This week China and Pakistan reaffirmed their commitment to the multi-billion-dollar China-Pakistan Economic Corridor (CPEC), with Beijing reportedly agreeing to take a closer look at some of the agreements finalized by the Nawaz Sharif-led Pakistan Muslim League (Nawaz) government.
Their statement came in response to an article in the Financial Times, which quoted an interview with Abdul Razak Dawood, the adviser to the Pakistan prime minister on commerce, textile, industry, and investment. Taking his cue from Malaysia, Dawood had hinted that the Pakistani government would revisit some CPEC agreements. The paper had quoted him saying that the CPEC operation would be put on hold for a year or two, and that during this period its terms and conditions would be renegotiated.
Dawood reportedly said the tenure of the project would be extended for a further five years to ease pressure on dwindling foreign exchange resources. He accused the former Sharif government of not negotiating conscientiously, by giving Chinese companies unprecedented tax breaks.
On Monday, Dawood claimed the newspaper had quoted him out of context and that parts of his interview were irrelevant. But with sentiments regarding CPEC running high, Dawood’s clarification failed to pacify the opposition parties.
“How can a Commerce minister decide the fate of CPEC project, which is a game-changer for the Pakistan economy? The sovereign agreements between the two countries are binding on the government to follow,” Pakistan Muslim League-Nawaz (PML-N) Senator Mushahidullah Khan told Asia Times. He claimed such decisions could not be made by the cabinet and that Parliament was the right forum to discuss the issue. The PML(N), he maintained, would take a tough stand on changes proposed for the CPEC.
Chinese Foreign Minister Wang Yi, who was in Islamabad on a three-day visit last week, held meetings with Prime Minister Imran Khan, Army Chief Gen Qamar Javed Bajwa and Foreign Minister Shah Mahmood Qureshi. Sources in the Pakistan Foreign Office said the Chinese side was anxious to know what Islamabad was going to do with the $62 billion worth of infrastructure development projects launched under Belt and Road Initiative (BRI). They said the Pakistani side emphasized transparency, continuity, and efficiency, and assured China that the CPEC would be the new government’s top priority.
Corruption accusations
The ruling Pakistan Tehreek-e-Insaf (PTI) party, which assumed power just last month, has often voiced suspicion of corruption and malpractice in the adoption of the CPEC by the former government. Last month, Finance Minister Asad Umar had said that “opaque terms” of the agreements would be laid before Parliament, as they did not contain confidential information.
PTI leaders also allege that the former government, and even their Chinese counterparts, did not do their homework diligently and concluded the agreements indiscreetly without deliberating on their viability and cost-effectiveness.
PTI Senator Nauman Wazir said: “90% of the load carried on the 2,700km long Gwadar-Kashgar Motorway will be Chinese cargo goods, while Pakistan will derive no direct benefit from this huge infrastructure project.” The former government had agreed to Chinese loans at 20 to 23% interest, along with an insurance cost for the project, he said, adding that revenue generated from the project was not quantified in any of the documents.
“I suggested that 5% of the invoice value of cargo be collected on Gwadar-Kashgar Motorway. I am not sure anyone negotiated this percentage with the Chinese side,” he said. Wazir said a 10-year projection of cashflow from the project was necessary to evaluate whether the revenue from it would meet its cost. This assessment, he said, was nowhere on record.
Wazir pointed out that from Kashgar to Havellian, a two-lane road was built, but the motorway changed to four-lanes from Baseema onwards. This was inexplicable, he said, as a four-lane road was needed at that bottleneck. “No study was carried out to ascertain the load of traffic and capacity of the road. It is the most hopeless mega-project, in which a reliable database is neither available in Pakistan nor in China.”
The ruling party’s concerns about malpractice in mega projects hold water. Last year, Senator Wazir asked the Senate Standing Committee on Communications to probe irregularities in the contract for the 392km Multan-Sukkur motorway. He alleged the deal was awarded on inflated rates, causing the exchequer a loss of more than US$1.1 billion. Similarly, last November, China put two road projects on hold in troubled Baluchistan province and another in Gilgit-Baltistan with an estimated cost of $8.1 billion, due to corruption and malpractice.
