China-Pakistan: Beijing to "Further Deepen and Expand" Ties, Support Pak "Financial Stability"

[RiazHaq]

China-Pakistan: Beijing to "Further Deepen and Expand" Ties, Support Pak "Financial Stability"

Top Chinese officials have committed to “further deepen and expand” ties with Pakistan at meetings at the highest levels between the militar...

www.southasiainvestor.com

Top Chinese officials have committed to “further deepen and expand” ties with Pakistan at meetings at the highest levels between the military and civilian leaderships of the two nations. Chinese Prime Minister Li Qiang assured Prime Minister Shehbaz Sharif of his country's support for Pakistan's "financial stability". Also in the news this week is a Chinese government commission report recommending the construction of a 3,000 kilometer long railway link between China and Pakistan at an estimated cost of $57.7 billion, making it the most expensive infrastructure project in the Chinese-sponsored Belt and Road Initiative (BRI) to date. The railroad will connect Pakistan's Gwadar Port on the Arabian Sea with the western Chinese city of Kashgar in Xinjiang province. This appears to be a part of the Chinese response to the US-led Indo-Pacific strategy which Beijing sees threatening its interests in the region. Will India allow itself be used as a US proxy against China? Will the US-China rivalry force India and Pakistan to choose sides as it plays out in South Asia? Will China's assistance now push Pakistan further into the Chinese camp?





US-India Ties:

US President Joseph R. Biden is pursuing close strategic ties with Indian Prime Minister Modi. The false rhetoric of "democracy" and "shared values" is often used to disguise Washington's true intent to use India to counter China's rise as a global superpower. Meanwhile, China with its long land border with India has warned New Delhi that it "will be the biggest victim" of the US proxy war against China. In a recent Op Ed in Global Times, considered a mouthpiece of the Beijing government, Professor Guo Bingyun has wrote as follows:

"Inducing some countries to become US' proxies has been Washington's tactic to maintain its world hegemony since the end of WWII. It does not care about the gains and losses of these proxies. The Russia-Ukraine conflict is a proxy war instigated by the US. The US ignores Ukraine's ultimate fate, but by doing so, the US can realize the expansion of NATO, further control the EU, erode the strategic advantages of Western European countries in climate politics and safeguard the interests of US energy groups. It is killing four birds with one stone......If another armed conflict between China and India over the border issue breaks out, the US and its allies will be the biggest beneficiaries, while India will be the biggest victim. Since the Cold War, proxies have always been the biggest victims in the end".

US-Pakistan Ties:

After assuming office as President of the United States, Joe Biden called many world leaders. But he did not bother to call then Pakistani Prime Minister Imran Khan, nor has he made a call to the current Prime Minister Shehbaz Sharif. This has sent a clear signal to Islamabad that Washington doesn't see it as important. This prompted Brookings' Bruce Reidel and Madiha Afzal to write: "Biden did not call Khan while he was prime minister. Last fall, we argued he should. Khan in turn declined to attend Biden’s Summit for Democracy. The White House should call Shahbaz Sharif".

Madiha Afzal of Brookings Institution again reminded Biden this year that "Pakistan, the fifth-largest country in the world and a nuclear-armed nation, ought to be seen by the United States on its own terms and not through the prism of its neighbors. A cold shoulder risks pushing Pakistan further toward China — which is neither an inevitable nor desirable outcome for the United States".

CPEC and BRI

CPEC Transforming Pakistan:

Back in 2018, former US Ambassador to Pakistan Richard G. Olson wrote in a New York Times Op Ed titled "How Not to Engage With Pakistan" that "(CPEC's) magnitude and its transformation of parts of Pakistan dwarf anything the United States has ever undertaken". Olson went on to warn the Trump Administration that "Without Pakistani cooperation, our (US) army in Afghanistan risks becoming a beached whale". Among the parts of Pakistan transformed by China Pakistan Economic Corridor (CPEC) are some of the least developed regions in Balochistan and Sindh, specifically Gwadar and Thar Desert.

Source: China Daily

Pakistan's Economic Crisis:

Some blame Pakistan's current balance of payments crisis on Chinese debt taken on to fund CPEC projects. The evidence does not support this. The fact is that Pakistan failed to grow its exports while its imports boomed for over 5 years on Prime Minister Nawaz Sharif's watch from 2013-2018. It forced Pakistan to seek an IMF bailout which came with its own tough conditions to compel economic reforms and greater fiscal discipline. Geopolitics has also played a role in it. The Ukraine War pushed the energy and other commodity prices higher, exacerbating Pakistan's trade deficits. At the same time, the Biden administration has shown little support for Pakistan's bailout by the IMF. China's latest commitment to support "Pakistan's financial stability" will help, pushing Pakistan further into the Chinese camp.

