{$44 biton Investment
lathe mee) OS
* eomonike Corridor (CPEC)
Ghina and Pakistan signed a Memorandum of Understanding on China-Pakisan
Economic Corridor on July §, 2013. The agreement was signed during Prime Minister Nawaz
Sharifs visit to China and got a boost in April 2015 during Chinese President Xi Sinping’s
Pakistan visit. This project i integral to the bigger plan for reviving the traditional Silk Road |
and establishing the new Silk Road Economic Belt. The CPEC isa g,218-km network of roads, |
railways and pipelines linking Kashgar in northwest China's Xinjiang Uygur province and
southwest Pakistan's Gwadar Port. It is the part of China's ‘One Belt, One Road’ initiative that,
Stretching into South and Southeast Asia, the Middle East and Burope through Central Asa, wil
link China to the rest of the world through new roads, railways, ports and gas pipelines, The
CPEC, which will be constructed from 2014 to 2030, confirms China's strategie partnership with
Pakistan. While it will advance China's plans for the New Silk Road, it will be a “game changer?
not only for Pakistan but also for the entire region. The Chinese co
corridor has created a new and significant o
mmitment to the economic
portunity for Pakistan to revive its economy,
stabilizes polity, advance its strategic interests, cater for its energy needs, and cure its nation
ils. Pakistan can serve as a gateway for energy
idea was long there to provide facilities to Afgha
Russia as its coast is closed in winter. The Gi
trade to the entire subcontinent. The stralegie
nistan, Central Asia, China, Mongolia, and even
‘wadar Port will run across the year. The first
outgoing shipment of containers carrying Chinese goods departed from Gwadar
port on November 13, 2016. The media event was attended by Pakistan's top
Policymakers as well asa high-level Chinese delegation.
69 W KIPS PUBLICATIONS
Scanned with CamScannerCPECis the only comidor th in
's the only corridor that ivop |
- ae Wes just one count ca
her
relations with China, Under its one ea msi after an wo China as
other projects such as the Bangla wich on One Belt (OBOR), ce ah pear crara
China, 1 , besides CPEC, China has init
From the construction India, and Mya 2s initiated
: ion Point of view, yanmar (BCIM) Corti
long-term projects. In 2017-20) 4 the corridor has bee
development and energy are a F completion of See aes
jects wi L a Sof infrastr
rydeopowerproects wil come an ney nr S45 billion worth of cal wind a
Pakistan's national gric soar, an
worth of projects will be direct forei
debt eee Chinese compani ‘
+ The other 12 billion dollars will panies; there will be no
government loans, will be concessional government-to-
vestment by
With a planned portfolio of projets totaln
kinds of projects to be implemented und pee
infrestructre projets (Goedar Por, ean umm gerne
19.000MW of power projets, most of which are to be sponsored by Sie
companies. That is to say, CPECis divided into two major dimensions Energy De Pasta
Projects and Infrastructure Development Projects, gy Development
ig around $46 billion, there are actually two
i enna eT RTO TET
ADVANTAGE OF CPEC VIS A VIS CHINA
Currently, nearly 80 per cent of China's oil is transpor
between two to three months. This journey is going to be reduéed to just 5,000 km, taking its
route from Pakistan through CPEC: Moreover, China has framed three corridor routes including
CPEC to overcome a greater security challenge in the South China Sea in shape of possible
blockade of Sea Lane of Communications at the choking point of Strait of Malacca during
conflict times, Any blockade may stop 80 per cent of Chinese imported energy supplies from the
Middle East and West Africa.
CPEC will not only strengthen Chinas relations with Pskistan and providean alternative
route of energy supply, but will also provide the much-oveted acess for other regions and the
sea. This will provide an opportunity to China to improve her interaction with Central Asia,
West Asia, the Middle East, Burope, and the est of the world. Moreover, when the roads,
pipelines and sea ports will become funetiona, the eon ofthe Chinas not much deed
Xinjiang region will secure substantial improvement with the increas in export of goods an
more frequent ol supply.
