, ,

CPEC: the governance challenges ahead — II

Pakistan faces both internal and external security threats. The monster of modern terrorism, however, is a post-9/11 phenomenon. When General-cum-President Pervez Musharraf supported the US-led War on Terror (WoT) against the Taliban, the latter, in reaction, started targeting the Pakistani society and state. Resultantly, more than thirty thousand civilians and law enforcement officials have lost their lives in multiple acts of terrorism since 2003. Nevertheless, the overall number of causalities have dropped since 2014 owing to some legislative and executive measures taken by the government, but suicide bombers are still a real threat. Finding opportunity, any terrorist organization can strike. The country’s security apparatuses are the most tempting targets, while minorities are the most vulnerable.

Most of the people who died in terror attacks were ordinary Pakistani citizens, both Muslims and non-Muslims. But foreigners have also been targeted. For example, an American national was kidnapped and later killed in Karachi some years ago. Iranians have also been targeted.

Similarly, the Islamic State (IS) abducted, as per media reports, two Chinese nationals who were Christian missionaries, near Quetta in 2017. The couple was eventually killed. This seemed like an attempt on the part of the terrorists to malign China-Pakistan relations, in general, and the China-Pakistan Economic Corridor (CPEC) project, in particular. Moreover, another Chinese national was also killed in Karachi, reportedly by extortionists. The deceased Chinese citizen, according to Pakistani officials, was working for a non-CPEC firm called Cosco Shipping Lines Pak (Pvt) Ltd, which has been doing business in Pakistan since the early 1990s. If analysed objectively, in both cases, the Chinese nationals were residing or working in Pakistan in their private capacity. Furthermore, they were not related to CPEC in any capacity. Noticeably, the missionary couple and the private-firm employee were provided due security by the government. However, in both incidents, the Chinese citizens seemed to have violated security protocols, which cost them their lives.

The overall number of terror-related casualties has dropped since 2014 owing to some legislative and executive measures taken by the government, but suicide bombers are still a real threat. Finding opportunity, any terrorist organisation can strike

Recently there have also been reports of some Chinese citizens involved in financial crimes such as ATM skimming. Such cases remain under investigation. In addition, in April 2018, a number of Chinese workers were filmed assaulting some personnel of the Punjab police in the Noor Pur camp (Khanewal, Punjab). Video footage of this shameful incident went viral on social media. At one point during the scuffle, the country project manager of the concerned company stood arrogantly on the bonnet of the police van with the Pakistani flag visible beside his shoes — this was not the first such incident.

Here, it is pertinent to mention that on December 8, 2017, the Chinese embassy in Islamabad issued a press release that read “the Chinese embassy has received some information that the security of the Chinese institutions and personnel in Pakistan might be threatened.  This Embassy would make it clear that Pakistan is a friendly country to China. We appreciate that Pakistan has attached much importance to the security of the Chinese institutions and personnel”. The preceding is a reflection of China’s growing security concerns vis-à-vis its CPEC related citizens. Even, the number of non-CPEC related Chinese nationals — working, for example, as journalists — have crossed fifteen thousands. Physical security of the Chinese residing and working in Pakistan has, therefore, emerged as a legitimate concern, which the Pakistani authorities need to take into policy consideration.

However, despite the mentioned cases of Chinese citizens being killed by terrorists, the fact of the matter is that CPEC has, thus far, not been targeted by a major terrorist attack on its infrastructure, machinery and work force. However, this should not discourage or devalue the significance of security enhancement on the part of Pakistani authorities. Rather, impending security threats ought to be responded to diligently. This will be easier said than done because it raises questions on the legal, institutional and administrative capacity of the government.

For example, is it the prerogative of the local, provincial, regional or federal government to provide material and physical security to, for example, transportation infrastructure (or to the proposed Special Economic Zones) and the Chinese work force and machinery involved at different stages of construction? If it is a combined arrangement on the part of the provincial and federal government, who will be responsible for implementing the security measures? Which government and at what level, will bear the financial and logistical cost of security? Moreover, if the provision of security is the responsibility of the provincial government, will the province be able to manage it logistically and institutionally? Significantly, will the Chinese companies and human resource be satisfied with the security arrangements provided by Pakistani authorities? These are some major security challenges that Pakistan will have to deal with for the sake of CPEC, which has been termed by both China and Pakistan, as a crucial component of contemporary bilateral relations. I will provide policy input, in this respect, in the upcoming articles in this series.

