Pak-China Agreement on Consortium Formation for Economic Growth

ISLAMABAD: On Monday, the government declared that Pakistan and China have now agreed on the formation of a consortium of bilateral or multilateral partners to enhance economic growth, especially in the ML-1 railway project and the China-Pakistan Economic Corridor (CPEC).

Briefing on Pak-China agreement:

While talking at a news conference, the Planning and Development Minister Ahsan Iqbal gave the details of the recent meeting between Shehbaz Sharif and the Chinese President. He said, in the recent meeting, the two countries showed agreement to constitute a financing consortium.

He said that the consortium is essential for the Karachi-Peshawar Railway line. He also said that the financiers include the Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB).

Iqbal also said that China has always been a great support system for Pakistan, whether it is financial support or moral support. He assured that China will give finance to Pakistan not only for the ML-1 project but also for the Karakoram Highway.

He also informed the media that there are talks with multiple financiers. He is hoping that these negotiations will be finalised within this month. Iqbal also showed his anger at the last government. 

He said the project would have been completed if PTI had not destroyed the process, but unfortunately, the PTI government had completely ruined the process. That is why the project was delayed. 

Pakistan and China also agreed to develop and implement a four-year action plan between 2025-2029. He said, “China-Pakistan community with a shared future with stronger political trust, closer trade ties, deeper security cooperation, and stronger people-to-people links. Agriculture modernisation and industrial development would be prioritised under CPEC’s second phase, with space for third-party participation.”

He also informed that the next meeting of the Joint Cooperation Council of CPEC will be held on September 26 in Beijing. Iqbal said that the two countries are willing to advance Industrial Park Development. He also said that these action plans between both countries reflect leadership-level meeting plans that aim to strengthen strategic cooperation to enhance the economic growth in the country.

He also showed his assurance to China as a time-tested friend who never betrayed Pakistan in any circumstances. He said that with China, the country will see a bright future ahead. 

Now, both countries are ready to fully focus on the implementation of the Industrial Cooperation agreement to accelerate exports, and Chinese firms are encouraged to invest in Pakistani projects. 

Moreover, China also showed its full cooperation in crop cultivation, animal husbandry, aquaculture, and capacity building in seed technology and drip irrigation. Overall, the plan aligns with the Belt and Road Initiative with Pakistan’s 5E’s framework to implement large and small-scale livelihood projects to foster economic growth in the region.