by Muhammad Asif Noor

 

Each year, National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), two of the main political bodies of China meet for the annual “Two Sessions” in order to finalize the development plans for the country’s projections and policies for the next year in the realm of military, diplomacy, trade, environment, and other important sectors. Considered as one of the largest gathering of deputies of NPC and members of the CPPCC on the Chinese political calendar, the two sessions are what the world has put its eyes on to know more about China’s priorities and plans. Two sessions are important to increase not only national unity and cohesion amongst the length and breadth of China, help achieve country’s goals but also to reach out to global partners and reflect the steady development and engagement plans. This year’s meeting is happening at an important stage when the CPC is celebrating its 100 years of establishment, there is a start of the 14th Five Year Plan Period (2021-2025) for Social and Economic Development targets for 2035 along with the fact that the world including China is recovering from the fight against the COVID-19 pandemic. With all the challenges ahead, China is all set to make important announcements related to its goals in development in all spheres. Pakistan being an important strategic ally of China will be an important beneficiary in this entire process and decisions made during the two sessions of consultations including the future projection for the ongoing year. Both countries are also celebrating 70 Years of their diplomatic relations and in a recently hosted ceremony simultaneously in Beijing and Islamabad wherein official logo of the celebrations has been inaugurated between the two states kick starting the festivities of togetherness.

 

Despite challenges of the pandemic, China has maintained its steady development in 2020 with GDP growth of 2.3 percent reflecting Chinese economy’s resilient nature and potential to sustain its steady growth. It was the only major economy of the world showing expansion signs amid the COVID-19. During the ongoing two sessions, Premier Li has announced that  China’s economic growth target has been set above 6 per cent for 2021.  It is also important to note that the recent announcement by President Xi Jinping about victory against the poverty is also an important milestone achieved before the opening of the two sessions.  Poverty alleviation has remained at the top agenda of the government of China to help ensure people’s wellbeing and development.  As China’s economy is growing and steadily rising, this bodes well for Pakistan. This steady growth and poverty alleviation announcement made recently by China will create a strong impact on Pakistan’s economic progress.  This is because of increasing engagement of Pakistan’s economy with China, not only through CPEC projects and infrastructure development, but the ongoing exports, imports, technological advancement will help Pakistan have an overall comprehensive economic development. It is also important to note here that China is Pakistan’s largest trading partner and a major investor especially in the infrastructure and energy sectors. China’s overall investment in Pakistan has increased to $332.1 bn which is around 45 pc of the total FDI.

 

The 14th Five year plan announced last year in the 19th CPC meeting encompass the overall China’s development plans to  include sustainability of poverty reduction plans, self-economic sufficiency, dual circulation economy and increase in the domestic consumer demand are few of the contours of the plan. This dual circulation of economy is meant not only to focus on the domestic economy but also continue to open up and build stronger global outreach with more shock resistant economy. China, a country of 1.4 billion population is offering huge lucrative opportunities for countries like Pakistan to expand the trade base and avail the opportunities offered by China especially in terms of business and development options.   As a result of the China-Pakistan Free Trade Agreement has its Phase II established, there is a growing chance for Pakistani businesses to promote the export in a Zero tariff lucrative business environment.  As Chinese domestic market is widening with an increase in purchasing power as a result of the zero poverty, this gives another important opportunity for Pakistan to recover from its economic challenges to avail this “dual circulation” economic strategy by China to solve the problem of trade imbalance.

 

We all know that China Pakistan Economic Corridor is currently in its second and most important phase where industrial development, agriculture, socio-economic development of rural areas and building farmers’ capacity to contribute towards overall Pakistan’s economy, are few of the important areas of focus. With China’s overall development agenda and the discussions during the two sessions will also focus on the BRI development plans, CPEC as a crown of BRI will benefit at the large scale. As a result of the decision made in the two sessions, it is expected that there will be continuation of the similar level of the cooperation between China and Pakistan for collaboration in the ongoing projects under CPEC. The Chinese next five-year plan to be discussed in the two session can be dubbed as plans of opportunities for Pakistan. For instance, the focus of the plan on technological advancement is important for Pakistan too wherein as we have recently observed rise of tech industry has thrived in Pakistan, there is a room for collaborations between both sides. This can be an excellent opportunity for the local firms to collaborate with Chinese counterparts in order to innovate, stimulate the development. Technology further improves the innovation resulting in transformation of the entire economic and trade eco system of Pakistan. As China advanced technologically in all spheres including artificial intelligence, there is ongoing collaborations between both sides on sharing information, learning and collaboration on the advancement and modernization of industrial development.

 

This week President Xi Jinping has also announced  the end of poverty in China with growing GDP, nearly 60 million population in the rural China has been lifted out of poverty, millions of jobs were created and world’s largest social security system was established covering nearly 1 bn people throughout China. This miraculous development and historic achievement have multiplied China’s confidence at the global level where the country has achieved its set targets for 14th Five Year plans. Now as the country has been able to build a moderately prosperous society with end of poverty, there is a steady movement towards building a modern socialist country. With these sessions happening at the opportune time, Pakistan has a lot of lessons to be learnt from its Iron brother especially in eradicating poverty, achieving the set targets, political and economic stability which has remained the hall mark of China’s development over all these years. It is only through the steady and sustainable ways of achieving the objectives that any country in the world can follow the Chinese footsteps and wisdom that encompass century old traditions and values of commitment and certainty.

 

There is also a growing estimate that as a result of fast economic growth, China will surpass US as one of the largest economies of the world. With ongoing deep recession in the global economy, it’s only due to China’s sustainable economic growth that the global economic health can be improved with certainty. Even global investors are putting their trust on China. According to UN Investment Trends Monitor, while there was a slump of 42 percent in the global foreign direct investment however there has been an increase of 4 per cent by China. CPEC is a great example apart from other global Belt and Road Initiative projects and development programs by China. Since there is also a global recognition that one of the most attractive market is China’s domestic market in terms of doing business especially because of the lucrative opportunities for the international business enterprises, Pakistan is at the great economic position to ripe this opening. Last year China along with the other members of the Association of Southeast Asian Nations (ASEAN) and five regional partners signed one of the grand Regional Comprehensive Economic Partnership (RCEP) agreement which is one of the largest in the history of the region. This trade agreement is a remarkable milestone in China’s global recognition of its economic might and vision of sharing the prosperity with the humanity. This was also reflection of China’s multilateral approach in boosting economic development. Apart from this agreement, China also finalized an accord with EU as well for the trade and investment. These ongoing sessions happening at this important juncture of history reflect China’s great progress and cooperation at the global stage. In the coming 15 years as the two sessions will also roll out the plans for the peace, progress and development for the 2030 agenda of prosperity, China with its confidence will be able to steer the destiny of the world to new heights. Pakistan’s lasting partnership with China, both states celebrating their 70 years of togetherness with a diplomatic zeal, will be helping the region in progress and development.