SOURCE:https://dailytimes.com.pk/255100/cpec-the-governance-challenges-ahead-ii/

,

CPEC will help Pakistan progress only if we band together as a country

It has been five years since an aggressive development plan was initiated in Pakistan. What I am talking about is the China-Pakistan Economic Corridor (CPEC), the pilot project of BRI. The ambitious road network is scheduled to be completed by 2030.

The first five years are gone. The first phase is successfully accomplished with the completion of several infrastructure and energy projects. Everybody knows that no development project can be completed without considering these two sectors.

Today, Pakistan is on its way to accelerated economic growth. This is a splendid achievement for the government. Just a few years ago, such progress would have sounded ludicrous to Pakistanis.

The second phase of the project is expected to focus on special economic zones (SEZs) in Pakistan. The Pakistan Army played a pivotal role in ensuring security for this mega development project. Every single person in the country is trying to relate themselves to the benefits and outcomes of CPEC. But there is a dire need to understand the nature of collective benefit for the country.

“Today, Pakistan is on its way to accelerated economic growth. This is a splendid achievement. Just a few years ago, such progress would have sounded ludicrous to Pakistanis”

Unfortunately, nationalism has been lacking most of the times whenever it is needed. Nationalism has always been seen only during war times. But when it comes to peacetime and development processes, it becomes irrelevant to the nation. People from all walks of life focus only on their particular vested interests.

CPEC has come up with multiple opportunities and diversified goals. Therefore, the nation needs to be united until the end of this project to get most out of it.

Some of the SEZs planned for the country include, Rashakai Economic Zone (Khyber Pakhtunkhwa), China Special Economic Zone (Dhabeji, Sindh), Bostan Industrial Zone (Balochistan), Allama Iqbal Industrial City (Faisalabad, Punjab), ICT Model Industrial Zone (Islamabad), Industrial Park on Pakistan Steel Mills Land at Port Qasim (Karachi), Special Economic Zone (Mirpur, AJK), Mohmand Marble City (Khyber Pakhtunkhwa), and Moqpondass SEZ (Gilgit-Baltistan). The project will add a lot more to the economy of Pakistan, including several industries that are sure to boost our economic stability, rate of employment, GDP, and more. CPEC includes a plethora of industrial projects – many of which are needed for a transitional economy to succeed.

Some of the projects have already started, and some need more planning and will be completed later on. The amount of foreign investment coming into the country had been on the rise since 2010.However, since CPEC began in 2014, it has been increasing at a faster rate. This change can be seen below:

It is very important to spread word among the masses about the importance of CPEC. We must come together as a nation now so that we can build a stronger Pakistan.

SOURCE:https://dailytimes.com.pk/254333/cpec-will-help-pakistan-progress-only-if-we-band-together-as-a-country/

, , , ,

‘CPEC is not a gift’: Professor Jia Yu at the CPEC 2018 Summit

Pakistan should not take CPEC for granted, writes Dr. Jia Yu. Both public and private sectors must take ownership of the opportunities.

 

The economic relations between the two countries have been phenomenal, especially since the turn of the century. Early economic cooperation was based on political and security interests, like Karakoram Highway, nuclear capability, arms trade etc. Also, it was focussed on energy and mining, but there is now a need for diversification. Pakistan has to take advantage of China’s rise on the global scene. There is a tendency towards having even better economic relations based on market forces and there is a lot of under-exploited potentials.

When it comes to win-win cooperation, of course, there is a lot at stake for both countries. Pakistan’s interests lie in promoting growth, private sector investment, employment, exports, technology and transfer of skills as well as in the relocation of Chinese firms. China’s interests lie in overseas production bases, new export markets, energy cooperation, and its need for production capacity relocation.

A successful execution of CPEC will ensure economic progress and stability for both the countries, particularly along the border region.

The two countries signed the FTA in 2006 which came into effect a year later. The FTAs play a major role in the general tendency of increasing trade. Surprisingly, the trade has been relatively low compared to the other neighbors (India, Vietnam, Philippines etc.). And there is a large and widening trade imbalance that needs to be worked on.

There has been a considerable increase in FDI since 2014 which is a positive sign for both China and Pakistan. The main FDI sectors by priority are: power, construction, financial services, and communication. There is, however, very little FDI in the light manufacturing sector.

