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China to support Pakistan in improving its financial situation

Chinese President Xi Jinping made the remarks in a meeting with Prime Minister Shehbaz Sharif, during which the two leaders agreed to strengthen the strategic partnership between Islamabad and Beijing.

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China has been involved in major mining and infrastructure projects in Pakistan, including the deep-water Gwadar port, all part of the $65 billion China-Pakistan Economic Corridor (CPEC).

China will continue to support Pakistan as it tries to stabilise its financial situation, state media has quoted President Xi Jinping as saying, during a visit by Pakistan's prime minister to Beijing.

China and Pakistan should also move forward more effectively with the construction of their economic corridor, as well as accelerate the construction of infrastructure for the Gwadar Sea Port, Xi told Prime Minister Shehbaz Sharif on Wednesday during their meeting at the Great Hall of the People.

China has been involved in major mining and infrastructure projects in Pakistan, including the deep-water Gwadar port, all part of the $65 billion China-Pakistan Economic Corridor (CPEC).

Xi added that the countries should work together to create conditions for the early implementation of the Mainline-1 (ML-1) railway upgrading project and the Karachi Circular Railway project.

Pakistan had been struggling with a balance of payments crisis even before devastating floods hit the country this summer, causing it an estimated $30 billion or more in losses.

Cross-border transactions

China's central bank and the National Bank of Pakistan have signed a memorandum of cooperation recently for the establishment of RMB clearing arrangement in Pakistan, in a bid to facilitate the use of RMB for cross-border transactions by enterprises and financial institutions in both countries, the People's Bank of China (PBOC) said on Wednesday.

China will also export technology for a 160 km/h high-speed railway train to Pakistan, state broadcaster CCTV said on Wednesday.

The developments and projects in Pakistan, a longtime Chinese ally, are part of Xi's Belt and Road Initiative (BRI) to improve China's road, rail and sea routes with the rest of the world.

China welcomes Pakistan to expand high-quality agricultural exports to the country, and is willing to deepen cooperation in areas including the digital economy, e-commerce, photovoltaic and other new energy sources, Xi said.

Sharif was one of the first leaders to meet Xi since he secured in October a third term as leader of the ruling Communist Party.

SOURCE: Reuters