IMPLICATION OF SINO-PAK TRADE RELATIONS DURING 1958-2008 Dissertation Submitted to the BOARD OF ADVANCED STUDY AND RESEARCH University of Karachi, Karachi, Pakistan In fulfillment of the Requirements For the Degree of DOCTOR OF PHILOSPHY In Political science By Research Scholar MUHAMMDAD HABIB Research Supervisor PROFESSOR DR. MUHAMMAD ABDULLAH QADRI Department of Political Science University of Karachi, Karachi, Pakistan 2018 i BOARD OF ADVANCED STUDIES & RESEARCH University of Karachi Certificate I have gone through the thesis titled “Implication of Sino-Pak trade relations During 1958-2008” submitted by Mr.Muhammad Habib for the award of Ph.D degree and certify that to the best of my knowledge it contains no plagiarized material. Date: March 2018 Professor Dr Muhammad Abdullah Qadri Supervisor Department of Political Science ii ACKNOWLEDGEMENTS Praise to the Almighty to whom, I owe my attempt at completing this work. The struggle and effort to initiate and fulfill this task has been the blessing and mercy of Allah. I do not consider myself worthy of it without the constant strength and direction that he bestowed upon me at every stage of research and writing. I am extremely thankful to my research supervisor Prof Dr Muhammad Abdullah Qadri. He became a source of intense support and inspiration at a time when I had relapsed into a state of confusion and uncertainty. He has definitely in my case, played the role of the legendary mentor. His encouragement infused a new spirit in me and enabled me to pick up the threads from a near to lost endeavor. I will never be able to thank him enough. I strongly acknowledge and pay my thanks to Prof Dr Muhammad Ahmed Qadri for his advice and scholarly guidance throughout my research work. He was a source of encouragement and inspiration for me always. I would also like to acknowledge with a great sense of gratitude to Dr Suwaibah Ahmed Qadri who gave the support to organize the research work for successful completion. Special thanks go to Mr Atif Latif and Mr Akash Haider Shah for assisting me to interpret the data gave me support and interest to achieve this goal. I would like to acknowledge and appreciate my Parents, and whole family for their support, encouragement and deep interest in my studies. I would also like to acknowledge and say thanks to office superintendant and Liaison officers at the Embassy of China at Karachi and Islamabad who helped me in collecting the Data in my thesis. My friends have always been there for me. To name and thank them would require volumes. Here I must acknowledge the support and encouragement I received from Mr Adnan Khattak, Chaudary M Ilyas, Mr Rahies Khan, Mr Ilyas khan, Mr Zabit Nazim, Mr Atif Iqbal Najmi, Mr M Ashraf they restored in me a lost confidence and their youthful energy led me to wind up my work in the best possible way. May Allah bless them, always. I would like to pay a special gratitude to my colleague Mr Muhammad Iqbal not only supporting and encouraging me but giving me the joy. iii Lastly, I must acknowledge the cooperation of the institutes where I worked and from where I was able to collect my research material I am deeply indebted to the State Bank library, Muhammad Hussain library University of Karachi Library at Department of Political Science University of Karachi, Islamabad National Library, National Institute of Historical and cultural Research, Indus University library Karachi, DHA Central library Karachi. I am especially thankful to all those who helped me out in those institutions and made my work considerably. Finally, I must express my deepest gratitude to the respondents of this study, who extended their best cooperation in this endeavor. Muhammad Habib Ph.D Scholar Department of Political Sciences University of Karachi iv ABSTRACT The aim of this research is to emphasize on the Sino-Pak trade relationships as these two states are not friends only but as well as a good neighbor and true believer of each one, their relationships are based on trust, mutual co-operation and respect. Previously Pakistan is among those countries which took step towards recognition of China as an independent state since then their relationships are strong, smooth and are known as “all weather friends”. The Sino-Pak political relationships were started in the year 1951. The relationships have a foundation on joint compact which is in the benefit of both states; one of the essential objectives of foreign policy of Pakistan is to strengthen its forthcoming relationships with all countries particularly with its neighbors. It is too reality that China has also supported Pakistan in each and every field particularly in trade and industry and military phase. Although Pakistan apprehends the Peoples Republic of China in January, 