China To Help Pakistan End Energy Crisis

As Islamabad seeks to end an energy crisis that triggers power cuts of up to 20 hours a day, a situation that ran the economy aground China responded that it is willing to cooperate with Pakistan on power generation as it is a priority for any economy.

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.

Chinese Premier Li Keqiang arrived in the Pakistan capital under extra-tight security earlier today on the second leg of his first official trip since taking office in March after a visit to Pakistan’s arch rival, India as his plane was escorted by six air force fighter jets while entering Pakistan air space.

Security measures also included shutting down mobile phone networks briefly across the city.

Pakistan was one of the first countries to switch diplomatic allegiance from Taiwan to China, in 1950, and Li requested China and Pakistan should remain “trustworthy partners” at a lunch attended by Prime Minister-elect Nawaz Sharif and President Asif Zardari.

Li also hinted that there was still “great potential” for the relationship.

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 the economic corridor from the Gulf, across Pakistan to western China, and could be used by the Chinese Navy, upsetting India.

Bilateral trade last year rose above 12 billion U.S. dollars for the first time and both countries are aiming to reach 15 billion U.S. dollars in the next two or three years.

The two countries signed a series of cooperation documents covering the economy, culture.

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.