Here's a Wall Street Journal video on US-China Rivalry and Pakistan:

Related Links:

Haq's Musings

South Asia Investor Review

India Emerges the Biggest Winner of Ukraine War, US-China Rivalry

Can Washington Trust Modi as a Key Ally Against China?

Ukraine Resists Russia Alone: A Tale of West's Broken Promises

Ukraine's Lesson For Pakistan: Never Give Up Nuclear Weapons

US-China Battle For Influence in Pakistan

Russia Sanction: India Profiting From Selling Russian Oil

Indian Diplomat on Pakistan's "Resilience", "Strategic CPEC"

Vast Majority of Indians Believe Nuclear War Against Pakistan is "Winnable"

Riaz Haq's Youtube Channel

PakAlumni Social Network

China-Pakistan: Beijing to "Further Deepen and Expand" Ties, Support Pak "Financial Stability"

Top Chinese officials have committed to “further deepen and expand” ties with Pakistan at meetings at the highest levels between the militar...

www.southasiainvestor.com

 

[SoulSpokesman]

@RiazHaq

Brofessor sb,

What transformation have you seen in Pakiland because of the CPEC, apart from an improvement in power supply? Why would CPEC 2.0 be any more successful than CPEC 1.0?

Regards

 

[PradoTLC]

@RiazHaq

Brofessor sb,

What transformation have you seen in Pakiland because of the CPEC, apart from an improvement in power supply? Why would CPEC 2.0 be any more successful than CPEC 1.0?

Regards

they same way india is such a failure against China despite all the support from the west

 

[SoulSpokesman]

@PradoTLC

they same way india is such a failure against China despite all the support from the west

Fair point. So all the Chinese aid to Pak wont improve its situation (just like Western support hasnt improved India). The question then is why bother?

Regards

PS: Having said that, dont recall when was the last time an Indian PM went around with a begging bowl

 

[PradoTLC]

@PradoTLC

they same way india is such a failure against China despite all the support from the west

Fair point. So all the Chinese aid to Pak wont improve its situation (just like Western support hasnt improved India). The question then is why bother?

Regards

PS: Having said that, dont recall when was the last time an Indian PM went around with a begging bowl

CPEC failed bcos of incompetence of Pakistan government under Nawaz. Under Khan he wanted to expand and improve it but Mr Bajwa hamstrung as he was following Washington dictates.

China did every thing right it was Pakistanis due to their internal **** ups who messed it up.

 

[PradoTLC]

Regards

PS: Having said that, dont recall when was the last time an Indian PM went around with a begging bowl

no... but your PM did do begging around western capitals to beg for your pilot's release in 2019 as PAF knocked your 2nd rate trained pilots out of the sky...

then again you begging the Americans to save your sorry arse in Kargil in 1999

then again you went begging for USAF to save you in 1961 as china ripped your mountain infantry

you do begging .. we just get to find out much later

 

[RiazHaq]

@RiazHaq

Brofessor sb,

What transformation have you seen in Pakiland because of the CPEC, apart from an improvement in power supply? Why would CPEC 2.0 be any more successful than CPEC 1.0?

Regards

Rural Pakistan: New Infrastructure Driving Socioeconomic Revolution in Tharparkar

News, analysis and opinions about India, Pakistan, US, Canada, Europe, Mid East, South Asia, Silicon Valley, High Technology, Economy, Politics, World

www.riazhaq.com

In a 2018 New York Times Op Ed titled "How Not to Engage With Pakistan", ex US Ambassador to Pakistan Richard G. Olson wrote: "Its (CPEC's) magnitude and its transformation of parts of Pakistan dwarf anything the United States has ever undertaken". Among the parts of Pakistan being transformed by China Pakistan Economic Corridor (CPEC) are some of the least developed regions in Balochistan and Sindh, specifically Gwadar and Thar Desert. Over 70% of Thar desert's population is Hindu.

Tharparkar: Road Built Under CPEC. Source: Emmanuel Guddu

More recently, Pakistani architect and social activist Arif Hasan has detailed the socioeconomic impact of new infrastructure in Tharparkar district, further reinforcing what Ambassador Olson wrote about how CPEC is transforming Pakistan's least developed areas. In his book titled "Tharparkar: Drought, Development, and Social Change", author Arif Hasan has highlighted the following (excerpted from Arif Hasan's recent piece published in Dawn):

1, New roads, airports, solar panels, cell towers and mobile phones are opening up opportunities for employment, entrepreneurship, education and healthcare for the Thari population.

