China will help Pak but latter needs to use funds efficiently, says Chinese media

Beijing, Nov 4: Pakistan Prime Minister Imran Khan's first visit to China has generated a lot of vibes. The two all-weather allies have seen the visit as a positive one. On Sunday, November 4, a report in China's Global Times said although Beijing has not yet divulged the details of an economic aid package to the South Asian country which is struggling financially, there has been little change in its stance on the issue of China-Pakistan Economic Corridor.

On November 2, China promised to support Pakistan economically though on November 3, some Chinese officials informed the media that negotiations were still on over the details of any aid package to Islamabad, according to the Financial Times. The report even called the move a "departure from Beijing's usual practice" and left the international community guessing.

According to the Global Times report, the western media "perhaps read too much into the news" and said even though details were still under consideration, China was still committed to give Pakistan the much awaited economic aid.

"Pakistan's growing fiscal problems have raised concerns about its ability to repay foreign loans, but China's attitude toward the CPEC has never changed. The question is how to maximize the effectiveness of Chinese aid and investment to bring tangible benefits for economic development. It will take some time to negotiate with the Pakistani side," the Global Times report said.

Pakistan's foreign reserves have reportedly nosedived 42 per cent since the beginning of 2018. The country is in urgent need of impetus for economic development. Recently, Khan visited Saudi Arabia and managed to get a rescue package of $6 billion.

"Offering a similar-sized package to Pakistan won't be difficult for China, but talking with Pakistan about making Chinese aid and investment a real impetus to improve its economy's efficiency and productivity is perhaps more important," the report said.

The economic aid is likely to be China's effort to help Pakistan increase its debt repayment ability and such helping measures are likely to focus on: helping Pakistan tap its economic potential through means like poverty alleviation and bolstering Pakistan's exports to reduce its debt burden, the Global Times added.