China-Pakistan Economic Corridor Strengthens Brotherly Relationship

Pakistan has an enduring， multidimensional and deep-rooted brotherly relationship with China. The political and cultural ties are now further strengthened with enhanced focus on economic cooperation.

Bilateral trade and commercial links between the two countries were established in January 1963 when the first bilateral long term trade agreement was signed. Pakistan accorded MFN status to China. ChinaPakistan Free Trade Agreement（CPFTA） was signed in 2006， covering trade in goods and investment. FTA on Trade in Services was signed in 2009.

In May 2013， political leadership of both sides announced a landmark decision of developing China-Pakistan Economic Corridor. Physically， the corridor is a 2，700-kilometre highway that stretches from Kashghar to Gwadar through Khunjrab. But in essence， these road and rail links will further strengthen the existing bond of brotherhood， as highlighted by the two governments. The corridor from Kashgar to Gwadar will integrate the economies of the two friendly countries and will benefit new emerging regional cooperation in South Asia.

During recent visit of the Prime Minister of Pakistan Mr Mohammad Nawaz Sharif to Beijing， 19 Agreements/MOUs have been signed including Economic and Technical Cooperation agreement， Long Term strategic planning， Capacity building（vocational training）， optic fiber cable system， industrial park， and a number of hydro， thermal， wind， coal and solar projects.

Pakistan’s geographical location puts it on the main route connecting China with Middle East， Iran， Afghanistan and Central Asia. For economic and strategic connectivity with these regions， China requires safe passage through Pakistan especially after China’s growing share in world trade.

Pakistan-China trade volume has shown a continuous rise going from US$ 10.564 billion in the year 2011 to US$ 14.218 billion in the year 2013. Major exports are cotton yarn/fabric， rice， minerals， copper， leather， stones， plastics， garments， home textile， ores， raw hides skins， fish and fish preparations， all crude minerals. while Pakistan’s major imports include machinery （all sorts） and its parts， fertilizer， chemical element， yarn and thread of synthetic fiber， Iron and steels， chemical material and product， vegetable and synthetic textile fiber， road vehicles and their parts， tyres and tubes of rubber. Major potential sectors for investment in Pakistan include power， textile， agriculture， IT， pharmaceutical， infrastructure， industrial parks， and others.

The brotherly partnership strengthened by economic cooperation will take Sino-Pakistan ties to a new height in years down the road. The current pro-active Chinese diplomacy， and reinvigorated neighborhood policy is reflective of the Chinese long-term vision on regional and intra-regional economic integration. In this regard， Pakistan’s geostrategic location connecting South Asia with West and Central Asia can serve as a force-multiplier for China’s regional interests. In the light of the above， it is evident that bilateral trade， investment and people to people linkages will be increased considerably in the future.