economic growth

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Chinese Premier Li Keqiang continues his first trip abroad in his new position and arrived in Pakistan today for a two-day visit where he will meet prime minister-elect Nawaz Sharif as the long-time allies, described as iron brothers, look to boost economic ties. Trade between China and Pakistan hit a 12-month figure of 12 billion dollars for the first time last year, up 18 percent on the previous year, and the two sides are committed to raising this to 15 billion dollars in the next two to three years. Sharif's Pakistan Muslim League party swept to victory in the May 11th general election on a promise to revitalize Pakistan's struggling economy and help from its giant neighbor to the northeast will be important to this. Pakistan faces a daunting array of problems such as a bloody Islamist militancy, sluggish economic growth, high inflation, a faltering currency, the threat of a balance of payments crisis, and crippling electricity shortages. Beijing has built two nuclear power plants there and is contracted to construct two more reactors. In February, Beijing also took control of Pakistan's strategic port of Gwadar, which through an expanded Karakoram Highway could connect China to the Arabian Sea and Strait of Hormuz, a gateway for a third of the world's traded oil. Ahead of the trip, the 2 sides have gushed about their relationship, describing it using phrases such as all-weather friendship, iron brothers, and as the 2 wheels of a bicycle. Premier Li said the political bond between China and Pakistan is unbreakable and their business ties as a whole have maintained growth momentum. Li said Pakistan is the first South Asian country to sign a free trade agreement and currency swap agreement with China, and it is the largest destination of Chinese investment in South Asia. Pakistan's export to China last year increased by nearly 50 percent and China is Pakistan's second largest trading partner and fourth largest export market. The Chinese Premier has said that China takes its trade imbalance with Pakistan seriously and is looking at measures to address the issue as he says there is great potential to be tapped in their economic cooperation. Pakistan is set to become the fifth Asian country to use China's domestic satellite navigation system which was launched as a rival to the US global positioning system, or GPS. Go to http://www.bon.tv/Biz-Wire/ to watch the full episode Follow us on Weibo http://weibo.com/u/2419600955 or Twitter.com/ChinaBizWire