Pakistan has great expectations for Chinese PM’s visit

ISLAMABAD – Chinese Premier Wen Jiabao arrived in Islamabad December 17 for a three-day visit to discuss expanding economic and trade relations with Pakistan.

Analysts are confident that the two countries will further enhance trade and bilateral relations. They are expecting China to announce investments in Pakistan worth $25 billion in a number of sectors.

“Pakistan enjoys excellent relations with China both at the government-to-government and people-to-people level. The relationship is broad based with its strategic, military, political and economic dimensions,” said Lt. Gen. (ret.) Talat Masood.

Wen received a warm welcome at Chaklala Air Base, Rawalpindi, by Prime Minister Yousuf Raza Gilani and the full cabinet, including a 21-gun salute.

“Pakistan-China relations are unprecedented, and the whole Pakistani nation is quite aware of it,” Gilani said after greeting Wen.

“Hopefully, we will be signing various treaties this evening,” Gilani added.

Observers are expecting the countries to sign 13 Memoranda of Understanding (MoUs) in different sectors, including trade, culture, communication and energy.

Another 23 MoUs await signature December 18, according to sources. A one-on-one meeting of the two prime ministers will focus on regional peace and security, as well as on pursuit of new investment opportunities.

It is also expected that China will provide US $200m for the rehabilitation of flood-affected areas, as well as a large amount for development of Pakistani agriculture. Sources also said China is expected to announce a large loan for upgrading the railway system.

Accompanying Wen are 250 Chinese business leaders who will attend a summit with Pakistani counterparts to exchange views and firm up proposals for various joint ventures.

China has invested over US $1.3 billion in Pakistan in recent years, and analysts say the two countries plan to expand annual bilateral trade to US $15 billion by 2012.

“Chinese Premier Wen Jiabao’s 3-day official visit to Pakistan reflects the Chinese government’s special attention to the development of China-Pakistan relations,” said Chinese Ambassador to Pakistan Liu Jian.

China is a major supplier of weapon systems to Pakistan and has contributed significantly to developing the country’s defence industries by providing technology.