1. Sino-Pakistan Relations
China and Pakistan are all-weather partners of strategic cooperation.
In 2013, the strategic cooperative partnership between the People's Republic of China and the Islamic Republic of Pakistan was further enhanced, and bilateral exchanges and cooperation in various fields deepened.
The two countries maintained frequent high-level exchange of visits and deepened political mutual trust. The two prime ministers exchanged visits within a short span of time. In May, Premier Li Keqiang visited Pakistan. He held talks with President Asif Ali Zardari and caretaker Prime Minister Hazar Khan Khoso, and met with Prime Minister-elect Mian Muhammad Nawaz Sharif. The two sides issued the Joint Statement on Deepening Comprehensive Strategic Cooperation Between the People's Republic of China and the Islamic Republic of Pakistan. In July, Prime Minister Sharif visited China. He met with President Xi Jinping, held talks with Premier Li Keqiang, and met with NPC Chairman Zhang Dejiang. The two sides issued the Common Vision for Deepening China-Pakistan Strategic Cooperative Partnership in the New Era. In the same month, Foreign Minister Wang Yi met with Sartaj Aziz, Adviser to the Prime Minister on National Security and Foreign Affairs of Pakistan, on the margins of the ARF meetings in Brunei Darussalam. In September, Foreign Minister Wang Yi met with Prime Minister Sharif during the UN General Assembly in New York. In November, Foreign Minister Wang Yi met with Sartaj Aziz, Adviser to the Prime Minister on National Security and Foreign Affairs of Pakistan, on the sidelines of ASEM Foreign Ministers' Meeting in New Delhi.
Pragmatic cooperation between the two countries saw major breakthroughs, and cooperation was deepened in energy, finance, infrastructure and other key areas. During Premier Li Keqiang's visit to Pakistan, the two sides signed the Memorandum of Understanding on Cooperation for the Long-term Plan on China-Pakistan Economic Corridor Between the Government of the People's Republic of China and the Government of the Islamic Republic of Pakistan. In July, during Prime Minister Sharif's visit to China, the two sides signed the Memorandum of Understanding on the Cooperation of Developing "China-Pakistan Economic Corridor" Long-term Plan and Action Between National Development and Reform Commission of the People's Republic of China and Ministry of Planning and Development of the Islamic Republic of Pakistan. The economic corridor is mainly about cooperation in three areas, namely, transport, energy and industrial parks. It builds a new platform for the growth of China-Pakistan strategic cooperative partnership in the next five to ten years. In August, Zhang Xiaoqiang, Vice Minister of the National Development and Reform Commission (NDRC), led a Chinese delegation to the inaugural meeting of the Joint Cooperation Committee on the Long-term Plan for the China-Pakistan Economic Corridor in Islamabad, which marked a new phase of steady implementation and solid progress of the China-Pakistan Economic Corridor.
2. Sino-Pakistan Economic and Trade Relations
Pakistan is the first South Asian country to sign a free trade agreement and currency swap agreement with China, and it is the largest destination of Chinese investment in South Asia. China is Pakistan's second largest trading partner and fourth largest export market.
Statistical Chart for Sino-Pakistani Trade
(unit: billion US dollars)
(It’s compiled according to China General Administration of Customs.)
3. China-Pakistan Energy Cooperation
China-Pakistan Economic Corridor Energy Cooperation
China-Pakistan Economic Corridor(CPEC)is the major and pilot project of the Belt and Road Initiative proposed by Chinese President Xi Jinping in 2013. CPEC refers to the integrated economic and trade zone extending along the traffic corridor between Kashgarin Xinjiang Uygur Autonomous Region of China and Gwadar Port, Pakistan. The cooperation field of CPEC focuses on energy, traffic infrastructure and industry parks. It aims at deepening the strategic cooperation between the two nations and promoting common development. As the flagship project under the Belt and Road Initiative，CPEC will bring about unprecedented interconnection and set up a new benchmark for the bilateral cooperation between China and Pakistan.
Energy is the key area of CEPC cooperation. Under the great efforts of the governments and enterprises of the two nations, significant achievements have been made in energy and power cooperation. Both sides have built up close partnership in energy cooperation and done substantial concrete work in development mechanism, investment and construction, technical standards, and social responsibility.
The CPEC mechanism has been playing an active role in the energy cooperation between the two nations, having held Joint Committee Meetings six times, Working Group Meetings four times and Expert Workshops twice and coordinated the key issues, such as external cooperation conditions, investment and financing policies, and major problems. It has been providing strong support for the CPEC energy projects.
Rapid progress has been made in the CPEC energy projects. Among all the CPEC energy projects, 14 projects are listed as "Prioritized Projects" and 7 projects are listed as "Propulsive Projects", with the total installed capacity of 17,040MW. A number of projects, such as Port Qasim Coal-fired Power Plant, Karot Hydropower Station, Dawood Wind Farm, and Engro Thar Coal Block Ⅱ, are under construction or have been put into operation, with a total installed capacity of 6,810MW, effectively easing the power shortage in Pakistan.
