China accepts Pakistan's demand for CPEC to cover social development

BEIJING: China has accepted the demand of Pakistan’s Imran Khan government to expand the China-Pakistan Economic Corridor (CPEC) to include social development programmes.

Khan’s party, PTI, had during the recent elections criticised the $60 billion CPEC for being infrastructure heavy while neglecting social development and poverty eradication issues. A Pakistani minister recently said the programme would be reviewed from the financing cost point of view.

Khan met Chinese President Xi Jinping on Friday and Premier Li Keqiang on Saturday. He presided over the signing of 16 agreements covering a range of economic and social issues between the two countries.

During discussions with the visiting Pakistani PM, Chinese leaders said there would be no reduction in the size and dimension of CPEC projects, significant statements because of reports that Beijing was considering shelving some projects and because even Pakistan’s new government favours a smaller CPEC to reduce its debt burden.

“There has been no change in the number of CPEC projects. If there is going to be any change, there will be an increase (in projects) going forward,” Chinese vice foreign minister Kong Xuanyou told reporters after a deal signing ceremony at the Great Hall of the People.

“The dimension of industrial cooperation will be introduced going forward. The CPEC will be introduced to more areas of Pakistan and also tilt in favour of areas relating to people’s livelihoods,” he said, adding: “Hence going forward, both the areas of CPEC and the contents of CPEC will be enriched.”

China is still silent about Pakistan’s immediate request for loans to tide over a difficult financial condition. It needs $8 billion to overcome financial problems this year.

A decision on China’s cash lending may be announced on Sunday. Saudi Arabia recently pledged a heavy loan to Pakistan. Being an “all-weather friend”, China may not refuse a loan request for the sake of its own image.

“…in response to the current economic and fiscal difficulties Pakistan faces at the moment, China will provide help and assistance within the realm of its capability,” Kong said.

Referring to Khan’s meeting with Chinese Premier Li Keqiang on Saturday, Kong said, “The Pakistan side reiterated that Pakistan’s relation with China is a cornerstone of Pakistan’s foreign policy. Pakistan remains committed to the friendship between the two countries and committed to advancing CPEC.”