Chinese companies have entered into several Memorandums of Understanding (MoUs) with their Pakistani counterparts, according to a report by Dawn. These agreements were finalized during the ‘Business Roundtable Conference’ held at the Pakistani Embassy in Beijing.
The MoUs target various sectors including textiles, technology, agriculture, and livestock. At the conference, 25 prominent Chinese firms expressed significant interest in investing in Pakistan across multiple areas such as agriculture, automobiles, pharmaceuticals, logistics, medical equipment, and technology.
Federal Minister for Board of Investment, Privatisation, and Communications, Abdul Aleem Khan, chaired the conference. Notable attendees included Anna Su, Country Director of the Hong Kong Business Group; Li Shuang, Mayor of Daming County; Chief Advisor Qin Linzheng; Deputy Mayor Sun Deshi; and Li Hui, Group President of Lianghao, along with Pakistan’s Ambassador to China, Khalil Hashmi, as reported by ARY News.
In a separate development, the International Monetary Fund (IMF) has approved a new $7 billion loan for Pakistan, which is facing financial challenges. During the United Nations General Assembly, Prime Minister Shehbaz Sharif stated that Pakistan had met all conditions set by the IMF, with assistance from China and Saudi Arabia, according to Al Jazeera.
Pakistan’s external debt recently exceeded $130 billion, with approximately 30% owed to China. The country must repay nearly $90 billion over the next three years, with the next significant payment due by December. As of July 11, Pakistan is the fifth-largest debtor to the IMF, owing $6.28 billion.
Earlier this month, Chinese President Xi Jinping met with Prime Minister Sharif at the Great Hall of the People in Beijing, where they discussed upgrading the China-Pakistan Economic Corridor (CPEC). The Chinese embassy released a statement emphasizing China’s commitment to strengthen cooperation with Pakistan, aiming to foster regional peace, stability, and development.
China also expressed readiness to align its Belt and Road Initiative with Pakistan’s development plans, focusing on sectors like agriculture, mining, and public wellbeing. The goal is to enhance the CPEC and drive sustainable economic growth.
Following the visit, Sharif addressed the media in Lahore, mentioning his request to Beijing for debt re-profiling. He noted that securing a five to seven-year repayment period could help reduce inflation and lower energy prices. When asked if there had been any response from China, the Prime Minister replied, “No… [our request] is under consideration,” expressing hope for a favorable reply.
