Sino-Pak relations: time for an economic marriage

Don blame yourself if you read every word beginning with a C as China is in the newspapers lately; the Chinese Premiers visit to Pakistan has received widespread coverage, and, indeed, for the right reasons.
Last Friday, a branch of the Industrial and Commercial Bank of China (ICBC) was agreed to be launched in the country, unleashing a new episode in the economic relations between the two countries.
While Pak-China friendship and the amiable political ties between the two countries are not news to many, economic and trade ties between the countries have a lot to desire.
The move is largely a positive one for Pakistan since several Chinese companies that are investing in various sectors in Pakistan will find the presence of a Chinese bank supportive.
The Governor State Bank of Pakistan, Shahid Kardar, has also postulated greater economic activity between the two countries through this move. "Mr Kardar believes ICBC will act as a catalyst for greater activity by Chinese companies who are already investing in infrastructure, energy, telecommunications and mining," quoted the Financial Times two weeks ago.
For a country where Chinese FDI has more than halved in the last two years, such a move should be warmly welcomed.
"Hardly any country is willing to invest in Pakistan, and, at such a time, Chinas move in the country shows a long-term interest," said Talat Masood, a seasoned political analyst. In some ways, this is also like to generate a positive vibe for Pakistan in the international community, as Kardar said, "the signal that goes out is that Pakistan is open for business."
Strengthening of the Sino-Pak ties are also believed to counter the growing Indo-US ties.
Chinas growing interest in Pakistan comes right after the US Presidents visit to India, which testifies to the strong relations between India and US. To China, Pakistan is a strategic partner - helping it expand its reach in South Asia, a region where Chinas so-called rival, India, is also vying to increase its presence.
The sticky relations between US and China are also at play here since the US is also concerned about Chinas growing global presence and outreach, which includes passing through Pakistan. "This move also shows a latent rivalry between the West and China, but the more important point is that Pakistan should exploit it," said Masood.
The point highlighted by Masood is a very important one, since Chinas growing importance in international financial institutions is also gaining significant potency.
"Chinas membership in the international financial institutions and its growing importance as an emerging economic power should help Pakistan in getting a fair deal. At least China will be able to ensure that the treatment which Pakistan receives at these institutions will be equitable and comparable to others and there will be no discrimination against it," Ishrat Husain, former SBP Governor, said in his keynote address delivered at the Pakistan Institute of International Affairs a few years back.
In FY10, bi-lateral trade between Pakistan and China was only 9 percent of Pakistans total trade.
Its about time the cordial relations between Pakistan and its giant neighbour go beyond smiles and frequent strategic visits. It is hoped that the much-needed economic ties are rightfully nurtured to lift up Sino-Pak ties from being just politically motivated.
As for the fact that Chinese premier visited India before Pakistan, it only certifies that economic ties are going to be the order of tomorrow.