The China-Pakistan Economic Corridor (CPEC) continues to look like a mystery, wrapped in an enigma. In the absence of agreements stipulating and documenting both countries’ interests, the CPEC is creating problems that would strip Pakistan of whatever benefits the multi-billion-dollar project promises.
Pakistan’s high-profile developmental claims notwithstanding, there are grey areas in which the CPEC appears to become a China-only project, stripping it of its game-changing elements for Pakistan and giving China a disproportionate presence in the country and the region.
Yet Pakistan continues to project it as a game changer for the country and the Economic Cooperation Organization (ECO) region. This was precisely the message at the recent ECO summit in Pakistan.
Sartaj Aziz, an advisor to Pakistani Prime Minister Nawaz Sharif, said the CPEC could “galvanize trade opportunities with the ECO region” by acting as a catalyst to boost intra-region trade through greater connectivity. “It could also help the entire ECO region emerge as a formidable economic bloc in the world,” he added.
Foreign office sources say Pakistan intends to use the CPEC as a “foreign policy tactic” to woo regional countries. The ECO summit, which China attended as a special guest, was about just that.
“The imperative of countering India’s policy of isolating Pakistan makes the tactical use of the CPEC essential,” said one official on condition of anonymity. “Hence, the CPEC’s elevation from a game changer for Pakistan to a regional game changer,” he added.
According to the official narrative, there is no limit to the benefits the deal would yield, while the costs and pitfalls are dismissed as the musings of skeptics or pessimists. Yet, these factors are as real as the mega-project itself.
What is the game changer for Pakistan?
However, just when Pakistan was hailing the CPEC as a genuine game changer during the summit, skepticism about its benefits was overwhelming during the Senate’s planning and development committee hearing held on the same day.
Committee chairman Syed Tahir Hussain Mashhadi voiced apprehension that the CPEC may not bring the promised benefits, saying: “China is our brother, but business is business.”
Staff from the planning commission, which oversees CPEC projects, told the committee that only Chinese investors would be allowed to invest in the proposed special economic zones being created under the corridor umbrella.
The committee was further told that no agreement exists between Pakistan and China to protect Pakistan’s interests. With Pakistani businessmen barred from investing in the special economic zones, “Where will be the benefit for Pakistan,” Mashhadi asked. “Will the Chinese give us some share in their profit or pay taxes?”
There were no assurances that Pakistani labor would be recruited to work on Chinese projects, or that the country would see a revenue windfall — something that is highly unlikely given the disproportionately expensive financing conditions that come with CPEC projects.
As comparisons have clearly shown, financing terms (and interest rates) are higher than China has stipulated to lend to other countries such as Myanmar. “We were informed that Chinese banks will charge us more interest than any other international bank,” Mashhadi said.
Funding, too, is not for all the projects envisaged under the CPEC. China would provide loans and grants for only 3% to 4% of the entire investment in the CPEC, raising concern that Pakistan may not have enough money to complete the rest of the projects.
No funds, no corridor
The absence of funding has already started to have an impact. This was clearly understood during the recent meeting of the Senate standing committee on communications.
The committee was told that no progress could be made on completion of the western route of the corridor. “Whenever we ask about the progress on the western route, we hear the excuse that the funds and workforce are not available,” said committee chairman Muhammad Daud Khan Achakzai.
The chief secretary of Balochistan acknowledged that a committee formed to acquire land in Balochistan and Khyber Pakhtunkhwa to complete the western route had not met since its formation. So, no area has been acquired, reducing an all-important portion of CPEC to paperwork.
Absence of funding for the western route has sparked controversy in Pakistan, stirring ethnic tensions and exacerbating regional disparities.
“What this case unambiguously shows is that the particular geography of trade and projects being built in Pakistan by China is primarily catering to Chinese interests, ” said an economist from a federal university based in Islamabad. “National considerations hardly figure in these mega-projects. This is likely to reinforce rather than mitigate, as is being widely projected by Pakistan, ethnic and regional disparities.”
Claims about CPEC’s ability to change Pakistan’s (and the ECO region’s) economic outlook appear hollow and unreal, while the government appears only to be using its imaginary completion as a platform in next year’s general elections.