The Belt and Road Initiative (BRI) is a $900 billion investment, with finance channels targeting green development. It connects more than 60 countries, 60pc of the global population, 30pc of global GDP, and 35pc of global trade.

CPEC, a central link of BRI, cuts 10,000 miles of shipping by sea, and connects ports from Shanghai to Africa and Europe through Gwadar.

PAKISTAN AND CPEC

If things work out smoothly, Pakistan could use the FDI in its power and transport infrastructure and then in the manufacturing sector with the experience of leveraging SEZs to unlock this trio’s potential for rapid gains in job-rich industrialization. This can be done without unrealistic pre-requirements as the work to lay the foundations for industrialization has already begun.

The potentials are outlined below along with policy options needed to convert them into actions. At a regional level, Pakistan has been growing steadily in terms of GDP per capita since 2010, according to the World Bank. Investors are very keen to a growing economy. Consistent growth of purchasing power (GDP per capita) really matters for domestic consumption; therefore the growth rate must be maintained to catch up with competitors.

Pakistan is one of the world’s largest reservoirs of human capital and has a tremendous potential consumer base. In 2016, the country was home to 193,203,476 people, being the world’s 6th most populous country. World Economic Forum estimates that it will be among the top five populous countries in the world by 2060.

However, a large population is necessary but not sufficient to attract investors. The population has to be equipped with adequate skills to meet industrialization needs. An effort is also needed to attract global buyers.

Thirdly, China and Pakistan have long hailed each other as “all-weather friends”, or “iron brothers” as close as “lips and teeth” in the words of The Economist. There is already solid trust between the two countries, but the Pakistani officials need to visit China more often to convince the private investors for investment opportunities in Pakistan.

The CPEC will improve road, air, sea, and energy infrastructure. It will ensure land, sea and air security. It will enhance trade and investment facilitation and will establish free trade areas that meet high standards, maintain closer economic ties, and deepen political trust. Also, it will enhance cultural exchanges and promote mutual understanding, peace, and friendship between the people of the two countries.

Having said that, the CPEC should not be considered just a ‘gift’ from China, but the Pakistani government should also establish an FDI Advisory Board that shall promote the new image of the country. This includes visiting China more often and ensuring that investors understand the opportunities and benefits available under the CPEC.

Besides, according to the State Bank of Pakistan in November 2017, the country received net FDI worth $207 million out of which $206 million came from China. Potential investors pay significant attention to first movers, other Chinese investors may follow and eventually stay in Pakistan if the government helps the pioneers to be successful.

In terms of binding constraints, a study case of Malaysia estimates that FDI can effectively contribute to growth if it is at least 3.14pc of GDP. Pakistan should be able to compete. This requires overcoming the binding constraints by addressing security issues and risks, hard infrastructure challenges, especially SEZ-specific constraints like energy, roads to SEZs etc. Soft infrastructure challenges include corruption, rule of the law, coordination among institutions, inadequate capacity and cultural biases. Absorption capacity can be adjusted by setting yearly realistic targets of FDI amount.

There are six steps to identify the right industries, as narrated by Prof. Justin Lin. They include identifying countries with consistent growth, with GDP per capita three times as Pakistan’s or was at the same level as Pakistan 30 years ago.

Next comes investigating the existing private investment in those target industries and encourage its development by leasing the market regulations. Attracting global investors into the target industries which lack existing domestic private investment is the third step, followed by paying attention to new enterprises and supporting innovation in the target industries.

Establishing and developing SEZs to eliminate entering barriers, attracting foreign investment, and encouraging industrial cluster. And, finally, providing policy incentives for the first movers, including tax reduction, foreign exchange access, etc.

THE WAY FORWARD

Development can start from ‘low-hanging fruit’ through SEZs. The government should attract first movers to invest and help the pioneers succeed.

CPEC should not be taken for granted. A proactive and systematic approach is needed for attracting investors, together with strong market factors.

Despite long-term and solid trust at the government level, more mutual dialogues and exchanges need to be enhanced in the private sector. Let the peoples get to understand each other.

CPEC and SEZs are open for all investors, including those from other countries beyond China.

The writer is a professor at the Institute of New Structural Economics (INSE), Peking University, China.

SOURCE: https://www.dawn.com/news/1409721

 

, , ,

India refuses to endorse CPEC at SCO summit

India was the only country on Sunday not to endorse a high-profile Chinese project at the end of the 18th Shanghai Cooperation Organisation SCO summit in Qingdao even as Prime Minister Narendra Modi stressed that New Delhi’s priority was connectivity with the neighborhood and between the SCO countries.