China's notion of economic connectivity through highways a ses
ts vee
i expanding global role. Gawadar or
transfer and rae as tobe wewed a5 eri a renin ie SO
larger Chinese strategy of “String of Pearls’
power over other countries, nanos
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i Suingofearls”
Chiese pol
Hafluénce o aileay 7 5
eae ll ote,
ADVANTAGES OF CPEC VIS A VIS PAKISTAN me
For Pakistan, the CPEC can bring large-scale investments in the energy Stet,
infrastructure building, and industry. Once Pakistan is prepared, China may aso mop,
some of its industry and bring Pakistan into its chain of, production. CPEC will increase Chin
stakes in Pakistan which will leverage Islamabad in regional affairs. It -denionstrates the
centrality of the CPEC-in future Sino-Pak relations. CPEC is not simply a set of roads ang
ighways, but it als includes development of industrial and energy projects all along the'cPE
route in Pakistan, .
Road building and infrastructure development inthe Balochistan area will contribute
te ther socio-economic development. Therefore, it will help to increase the economic
Activity and development in Balochistan and wil bring ito parity with the other provinces,
and reduce the unemployment rate and poverty in Pakistan, The CPBC inludes several energy
Broduction projets. These are very important for Pakistan as the country suffers from acute
Shere) shortages~4500 MW. It wil ease Pakistan's costly enery isis while connecting
the country’s economy with its neighbours on three sides, the east, north and the west
Defense Cooperation
CEPC is not only an economic
cooperation but also including other
defense. China is helping P.
'akistan strengthen itself as China's dwn stakes are
Strengthened Pakistan. tn the wake of CPEC, China is
China would also transfer the technology to Pal
be helpful for Pakistan defensive measures, b
Aetertent
aspects such as
in a stable and
selling eight submacines to Pakistan,
stan for submarine constuction
ut also su
against ising India’s (who has declared it
The deep-rooted naval collaboration bet and PLA (Navy) has
Dome even mare important against the backdtop ofthe China-Pakistan Economie Cottidor to
‘ffecively handle complex asymmetric challenges in the Maritime domain. Ty this regard,
A. It will not only
pot in the protection of CPEC as
* oppasition to CPEC) naval power
tween Pakistan Navy
itis
‘mS PuRLICaTions
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‘lateral exercises are expected to
80 long way FORGE ERE
Tre region nthe yearstocome, OTE Promating martine ROT RTS
Energy Projects Under CPEC aay tes |
‘There are the 10,
economic corridor projects would ere
would revive existing industri FY Opportunities and benefits. En at
smerian Fertilizers ON : ustries, ‘such as textiles, fertilizers (Pak-Arab rea ee
. . DH Fertilizers) to fll production and add an esti ver eae
GDP growth. 4m estimated ape to Pakistan's
On April 20, 2015,
the ground-breaking of five power projects was jointly done by the
ing of five power projects was joi
he gro jointh
Chinese president and Pakistani Prime Minister Nawaz Sharif via video link. Among th
ng the
projects, Zonergy 900 MW solar power plant is fi
Bri I 13 bllon dla poe the lt ar For he te eh an
in Bahawalpur developed in three phases and is expected to be completed by ih ae =
number of other energy projects, being constructed by Chinese companies, Aa aati
steadily: The 1.65 billion-dollar Karot hydropower plant, the fist invest Ee ae
the Silk Road Fund, is being developed by the China Three Gorges ‘co aa
Construction of the 720 MW project was to begin and the plant is expected ro ins
operation in 2020. The Port Qasim coal-fired power plant, the fist started ole inthe
energy sector under the CPEC framework, is being constructed by Power china Résources
Limited. The 2-billion- dollar project is expected start operation in 2018,
Further Chinese investors are also interested in the Thar coal project which involves
developing a large energy complex in Sindh province to produce 6,000 MWof coal-based
power and introduce to the country the concept of gasification and production of liquid fuel
from coal.