The general perception is that CPEC was shaped by disproportionate benefits to local manufacturers and a bulging debt burden that upset the country’s balance of payments. “We will revisit the whole spectrum of the CPEC to make certain that the terms on which it was negotiated do not harm the interest of the country,” PTI Senator Mohsin Aziz said. CPEC-related agreements needed to be examined to bring transparency to the financial deals, he said.
Pullout impossible
A highly-placed source in the Finance Ministry said the Imran Khan government wanted to re-evaluate some of the CPEC deals but due to acute economic problems, it could not pull out from the costly projects the way Malaysia did. “We need approximately $10 to 12 billion by mid-December to fulfill international commitments and bridge the fiscal deficit,” he said. But he claimed that the government initiative to collect funds from expatriate Pakistanis for construction of dams would help build the country’s foreign exchange reserves.
Meanwhile, Muhammad Ishaq, a leading importer and one-time director of the Khyber Pakhtunkhwa Board of Investment & Trade told Asia Times: “CPEC will soon be like Atlas’ burden for Pakistan to carry.” China would get the lion’s share of benefit, he said, as the former government had agreed to a one-sided deal and the economy was on the verge of collapse.
“The hefty share in revenue from the port [of Gwadar] and [tax-]free economic zone is not the only issue which will deal a severe blow to the economy. The government also allowed contractors and sub-contractors associated with China Overseas Port Holding Company an exemption from income and sales taxes, and federal excise duties, for a period of 20 years, besides a 40-year tax holiday granted for imports of equipment, material, plant, appliances, and accessories for the port and special economic zone,” he said.
The massive Belt and Road Initiative has run into trouble all across Asia, with Malaysia, Sri Lanka and Myanmar also feeling the pinch from the often onerous terms in projects under the scheme. Sri Lanka was unable to repay Chinese loans related to the Hambantota port and forced to give control of the port to China in an equity swap. Colombo allocates a large share of its revenue to service debts while China has won a strategic presence in the Indian Ocean. Some critics have called this “debt entrapment”.
Last month Prime Minister Mahathir Mohamad flew to Beijing to discuss Malaysia’s withdrawal from $23 billion worth of infrastructure projects including the East Coast Rail Link and the Trans-Sabah Gas Pipeline. These were also part of the Belt and Road scheme. Mahathir said his country could not afford the loans agreed to by his predecessor Najib and must minimize its debts.
Now, Pakistan faces an even bigger challenge.
20 to 30% interest rates for the loans are a lie. If anything, why don’t US and EU banks offer low interest rates loans to Pakistan and India? Chines loans are typically slightly lower than prevailing market rates.
The current fiscal problems of Pakistan and India are mainly due to rising oil prices which are in turn due to US sanctions on Iran.
The writer seems to have graduated from a Western institute of learning, and displays all the signs of a knowledge that within 100 years has reduced the West from master of the globe to a geriatric childless ward unwelcome on 9/10 of the globe, and run by unpopular directionless leaders.
Why? The West can only think of money. But Asia thinks of larger visions.
For 2000 years 300BC-1700AD China and India each produced 1/3 of world wealth, the rest (Europe, ME, Africa) the remaining 1/3. The rise of Corporate Capitalist West was a fluke of history, stupidity of the Kaliphate that sitting smack in middle of Silk Road decimated trade with application of oppressive Tariffs as Trump does today.
Today, there is little Asia can learn from the dying Corporate Capitalist West. All the major innovations of the past 50 years – Pull supply chain system, Total Quality, JIT, Keizan, Kanban, FMS, Robotics, AI, have been Asian. They have increased quality immensely and reduced production costs to a fraction of that in the West. And these are all culture-specific, and it is precisely the inability of the CCW to implement them that has led to its industrial meltdown.
BRI and CPEC are less about money, or profits, more about world peace and Dialogue of Civilization – Mohammedan Islam and Confucius China and Socratic West.
Islam is the natural religion of the era of trade. Mohammed AS was a trader. His fight in Mecca was with Big Business Umayyads, Bankers banu Abbas, and trade monopolist infidel and yehud, the same battle lines as today. In China, Xi, and his BRI, Pakistan has unwittingly found a great indirect champion of Islam that promotes trade. CPEC and BRI are about Mohammedan Islam, and there is no price tag on that, this misguided Westernized writer take note.
Aditya Shitty, none of your business.
Poor writer, what a brainwashed moron. China builds and improves lives, the British and Americans destroy and ruin lives.