All remaining seven members of the SCO summit bloc supported the China-Pakistan Economic Corridor (CPEC) project which is part of President Xi Jinping’s Belt and Road Initiative (BRI) – a multi-billion inter-continental connectivity mission. The 17-page joint Qingdao declaration said all other seven member countries had endorsed the project and agreed to work towards implementing it. India was not expected to endorse the BRI in the Qingdao declaration which was released soon after Prime Minister Narendra Modi speech at the plenary session.

The China-Pakistan Economic Corridor (CPEC) is one of the flagship projects of the BRI. India has stayed away from the BRI – the only SCO country to be opposed to it – saying the CPEC violates its territorial integrity.

Earlier on Sunday, Prime Minister Modi said India supports connectivity projects that are inclusive, transparent and respect territorial sovereignty.

Speaking at the plenary session of the summit, Modi said India’s priority was connectivity with the neighborhood and between the SCO summit countries in the region. “We have again reached a stage where physical and digital connectivity is changing the definition of geography. Therefore, connectivity with our neighborhood and in the SCO region is our priority,” he said and emphasized the need for inclusiveness and transparency in connectivity projects to be successful.

Published in Daily Times, June 11th 2018.

SOURCE: https://dailytimes.com.pk/252018/india-refuses-to-endorse-cpec-at-sco-summit/

,

At SCO summit, India again says ‘no’ to Belt and Road

India on Sunday again said “no” to China’s Belt and Road project, while Prime Minister Narendra Modi and Pakistan President Mamnoon Hussain merely shook hands on the final day of the Shanghai Cooperation Organisation (SCO) Summit in Qingdao city.

India, which participated at the Chinese-led security bloc for the first time after being inducted into the grouping last year, did not figure in the list of rest of the member states endorsing Beijing’s Belt and Road initiative in the joint declaration.

 Earlier in the day, Modi made it clear that New Delhi was all for connectivity projects but could not compromise its sovereignty and territorial integrity.

India strongly opposes Beijing’s multi-billion dollar project, which aims to connect Asia with Europe through a network of roads, ports and sea lanes.

New Delhi’s objection is to the key artery of the project – the China-Pakistan Economic Corridor (CPEC), which goes through the Kashmir governed by Pakistan and claimed by India.

“We have again reached a stage where physical and digital connectivity is changing the definition of geography. Therefore, connectivity with our neighborhood and in the SCO region is our priority,” Modi said.

“We welcome any new connectivity project, which is inclusive, sustainable and transparent, and respects a country’s sovereignty and regional integrity,” he said at one of the sessions at the Summit.

This is one of the contentious issues between India and China but both seem to have decided not to let it affect other aspects of bilateral ties.

Like India, Pakistan also became a member of the SCO in 2017 and attended the event for the first time.

“It was noted that the SCO had asserted itself as a unique, influential and authoritative regional organization whose potential had grown remarkably following the accession of India and Pakistan,” the 17-page Qingdao declaration said.

With the inclusion of India and Pakistan, the grouping has expanded into an 8-member bloc. China, Russia, Kyrgyz Republic, Kazakhstan, Tajikistan and Uzbekistan are SCO’s other members.

Modi, who had bilaterals with Chinese President Xi Jinping and other leaders, just had a handshake with the Pakistan head of state.

The ties between the two countries have plummeted following attacks at Indian Army bases and continuing violence in Jammu and Kashmir.

The bloc vowed to fight terrorism.

“The SCO’s coordinated policy of waging an effective fight against challenges and threats to security remains unchanged. Practical interaction in this area will be facilitated by the adopted Programme of Cooperation between the SCO Member States in Opposing Terrorism, Separatism, and Extremism for 2019-21.”

During the summit, Modi and Xi had a “substantive” meeting on Saturday. India struck major deals like the export of rice and Indian pharmaceutical products to China.

The bilateral trade target of $100 billion by 2020 was another important announcement by both sides.

The Kyrgyz Republic will take over the Presidency of the organization. The next meeting of the Council of SCO Heads of State will be held in the Kyrgyz Republic in 2019.

SOURCE: http://m.greaterkashmir.com/news/world/at-sco-summit-india-again-says-no-to-belt-and-road/287805.html

, , ,

Colorful cultural exchanges between China and Pakistan

China and Pakistan are not only friendly neighbours but also two major ancient civilizations that have maintained close ties in cultural exchanges and mutual learning.