1950.Cotillion expedient relations were established in May, 1951. However, revelatory and beneficial co-operation started in the early mid-60s e.g. trade (January 1963), air services (August 1963) border demarcation (March 1963), and cultural agreements (March 1965) were signed between the two countries. This period has been fruitful cooperation in political economic commercial technological, military and cultural fields. Over the years, Sino-Pak friendship has become a shining example of “time tested” and “all-weather friendship”. Since 1965 nearly all Pakistani heads of government and state had visited China. Besides, there have been multifold exchanges of different delegations to maintain this “historic friendship” in place. Both countries agreed on most of the world issues and their friendship remains unaffected by change of government and caprice of international politics. China’s generosity has been considerable and constant in serving Pakistan in defence manufacture. Subsequent to the United States weapons prevention after the 1965 combat, it had been unlimited armed provisions, equipment and technology. Altogether both countries have been build tanks, aircrafts, and formed gun bullets. A number of the well-known cases of Chin’s collaboration are the beginning of the HIT, Heavy Industries Taxila, improvement and extension of the facilities at the Pakistan Ordinance Factories (POF) Wah, Aeronautical Complex at Kamra, cooperation in ship building energy production plants at Jamshoro, Guddu and Ghazi Barotha agreement in 1965 with the NHA to construct two segments of the Indus main road at an expenditure of 91 million dollar; construct a railway-line between Lodhran and Peshawar, hold up in water and mineral searching in NWF and Balochistan, in Balochistan the Saindak project for the extraction of copper and gold, recognized Pakistani space plan in 1990; beginning of a test satellite with a v missile completed in China and particularly then 790kilometers KKH the “8th wonder of the world obviously”. There is a requirement to inject greater economic contented in Sino-Pak relations, mollifying Chinese anxiety of Pakistani support to Taliban in Afghanistan and its uncertainties about Islamic extremism spilling into its border province of Xinjiang. Presently it has also felt need that China Pakistan relations should be stronger more at the societal level as well the state to state ties. The president of China Jiang Zemin confidently held responsible India intended for the present anxiety in South- Asia. In his initial enduring response to the atomic experiments by Pakistan and India on 3rd June 1998, he as well accuse India of creation of objective both Pakistan and China and decorated out that the atomic cooperation between Pakistan and China was ascetically nonviolent in the region of technology of atomic reactors and tinted out that eleven system agitated were under the supervision of the IAEA. The mutual communiqués destined the nuclear tests by India and Pakistan, call on them to sign the CTBT and NPT and urged a peaceful agreement of political problems together with that over Kashmir through dialogue. China and the US decided to work jointly to hold the dangers likely to come up from the proliferation of the South Asia. China had signed FTAs with eight states and areas as well as ASEAN, which had turn out to be functional from 1st January, 2010. Countries comprises of ASEAN currently are benefit from a trade excess with Chinese. In this FTA Chinese had agreed gigantic dispensation to ASEAN and tariff abolition covers 90 percent of goods traded amongst ASEAN countries and China. Underneath this FTA the typical tax rate of Chinese cargo from the ASEAN will be 0.1percent in its place of 9.5 percent. If it would be compared Chinese FTA with Pakistan and other ASEAN countries one will conclude that the goods enclosed under the Sino-ASEAN FTA at 0 %t tax set ASEAN on an improvement as on the same bits and pieces. There are duties on exports from Pakistan depiction Pakistan’s goods less gorgeous for Chinese buyers. The economic enlarge of China in our neighborhood is a historic chance for Pakistan to achieve enlargement at a fast speed by creating substantive and workable means for economic collaboration. vi خﻻصہ اس تحقیق کا بنیادی مقصد دونوں ریاستوں کے مابین نہ صرف دوستی بلکہ پاک چین تجارتی تعلقات پر زور دینا ہے۔ اس کے ساتھ ساتھ ایک اچھے پڑوسی، اعتماد پر مبنی رشتے، باہمی تعاون اور احترام کے رشتوں کو استوار کرنا ہے۔ ماضی میں پاکستان کا شمار ان ممالک کی فہرست میں ہوتا ہے جنہوں نے ایک آزاد ریاست کے طور پر چین کی حیثیت کو تسلیم کرنے کی طرف پیش قدمی کی جس کے نتیجے میں ان کے تعلقات میں وقت گزرنے کے ساتھ نہ صرف پائیداری اور مضبوطی آئی بلکہ ان دونوں کو ایک دوسرے کے دکھ سکھ کا ساتھی سمجھا جانے لگا۔تاریخی اعتبار سے ان کی سیاسی