The CPEC energy cooperation has seen remarkable progress and will continue to move forward under the joint efforts of China and Pakistan.
4. Project Cases
(1)Wind Power Projects
①Dawood Wind Power Project
Dawood Wind Power Project, invested by HydroChina International, is one of the 14 "Prioritized Projects" in China-Pakistan Economic Corridor Energy Cooperation. On April 20, 2015, Chinese President Xi Jinping and Pakistan Prime Minister Nawaz Sharif witnessed the Handover Ceremony of the Financial Close Confirmation Letter and the live Commencement Ceremony of the Dawood Wind Power Project in Islamabad. Dawood Wind Power Project, sponsored by Chinese investors, is one of the program that witnessed the financial closure and construction among the 14 CPEC "Prioritized Projects".
Location: 60km east from Karachi
Installed Capacity: 50MW
Annual Power Output: 130GWh
Business Model: Chinese Investment
Investment: 115 Million USD
Apr 20th, 2015, commencement of Construction
Jan 23rd, 2017, the first generation unit has been combined to the grid successfully
Apr 4th, 2017, entering into commercial operation
②Sachal Wind Power Project
Sachal Wind Power Project is one of the 14 "Prioritized Projects" in CPEC Energy Cooperation. It is located in Sindh Province in the east of Pakistan, 100 km northeast of Karachi. It is the first new energy project of CPEC to conclude the loan agreement. The construction period of the project is 500 days. It is carried out as an EPC project by HydroChina Corporation.
Location: Jhimpir District, Thatta County, Sindh Province, east of Pakistan, 100km northeast of Karachi
Installed Capacity: 49.5MW
Annual Power Output: 160GWh
Annual Availability: 3000 hours
Business Model: EPC
Investment: 110 Million USD
Progress: Put into production in April, 2017
③Pakistan Wind Farm Ⅱ(2 * 49.5MW)
The Three Gorges Pakistan Wind Farm Ⅱ (2 * 49.5MW) is one of the 7 "Propulsive Projects" in CPEC Energy Cooperation. It is located at Jhampir of Thatta prefecture of Sindh in the south of Pakistan. The project class belongs to the wind farms which are Class III and above, boasting flat terrain, convenient transport, available power grid access and good wind resource. The construction of the project commenced on September 1, 2016 and would last for 18 months. It was developed under BOO model by China Three Gorges Group with an operation period of twenty years.
Location: 90km west of Karachi, the largest port and industrial city in Pakistan and 80km south of Arabian Coast
Installed Capacity: 49.5MW
Annual Power Output: 152.5 million kWh
Annual Availability: 3082 hours
Business Model: BOO
Investment: 112 million USD
Progress: under construction; COD in June 2018
④Jhimpir 99 MW Wind Power Project
Jhimpir 99 MW Wind Power Project is one of the 14 "Prioritized Projects" in CPEC Energy Cooperation. It is located in the wind resources corridor in Jhimpir District, Sindh Province, about 200km northeast in Karachi. The construction includes 66 WTG, substation and maintenance building. This wind power project is developed by the Orient Group under BOO model. During the APEC meeting in November 2014, Li Keqiang, the Premier of China, and Nawaz Sharif, the Prime Minister of Pakistan, witnessed the signing of the EPC framework agreement at the Great Hall of the People in Beijing. In March 2015, the project witnessed the financial close. In April 2015, Xi Jinping, the President of China, and Nawaz Sharif, the Prime Minister of Pakistan, witnessed the loan release ceremony and the live opening ceremony of the project.
Location: The Wind Corridor in Jhimpir District, Sindh Province, 200 km North East from Karachi
Installed Capacity: 99MW
Annual Power Output: 270.96 million kWh
Annual Availability: 2737 hours
Business Model: BOO
Investment: 252 million USD
Progress: under construction, COD in May, 2017
(2)PV Power Generation Projects
①Zonergy 900MW PV Power Generation Project
Zonergy 900MW PV power generation project is one of the 14 "Prioritized Projects" in CPEC Energy Cooperation. It is located in Jinnah Photovoltaic PV Industrial Park in Bhawalpur, Punjab Province, Pakistan, with a total area of 4,500 acres and a total installed capacity of 900MW. In April 2015, President Xi Jinping of China and Prime Minister Nawaz Sharif of Pakistan jointly kicked off the commencement ceremony of the project. From then on, 50MW of the project was completed and connected to the grid in 90 days. On June 8th, 2016, the phase I of 300MW was connected to the grid. It is the first project to conclude financial closure and connect to the grid in CPEC energy projects.
Location: Quaid-E-Azam Solar Park, Cholistan Region, Bahawalpur, Punjab Province, Pakistan