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 Pakistanese 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 by 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 (CSOC).
Finance
Secretary Waqar Masood and Economic Affairs Secretary Saleem Sethi assisted
Dar. Chinese Ambassador Sun Weidong also participated in the negotiations.
CSOC
is the trade arm of China Shipbuilding Industry Corporation (CSIC) and
its main business is the manufacture, repair, lease, and sales of military
ships and submarines.
Sources
in the finance ministry said that the agreement is still subject to
final review form higher authorities in Beijing, following which a formal
agreement will be signed. The press release issued by the ministry after
the event was vague. According to the release, Dar said that the visit
by the CSOC delegation to Pakistan would enhance and further strengthen
their bilateral economic and defence cooperation.
The
release quoted Xu thanking Dar for his contribution in concluding the
arrangements, saying it was reflective of the deep rooted China-Pakistan
friendship.
Last
month, both the countries had also signed an agreement for construction
of six patrol vessels for the Pakistan Maritime Security Agency (PMSA).
The agreement had been signed by China Ship Trading Company (CSTC) and
the Pakistani defence production ministry. According to the agreement,
four ships will be constructed in China while the remaining two will
be built at Karachi’s Shipyard under a transfer of technology
agreement.
Below
is an excerpt of our IDEX 2013 article on the S20 with some technical
details: |
PLAN's
Type 039A Diesel Electric Submarine (SSK). The S20 is reportedly based
on this type