China and Pakistan have agreed to enhance mining cooperation and advance the implementation of a pact aimed at strengthening mining development and industrial cooperation. This agreement was highlighted during the recent visit of Pakistan’s Prime Minister (PM) Shehbaz Sharif and Chief of Army Staff (COAS) General Asim Munir to China, where three key takeaways emerged:
Strategic Clarity: Pakistan conveyed a comprehensive message to Chinese leadership, emphasizing that China and the China-Pakistan Economic Corridor (CPEC) are pivotal and top priorities in Pakistan’s foreign policy.
COAS Assurance: The COAS’s presence in the meeting with President Xi Jinping aimed to reassure and restore Chinese confidence, acting as a guarantor of CPEC security and policy continuity.
Chinese Commitment: President Xi Jinping publicly reaffirmed China’s commitment to “promote high-quality joint CPEC construction” and “create an upgraded version of the CPEC”.
Economic Developments
Export Growth: Pakistan’s exports are expected to grow by over ten per cent, reaching approximately $31 billion in the current fiscal year.
Foreign Currency Reserves: Exchange companies sold a record $450 million to banks on May 24, contributing to the buildup of Pakistan’s reserves. Projections indicate that around $4 billion will be sold to banks during FY24, potentially setting another record.
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Crackdown on Currency Smuggling: Following the decision at the Special Investment Facilitation Council (SIFC), UBL has become the third major commercial bank to operate a foreign currency exchange company, alongside HBL and NBL. This move is aimed at enabling smooth and fair transactions in the foreign currency market.
