China’s mass support to Pakistan on COVID-19 signifies vigorous friendship

BEIJING: China’s support to Pakistan, extended on government and private-level to fight COVID-19, was a testimony of the two countries’ true friendship, that rooted in the hearts of their people.

It was noted that in the recent days, there has been generous support from the Chinese side to Pakistani brothers and sisters. Although the Chinese government and people are themselves fighting against COVID-19, they still trying their best to help Pakistan, said Chinese scholar Cheng Xizhong in an article carried by Gwadar Pro App.

Commenting on Pakistan’s deteriorating economic condition in wake of the country-wide spread of deadly virus, Cheng Xizhong noted that Pakistani Rupee has continued to depreciate against the USD. Pakistan’s total external debt rose to $107 billion, reaching a record high.

Pakistan’s auto sale was down by 47% during the first nine months of the current fiscal year. Since March 15 the number of containers arriving at ports for export has fallen by 50% compared with the same period last year.

According to Pakistan Textile Exporters Association, textile export orders worth nearly $1.3 billion have been cancelled or delayed. The International Monetary Fund (IMF) has projected that due to the coronavirus pandemic, Pakistan’s economy may contract sharply by 1.5% during the current financial year, with an unemployment rate of 4.5%.

The World Bank’s report believes that Pakistan’s national output may fall in the range of 2.2% to 1.3% in the current fiscal year. Pakistan’s economy has been struggling for years. Now it is suffering from a double whammy of locust plague and COVID-19. Currently, novel coronavirus pneumonia is spreading very rapidly.

Prof Cheng added, that in the fight against the pandemic, Pakistan has received the most assistance from China. Pakistan’s National Disaster Management Commission said that up to now, China’s anti-pandemic assistance accounts for 80% of the total Pakistan has received from the world.

It is remarkable that in addition to the efforts of the Chinese government, medical aid from Chinese enterprises, NGOs, social organizations and common people are flowing into Pakistan constantly, which fully shows that China-Pakistan friendship is deeply rooted in the two peoples.

Recently, China’s Beijing Lianxin Charity Foundation donated a batch of medical materials to the Embassy of Pakistan, Beijing, including 20,000 disposable gloves and 3000 protective face shields worth more than $3 million.

The China Red Cross provided anti-epidemic materials worth ¥4.56 million to Pakistan. The materials were donated by a number of Chinese enterprises and local Red Cross societies including Henan Tuoren Medical Device Group, Shanghai BioGerm Medical Biotechnology and Inner Mongolia Red Cross.

On the same day, Shandong Province People’s Association of Friendship with Foreign Countries also donated a batch of medical masks to Pakistan.

Haier Group Pakistan donated 50,000 masks to the Pakistani government. The company is now procuring the second batch of aid materials. While, China’s Zhong Mei Engineering Group donated a batch of medical materials, including 14,240 masks, 300 pairs of medical gloves, as well as protective clothing, thermometer to local government.

On the same day, Guizhou University mailed respirators, masks, gloves, thermometers, medicines and other pandemic prevention materials to Peshawar University.

A Pakistani police spokesman said that Islamabad police had received 20,000 masks donated by the Chinese Embassy in Pakistan.

In addition, the Chinese enterprises undertaking the construction of China-Pakistan Economic Corridor projects are also providing help to local government, hospitals, schools and local people as possible as they can, the report added.

KARACHI: Despite the uncertainty caused by coronavirus pandemic, long-term foreign investors poured capital into different projects in Pakistan in power, oil and gas exploration and communication sectors during March 2020.

Foreign direct investment (FDI) surged 92% to $278.7 million in March compared to $145.4 million in the same month of last year, the State Bank of Pakistan (SBP) reported on Monday.

The investment soared 137% to $2.14 billion in first nine months (July-March) of current fiscal year 2020 compared to $905 million in the same period of last year, it added.
Country-wise, China remained the largest investor while in terms of sectors, the power sector attracted the highest investment during the month. Beijing continued to invest in multibillion-dollar infrastructure and power projects included in the China-Pakistan Economic Corridor (CPEC).

“It is a good sign that foreign investors have made new investment despite the Covid-19 uncertainty,” Overseas Investors Chamber of Commerce and Industry (OICCI) Secretary General M Abdul Aleem said while talking to The Express Tribune.

“The latest foreign investment numbers suggest that Pakistan has a huge potential to attract foreign investment. However, the outlook has temporarily turned negative in the backdrop of coronavirus,” Next Capital Managing Director Muzammil Aslam said.

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The virus has turned the global economy upside down. International financial institutions like the International Monetary Fund (IMF) and World Bank have anticipated that the global economy would contract 3% this year.

According to predictions, Pakistan’s economy would shrink 1.5% in FY20 for the first time in 68 years.

International investors have honoured their investment commitments. They have continued to invest in ongoing projects as well as projects which are in the pipeline despite the coronavirus pandemic.

“They would invest more in Pakistan once the global spread of the pandemic ends,” Aslam said.

The latest round of depreciation of the rupee against the US dollar in March also supported the inflow of new investment as foreigners received higher amounts in rupees when foreign currencies were converted into local currency, he said.

China invested the largest amount during the month and the investment mostly went to the power sector.

“This shows that China continues to invest in CPEC projects as per its original plan,” he said.

Besides, investors from other counties like the UK, Malta and the Netherlands poured investment into other areas like oil and gas exploration, communication and financial sectors in March.

“This shows that investors are investing in diversified projects…showing the potential of different areas,” he said.

Country-wise FDI

China remained the largest investor in Pakistan with net investment of $202 million, which accounted for 72% of the total investment of $278.7 million in March.

It was followed by Malta, which invested $18 million and the Netherlands, which invested $10.5 million. The UK invested a net $9.5 million in the month.

Cumulatively, in the nine-month (July-March) period, China held its place as the largest investor followed by Norway, Malta, Hong Kong, the UK and the US.