2. New infrastructure is empowering Thari women to challenge the long established patriarchy in Tharparkar. A major change has occurred in gender relations — males are less restrictive; there is an increase in education and hygiene; women now move around without male escorts. Women are giving up old traditional clothes for more fashionable dresses.

3. Road construction in Thar that started in the Musharraf era (2000-2008) has made transportation cheaper and easier. Before these new roads, the old six-wheeler kekra (WW II era American Army truck) was the only mode of vehicular transportation in the desert. It was slow and expensive. It has now been replaced by normal Bedford trucks which are cheaper to run.

4. Bank loans to buy taxis are now available. Number of taxis operating in Thar has increased from 150 to over 400, while the qingqis in Mithi have increased from over 150 to over 300 since 2013.

5. The old kekras (old American Army 6-wheelers) have been converted into water tankers; people can now actually order one by phone, to pick up potable water from Mithi and deliver it to villages.

6. The new roads have helped substantially increase trade and commerce. Thar’s agricultural produce now reaches distant markets — six to seven trucks per day carry onions from Nagarparkar to Lahore, and vegetables and fruit from other parts of Sindh and Punjab are now easily available in Thar.

7. Roads have helped in the increase of salt and china clay mining. These have created more jobs, especially for those villages that are next to the mines. The lives of the families who have benefitted from this growth in the job market have changed and the first investments they make is in the building of pakka houses, with steel channel and brick-tiled roofs. Another important investment is in motorbikes, which makes flexible and faster mobility possible. People have sold their camels and donkeys to buy motorbikes.

8. Thari men now work in the garment industry in Karachi, where they save and send home Rs 10-12,000 a month.

9. Tourist traffic has grown in Thar with tens of thousands of people visiting the area every year after the rains and for the many religious festivals that the desert celebrates. Women producing traditional handicrafts are able to sell their wares to the tourists. This creates economic opportunities for the local population.

10. Dozens of carpentry workshops are now operating in Mithi. The carpenters have moved in from the rural areas of Thar, where they worked for the rural population, who paid them in grain.

11. Number of retail stores has also increased — in Mithi there were 20 to 25 grocery stores in 2015, as opposed to seven or eight 10 years earlier. Earlier, the store owners used to travel to Hyderabad to buy goods but, today, because of the road and mobile phone, they just order the items from Karachi and the transporter delivers them. The clients at the stores are both rural and urban.

12. Access to healthcare units in district capital Mithi is a lot easier and faster, and has been of special importance in maternity-related cases.

13. With the construction of new roads, the villagers are now more willing to send their children to school, including girls, because schools are easier to access.

Back in 2018, I wrote a post titled "CPEC is Transforming Least Developed Parts of Pakistan". Below is an except that talks about Thar development:

Thar Desert:

Thar, one of the least developed regions of Pakistan, is seeing unprecedented development activity in energy and infrastructure projects. New roads, airports and buildings are being built along with coal mines and power plants as part of China-Pakistan Economic Corridor (CPEC). There are construction workers and machinery visible everywhere in the desert. Among the key beneficiaries of this boom are Thari Hindu women who are being employed by Sindh Engro Coal Mining Company (SECMC) as part of the plan to employ locals. Highlighted in recent news reports are two Hindu women in particular: Kiran Sadhwani, an engineer and Gulaban, a truck driver.

Kiran Sadhwani, a Thari Hindu Woman Engineer. Source: Express Tribune

Thar Population:

The region has a population of 1.6 million. Most of the residents are cattle herders. Majority of them are Hindus. The area is home to 7 million cows, goats, sheep and camels. It provides more than half of the milk, meat and leather requirement of the province. Many residents live in poverty. They are vulnerable to recurring droughts. About a quarter of them live where the coal mines are being developed, according to a report in The Wire.

Hindu Woman Truck Driver in Thar, Pakistan. Source: Reuters

Some of them are now being employed in development projects. A recent report talked of an underground coal gasification pilot project near the town of Islamkot where "workers sourced from local communities rested their heads after long-hour shifts".

Hindu Woman Truck Driver in Thar, Pakistan. Source: Reuters

In the first phase, Sindh Engro Coal Mining Company (SECMC) is relocating 5 villages that are located in block II. SECMC is paying villagers for their homes and agricultural land.

SECMC’s chief executive officer, Shamsuddin Ahmed Shaikh, says his company "will construct model towns with all basic facilities including schools, healthcare, drinking water and filter plants and also allocate land for livestock grazing,” according to thethirdpole.net He says that the company is paying villagers above market prices for their land – Rs. 185,000 ($ 1,900) per acre.