Since the establishment of diplomatic relations in 1951, the two countries have made great efforts to promote cultural exchanges and cooperation. The Cultural Cooperation Agreement between China and Pakistan was signed in March 1965. During her official visit to China in February 2018, Marriyum Aurangzeb, federal minister for Information, Broadcasting, National History and Literary Heritage, signed the Executive Programme of the Cultural Agreement for 2018-2022 with Luo Shugang, minister of Culture and Tourism of China, which outlines the overall framework for China-Pak cultural exchanges and cooperation in the next five years.

In 2018, the CPEC Cultural Caravan was implemented with the support of the Ministry of Information of Pakistan. Artists from China and Pakistan carried out a series of exchange activities along the ancient Silk Road and CPEC construction sites. This further strengthened China-Pak friendship and promoted the mutual understanding of our two peoples. Apart from that, artists from the two countries have visited each other frequently so as to learn from each other and enhance the oriental civilization jointly.

The Pakistani government attaches importance to the development of broadcasting and film industry. The programme has made it clear that the two sides will strengthen the mutual cooperation in the technology fields of radio broadcasting, films and television among the state radio, film and television organizations of both the countries. China and Pakistan are maintaining close communication and coordination and actively expanding exchanges and cooperation in this area. The film industry is booming in both China and Pakistan. China will adopt measures to further cooperate with Pakistan in this field, including introducing Pakistani films to Chinese film festivals, importing Pakistani films into Chinese cinema lines, and promoting the film companies of the two countries to jointly produce film and television programs.

The writer is Ambassador of the People’s Republic of China in Pakistan

SOURCE: https://dailytimes.com.pk/247261/colourful-cultural-exchanges-between-china-and-pakistan/ 

, , , , , ,

CPEC — a solution to the Kashmir issue?

In December 2017, China offered the Afghan government a chance to become part of their ambitious $50 billion China-Pakistan Economic Corridor (CPEC). At the same time, they made it clear that the project was not in any way directed against India and that no third party should be concerned with its progress. This came after India complained that the corridor passes through Gilgit-Baltistan (GB)in Pakistan-administered Kashmir which is a territory claimed by both India and Pakistan.

After negotiating a border stand-off at Doklam Plateau (China-Bhutan disputed border) both India and China indicated that they wanted to build peaceful relations by solving their bilateral disputes through diplomacy instead of armed conflicts. Pakistan wants to follow the same path, and open a dialogue with India in order for CPEC to develop without any problems. However, another solution could be that the government of Pakistan could instead refer to the people of this region. The Kashmiris and the people of GB could also be brought into the loop. They could finally have the plebiscite that was promised these people by the UNCIP resolution so many years ago.  But this will never happen.

Pakistan fears the outcome of the plebiscite. Why do you think Pakistan has been so reluctant to grant GB provincial status? The usual response from Islamabad is that its due to its disputed nature yet the reality is quite different.

After the 18th amendment was passed under Asif Ali Zardari’s government, provinces were granted a semblance of autonomy. However, if GB was given provincial status, it would control its own economic and administrative polices and could claim a larger share of the benefits from CPEC. Another reason was their small population size of only two million people. If they were granted provincial status then the people of FATA, Southern Punjab, the Potohar region and Karachi could also end up demanding provincial status and full autonomy. Thus, by issuing Order 2018, Islamabad has made certain that the centre continues to enjoy the economic benefits and administrative powers that would’ve instead been under the control of the people of GB themselves.

In case of Azad Jammu Kashmir (AJK), Islamabad amended the Interim Act of 1974. The legislative, monetary and administrative status of the Kashmir Council has been reduced to an advisory role, with all powers reverted to the office of the prime minister. By reinforcing Section 7 of the Interim Act, and adding an additional clause, the government has essentially restricted the freedom movement in AJK and disillusioned the locals.

In October 2017, Afghanistan President Ashraf Ghani categorically said that his country would join the China-Pakistan Economic Corridor (CPEC) only if Islamabad allows connectivity between India and Afghanistan. Mentioning sovereignty issues raised by India, Ghani also warned that if Afghanistan was not given transit access to Wagah and Attari for trade with India via Pakistan, then Kabul would also restrict Islamabad’s access to central Asia. When Pakistan and India both reluctant to sit down for a civilised talk, China decided to use backdoor channels to open a dialogue with India and convince them to cooperate with Pakistan. As a result, an Indian delegation was spotted at a March 23 parade in Islamabad, and later the same year at the Shanghai Co-operation Summit.