All this anti BRI, anti China chatter is being pumped by those who oppose it. It also means that the BRI/ CPEC is trucking along on track.
It is good to discuss matters openly instead of keeping them under cover. This wont affect CPEC at all; it might even enhance public confidence in an already strong economic relationship which is a reflection of the all-weather friendiship between the two brotherly countries.
UK is worried for Chinese investment all around the globe & this is why FT wrote an article based on disinformation.
CIA & MI6 puppets are the ones who spread disinformation & then blame it on Russians
Mark naiyo+ Aditya shitty , Please take the controlled doses of cow piss to avoid babbling absurdities.
See, a barbaric extremist Hindu on a high dose of cow piss uttering an absolute none sense! Cow calf, I suggest you not only to read the article but be in your senses( that you can come to with a controlled doses of cow piss) to comprehend the simple English written in it also. When you are done with it , then come to comment on the same. The simplest thing you can’t grasp that party didn’t support Imran khan on some matter, then what’s wrong to toe with the idea of the party? In democracy, no one can impose his will against the wishes of the people. So, it’s completely none sense to affiliate it to any other propaganda. And once Mian Arif himself has twitted that he has no problem with his removal, and that he is still available to serve Pakistan, then the filthy propagandists must shut their mouths. It’s so very simple!
Ahson Aftab , excellent slap!
Ahson Aftab, bilkul ye tu ussi or charra his hy kafi time sy isko mn dekh raha hun. Aur isko aur iss k jeson ko hum L pe charray rakhna hy.
Syed Fazal Abbas, hahahahaha, sir, rather they must suck their front, because they have gone gay recently through a supreme court verdict.
Yashad Rizvi, we bow to some one or we make some one bow to us, I can’t understand why your ass is on fire?
Dont club India with debt ridden terror sinkhole called Pakistan. India is a 3 trillion dollars economy and not Pakistan.
Baba ye batoa ye champion of Islam, chini, East turkistan mein ugygur muslman ka kya Kar rahien hai . Aur Islam ka parcham lehraney Wala Pakistan ya aur koi Muslim mumalik is pay kyun baat nahin Kar raha Hain?
Aap Shia lagtey ho, Sunni muslman ki sunnat ke barey mein aapney pehle bhi bahut he controversial things likha Hain.
You seemed to have biased views about every thing with one constant, hate Indian Hindus, Sunni Muslims and love china.
Ok may god.bless you with good mental health.
Shri Nanduri ji, Namaste
There are only two Islamic Republics, Pakistan and Iran. When both are mum about Uighars, but you Indians are howling, I smell fish (or rat). If you are trying to pit Pakistan or Muslims against China (or Shia against Sunni lol) you will fail.
Me hating Hindus and Sunnis? lol. Both me and my brother married women outside our sects, and had children with them. Shia-Sunni difference are political, like Democrats and Republicans in the US, or Tories and Labour in England. Of course we expect both to hold their views dearly. Why not. But these differences are reconcilable.
However, this is not possible with you our neighbours. Your differences are racial. No high caste light skinned will ever dare marry a low caste darkie. Permanent damnation.
And Shia-Sunni differences may even be necessary. Shias produce leaders, and Sunni good managers, and both are needed for growth and development. Pakistan’s 1-4 mix is as ideal as you can get. So our diversity is our strength, yours a weakness.
Pakistanis are far-sighted. We allied ourselves with USA when defeating your guiding star, the USSR, was the goal of the free world. Now we align with China because Globalization and Free Trade is the new goal of humanity. Our Prophet was a trader, and Islam is a religion of trade, as trade unconditionally leads to peace.
We love China because they love free trade, And 1,400 years ago our Prophet said good things about her too. After 40 years of failure with USSR, what is your justification in going to bed with a dying America? Is it only because you both have racist societies where lighter skinned rule the rest?
We Muslims tried for 800 years to beat the Indian-ness out of you, and failed. Then Christians tried for 200 years to civilize you and failed too. You still hate each other, and still defecate in the open like animals. What more can we do. For the last 3500 years you have been marching from death to death being enslaved by others. Who will be next? US or China? Take a pick.
