policy. Culturally speaking in the Chinese society the symbol of flying geese “Λ” signifies an “order” based on leadership and collective action within a nation-state. Pakistan should also give importance to export promotion strategy over import substitution policy for augmenting the economic growth. Pakistan can become a fifth-tier of flying geese model. Due to the rising wage costs Japanese firms shifted the labor-intensive stages of the production to newly Industrialized Countries i.e. South korea, Taiwan, Singapore and Hong kong. After these nIEs the turn was of main ASEAn countries i.e. Philippines, Indonesia, Thailand and Malaysia. now, the China and Vietnam are trying to catch up with the West as a part of a regional hierarchy. It is very important that Pakistan should follow the flying geese model. The embarking upon this model would ensure the export-led growth of Pakistani economy.

The diplomatic relations between China and Pakistan were established in May 1951.

Since then, China and Pakistan experienced very strong political and military relations. The China-Pakistan economic relations started to bolster after the conclusion of Free Trade Agreement in 2007. ChinaPakistan Free Trade Agreement is appearing to be a stepping stone in augmenting the economic relations between China and Pakistan. In 1978, China switched over to export promotion policy from import-substitution strategy.

China became the fourth-tier of the flying geese model and attracted a tremendous amount of FDI. Only in 2011, China received worth of US$ 106 billion as FDI. Pakistan can become a fifth-tier in the hierarchical structure of the flying geese model by following the open-door policy just like that of China.

Chinese model can serve Pakistan as an opening door for the export-led growth.

– (Courtesy COMSATS)

I

n the continuation of traditional friendship and a strong association of Pakistani leadership with the People’s Republic of China, Prime Minister Pakistan visited China upon assumption of power in July 2013. This was indeed a key visit since Pakistan is passing through a critical phase of its history; where domestically it is facing the challenges of terrorism and externally being blamed for doing less in the so called war on terror. Earlier to this visit the Chinese Prime Minister, Mr li visited Pakistan in May, 2013, soon after the General Elections and wished for further promotion of bilateral relationship.

The most significant agreement signed between Pakistan and China during the visit of Prime Minister of Pakistan was the PakChina Economic Corridor.

Pakistan has been emphasizing on significance and practicability of this project since 2002. China however had its own priorities and took some time in analyzing it. The new Chinese leadership, however, considered this Pakistani proposal practical as well as beneficial for its economic benefits. During the visit of Chinese Premier Mr li kegiang supported this Pakistani proposal of ‘economic corridor’ between Pakistan and China. The project once materialized, would be the shortest possible route connecting Pakistan and China through karakorum Mountains.

The karakorum Highway (kkH) was constructed by both countries in 1970-80s as a joint venture. Today, both countries considered that, this strategic linkage has not been used to its true potentials, thus there is a growing realization that, this overland shortest communication network should be upgraded and used strategically, for the benefit of both countries. Besides boosting the trade and commerce, the corridor will economically upgrade the otherwise poor bordering regions of both countries; Xinjiang autonomous region of China and Gilgit-Baltistan of Pakistan.

If exploited properly, Pak-China Economic Corridor would greatly promote commerce and trade between these two countries. Indeed, the proposed economic and trade corridor speak of a long-term set of relationship between both countries. For the China, this corridor would become the shortest possible route for the overland transportation of its energy from the energy rich regions of West and Central Asia, through the Gwadar Port. The Gwadar Port developed by China will now be operated by it after developing the communication network, which would link the port with all major cities in the area. Besides, the Chinese energy transportation routes through sea are rapidly getting under threat by its regional and international rivals, along Malacca Strait and South China Sea. This overland corridor would be the best alternative for the Chinese energy transportation and economic uplift of its western under developed region, ignored so far by this Asia giant, owing to its ethnic makeup and growing insurgent trends.

