Economic Relationship

The economy is the soul of foreign policy so is the case here in Pak-China relations.
Pakistan and China signed a preferential trade agreement in 2003 where goods and
services started revolving around the two countries. With the passage of time, China
signed The free trade agreement (FTA) which was adapted in 2006. It was estimated
that the bilateral trade was estimated to hit $15 billion by 2011. One basic advantage of
signing of FTA was economic enhancement and its operationalization in October 2009
proved to be very economic-oriented outlook for Pakistan’s exports with China.  On the
other hand, Pakistani and Chinese banking sectors are cooperating for a long time.
Earlier, Bank of China was opened with two branches in 1951 but couldn’t succeeded.

Pakistani governmental banks such as National Bank of Pakistan prepared to open

branches in China in April 2008 which was later on negotiated between the officials. It
was during the previous Chinese Prime Minister Wen Jiabao’s visit to Pakistan in
December 2010 that the Industrial and Commercial Bank of China (ICBC) was invited to
open branches in Pakistan and the National Bank of Pakistan (NBP) was offered to
commence activities in China.

There must be a series of visit of businessman and tycoons of both countries to expand
the volume of trade of different items of the two countries. The economic strength must
be revolutionized to keep this zone well established and free from any trade barriers.
The business communities must create a platform to encourage the new products to
China and then at the global market. The two sides expressed satisfaction over the
growing volume of their bilateral trade, which has crossed US$ 15 billion and agreed to
make efforts to raise it to US$ 20 billion in next three years. The growth rate must be
positive and new avenues must be created for investors of both countries.

Strategic Partnership
Pakistan being a highly strategic country, is very much advantageous and pivotal to
China keeping in view her strategic interests in this region. The enhancement in the
cooperation of defense production regarding aircrafts, fighter bombs, tanks, and heavy
artillery is remarkable for the changing regional dynamics.  The main reason of such a
huge cooperation of China is to secure the region and achieving the desired goals such
as access to Indian and Arabian sea, surveillance to US and Indian Naval activities and
access to the markets of Middle East particularly in the field of energy. Their joint
ventures and joint production have led to manufacture the MBT 2000 Al-Khalid Tank
and JF-17 Thunder, a fighter aircraft, which has the strategic significance and is a
unique example of Sino-Pak deep rooted friendship. The unprecedented level of
friendship can be evaluated in the views of the Advisor to the Prime Minister on National
Security and Foreign Affairs, Sartaj Aziz that; “The relations between the two countries
are growing very fast, particularly for development of communication and energy
sectors, Pak-China cooperative partnership has ushered in a new era in line with the
ideas and vision, conceived by the leadership of the two countries”

This idea has been inherited from generations to generations among the nations of two
countries, that Pakistan is always their first and foremost priority in the foreign policy
and China is the cornerstone for Pakistan’s foreign policy as well. The strategic
relationship of China with Pakistan is very important for both because it enables China
to limit the regional ambitions of India towards its hegemonic designs and further
strengthening the Pakistan as a major strategic partner in this region.

China-Pakistan Economic Corridor

This is one of the best mega project in the history of the two states and indeed a great
symbol of the deep rooted friendship of Sino-Pak relationship from 1951 to 2015. The
agreement was signed between the leaders of Pakistani Prime Minister Nawaz Sharif
and Chinese Premier Xi Jinping on his visit to Pakistan in April 2015 respectively. The
historic words of Xi are remarkable for the glory as he described that “This will be my
first trip to Pakistan, but I feel as if I am going to visit the home of my own brother.” The
main aims of such a project is to connect Gwadar Port in southwestern Pakistan to
China’s northwestern autonomous region of Xinjiang through a network of highways,
railways and pipelines to transport oil and gas and will operationalize from Gwadar to
Kashgar. Overall construction costs are estimated over $46 billion with the entire
project. The Corridor is an extension of China’s proposed 21st century Silk Road
initiative and indeed a fate changer of billions of people. It will open new avenues for
employments and trade pathway from China and the Middle East and Africa at large .
Moreover, CPEC is not bound on One Belt One Road policy, its maximize the
opportunities between two countries which has various initiatives for the Silk Road
Economic Belt and the 21st Century Maritime Silk Road initiatives globally. China has a
lot to gain from its economic corridor arrangement with Pakistan; its centuries ‘old vision
of reaching the warm waters through the shortest route is coming to fruition through
peaceful ways. This will represent a new model of regional and South Asia cooperation
which will offer new opportunities for Asia’s rejuvenation and the common prosperity of
all countries of the globe led by China and its vision of connectivity.

Challenges And Opportunities

The world has entered into a new era of Globalization and interdependence and the
nations have opted mutually beneficial foreign policy behaviors. Those behaviors are
based on economic integration and security cooperation, strategic partnership and
making peaceful alliances. Pakistan and China are the well-wishers of peace and
prosperity not only in South Asia but the world at large. With the changing geopolitical,
geostrategic and geo-economic realities, it is necessary for Pakistan to keep on testing
the loyalty, limits and trust of China relationship. Ostensibly, the dynamics of the world
have changed as the world has fast traversed the era of economic war and has also has
entered the new era of economic cooperation simultaneously. Resultantly, the
neighboring countries collaborate with one another economically so that the whole
region reaps dividends. The changing dynamics can be seen on10th July,2015 at the
15th summit of the Shanghai Cooperation Organization (SCO) at Ufa, Russia where the
status of both Pakistan and India was raised from observer to full member. This will
reshape the strategic dynamics and pose new challenges between Pakistan and China
relations. Just a few years ago, no one could have imagined that Russia, China, India
and Pakistan would opt to join hands for shared economic interests, regardless of their
long-standing disputes. This will ultimately lead towards new horizon of changing
scenarios within South Asian states. The US withdrawal from Afghanistan, Iranian
Nuclear agreement with P5+1, Kashmir issue with India, revival of the old silk route and
Afghan peace process will reshape the regional paradigm in Pakistan’s foreign policy.
During Cold war era,US-Russian relations were always based on aggressive posture.
They both were ready for every single competition in international arena. US will prefer
China as a counter-weight against Russian designs.  This will create favorable
conditions for China and Pakistan.

Conclusion
After touching all the dimensions of Pakistan China relationship, one thing that comes to
mind is that; its high time for Pakistan to be more focused one Self-reliance policies
ratherthan focusing on assistance of China and other international players. China being
an immediate neighbor is historic and all seasoned friend but we must establish our
potential and increase our international outlook. This will prove to be Pakistan’s less
dependency on China and other international players. Economically speaking, Pakistan
must settle down its economic issues so that it can enhance its economy smoothly.
Resultantly, it will be less dictated in the matters of Political and Economic issues of the
foreign policy of Pakistan. Pakistan must keep amicable relations with its neighboring
countries especially with India which is historic rival to avoid further notorious actions via
Afghanistan and Baluch separatist movement. The four wars never came with any
results for both India and Pakistan. The solution of Kashmir issue and other major
issues must be settled without using force or inviting other players to deteriorate the
relationship. It is our mutual issue and we have to settle it with win-win goals. We need
to compromise our designs and ambitions so that South Asian region can be made
more peaceful. Pakistan must learn lessons from history of China as she could not get
its parts as Hong Kong, Macao form Britain until it became politically strong and
economically sound player. Summing up, China and Pakistan are great nations and
close neighbors bound by common destiny and goals. No matters how scenarios are
changing, both of the countries have to overcome all challenges and carry forward the
traditional friendship more deeply. The Chinese-Pakistani government must strengthen
people to people contact for further strengthening Sino-Pak partnership for building a
harmonious world of enduring peace and common prosperity.