By: Azhar Azam
China-Pakistan Economic Corridor (CPEC) is the bellwether of Belt and Road Initiative (BRI) to evaluate the viability of Chinese global infrastructure development strategy prior to its kick-off. The initial prototype of Xi Jinping’s grand vision, now valued at $62 billion, is one of the largest unilateral foreign direct investments (FDI) from one nation to another, which gives an idea of the enormous size of the transcontinental program.
After closing the critical energy and infrastructure gaps in Pakistan, CPEC is entering into the kairotic moment of the second phase that would build the bedrock of the country's economic rejuvenation through increased exports, job creation, industrialization, technology transfer, agriculture upgradation and construction of special economic zones.
Since its launch, India has seen the broadening China-Pakistan economic and strategic ties with skepticism. The project also continues to be a target of a systematic disinformation campaign as some media reports claimed Beijing was slowly walking away from its financial promises or killing of coal miners across CPEC key route in Balochistan had threatened China’s BRI in Pakistan.
Rejecting the baseless story about “rising indications” of its retreat, China clarified CPEC is maintaining positive momentum of development and there was no stop of construction, no layoffs and no withdrawal of workforce by China even amid the pandemic, reaffirming the magnitude of the project was being enhanced with inclusion of new areas such as agriculture, industry, science and technology, social economy and international cooperation.
The strong Chinese response and renewed commitments along novel media cooperation between the two sides and pioneering meeting on Covid-19 and poverty alleviation among regional countries including Pakistan refutes the press speculations and underscores China is not only keen to fast-track the CPEC but also intends to feed neoteric ideas into project to upgrade Pakistan’s major economic sectors.
Pakistan seeks to revamp its colonial-era railway network and produce 60% clean energy of the country’s overall electricity production. China – by agreeing to finance the ML-1 project and pouring huge investments in green power generation – is crucial for Pakistan to offset its railway quandary and growing climate challenges.
Chinese energy equipment and devices now match the western standards and cost two-thirds of their prices. As Pakistan looks toward China to further lessen its reliance on expensive oil-based electricity, the all-weather ally is ready to share China’s experience and technology in biomass energy and assist Pakistan’s clean energy transition.
What’s more, Chinese FDI flows in Pakistan have risen from $76.5 million to $253.9 million in the first five months of fiscal year 2020-21 albeit it divested $78.4 million in November. The staggering upturn in the middle of the Corona period shows China isn’t rolling back its investments or pledges and claims made by some media outlets were wide of the mark.
Gwadar, the port city on the southwestern coast of Pakistan’s Balochistan, is hailed as the crown jewel of the CPEC. Last year, Pakistani government unveiled Gwadar Smart City Master Plan to develop it into an economic, trade and tourism hub of South Asia with a per capita GDP of $15,000 – 10 times of its national average.
As Beijing and Islamabad brace up their strategic partnership and expand the CPEC scope, terrorist attacks in Balochistan – killing a number of security personnel in Gwadar and other districts as well as taking lives of coal miners across CPEC key route – are trying to undermine CPEC success by obstructing Gwadar’s emergence into a world-class city with an economy of $30 billion a year and up to 1.2 million high-paid jobs.
Prime Minister of Pakistan Imran Khan has no political ax to grind and singled out “India-backed terrorists” for the insurgent ambush that recently killed seven Pakistani troops in Harnai. On the brutal massacre of the laborers in Mach, Khan again lashed out at India over supporting Islamic State (IS) and spreading unrest in Pakistan.
The terrorist attacks warned of critical security implications for workers of foreign companies in Balochistan and vindicated Pakistan’s decision to fence off Gwadar to shield domestic and international workforce so that they could freely and actively deploy their professional skills for Gwadar’s transformation into one of the most modern city on the global map.
Some argue Gwadar fencing would intensify deprivation and marginalization or restrict freedom of movement in Balochistan, ignoring the current arrangement is temporary and being conducted in the open, unpopulated areas. That means it won’t affect local residents; instead reduced checkpoints will ease their routine activities, while witnessing mega construction underway around them for boosting their level of affluence.
The provisional Gwadar fencing will also speed up the establishment of high-tech industries, mega shopping malls, luxury resorts, man-made islands and Pakistan’s largest international airport. These development activities would provide the much-needed labor force participation and economic bustle in the city and province.
A vulnerable security situation can encumber trade and foreign investment. The fencing of Gwadar will bolster the provincial peace dynamics and encourage cautious foreign investors and tourists who have been hesitant to invest or please their scenic sense due to the continued strife in Balochistan.
Besides making vigorous efforts to protect CPEC from sabotage, Pakistan may also counter media propaganda and people’s anxieties about Gwadar fencing through delivering benefits of the game-changer project to the folks in Balochistan, where poverty is still at peak. Poor are least immune to fall in the pitfalls of extremism. By accelerating work on development projects, the impoverished Balochs can be prevented from falling into hands of the insurgents.
*This is one of my opinion pieces (unedited) that first appeared in "New Straits Times":
https://www.nst.com.my/opinion/columnists/2021/01/658889/cpec-progress-shows-bri-viability