During his visit to Pakistan on May 23, 2013, Chinese Prime Minister Mr li kegiang, made a very significant statement once he stated that, “China will give you (Pakistan) every support and assistance and by helping you, we have to help ourselves.” This indeed is the recognition of such a reality, which very less scholars and strategists have debated while describing the strategic basis of Sino-Pak relationship. In fact, during the formative years of People’s Republic of China (PRC), Pakistan was instrumental to global recognition of China, where, Communist won over the nationalists and world community was more biased towards later. So much so, Republic of China (Taiwan) was allowed to maintain the status of the successor state of primitive China until October 1971. Pakistan along with some other sympathizers of China had to lobby a lot in the Western world and elsewhere among the Muslim world for giving PRC, the actual status of successor state of old China, being the mainland. later, PRC was given the status of permanent members of United nations Security Council in november 1971. It was nixon era in United States and Pakistan undertook a secret diplomacy for bridging the wide gulf between US and PRC. This new era of bilateral relationship brought these two countries closer together in the global politics, thus paving the way for Chine permanent membership of UnSC. ROC is out of Un membership since 1971 and we believe it to be united back to its parent country; People’s Republic of China. Upon detonation of its nuclear device in 1964, China becomes part of declared nuclear states and later a signatory of nPT in 1968.

Then after Indo-China War-1962, China remained in a state of constant threat, especially in the wake of US and Western military and financial support to India. Since India was a rival state of Pakistan, therefore major focus of Pakistani defence has been towards India. In a way, India was militarily engaged by Pakistan throughout, practically freeing China from an active Indian threat or aggression. This does not mean that Pakistan has been fighting with India as a proxy to China; however, Indo-Pak military engagement throughout the history has minimized the active military threats for China. Being a Permanent member of the UnSC, China has been supporting the Pakistani view point at the international level. Otherwise, there has been unanimity in the views of Pakistan and China on most of the regional and global issues. China considers kashmir issue as the main hurdle in the regional prosperity of South Asia, especially; Pakistan and India. It has been emphasizing both countries for the resolution of the issue as per the wishes of its people and in accordance with the Un resolutions.

On the issue of terrorism, Pakistan and China have similar views. Both consider this menace as the worst enemies of their people and countries. Pakistan has a clear position that, East Turkistan Islamic Movement (ETIM) is a terrorist organization and China has a clear stance that TTP is terrorist organization, being financed and harboured by anti-Pakistan forces. China has always valued the Pakistani contributions during the war against terror. Indeed, China “respects the anti-terrorism strategy developed and implemented by the Pakistani side in light of its own conditions. …China expresses its appreciation and continued willingness to help Pakistan build up counter-terrorism capacity.” China even advised the global community not to have double standards and discriminatory approach in the recognition of Pakistani sacrifices during this global campaign. Being the immediate neighbours, Pakistan and China desire a stable and peaceful Afghanistan in the post 2014 scenario, once nATO and US forces leave Afghanistan. China and Pakistan support for the ‘Afghan-owned and Afghan-led’ peace and reconciliation process, and would like the regional countries and the international community to help Afghanistan achieve peace, stability and security.”

Besides having cooperation in many developmental projects in Pakistan, China is providing all out assistance to Pakistan in the field of ‘civil nuclear technology. Prime Minister nawaz Sharif inaugurated two Chinese sponsored nuclear power projects of 1100 MW each in karachi on november 26, 2013. Earlier, China has helped Pakistan in establishing four civil nuclear power plants (including two under construction) at Chasma. China rejected the concern of US and its allies in this Pak-China civil nuclear cooperation. – (Courtesy Nation)

P-IV

Pak-China composite media collaborations

Agreement signing of composite professional collaboration between The Daily Mail and People’s Daily.

By Uzma zafar

W

HIlE Prime Minister nawaz Sharif is embarking upon a high profile visit to China to enhance and promote relations between Islamic republic of Pakistan and People’s Republic of China, the journalists from both countries are also hectically engaged in composite media collaborations to promote and energize the ties through joint media ventures and a recent example in this regard is a joint media collaboration between China’s top newspaper People’s Daily and The Daily Mail, Pakistan to bring out Special Edition in their respective dailies over the Economic collaboration between Pakistan and China under the title of One Road and One belt, a new concept of Chinese leadership to enhance trade activity in the region.