“What the region needs is a strong group of leaders who are not afraid to take on the collective might of the Indian and Pakistani governments, in order to fight for the disenfranchised people of Gilgit-Baltistan and Azad Jammu Kashmir”

Now there is an interim government in charge. They have limited powers and this provides the establishment a freehand. As a first step the ISPR (Inter Services Public Relations) on May,29 2018 (soon after the announcement of interim PM) tweeted the first sign of the establishment’s anticipated strategy to calm tensions with India. The director generals of Military Operations (DGMOs) of both countries agreed to a ceasefire agreement on the border, including the LOC in AJK. India for their part realise that the only time relations with their neighbours to the West got better, was under Musharraf’s rule, which is why they believe talking to the establishment will lead to better results with respect to CPEC. If this turns out to be true, then India will be given the green light to join CPEC in the coming weeks. It would benefit them greatly as it would open up markets in central Asia, and, at the same time, ease tensions with Pakistan.

 

In the end, CPEC seems like a great opportunity for all countries involved yet there is one important community that is being ignored in all of this, the people of GB and AJK. If there had been a strong and unified leadership in the region then perhaps they could have used this opportunity to pressurise Pakistan, and India in to giving them more autonomy and letting them be in charge of their own fate.

However, current leaders are not brave enough to make these sacrifices and are, instead, happy to take whatever scraps Islamabad throws at them. What the region needs is a strong group of leaders who are not afraid to take on the collective might of the Indian and Pakistani governments, in order to fight for the disenfranchised people of GB and AJK. Only then can the years of oppression they have suffered through finally come to a stop and its citizens get the freedom they have craved for so long.

SOURCE:https://dailytimes.com.pk/250530/cpec-a-solution-to-the-kashmir-issue/

, , ,

Gwadar free zone’s industrial units to start working by year end

KARACHI: At least 10 industrial units will start working at Gwadar port’s free zone by this yearend as the first phase of the zone has been completed, a senior Chinese official said on Tuesday.

Zhang Baozhong, chairman of China Overseas Ports Holding Company Pakistan (COPHC) said six of the industrial units are from China, while four are local and they are setting up projects related to edible and palm oil processing and automotive and services industries.

“A sum of $300 million has already been invested in the mega-project, while another approximately $200 million would be spent on phase-II for which the feasibility report is already complete,” Baozhong said, speaking at the Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) event.

In January, former Prime Minister Shahid Khaqan Abbasi inaugurated the first phase of Gwadar Port’s free zone that would facilitate regional and global trade under the China-Pakistan Economic Corridor projects.

COPHC, the operator of Gwadar port, said more than 30 firms related to banking, fish processing and hospitality committed around $500 million of direct investments in the zone. The port was leased to China’s state-run company for 40 years.

Baozhong said Gwadar port is operational and the customs authorities have deployed manual one-customs clearing system to process import and export consignments. The web-based one customs system could not be installed at Gwadar port due to unavailability of interconnection infrastructure.

COPHC’s chairman said the port’s berth lengths would be increased to 1,500 meters from existing 600 meters while the approaching channels would be deepened to 17-23 meters through dredging, which would enable arrival of any type and size of vessel in the world. “Business community, government, local communities and chambers of commerce are extending support in the development of Gwadar, which is a popular investment destination for investors in China as well as in Pakistan,” he added.

Baozhong said Gwadar is the most efficient port in the country offering low handling charges, no demurrage, and infrastructure connecting to the rest of the country. “In five years, it will be the new economic hub in the region.”

Senior Vice Chairman FPCCI Syed Mazhar Ali said the apex trade body planned to set up a sub-office in Gwadar to serve as the information sharing platform for the business communities of China and Pakistan.

Balochistan government granted land for the development of FPCCI sub-office, while COPHC offered the body to set up a temporary office in their building in Gwadar.

SOURCE: https://www.thenews.com.pk/print/326039-gwadar-free-zone-s-industrial-units-to-start-working-by-yearend

, , ,

To avoid China’s debt trap, Malaysia to re-examine projects under Belt and Road Initiative

Malaysia is not keen to blindly go ahead with projects offered by China under its Belt and Road Initiative (BRI), the recently-elected Malaysian government has said. It also indicated that it would attempt to balance its relationship with Beijing and re-examine the projects that were earlier agreed to by the previous government.