Moreover, in 2015, Pakistan has confirmed recoverable reserves of around 200 trillion
‘cubic feet (TCF) of natural gas in Chiniot and around 58 billion barrels of oil in its shale
structure — many times larger than existing conventional gas reserves of around 20 TCF and
385 million barrels of oil. Pakistan requires more technology for exploiting shale oil and gas,
resource on a larger scale. China can provide the required technology.
Infrastructure Development
‘The CPEC project adds on tothe already existing road Tink between Pakistan's Gilgit-
Baltistan and the Xinjang region of China, he roots of road building in Pakistan’ eemate areas
adjoining China goes back to 1959 when Pakistan's Art Engineers began to build a 155 miles
Tong road linking Chilas to Gili, named later as the Indus Valley Road
Gawadar-Kashgr motorway is to be constructed with three different routes
connecting ultimately near Gilgit-Baltistan With ative consitaton of ore ee
Pakistan has prepared plan to construct thes cortidors: the western alignment,
alignment. ‘The last one has been picked for
ntral alignment and the eastern :
the ist phase. There wl be much Prem OF networks of highways, railways
— n TPs PUBLICATONS
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of the Karakorum Highway (gy
as
Froese '
rament Projet
rnpetusin Pakistan and the region. According,
Cat et
et ‘ites and pave. way for eneteY oes of billions of ia
comity and ae uld ereate business. oppo! #0 einploymént ig,
ii re on Sagi he CPEC woud sone ePID
“ ee aoe of Gwadar port willbriog seta ee ea
country. He:a J
ise at ch needed boost. 5 :
snd business activites will get 8 mu ic cooperation, with a central role of the CPzc
ie a“1+4” pattern of economic coop See
« Rewill promote cluding the Gwadar port; energy, transportation infrastructure and
a cover, t wouldnt only benefit Pakistan but other pountries of the
industrial. cooperation. Moreover, It 5 : essai sats mae ji
Feion aswell Acording to Dr: Kha, trade statistics have been faised significantly which would
imately benefit the economy, Visible progress on the CPEC and the mobilization of Chinese
— Fakistan will also help in overcoming the, psychological Barriers to, flows of
foreign inyestment from other sources. Foreign investment flows into Pakistan will depend
-on the health. and stability of the Pakistan economy, which is greatly affected by the terrorism
and separatism in Balochistan. 3 See ce
Social Expansion _. Oe Mis oes igala
‘nieCPEG -projeets will open new avenues. of social -expansion, and will lead to more
detelopnient. China will construct a modern international airport in Gwadar and launch social
develapment projects to provide education, health, and drinkiig water facilities to local
People: Through investment in the social sector both countries will collahorate on, education,
culture; and people-to-people communication, China is already of 4
hundreds of students from Gilgt-Baltstan in Chinese language and hi eden s
trend will likely to increase in the near future under CPEC. “s a a
Nuclear Cooperation
2
ia san
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fon investier te fate will depend on whether Pakistani is able to fyo”
ional. But its A ime) involve a series of complicated infrastructure ang
nll ns Ar om lor eof nici, deep suspicion and negativity has Bi
is side 7 projets THE nation® oak record isn't encouraging. Even the recent history ot
ent istan' ; i ith Chit
ies vet CPEC.PAKSIN O zandari had signed many MOUs with China,
agemeat with China is lementation was slow due to the similar on-ground obs
aa oni : i i
companies but PES ee of obstacles regarding CPEC which need the resolution, Some of
seen There a2
them are: or
? yosition . n
Inds Ove a ‘oui nits opposition to the project and protested to China over it. Inia
saat Baltstan as part of India and does not want to connect corridor from here tg
considers Se ‘Along with it, CPEC counterbalances the Indian plans for exploiting Chinese
ase rasinthe Indian Ocean by blocking Malacea Statin times of conflict and China vats ig
seeureit, Moreover, Baloch separatists have been waging insurgency in Balochistan forthe pas
many yeas, which the government also blames on India because they are inciting feelings of
disparity in Balochi people. Therefore, Gawadar is located in Balochistan and the instability is
affecting its progress, RAW has been specially targeting innocent people at Gwadar, Turbat, and
Mastung, Chinese workers and even tourists at Nanga Parbat.