What adds substance to its hollowness is the government’s inability to put these apprehensions to rest. During the past year, the planning and development committee has met six times, but the government has failed to tell the committee about any agreement between Pakistan and China to protect the interests of Pakistan, said the chairman.
The question remains: what’s the game changer for the region when CPEC is changing nothing in Pakistan? If anything, it is giving the Chinese a corridor to do business across the region via Pakistan. That’s where CPEC appears to begin and end at the same time.
Arvind Shah His Arguments Have Been Rebutted A Million Times We Are Sick ANd Tired Of Doing It
Falcon Dave India Is Considered The Biggest Garbage Dump In The World And **** Capital of The World.No Wonder It Is Because Bhinuds Worship A Blue Skinned ***** Who Use To Steel Womens Clths To Look At Their Naked Bodies
It will not change anything for Pakistan also…India will refuse to import anything via CPEC…India is the prime consumer of Chinese good in Indian Subcontinent.
Khushal Ahmad Gouri : Research Muslims drinking Camel Urine on YT, you will see how they are following the dictats of P3d0 Mohamad in letter, sprit and deeds. ROFL.
Just as you are commenting to win favours from China and Pakistan, right?
Can you at least once come up with a valid counter-argument instead of a senseless pile of words? He is citing official sources and all you have is filth!
madarchod ke bacche, Bharat mein reh kar doosro ko traitor bulate sharm nahi aati. katue gaandu ke bacche.
Khushal Ahmad Gouri haan maa-ke-laude, teri bahut jal rahi hai. Bharat mein reh kar usko barbaad karna tum madarchodon ki ummeed hai. Behnchod tum katuue mulloh se aur kya expected hai, sab ke sab kamine porkistani chhake ho. Ab dekhna, tumhara chutiya jihadi bhai saifullah ki tarah tumhara poora mullon ka dal ko pakkad pakkad ke maarenge Bharatiya police aur fauj. bahut ho gaya tamasha tum pedophile worshippers ka, saala tumhara suar prophet mohammed yahaan hota toh uska bhi encounter karte hum. Bharat kya, tum arabi kutton ko muslim-occupied-India aka porkistan se maar maar ke bhaga denge. Jaa kar, apne poorvajon ki tarah arabion ke tatte chaatna harami lundooron
The author is speculating and wrting fiction.
The project is an important part of China’s belt and road initiative – an economic and trade expansion project in partnership with all neighbouring countries traversing Asia, Europe and Africa. This development project will be completed in time and on budgets. It will bring enormous economic benefit to Pakistan once all the projects are completed and the flow of trade and economic activites begins and start to take roots more and more businesses will be open to take advantage in the flow of trade opportunities it offers in this China Pakistan Corridor project.
Yes.. CPEC won’t change a thing for India.
Atleast that’s better than cow piss.
These guys are like the blasphemers who write anything to get entry into US or UK in the name of threats in Pakistan. In this case they are doing it for money from India.
traitor
Khan: With Allah’s blessing, it is hoped that Pakistan will turn out to be an Asian economic Tiger. It will be a powerful checkmate against hegemonic designs of India!
The most damage done to Pakistan was by Zia-ul-Haq. He introduced the virus of intolerant version of islam against the existing Sufism. For any community to prosper the core fundamentals like honesty,integrity,hardwork,sacrifice etc shall be available in its population. Such things are lacking in the populace of Pakistand ( and even in us Indians). The core values coupled with scientific and commercial temper will only make a nation great and proud. Best role model is China.
Apart from hollow and stupid statements can you counter the author with facts on the table?
In certain e-papers like atimes or the diplomat etc, writers get published for bringing out negativity about Pakistan.
In all fairness no matter how much Chinese will benefit from the project, however addition of about 15000 to 20000GW electricity, upgrading of whole Railway to run trains at 160km/hr with dual tracks and modern signaling, communication and ticketing system. Building of all those dual carriage A-grade roads or 3 lane motorways, connecting most of the remote and under privileged areas, there is no doubt it will bring prosperity and wealth, uplift the livelihood of people living in inaccessible areas. Trade within the country will improve.
So yes regardless we will trade with china or not, within the country there will be hell lot of improvements.