Some 65 years back, when Pakistan and China were signing the papers to establish formal diplomatic relations, the media, not only in these countries, but also all over the world was, by no means, as fast and as strong tool of information as it is today. With the passage of time, media continued to flourish and attain more and more mature status in both the countries.

There is no doubt that Pakistani and Chinese media, both had been playing some role in bringing the people of the two nations closer, yet there was always an acute need of a better and stronger interaction amongst the media personnel from both the countries. Though Chinese publications like China Pictorial (Cheen Baa Tassveer) did come as effective periodicals to bring knowledge about people of China to the people of Pakistan but the need of enhanced media endeavors for enhancing people to people contact continued to increase with rapidly growing importance of media.

Today there are hundreds of newspapers and magazines in Pakistan and the number is far higher in China. Similarly there has been a mushroom growth of electronic media organizations in both the countries, owing to the wonderful media policies adopted

by Islamabad and Beijing. nevertheless, this media development enhanced the onus of the media in both the countries to play more effective and larger role for the promotion of bilateral ties and for the promotion and protection of the Pak-China Friendship. Media personnel from both the countries have been visiting Pakistan and China as part of official delegations, yet there was no pure professional interaction amongst them at the organizational level.

It was only in year 2005 when Mr. Makhdoom Babar, President and Editor-in-Chief of The Daily Mail came up with a new vision for the promotion of media relations between Pakistan and China. To materialize his vision and ideas for serving the cause of Pak-China Friendship through joint media endeavors, Mr. Makhdoom came up with different strategies to form a professional collaboration between Chinese and Pakistani journalists and media organizations.

First step in this regard was initiated when The Daily Mail signed a breakthrough accord of professional collaboration with China's top ranking English Daily, China Daily in 2005. This was just the first step in the direction of forging a composite professional collaboration amongst Pakistani and Chinese media. Soon after the signing of the agreement with China Daily, The Daily Mail introduced a new segment in it's daily publications by dedicating one full page to news about

The Daily Mail and Beijing Review signing the agreement of professional collaboration and cooperation.

China everyday and the same is still in practice with a goal of increasing it to two and ultimately to four pages every day.

Getting encouraged by the experiment of collaboration with China Daily, President and Editor-in-Chief of The Daily Mail took another initiative and formed Pakistan-China Media Friendship Association the same year. Pak-China Media Friendship Association is a body, formed with the aim to provide journalists of both countries with frequent opportunities to have professional interactions and both formal and informal meetings and other activities. Soon after its inception, the Association gained an immense response from the journalists of both the countries with a rapidly increasing number of members. Today, the number of registered members of Pak-China Media friendship Association from both the countries is over 250.

As Chairman of Pak-China Media Friendship Association, President of The Daily Mail held its first function at Beijing in February 2006 with Ambassador of Pakistan to China; His Excellency Mr.Salman Bashir as the Chief Guest. This was the first ever function of its kind as before this, no media organization could organize such an event in either country. During the ceremony, certificates of excellence were distributed amongst the Chinese journalists and members of the association in recognition of their respective professional achievements and for their services to the cause of promotion of Pak-China Friendship as well for maintaining of high standards of professionalism.

A simple yet impressive ceremony for the same purpose was also held at Shanghai during the same period while a function for the same purpose is scheduled to be held at Islamabad soon.

In the next phase, The Daily Mail signed an agreement of professional collaboration with China's number one Chinese language newspaper People's Daily.

This agreement also covers the exchange of personnel from both the organizations under a joint study programme for enhancing the professional capabilities of the journalists from both the countries and also with aim of providing them with ample opportunities for learning more and more about socio-economic and geo-political as well cultural scenarios of each other's country. Speaking at the occasion, Mr. Makhdoom vowed to take Pak-China, time tested and all-weather friendship to new horizons through improvised media endeavors. He also stressed on the need for joint efforts by Pakistani and Chinese journalists and media organizations for the promotion and protection of PakChina ties and for enhancing the people to people contacts amongst the peoples of both the countries. During his meeting with vice President of People's Daily, Mr. Makhdoom offered to publish and circulate four pages of People's Daily's overseas edition in Pakistan.

