This year is the 70th Anniversary of establishing formal diplomatic relations between the Islamic Republic of Pakistan and the People’s Republic of China. However, the history of friendship between the two nations is long and spread over centuries. Ancient Silk route was passing through parts of Pakistan, and Chinese traders were traveling to Europe through Pakistan. Around two thousand years ago, famous Chinese Monk Fa Xian and Xuan Zang, made several trips to areas, which are part of Pakistan now, and studied Buddhism. In fact, Buddhism was imported from Pakistan. Buddhism’s origin was in the areas between Afghanistan and Pakistan, then traveled to India and onward to Japan, Korea, and China.
China and Pakistan not only share common borders, mountains, glaciers, rivers, and but above all, shared-destiny. Both countries are facing similar challenges and threats. Both countries are partners in peace, security, and development. Both countries share a common vision on regional and global issues. Both nations are united and enjoy complete harmony, and are on the same page on almost all issues.
We are all-weather, time-tested, and trustworthy friends. Usually, the relations are described as higher than mountains, deeper than oceans, sweeter than honey, and stronger than steel. The frequent mutual visit of both countries to each other’s cement the relations and people to people contacts helps to understand each other.
The cooperation in almost all sectors, including education, Science, Technology, Innovation, Industry, Agriculture, Defense, is very robust. Specifically, the relations are strategic in nature.
Belt and Road Initiative (BRI) has strengthened our economic cooperation. As a matter of fact, China-Pakistan Economic Corridor (CPEC) is a flagship project and one of the planned six corridors in the most advanced stage. Pakistan is the biggest supporter and beneficiary of BRI.
The first official high-level delegation of Pakistan visited the People’s Republic of China on 4 January 1950, just three months after China’s liberation. However, formal diplomatic relations were established on 21 May 1951.
Every year, both countries were celebrating the Anniversary with high spit, but the Anniversary is more exciting every five years. Every 10th Anniversary is always a mega celebration, and this year, the 70th Anniversary is being marked with enthusiasm and full spirit of “Iron Brotherhood.”
Today in a ceremony both, the Chinese Foreign minister Mr. Wang Yi and Pakistani Foreign Minister Mr. Shah Mehmood Qureishi, launched the formal celebrations, which will be carried on, in series of events during the rest of the whole year.
Under the patronage of two countries’ leadership, many activities are being organized at all levels, and people-to-people contacts, creating an environment of brotherhood. Some of the activities may lead to promote understanding and harmony, while others may lead to business and trade opportunities for each other.
Both governments are facilitating the youth of two countries to carry on our traditional friendship to further heights. Scholars and intellectuals of both sides are dedicated to transferring our elders’ inherited friendship to our younger generations.
Almost 30,000 Pakistani students are studying in China at various programs like Undergraduate, Master Program, Ph.D., and Post.Doc levels, in virtually all significant specializations. While they are getting professional education in their major subjects, they are also learning Chinese language, culture, traditions, history, politics, and governance systems naturally. Equipped with in-depth China-knowledge and professional education, they play a significant role after returning to Pakistan to strengthen the existing cordial relations between the two nations.
Media is playing a positive role in bringing two nations further close. Although our enemies are trying to make fractures among us through fake news, misinformation, and hybrid war, but both sides are mature enough to judge the conspiracies planted by enemies.
The long live Pakistan-China friendship only grows further.
Reposts are welcomed with the reference to ORIENTAL REVIEW.
THE FUTURE OF PAKISTAN LIES IN LOGISTICS CORRIDORS AND EXPORTS OF GOODS AND SERVICES .The Key partners in these ventures will be PRC,Russia and Persia
For exports it is PRC.
The Path to Salvation
Let the PRC come in and set up Integrated SEZs with IPPs and ETPs,and let them use their staff (100%) in Phase 1
These will be 100% SEZs,with no DTA sale – but with some DTA contractors and DTA purchase (as necessitated by economic expedience).By doing DTA transactions,they will have some interaction with Pakistani enterprise,and develop their enterprise – and also get management comfort,w.r.t the Pakistani supply chain.
Let them import and export whatever they want and do “wherever they want”.In other words, let them use hazardous chemicals,spent catalysts,bio hazards – so long as,THEY SECURE ITS DISPOSAL.
If the PRC wants the LDC status of Pakistan (for exports),and the COO of Pakistan – they will use the minimum Pakistani labour and Pakistani Raw Materials required – for meeting the VA norms,of the LDC treaty.dindooohindoo
In lieu of the above concessions,what can the Pakistani state demand from PRC ?
That the FX earned on Exports,be brought into Pakistan immediately
That each SEZ unit,should be NFE positive throughout
That the dividend repatriation be staggered,so that the PKR is supported,and there is no
need for IMF or Saudi loans (So the FX treasury of SBP,is outsourced to the PRC-SEZ)
That the Capital in the SEZ not be repatriated for 20 years
That the SEZ profits can be invested in SBP-USD/YUAN Bonds (to bring parity with Chinese investments) – which will be priced lower than IMF/Saudi/US Hedge Fund money
This will be enough to stabilise the PKR,and zeroise the cost of the sterlisation and FX intervention transactions of the SBP.
Even if the SEZ is moving cash – it is irrelevant,as the same cash could come via hedge funds,into Pakistani High Yield USD Bonds (or Argentine/Turkish Bonds).The cash will goes into High Yield Debt VIA FUND HOUSES,is basically,partly slush cash.
As time passes,the SEZ-PRC will rely more and more on the Pakistani supply chain and develop Pakistani management expertise
In the next step,the SEZ can sell into the DTA,the excess capacity and subprime stocks,and Pakistani buyers can treat it as imports,and pay in USD,and accrue a tax free profit,to the SEZ-PRC.The point is that the SEZ is fully integrated – and is not a burden on the Pakistan state and people – so no tax needs to be levied on the SEZ – even on DTA sales.USD paid by DTA to SEZ will stay in Pakistan,or come back to Pakistan.
Sales from SEZ to DTA will be on VAT (as an offset to BCD) so the Pakistan state will get the customs duty avoided by Pakistani importers,in the normal course (and still be cheaper for the Pakistani in the DTA).
Therefore,the aim is to get USD in Pakistan and keep the USD in Pakistan.Why tax it ? Therefore the SEZ can have a 10 year holiday with say a 5 year loss period (thereafter which,the holiday starts).Even the DDT on dividend can be waived,if the SEZ agrees to the SBP repatriation rules – so that USD outflow pressure,is reduced
Once the PRC-SEZ gets comfort,then there are Billions to be invested in low cost housing using new and innovative materials, education, agri supply chain,mining and tourism.These very Chinese (of the SEZ) will invest the SEZ profits and MORE Capital,into these new businesses.
Therefore,all the USD,will stay in Pakistan.
And then,the Pakistan state,can tax the profits of the SEZ
So,1st step is TO get the USD into Pakistan
Then keep the profits of the SEZ in Pakistan
Then entice the SEZ to invest the profits in Pakistan
THEN TAX THEM ALL !
THERE IS NO OTHER NATION IN THE WORLD WITH WHICH PRC HAS THAT LEVEL OF COMFORT -EXCEPT WITH PAKISTAN – EXCEPT DPRK.In DPRK,with Joe Biden,peace has no chance – as the intent of Joe is irrelevant – it is the perception of Kim which counts.