![]() ![]() Growing U.S.-India security ties unite Beijing and Islamabad in concern over their common rival, New Delhi. At any rate, Pakistan’s powerful military has the final word on policy decisions regarding key partners, such as China.Ĭurrent geopolitics make a continued alliance between China and Pakistan inevitable. The previous government led by Imran Khan didn’t endear itself to China either, calling for a review of past CPEC agreements in the name of anti-corruption efforts. But then again, it has a rapport with Sharif’s family the current prime minister’s brother Nawaz Sharif also served as prime minister when CPEC was formally launched. On Thursday, Islamabad announced that the most recent round of talks with the International Monetary Fund had failed to produce an agreement to release new funds.Ĭhina may prefer to engage with a more stable government in Islamabad. Last month, inflation reached its highest level since 1975 its foreign reserves currently cover less than three weeks’ worth of imports. Last June, China authorized a new $2.3 billion loan at a discounted interest rate.Ĭhina’s own economic struggles mean that sustained support at this level is no guarantee, especially as Pakistan’s crisis continues to worsen. This shows Beijing is willing to try to ease Islamabad’s economic stress. Pakistan received nearly $22 billion in short-term loans from China between 2018 and last summer, most for balance of payments relief. Chinese loans keep flowing into Pakistan-although not all for infrastructure projects. However, it would be misguided to think that the China-Pakistan relationship is in serious trouble. After Sharif met Chinese President Xi Jinping in Beijing last November, a Chinese foreign ministry statement noted that Xi had “expressed his great concern about the safety of Chinese nationals in Pakistan.” A few recent attacks have targeted Chinese investments and nationals in Pakistan-including at a dental clinic in Karachi last September, a Confucius Institute in Karachi last April, and a luxury hotel in Baluchistan hosting a senior Chinese delegation in 2021. Some analysts have argued that Beijing views the current Pakistani government as too unstable to be a viable partner.Ĭhinese officials are also increasingly worried about security risks in Pakistan, which is experiencing a concerning uptick in terrorism. In the past, China-which hosted the event-might have stepped in to help Pakistan. On the diplomatic stage, observers noted last year that China didn’t oppose India’s move to exclude Pakistan from a high-level meeting on the sidelines of a virtual so-called BRICS summit that included other emerging economies. (Pakistan’s finance minister has claimed that China will roll over more than $4 billion in Pakistani debt, but Beijing has not confirmed this.)īut the infrastructure slowdown is just one sign of a potential setback in China-Pakistan ties. China hasn’t indicated if it will grant the request, even as it announced a two-year debt moratorium for Sri Lanka. When Sharif visited Beijing last November, he formally requested a rollover of $6.3 billion in debt. The slowing pace of CPEC projects stems in part from Pakistan’s ongoing economic crisis-it increasingly cannot afford infrastructure loans-as well as Beijing’s own economic slowdown. Although both sides have recently engaged in public rhetoric about injecting fresh momentum into CPEC, the reality on the ground is that Pakistan has been slow to complete infrastructure projects and China has been slow to fund new ones. Work on the new reactor began in 2016, shortly after the formal launch of the China-Pakistan Economic Corridor (CPEC), part of Beijing’s Belt and Road Initiative. ![]() But the reactor is one of few new Chinese-backed infrastructure projects Pakistan has completed in recent years, despite its long-standing cooperation with China. Construction of the $2.7 billion unit was funded by China as part of a project to refurbish the facility and strengthen Pakistan’s energy security. Pakistani Prime Minister Shehbaz Sharif unveiled a new Chinese-designed reactor at the Karachi Nuclear Power Plant last week. ![]()
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