Bonds behind financial assistance

Pakistan and China celebrated the 75th anniversary of the establishment of diplomatic relations on May 21. The events held around these celebrations underscore that the relationship between the two countries is entering a new phase characterised by greater financial integration, expanding sub-national cooperation and renewed geopolitical cooperation. What began as a strategic and political partnership has gradually evolved into one of Pakistan’s most critical economic relationships. Today, China is one of Pakistan’s largest bilateral creditors, a major investor in infrastructure and energy, and an increasingly important source of financial stability for Islamabad during periods of economic stress. Against this backdrop, Prime Minister Shehbaz Sharif is visiting China these days in a trip that focuses heavily on trade, industrial cooperation, financial connectivity and the future direction of the China-Pakistan Economic Corridor (CPEC). “The visit is expected to further strengthen and deepen political trust, strategic coordination, expand political cooperation and consolidate the long-standing friendship between the two countries,” a Pakistan foreign ministry spokesman said at a weekly media briefing. The growing engagement between Pakistani provinces and Chinese regional governments highlights how bilateral ties are extending at the sub-national level The premier would begin his tour with a business-to-business conference and meet with the Chinese leadership, including President Xi Jinping and Prime Minister Li Qiang. “The two sides will review bilateral relations, and cooperation in political, economic and strategic domains,” the spokesman said. Many in Pakistan believe that the geopolitical turbulence in the Middle East has created fresh opportunities for closer regional economic cooperation and alternative financing arrangements centred around China. Foreign Minister Ishaq Dar’s visit to Beijing in late March amid Islamabad’s intensified diplomatic efforts aimed