China's Li offers to help end Pakistan energy crisis

China's Li offers to help end Pakistan energy crisis Wed, May 22 04:43 AM EDT By Nick Macfie ISLAMABAD (Reuters) - China and Pakistan should make cooperation on power generation a priority, Chinese Premier Li Keqiang said, as Islamabad seeks to end an energy crisis that triggers power cuts of up to 20 hours a day, bringing the economy to a near standstill. Li arrived in the Pakistan capital under extra-tight security on Wednesday on the second leg of his first official trip since taking office in March after a visit to Pakistan's and China's arch rival, India. Li's plane was escorted by six air force fighter jets as it entered Pakistan air space. Security measures also included shutting down mobile phone networks across the city. Pakistan was one of the first countries to switch diplomatic allegiance from Taiwan to China, in 1950, and Li told a lunch attended by Prime Minister-elect Nawaz Sharif and President Asif Zardari that China and Pakistan should remain "trustworthy partners" and good neighbors. In an interview with Pakistan media, Li said there was still "great potential" for the relationship. Bilateral trade last year rose above $12 billion for the first time and both sides are aiming to reach $15 billion in the next two or three years. "Our two sides should focus on carrying out priority projects in connectivity, energy development and power generation and promoting the building of a China-Pakistan economic corridor," Li said. The power shortages have sparked violent protests and crippled key industries, costing hundreds of thousands of jobs in a country already beset by high unemployment, a failing economy, widespread poverty, sectarian bloodshed and a Taliban insurgency. There are several joint energy and infrastructure projects under way in Pakistan and China has taken over operation of the strategically important Gwadar port. When complete, the port, which is close to the Strait of Hormuz, a key oil shipping lane, is seen opening up an energy and trade corridor from the Gulf, across Pakistan to western China, and could be used by the Chinese Navy, upsetting India. Li this week offered India a "handshake across the Himalayas" and said the world's two most populous nations could become a new engine for the global economy - if they could avoid friction. China and India disagree about large areas of their 4,000 km (2,500 mile) border and their troops faced off for three weeks last month on a windswept Himalayan plateau where they fought a brief but bloody war in 1962. Pakistan and India have fought three wars, two of them over disputed Kashmir. "PRAGMATIC" MILITARY COOPERATION India has responded cautiously to Li's overtures, partly because of China's friendship with Pakistan. For its part, Beijing is concerned about India's growing relations with the United States. "I wish to reiterate solemnly China's continued firm support to Pakistan in its efforts to uphold independence, sovereignty and territorial integrity," Li said in a possible reference to India and to the United States, which angers many with drone strikes targeting militants in Pakistan. Pakistan is going through a turbulent chapter in its ties with the United States, which plans to withdraw most of its troops from neighboring Afghanistan in 2014. Many U.S. officials have questioned Pakistan's commitment to fighting Islamic militancy since U.S. forces tracked down and killed Osama bin Laden in a garrison town near Islamabad two years ago. China's Xinhua state news agency said Beijing was looking for "pragmatic" military cooperation with Pakistan, "which is in the front line of the fight against international terrorism". "The military exchanges are not directed against any third party and contribute to peace and stability in both the region and the whole world," it said in a commentary. Pakistan's Nation newspaper said Islamabad wished China well in its attempts to address its border and security concerns. "It is also good that Premier Li is not oblivious to the kind of ill-will resulting from the core issue of Kashmir," it said. In a brief security scare in southern Karachi on Tuesday, a roadside bomb exploded near the seafront which police said was likely aimed at a passing van full of Chinese port workers. No one was hurt. (Additional reporting by Ben Blanchard in Beijing; Editing by Raju Gopalakrishnan) = Enter the dragon: China offers help to end Pakistan’s energy woes By Sumera Khan / Kamran Yousaf Published: May 23, 2013 Share this article Print this page Email . Chinese Premier Li Keqiang and President Zardari chat as they leave after a joint press conference. PHOTO: AFP ISLAMABAD: Chinese Premier Li Keqiang has offered his country’s help in resolving Pakistan’s worsening energy crisis, as he kicked off a two-day official visit to Islamabad on Wednesday. Deviating from standard protocol, Pakistan’s entire civil and military leadership were present at Nur Khan Airbase, Chaklala, to receive Premier Li when he arrived in Pakistan on the second leg of the visit that also took him to India. Amid tight security, the Chinese premier received a warm welcome as his plane entered Pakistani airspace, escorted by six Pakistan Air Force JF-17s. Li held formal talks with the Pakistani side, led by President Asif Ali Zardari and Interim Prime Minister Mir Hazar Khan Khoso, reviewing “the entire gamut of Pakistan-China relations”, according to a statement issued by the foreign office. At a joint news conference with President Zardari, he stressed the need for increased cooperation between the two countries in the energy sector. “Our two sides should focus on carrying out priority projects in connectivity, energy development and power generation,” Li told reporters at the President House. His offer to address Pakistan’s energy woes comes at a time when the country is facing extensive power outages, which have sparked violent protests. China is already assisting Pakistan in several energy projects that include nuclear reactors. It has already provided two reactors, each with a capacity of 300MW, at Chashma in Punjab. The two countries are also planning to build two more reactors with the same capacity. Plan to develop ‘economic corridor’ Li also said the two countries were working to develop an ‘economic corridor’ that will not only spur economic activities but also restore peace in the region. “Both sides are of the view that by connecting China and Pakistan we can create a joint economic corridor linking the central and western parts of China and Pakistan,” he said. “This vision, once realised, will have great strategic significance for development, peace and stability in China, South Asia and the rest of the continent, and improve the lives of people in our region.” The Chinese premier, who was also awarded Pakistan’s highest civil award, the Nishan-e-Pakistan, pointed out that there is great potential for the two countries to enhance their bilateral trade to $15 billion from the current $12 billion over the next two years. Speaking at a luncheon hosted in his honour, attended by incoming prime minister Nawaz Sharif among other political leaders, the Chinese premier said he selected Pakistan for his official visit to give a clear and loud message to the international community that “whatsoever happens at the international scene, our relations with Pakistan will continue to flourish and strengthen further.” He reaffirmed China’s unflinching support to Pakistan’s sovereignty and territorial integrity. President Zardari responded by saying, “Today is one of the happiest days of my life. Gwadar port and our agreements on satellite connectivity among others are a testament to the fact that the dreams of citizens from both the countries are being realised.” MoUs to promote bilateral cooperation According to a foreign office statement, a total of 11 agreements have been signed between China and Pakistan as part of efforts to further deepen ties. The agreements include memorandums of understanding (MoUs) on maritime cooperation, boundary management, border ports, economic and technical cooperation and cooperation in the field of satellite navigation. Separately, the visiting Chinese high-powered business delegation signed procurement agreements worth $450 million to help Pakistani businesses utilise the tremendous potential of China. Meanwhile, Premier Li will have a busy schedule today (Thursday). His engagements include an address to the Senate, a meeting with Nawaz Sharif and a joint call by the services chiefs. Published in The Express Tribune, May 23rd, 2013. ======================