ISLAMABAD: Pakistan and China are set to renew their currency swap agreement during the visit of Chinese Prime Minister Li Qiang, who has arrived in Islamabad. He was welcomed by Prime Minister Shehbaz Sharif at Noor Khan Airbase.
The currency swap agreement between the People’s Bank of China and the State Bank of Pakistan expired in June 2024. According to Chinese sources, the agreement has been finalized by both parties, with the Finance Ministry sharing the final draft and names of signatories with the Ministry of Foreign Affairs (MoFA).
In addition, the inauguration of the 884 Suki Kinari hydropower project, which passed reliability tests last month, is also anticipated. Discussions will include the acquisition of blocks for offshore oil and gas exploration. The Chinese side has agreed to deepen cooperation in this area, although the CGS must complete its internal procedures to advise China National Offshore Oil Corporation (CNOOC) to submit its application. This matter was discussed between the Minister for Petroleum and the Vice President of CNOOC on September 22, 2024.
Sources indicate that the Chinese side has also agreed to the virtual inauguration of the New Gwadar International Airport. The Economic Affairs Division (EAD) has provided the final handing-over certificate and names of signatories to MoFA.
A draft protocol on quarantine requirements for the export of donkey meat to China is also likely to be signed, as the Chinese side has agreed to the protocol. The Ministry of National Food Security and Research has shared the names of signatories.
The cooperation plan for the upgraded version of the China-Pakistan Economic Corridor (CPEC), aligned with China’s Belt and Road Initiative and Pakistan’s 5Es Framework, is also on the agenda for signing during Prime Minister Li’s visit.
Sources report that the possibility of revising agreements to avoid double taxation and prevent fiscal evasion concerning income taxes between Pakistan and China is low. The Federal Board of Revenue (FBR) has been trying to negotiate with the Chinese side since 2019, but there has been no response from Beijing.
Some other key pacts, which are expected to be signed are as follows ;
(i) MoU on promoting cooperation on water conservation facilities, flood control and calamity reduction
(ii) MoU between COMSATS University, Islamabad and Nanjing University of Information Science and Technology, China
(iii) agreement on establishing sister ports relationship between Karachi Port and the Port of Shanghai
(iv) D.I.Khan- Zhob( N-50) Road, Mirpur-Muzaffarabad-Mansehra Highway Project, Karachi-Hyderabad Motorway(M-9) Project and Babusar Tunnel
(v) framework agreement for Eastbay Expressway Phase –II
(vi) MoU on mining of non-ferrous metals
(viii) MoU on trade promotion cooperation between Ministry of Commerce of China and Ministry of Commerce, Pakistan
(ix) loan agreed for realignment of Thakot-Raikot Section KKH Phase-II
(x) ML-1 Project( Ministry of Railway shared the Financing Commitment Agreement (FCA) with EAD for onward transmission to NRA on September 3, 2024 regarding the implementation of 1st phase of ML-1)
(xi) MoU on promoting cooperation on ICT
(xi) handing –over certificate of Gwadar desalination plant, three mobile cargo scanners and six bulletproof vehicles
(xii) MoU for providing technical training for the operation and maintenance of hydropower projects in Pakistan
(xiii) loan agreement for Pakistan Space Centre
(xiv) MoU on joint study for the future development of Thar-Coal Blocks
(xv) MoU on joint study for identification of potential sites for pump storage hydropower projects
(xvi) MoU on advanced metering infrastructure
(xvii) MoU on urban development of Gwadar city
(xviii) MoU on strengthening of the Artificial Intelligence Cooperation
(xix) and MoU on coastal tourism development at Gwadar. Ends