Related Links:

Haq's Musings

South Asia Investor Review

Thar Drought

China-Pakistan Economic Corridor

Abundant, Cheap Coal Electricity For Pakistan

Pakistan Health Indicators

Pakistan Sees Robust Growth in Consumption of Energy, Cement and Steel

Moringa Tree to Fight Malnutrition in Sindh

Pakistan's Social Sector Indicators

CPEC Transforming Least Developed Parts of Pakistan

China-Pakistan Economic Corridor FDI

Mobile Broadband Subscriptions and Smartphone Sales

Pakistan in MSCI Emerging Market Index

Riaz Haq's Youtube Channel

PakAlumni Social Network

Rural Pakistan: New Infrastructure Driving Socioeconomic Revolution in Tharparkar

News, analysis and opinions about India, Pakistan, US, Canada, Europe, Mid East, South Asia, Silicon Valley, High Technology, Economy, Politics, World

www.riazhaq.com

 

[Mohsin A]

Going forward, any country who offers "Financial Aid" to Pakistan should do so on the basis that free and fair elections will be held and the Military will stay out of politics.
The Pakistani people demand it.

 

[khansaheeb]

CPEC failed bcos of incompetence of Pakistan government under Nawaz. Under Khan he wanted to expand and improve it but Mr Bajwa hamstrung as he was following Washington dictates.

China did every thing right it was Pakistanis due to their internal **** ups who messed it up.

CPEC has not failed but is growing and has Mushroomed into global model of grand economic strategy, planning, design and execution. Even the Indians are shamelessly copying the CPEC schemes and creating economic corridors. In fact China and Pakistan are taking it to the next level and Indians are raging in jealously. Seems like the price of burnoil is going up in
India as a result,

 

[Chandragupt Maurya]

@RiazHaq
Despite its importance, the budget allocated to CPEC is relatively smaller than that of the Delhi-Kolkata and Delhi-Mumbai economic corridors in India. The Delhi-Kolkata and Delhi-Mumbai corridors are major infrastructure projects aimed at connecting the northern and eastern regions of India with the western and southern regions, respectively.

India has already started constructing expressways, dedicated freight corridors, and airports as part of these two corridors. In contrast, CPEC is still in the planning stage, and most of the proposed infrastructure projects are yet to be implemented.

 

[AA_]

Pakiland

How about you start using the proper name instead of concealing your hate behind petty insults. You do want to have a serious discussion correct, or are you a hidden Indian troll?!

I’ve seen massive improvements across the sectors.

Infrastructure with being the biggest. I went to Pakistan in 2010 and it was a depressing place. I went back in 2017, 2018, 2019, 2021, and 2022 and it clearly visible the effect CPEC and the Chinese has had on Pakistan.

Little know thing that’s rarely discussed - the impact on the economy by Pakistanis who graduated or were educated from Chinese universities. Their quiet professionalism has uplifted the economy and sustained it. They did it without fanfare, quietly not unlike the western educated ones who have this aura of high brow mentality.

These eastern educated folks will be the middle to upper managers in the coming decades and will fully align Pakistan with the Chinese bloc. Just give it time to marinate.

 

[AA_]

Pakistan was meant to be an Islamic state and an Islamic state should be ruled by a caliphate, which is a traditional Islamic form of governance based on the rule of a single leader

How we should be ruled shouldn’t be the concern of non Pakistani pagan.

The first 4 caliphates were elected by a council. Single ruler via democracy, monarchy, etc

 

[ARMalik]

Good to see China supporting dictators and their lap dogs in Pakistan. Good work China.

 

[AA_]

One day, the Taliban will govern over Pakistan in a similar capacity to how they currently rule over Afghanistan, and that day will mark Pakistan's transformation into a truly Islamic state.

Good! I hope they come after your country next. Unfinished business and you need committed leadership unlike the whiskey drinking pimps we have now.

 

[khansaheeb]

@RiazHaq
Despite its importance, the budget allocated to CPEC is relatively smaller than that of the Delhi-Kolkata and Delhi-Mumbai economic corridors in India. The Delhi-Kolkata and Delhi-Mumbai corridors are major infrastructure projects aimed at connecting the northern and eastern regions of India with the western and southern regions, respectively.

India has already started constructing expressways, dedicated freight corridors, and airports as part of these two corridors. In contrast, CPEC is still in the planning stage, and most of the proposed infrastructure projects are yet to be implemented.

Didn't expect a factual report from an Indian, keep living in denial.