In March 2016, RAW agent Kulbushan Yadav was arrested in Baluchistan. This was an
undeniable proof of Indian involvement in the Baluchistan insurgency. The video recording of
his voluntarily made confessional statement was released, He categorically stated that he was a
serving Indian Navy officer and was to retire in 2022. He mentioned his contacts with the
Baloch insurgents, providing finances to them and also arranging their training for subversive
activites and acts of terrorism, He also confessed his links with terrorist entities in Karachi and
{nvolvement in the acts of terrorism, including kiling of some police officers. Aocording to DG
IPR, one of his assignments was also to sabotage CPEC and in this respect the Baloch
inurgnts were planningan attack onthe Gwadar Prt inthe neae ature
Security
‘The Frontier Works Organisation,
part of the CPEC’s western route, had |
civliansin about scores incidents since
the security challenges tothe project.
‘Transparency and Accountability
‘The actual ability of government institutions to conceive specific
tanprency and accountability in their implementation, and alter and int
Provincial rules and routines necessary to removing red tape woul
capacities and attitudes won't do. = ane ones
Resource Capacity
Pakistan lacks the hum:
fovernment departments to en
nt associal
tT
which is constructing a road network in Balochistan as
lost many of its workers—both military personniel and
the start of work on the road. The statistics underscore
Projects, ensure
troduce federal or
crucial. Current
an resouree especially technical expertise in
x sure successful implementation; recy the relevant
fallen to suppor the parts of government and privates os is mag il have to be
initiative. ies Most involyeq =
Bureaucratic Hurdles eG
Another challe
hurdles rust
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internal Conflict over the Rous
Pakistanis facing an internal conto,
parties from Khyber Pakdhtunkhwa and Baluch
through their provinces to be built
Chopter-10|
the route of the CPEC. Some smal
\e plc
Tra Than" se upon the western cot that wl po
On the other hand, the ruling part seems determined nena het felon is be
ing neglected.
passes through Punjab-Its pltial eae E esi the eastern route which manly
sees y: The matter needs a quick resoation,
Pakistani officials and scholars are ve
strategic implications in any local or re,
India centric and she sees every develope
y fond of using the term ‘strategic’ and try to see
gional development. Pakistan’s strategic focus is
i with this lens. An overemphasis on this
€ Y ‘term and
centralization can make one blind to other perspectives or prove misleading such as economic
perspective, which plays a key role in any country’s development. Pakistan must do away with
ge0-polities and focus on geo-economics. This wil ikely soften Indian opposition tothe projet
and remove a major hurdle,
Terrorism
‘Terrorism on the CPEC route is a major concern. The $46 billion investment associated
with the China-Pakistan Economic Corridor could not be transformational unles the menace of |
terrorism is dealt with. Though the statistics show a marked drop in terrorist incidents as 2
result of army operations; however, the attacks in 2016 show that the menace is far from ove.
For instance in three months, there had been three deadly attacks in August 2016, sores of
Jauyers were Killed in Quetta hospital; in Ostober 2016, the policemen were killed by the dome
ayy jee training academy outside Quetta; and, in November 2016, members ofthe public were
i py the dozen in Str i ‘This is to likely hamper the pace of
led by the doven in Shrine bombing in in Khun, Tis st el tampa
i je and agenc
ion of CPEC projects. Pakistani security forces be
impern,protect all citizen and particularly Chinese workers engaged on thes PEC ries
nan the entire investment program vail take at lest 15 t0 20 yeas be comm
i ic i stituent project
i tinuous implementation of its const
therefore, usintemopn by stability in the region an politcal accountability.
imperative which can only be possible by 8
CPEC: A GAME-CHANGER, FOR THE REGION
ATONS
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