Best wishes
Abbas sahb ASA…..iss Indian jesay chootiya ko ye baatain samajh naheen aanee……lol. These are all lower caste motherfukkers…..in ka koi bhala naheen. They will live and die as slaves. This is their destiny. Gundee qaum the quicker its disposed off the better we’d all be. Ye saaray haramzaday murr jain to behtar hae….for all of us. Unwanted vermin.
Srinivasa Nanduri you have had so called independence for barely 70 years…….ziyada bukvaas karnay ya bhonknay key zaroorat naheen. Apnee auqaat main rwh kar baat kar……..keep in mind your background and your lower caste.
Aditya Shitty, whatever the contract or its implications…….. Your issue is being a dalit. Now you haven’t figured out what to do about it, that’s why you post about China and Pakistan? Is that it?
Perry Kamath Lund pe charrh.
Ahson Aftab
WAS. I doubt if Mr. Nanduri is low caste. The dalit are oppressed, so rather courteous. And they are most receptive to the Truth and the message of brotherhood, so when they convert, it drives upper caste to walls, because not only they lose a slave, but in coming to Islam he becomes sort of their master as he rubs shoulders with Christians and Muslims as equals.
In any case we should not be discourteous to the likes of Nanduri, and return their evil with good. Perhaps they will see the light.
Ahson Aftab zanab, Meri aukaat mujhe pata Hain, aap apney sambhalo. fiscal deficit adress karney.ke liye Chin, Saudi aur IMF ko Doud lagao.
Syed Fazal Abbas convulted and distorted version of history propagated by you here do not stand scrutiny of Google search, forget proper scholarly review. But still every one is entitled to their views. Carry on with your propaganda.
Ahson Aftab when ppl run out of points to discuss they get abusive. Shown what you are. God bless. And doesn’t matter my caste. I am an Indian at heart and know that at the end Pakistan cannot win India or India cannot win over Pakistan. The threat for India is terrorism from Pakistan and we will highlight it where ever and when ever we can. You carry on with your propaganda.
UK is a third world country. Nobody even thinks about them or what they have to say.
Muhammad Fayyaz yaar ye gunday log idher aa kar pata naheen kiyon bukvass karnay laggtay hain…….halankay it’s none of their business. Hard to believe but somehow they are more worried about Pak than their own countries!……..lol…….kamal hae yaar…..lol.
Srinivasa Nanduri
You are correct that today no one can win by force. Still, only two people – yehud and hunood, i.e. Israel and India, still live in the past. One drives out the Palestinians, the other Kashmiris. But this is short term gain for long term pain.
Today peace is the desire, and trade unconditionally leads to peace. This article is about CPEC and free trade where both Pakistan and China want to be a part of worldwide project to integrate Europe, Asia, and Africa together in a brotherhood of mankind, but racist India with its partners racist Israel and racist America do not want free trade. America builds walls with Mexico and Canada, and India wants no part of BRI. This neglect will only hurt them.
Anyway, you live your life, and let us live ours. Peace
Ahson Aftab wow, more abuse. Great.
One Question, do all Pakistanis have this inferiority complex and get abusive if they dont get their way?
I mean, if one disagrees, they usually end up discussing about it, but for Pakistan or Pakistanis it is abuse and violence i guess.
I do understand, from where you come from, violence comes easy, but out of curiosity, is it you or is it your country that you grew up in that propagates this hate for India and Indians, that makes you stymied towards dialogue and yearn for abuse and violence.
You highlighted the rapes in India.I do not have a problem talking about it. Rape is a crime and is committed by some in India, and usually they get booked for it and get punished.
However, Terrorism is a dastardly cowardly act committed by Pakistanis against India and Afghanistan and against itself too.
Take care of your problems and let Indians take care of their problems.
May god bless you with peace of mind.
Syed Fazal Abbas Mr. Abbas, sirji, i have visited Kashmir at the height of violence and here’s my take, the violence is confined to 1 district in north kashmir and 3 districts in south and tour operators and police do list known no-go areas. These areas have close to 300,000 population in between them. In Srinagar, there are localities known for their seperatist sympathies.
Jammu and Ladhak and rest of Kashmir are terror free. I visited these places without any fear so i can attest to it.
The police have list of Over Ground Workers and Seperatists who are funded by Pakistan and who inturn breed Jihad in Kashmir. Make know mistake, the time for Independence movement in Kashmir valley is gone, but new set of Radicalisation has set in where they want a Islamic state.
