China stands with Pakistan in overcoming debt challenges: Zhao Shiren, Chinese CG

Chinese debt is only 13 percent of the total foreign payable debt and its basic objective is to drag Pakistan out of the debt trap by extending necessary financial assistance, said Zhao Shiren, Chinese Consul General in Lahore.

Addressing the business community at Faisalabad Chamber of Commerce & Industry (FCCI), Shiren said China has never pressurized Pakistan for the repayment of the due loans and recently the Chinese government has rolled over the loan of $2bn.

He said Pakistan has got excessive foreign loans while its GDP is only $350bn.

“China is helping Pakistan to overcome its financial constraints”, he added. Responding to a question about issuing multiple visas, Zhao said that a very limited number of multiple visas are being issued in addition to the single and double entry visas.

He said multiple visas are being issued by assessing the financial status and its volume of trade with China. He said that eligible exporters from FCCI could contact him for multiple visas enabling him to recommend their case to the Chinese embassy. He said currently visas are being issued from Islamabad and Karachi while a proposal was under consideration to issue visas from Lahore also. He said 13 chambers of Punjab have been authorized to issue letters of support while the applicants could submit their applications through Gerry. About payment in local currencies, he said both governments have agreed on this issue but the agreement is yet to be signed.

Mian Muhammad Adrees, former President of FCCI, however, said he was already making payments in local currencies. Responding to a question about gender equity, Zhao said he was already making efforts for the mainstreaming of the female population of Pakistan.

He proposed that both governments should enhance cooperation in this field. About the trade deficit between Pakistan and China, he said Pakistan should enhance its exports to bridge this widening gap.

He said that Pakistan could easily enhance its exports to Saudi Arabia, UAE and China which has opened its domestic market for the foreign products.

He said Punjab could export agriculture, industrial and finished goods under Pak China Free Trade Agreement2. He said that very recently China has allowed the import of red chili and beef from Pakistan. He said China was also helping Pakistan by providing the latest technology.

“China is providing technology for the production of hybrid rice and corporate farming”, he said and added that Pakistan must make hectic efforts to bridge the trade deficit. He pointed out that during the last few years Pakistani exports to China have recorded a reasonable increase.

He said that China’s global trade is around $6trillion and in this context Pak China trade is very nominal. He said China was helping Pakistan in energy and infrastructure sectors while under CPEC2 our focus would be on agriculture, relocation of industries, joint ventures and education etc. He said that Gwadar port is expected to be inaugurated in June this year while many projects in KPK and AJK are also nearing completion with Chinese help. He said that the Chinese ambassador would visit Lahore and Faisalabad very soon to interact with the local business community.

Earlier, Acting President of FCCI Dr Sajjad Arshad welcomed the Chinese Consul General and introduced Faisalabad and FCCI. He said half of Pakistan’s population is living below the poverty line and China could help us to put Pakistan on the road to progress and prosperity.

Mian Muhammad Adrees assured full support for the establishment of industries in Faisalabad with Chinese support.