The offer was warmly welcomed and accepted and soon a small edition of People's Daily would be published and circulated along with The Daily Mail throughout Pakistan.

A similar agreement was signed with China's leading and most trusted English language weekly Beijing Review. The Daily Mail extended the same offer of publishing and circulating Beijing Review along with The Daily Mail on monthly basis, which

Professor Yu Jixin of The School of Journalism and Communication, Jinan University, Guangzhou, addressing a dinner of Pak-China Media Friendship Association in Islamabad.

was again welcomed and accepted. After the signing of the agreement, Mr.Makhdoom was also invited to deliver a lecture to the Editorial staff of Beijing Review over the topic of 'Role of Media for peace and harmony and challenges of contemporary scenarios'.

President of The Daily Mail, during his lecture, threw light on the importance of national interests and the difference between national interests and professional interests and also elaborated the interpretations of sensational journalism and substantial journalism.

A meeting was also held between President of The Daily Mail and President of leading Chinese magazine China's Talents Professor Wang Xiaopeng. Both discussed a host of issues of bilateral professional interests and agreed on a number of joint ventures, including the signing of agreements of professional collaboration and exchange of personnel. Professor Wang and Mr. Makhdoom also agreed on joint selection of talented people from both the countries and to honour them jointly every year.

The President of The Daily Mail also held detailed discussions with the officials of China Radio International (CRI) and reached a verbal MoU of signing agreement of professional collaboration between the two organizations. The Daily Mail and CRI (Urdu) also agreed on holding of joint quiz programmes and other competitions for the promotion of Pak-China Friendship.

The Daily Mail Chief also gave interview to various Chinese print and electronic media organizations and stressed the need for forging immense professional unity amongst Pakistani and Chinese media organizations and individual professionals for the promotion of Pak-China Friendship and for the mutual and bilateral interests of the two countries.

The Daily Mail's President and Chairman of PakChina Media Friendship Association Mr. Makhdoom Babar also held detailed parleys with officials of AllChina Journalists' Association, a body, having over 7,50,000 Chinese journalists as it's registered members. Officials of All-China Journalists' Association welcomed the formation of Pak-China Media Friendship Association. The Director General of All-China Journalists' Association Mr. Zhu Yinghua informed Mr.Makhdoom that there had been a lot of media exchanges between China and Pakistan from the platform of All-China Journalists' Association but this exchange programme was in a state of disruption for about past 20 years. He expressed the desire of resuming the programme of exchange of media delegations between Pakistan and China in collaboration with Pak-China Media Friendship Association. Chairman of Pak-China Media Friendship Association straightaway welcomed the idea and both parties agreed on the same. A formal agreement in this regard is likely to be signed soon.

Today is the world of media and it is full of a variety of challenges. However, through the media endeavors that The Daily Mail and Pak-China Media Friendship Association have initiated, it can easily be said that the journalists of both Pakistan and China are quite effectively preparing and gearing up to meet all such challenges. Through such efforts and initiatives, journalists from both the countries are getting poised to do for the promotion of Pak-China Friendship and to meet the prevailing global challenges that they or their predecessors could not do in the past 55 years. It can be said that these endeavors are sort of gifts to the people and particularly the journalists of both the countries by The Daily Mail on the event of commemoration of 55 years of Pakistan-China friendship; that is all-weather, time- tested and stronger than mountains and deeper than oceans.

Chairman Pak-China Media Friendship Association during the live interview at CRI Studios.

President of The Daily Mail Mr. Makhdoom Babar and President of China’s Talent Professor Wang Xiaopeng exchanging views.

Signing of agreement of professional collaboration between The Daily Mail and China Daily.

Editor-in-Chief of The Daily Mail discussing professional matters with Editor-in-Chief of China Daily on the sidelines of Asian Editors Conference held at Beijing in 2005.

Editor-in-Chief of The Daily Mail Mr. Makhdoom Babar and his team exchanging views with team of People’s Daily’s online section the PD Online in Beijing.