Government of India could have done better job but the seeds of this disharmony were put in 2008 itself, when Mumbai happend and Amarnath yatra land allotment became controversial.
By the way there are not 700,000 forces in Kashmir. Last i checked, you can too if you want, various government websites, there are about 90,000 troops across LOC, 30,000 in valley, 45,000 in Ladhak across LAC. And about 30,000 Para Military.
There are about 130,000 local police working.
In total at any given point the total force in whole of J&K is 205,000 military and 130,000 police.
We dont live in the past. We have 29 states and we dont really care that much about Pakistan. It is but a nuisance factor for us. Sorry but this is the truth.
You tend to forget about Baluchis, Pasthuns, Kurds and Uygirs and concentrate on Palestines and Kashmiris. Good for you, but it does not give full picture and is often selective.
BRI is a chinese led, Chinese driven project. It will help those who are careful about it like Malaysia is now or Pakistan under IK will be in near future, but it will not be beneficial if you are blinded by its glamour.
China and India are in the middle of strategic dailogue, if successful, boundary issues will be resolved paving way to BCIM, INCETC and so on, under BRI, but it will be a long process and both countries are in initial phase of it.
BRI is a multi year project and its still in the middle of institution building.
Srinivasa Nanduri
My, friend, you are in denial, and so my sympathies are with you, because in reality Kashmir is the English finger in India’s behind, a parting punishment for having asked for freedom. English could have solved the problem but chose not to, because they knew that a security concerns will keep their armament factories running full speed. As Indians die, the English run laughing all the way to the bank.
If I were an India-hater or a cynical Pakistani, I would advise the Pak govt to let the Kashmir problem simmer for ever (of course also providing help to the victims). That is a sure way to have the Indian army pre-occupied, always worried about its behind, and leave Pakistan in peace.
The Paks are not fighting for Kashmir, India is. But both forget what Gandhi said to the English, that they were masters in someone else’s house. First, Kashmir is for Kashmiris. Second, except for the 10-20 mile strip along the border the vast areas of Kashmir are inhabitid by the Sinic race – Gilgitis, Baltistanis, Ladakhis. At least Pakistan has a bit of claim that GBs are Muslims of sorts, but Ladhakhis are not Hindus. I bet they would rather be a part of Great China rather than impoverished South Asia if given the choice.
Nanduri Sahib, just close the eyes and keep living in your dream. Better, watch a Bollywood movie and be happy for 2-3 hours. Leave reality to Pakistan that excells in Reality Shows.
Syed Fazal Abbas have you been to ladhak or srinagar or kargil ( sorry a sour point for a pakistani), have you been to Jammu. I don’t think so. Think what you will. I agree partition is incomplete and as an Indian I would like to see India Pakistan settle things but if you think pakistan is getting off easy by keeping Kashmir on the boil think again. You lost 70000 ppl in last 10 years because of the Frankenstein monster your country created. Still if you think I am bluffing and you are correct then good for you. As I said before carry on with your propaganda. I don’t live in the mythland you seem to be in. And I AM a South Indian, don’t watch that much bollywood. Guess they are watched a lot in Pakistan watch it and enjoy it yourself.
And your countries economic, social and security reality is far different from what you imagine. Just Google about them or read some latest published details. Or YouTube bhi Hain.
And regarding fingure in the bud thing it was written in poor taste. Do you folks have some homophobic issues. Saw a similar comment by someone else too.
And at least we buy our war machines and don’t get in kairaat. If Pakistanis are that sick of West why do they settlement so many numbers away from the jannat called Pakistan?
Syed Fazal Abbas and by the way there are many scholarly books written by pakistani and British writers about partition, about direct action day, about discussions led by british officials sympathetic to pakistan post independence to settle matters. And about 1948,65, 71, 99 wars. Do read them. Who knows you might get some information you might have forgotten over the years.
Trade is fine.ITIS THE BABY FACTORIES WHICH ARE KILLING ASIA.
POPULATION CONTROL IS MUST TO CONSERVE LIFE:WATER,LAND,AIR
CANNOT BE MANUFACTURED TO THE SCALE NEED.
AFTER KUN FAIKUN ALLAH DID NOT EXPAND ANYTHING.SO PEOPLE HAVE TO STOP EXPANDING.