The need to avoid the Chinese debt trap was a topic that was repeatedly underscored in the run-up to the elections in Malaysia by the Pakatan Harapan alliance and its leader and current Prime Minister, the 92-year-old Mahatir Mohamad.

“China comes with a lot of money and says you can borrow this money. But, you must think, ‘How do I repay?’ Some countries see only the project and not the payment part of it. That’s how they lose large chunks of their country. We don’t want that,” Mohamad said, reported news agency ANI.

 Mohamad’s newly formed government would take a look at the projects under the BRI that were agreed to by the previous government led by Najib Razak, Mohamad’s former protégé.

Malaysia is not the first country in which projects funded or built by China have come under the scanner when the government changed after an election. The same thing happened in Sri Lanka in 2015, when the new Maithripala Sirisena government cancelled some of the Chinese-backed projects that had been signed by the previous government of Mahinda Rajapakse.

The Sirisena dispensation, left to deal with the mounting debt because of the Chinese projects, found itself unable to repay the loans. In December 2017, the Sri Lankan government was forced to hand over control of the Hambantota Port to Chinese companies for a period 99 years.

Concerns have also been rising in Pakistan, which has placed its already-precarious economy under further strain of Chinese loans to continue its projects along the troubled China-Pakistan Economic Corridor (CPEC).

Mahatir Mohamad’s concerns seem to stem from the spate of agreements that were signed by the Najib government under Chinese President Xi Jinping’s pet Belt and Road Initiative. Among these was the $13.1 billion East Coast Rail Link (ECRL), which aims to link Malaysia’s more industrialised east coast with its less-developed western coast and interior highlands. will run from Port Klang, Malaysia’s main port near the capital Kuala Lumpur, to Tumpat on the border with Thailand, bisecting the peninsula’s hilly interior.

Other projects include a build-and-manage agreement for a deep-sea port and an industrial park near the city of Melaka, a port rebuilding project in the town of Kuantan, and a massive residential project close to the southern border with Singapore.

China has already been accused by a number of countries of using the Belt and Road Initiative as a tool to further its expansionist goals by giving out loans for high-value projects of uncertain viability.

Malaysia’s geography would also provide an attractive strategic positioning for China, given its location along the Malacca Strait, through which a massive portion of China’s energy supplies pass through.

SOURCE: http://zeenews.india.com/world/to-avoid-chinas-debt-trap-malaysia-to-re-examine-projects-under-belt-and-road-initiative-2114262.html

, ,

Chinese ambassador meets Caretaker PM, briefs him on CPEC

Ambassador of China Yao Jing, Tuesday, called on Caretaker Prime Minister Justice (R) Nasirul Mulk and briefed him about the historic friendly relations that existed between China and Pakistan. He was paying a visit to Prime Minister to congratulate him on his assuming office of the prime minister of Pakistan.
The ambassador while congratulating the premiere briefed him about the various projects under the ongoing China-Pakistan Economic Corridor and informed that these projects were going on fast-track and will be completed on their expected time. Ambassador Yao Jing also conveyed greetings from the Chinese leadership to the Prime Minister on assuming office.
He said that China attached great importance to China-Pakistan all-weather strategic cooperative partnership. In recent years, with the joint efforts of both sides, China-Pakistan relations have achieved fruitful results. The CPEC embodies the achievements of the two countries’ mutually beneficial cooperation and marks a new height in China-Pakistan relations.
At the same time, comprehensive exchanges and cooperation in various fields such as economy, trade, people-to-people exchanges and education have been conducted. The two countries have cooperated closely in international and regional affairs, effectively safeguarding the common interests of both parties. China hopes that Pakistan will maintain political stability and complete major domestic political processes smoothly.
China wishes the caretaker government to successfully organize the election, and hopes that the PM and the caretaker government will continue to promote friendly cooperation between China and Pakistan. China believes that regardless of the outcome of the election, China-Pakistan all-weather strategic partnership will continue to advance. Prime Minister Nasirul Mulk while expressing his gratitude to the Chinese envoy held that both the countries had the same vision of common prosperity and shared destiny of progress of their people.

SOURCE: https://pakobserver.net/chinese-ambassador-meets-caretaker-pm-briefs-him-on-cpec/