Gilani Asks for Chinese Investors
Just a few days ago, Yousuf Raza Gilani, the Prime Minister of Pakistan, asked firms in China to “invest in his country’s energy sector,” in an attempt to boost his suffering economy that is facing crisis following last year’s massive floods as well as in general, “weak Western investment.” But he’s not asking this from a charitable point of view. Gilani believes that Chinese companies can really benefit from making this investment, according to what he said last Thursday at a joint business forum held in Beijing. He added that, “joint ventures, with equity participation of Chinese corporations and financial institutions, can transform Pakistan’s economic landscape and would certainly prove to be a win-win scenario.” He also mentioned how beneficial it would be for these Chinese firms to look to Pakistan when developing their business strategies.
Gilani made these statements on the third day of his China trip which is just a few weeks after Osama bin Laden was killed on Pakistani soil. This in and of itself is significant since it “rattled US-Pakistan ties and pushed Islamabad closer to Beijing.” Gilani met with his Chinese counterpart Wen Jiabao last Wednesday and the two have both been pushing the development of mutual ties between the countries at a time when his country is feeling the “pressure about whether its security services knew where bin Laden was.”
At the end of the day, there is also great potential for trading and profits between China and Pakistan. Indeed, just looking at figures for last year, trade between the day reached $8.7bn which was an increase of 27.7 percent on-year. There has also been substantial collaboration in the energy sector between the two countries. Indeed, just over a week ago, a nuclear power plant that was built with China was opened in Pakistan and Beijing has signed a contract to build an additional two reactors in an attempt to facilitate energy shortages. Since Pakistan has been dealing with substantial power shortages, production has been limited to approximately 80 percent of the country’s needs. Thus these kind of energy agreements are vital for boosting the economy.