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A Pakistani official's critical comments about projects funded by China to the tune of billions of dollars rattled investors and sparked worries on Monday of a souring in ties, a day after Beijing's top government diplomat concluded a visit.
Abdul Razak Dawood, the Pakistani cabinet member for commerce, industry and investment, suggested that all projects in the $57-billion China Pakistan Economic Corridor programme could be eligible for suspension in a review to be conducted this week under the orders of new Prime Minister Imran Khan.
"I think we should put everything on hold for a year, so we can get our act together," Dawood told the Financial Times in an interview. "Perhaps we can stretch CPEC out over another five years or so."
Pakistan's newly elected President Arif Alvi has been sworn in as the 13th President of the country on Sunday.Chief Justice of Pakistan Mian Saqib Nisar administered the oath at the President House in the capital Islamabad.The ceremony was attended by outgoing President Mamnoon Hussain, Prime Minister Imran Khan, chiefs of army, navy and air force, provincial governors, chief ministers and other dignitaries.Alvi, a close confidant of Prime Minister Imran Khan, had defeated main opposition candidate Maulana Fazl ur Rehman, and Chaudhry Aitzaz Ahsan of center-left Pakistan People’s Party in a one-sided contest on Sep 4.He is among the founding members of the ruling Pakistan Tehreek-e-Insaf Party (PTI).Alvi, a dentist by profession, was born in 1949 in the southeastern port city Karachi, two years after his family migrated to Pakistan following the end of British colonial rule.In 2013, Alvi won the first National Assembly seat from Karachi, which he retained in the recent July 25 general election.However, the prime minister nominated him as his party’s candidate for the office of the president.
Pakistan’s new president Arif Alvi sworn in
He added that he thought China had been granted too-favourable terms in many projects by the former government of Nawaz Sharif.
"Chinese companies received tax breaks, many breaks and have an undue advantage in Pakistan; this is one of the things we're looking at because it's not fair that Pakistan companies should be disadvantaged," Dawood said.
Pakistani markets fell in early trading on Monday, with the benchmark KSE 100 index down 477.38 just after midday at 40,374 points, before recovering to close at 40,684, still down 0.4 percent.
The new government in Islamabad on Saturday assured Beijing that the multi-billion dollars economic corridor project will remain a priority for the country."China-Pakistan Economic Corridor [CPEC] is vital for socio-economic development of Pakistan and it will prove to be a game changer to the region," Pakistan’s Foreign Minister Shah Mehmood Qureshi said, during a joint news conference with his Chinese counterpart Wang Yi in Islamabad.Wang arrived on a three-day official visit to Pakistan on Friday, two days after U.S. Secretary of State Michael Pompeo visited Islamabad.Qureshi said the two sides have decided to initiate a strategic dialogue and further enhance bilateral economic relations.Chinese govt's top diplomat says Beijing not saddling Pakistan with debtWang, for his part, said China would support Pakistan’s socioeconomic progress and development.The Chinese foreign minister also appreciated Pakistan’s sacrifices in war on terror.“We want peace in the world and Pakistan has rendered huge sacrifices to bring peace in the region and the world should accept and respect it,” Wang said.Earlier, Qureshi and Wang held a meeting and later chaired delegation-level talks.Wang will meet Prime Minister Imran Khan, Chief of Army Staff Gen. Qamar Javed Bajwa and other high officials during his stay in Islamabad.
Pakistan, China renew commitment on economic corridor
Dawood's comments were "mind-boggling" and rare public criticism of China, said Mohammad Zubair, privatization minister in the previous government.
"This is probably the harshest statement about the Chinese in the last 50 years or so," Zubair told Reuters. "Even if there are issues with the Chinese, those issues could be dealt with in private rather than being made public."
Later on Monday, Dawood told domestic broadcaster Geo TV that his statements had been misconstrued and he would clarify them later.
The Pakistani Embassy in Ankara held a reception Thursday in commemoration of the country’s annual Defense Day.Pakistani Ambassador Muhammed Syrus Sajjad Qazi and Air Force military attache Brigadier General Imran Ashgar Chaudhry hosted the reception, which was attended by Defense Minister Hulusi Akar and Turkish Chief of Staff Yasar Guler along with diplomats from various countries.Speaking at the event, Qazi expressed gratitude to the martyrs and veterans of Pakistan's and Turkey's armed forces.Akar praised the Turkish-Pakistani friendship saying that all Turks will forever remember Pakistan’s support for Turkey throughout its history with “respect” and “gratitude”.“We are confident that our armed forces will continue to support each other on wide issues including the fight against global terrorism -- regardless of its origin or motives -- and cooperate in many fields such as the defense industry,” Akar said, continuing to thank Pakistan for its “strong” support during the failed July 15, 2016 coup in Turkey.Pakistan marks ‘Defense and Martyrs day’
Pakistan embassy holds reception on Defense Day
The critical comments were published just after the Chinese government's top diplomat, State Councillor and Foreign Minister Wang Yi, visited Pakistan and the two sides reaffirmed the mutual benefits of the Beijing-funded projects.
While Khan, a former cricket star, has made no secret he plans to review all government projects and expenditure, the finance ministry last month said Pakistan was "fully committed to undertake and complete CPEC projects in their totality".
Pakistan is struggling to avert a foreign currency crisis that could force it to seek a bailout from the International Monetary Fund. Its foreign currency reserves have dwindled to $9.9 billion last month from around $16 billion in mid-2017.
The rupee has been devalued four times since late last year, falling by more than 20 percent.
In June, Beijing gave Pakistan $1 billion in loans to boost foreign reserves ahead of the July 25 election.