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Pakistan finalises deal to buy 8 China submarines

Pakistan and China on Thursday agreed here to a multi-billion dollar deal that would see Beijing provide eight submarines to the Pakistan Navy, in an agreement that analysts are calling the largest-ever defence deal China has agreed to with any country.
Despite the magnitude of the deal, government officials did not provide any details, even declining to confirm the size of the transaction. However, the composition of the Chinese delegation with which the agreement was reached suggests that the arrangements have been struck for purchase of eight submarines.
"Pakistan and China have reached an understanding on matters of defence cooperation relating to Pakistan Navy," announced the finance ministry after a meeting with Chinese authorities. "Financial arrangements to this effect were also concluded."
According to a briefing that the defence ministry gave to parliament in April this year, Pakistan was negotiating a deal for acquisition of submarines from China. In the same month, the UK-based Financial Times, citing a retired senior official, claimed in a report that the contract could be worth $4 billion to $5 billion, the largest defence deal ever with China. Sources in the finance ministry said that Pakistan would make down payments to China in four installments and the delivery of the submarines will be made in the coming years.
The financial arrangements were agreed during a meeting between Finance Minister Ishaq Dar and Xu Ziqin, President of the Chinese state-owned China Shipbuilding & Offshore International Company Limited. The reports of submarines deal was in the air since the visit of Chinese President Xi Jinping to Pakistan in April.
Pakistan has been negotiating the purchase of submarines from China since 2011. No details were, however, given about the type of the submarines. But there have been reports that Yuan-class Type-041 diesel-electric submarines were being considered.
news@khaleejtimes.com
(With inputs from PTI)

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