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China Pakistan Economic Corridor (CPEC) | Updates & Discussions

Strong Tourism Potential of the Region of Gilgit-Baltistan If Conditions Achieved

If and only if there's no more security issue and most if not all the infrastructures necessary for tourism incl. the airport, roads, transportation, accommodation, eating places, etc are well intact, the region of Gilgit-Baltistan can be a very interesting tourist destination for int'l visitors in addition to the domestic Pakistan. The breathtakingly beautiful natural landscapes of the region added with the richness of local cultures will be the very strong selling points. Also imagine if the int'l tourists to Xinjiang, China have the option to continue the journey to Gilgit-Baltistan, Pakistan via Karakoram Highway...

WOW!!! It will be an amazing, even a dream trip for those travellers who really love nature sightseeing and interactions with the diversified local cultures. If and only if security & stability prevails cuz tourists do not like to face the man-made security risks, then supported by sufficient tourism infrastructure & facilities.

I remember that I once watched some awesome photos of Gilgit-Baltistan and their stunning beauties did really capture my fascination, and since then that name becomes a familiar one for me, someone living faraway from that region whereas the local media can hardly ever mention it.
 
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Here's an old article written nearly 5 years ago, yet it's still quite relevant, gives some good insights to those who wanna grasp the Gwadar Port development stages as part of CPEC, hindrances and potentials in one quite readable article furnished with several informative pictures.

The Gwadar Port Control To China - A Strategic Decision With Far Reaching Effects On Pakistan's Economy

So it is finally done - the handing over the control strategically placed Gwadar port to China's to the state-owned China Overseas Port Holdings Authority (COPHA). The official transfer of Concession Agreement from the Port of Singapore Authority (PSA) to the China Overseas Port Holding Company was carried out in the presence of Pakistan's President Asif Ali Zardari on Monday, 18 February 2013.

It may be added for information that earlier the control was given to a Singapore based PSA International in 2007 in Pervez Musharraf's regime ostensibly to appease the Americans - but with no benefit to Pakistan.

However, the recent decision to take over control from the Singapore company and give it to Pakistan's most tested ally China will have far reaching effects not only on Pakistan's economy and future development but also to enhance the already very cordial and mutually beneficial relations between Pakistan and China.

Although, the decision by the Pakistan's government is much to the annoyance of India and the United States who view the move with suspicion and and take it has a harbinger for increasing Chinese presence in one of the most important oil trade route of the world. But seeing the decision in the Pakistan's perspective, it is a decision that should have been taken much earlier which would have now started giving its dividends.
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Brig Nadir Mir, in an interview to D S Hurrell of Dallas College, highlighted the importance of Gwadar Port by saying:

"Gwadar Concept is not limited to the Mekran Coast. It is in fact an Economy Changer for all of Pakistan - a Bonanza for Baluchistan, Optimizing Pakistan’s Multiregional Geography for Geo-economics gains and Pakistan’s economic bonding with China, Central Asian States – Russia, West Asia – Iran, Turkey, Saudi Arabia, Gulf States and Africa."

"Gwadar Port is concept based. The concept is to synergize Pakistan’s multiregional (Geo-Strategic) location, Open Sea Board for Oil – Gas Pipelines, Energy Centre, Transshipment, Transit, Trade, and Finance Generation."

"In fact, Gwadar is the future of Pakistan."


The American author Robert D Kaplan sums it all, “At the intersection of Empires, the Port City of Gwadar could become the new silk route nexus.”

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The Gawadar Port Control to China - a Strtaegic Decision with far reaching effects on Pakistan's Economy ~ The Fire Within [I keep the typos in the article's title intact] - firewithin-jhb blogspot 2013/02/the-gawadar-port-control-to-china (just search the link to read the full article since I can't put it here).
 
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Ok even if it's 6th time this is most important one. And in Pakistan multiple inaugurations by different leaders are norm to score points. This time Chinese trucks arrived directly from China to Gwader using CPEC route.
 
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GDA Gwadar Development Authority's website update:


Major Projects for Private Investors

Establishment of Shipping Agencies

Goods Transportation Services
Proposal for starting ferry services between Gwadar, Karachi and Gulf States
Large scale residential schemes, all sorts of industrial projects and big hotels
Establishment of freezing and packing facilities for the fish industries
Wireless Cab System can be established
Establishment of large private schools and hospitals
Investment in Water Desalination Plants
Electric Power Generation
Oil terminals
Ware-housing/ Container Yards
Export Oriented Industries



Medium Size Projects for Private Investors

Establishment of restaurant, play lands, boat services and water sports etc.

Establishment of printing press & newspaper industry
Superstores, Markets, Tourism Industries & small level fish processing units
As most of the people of Mekran area are serving in military & police of the Middle East Countries on retirement can be hired by the private security agencies
According to the availability of the fresh water in the adjoining areas of Gwadar District, business such as Poultry, Dairy, Fruit & Vegetable cultivation could be established
Trawler/ truck Companies can be established
Private houses could be hired by private companies for office accommodation and guest houses
Various agencies of construction material, medicines and food items could be established
Investment in energy sector Particularly renewable energy, LPG plants etc.
Small ware housings.




Small Scale Projects

Small Shops, restaurants, Coffee & Ice cream shops and individual cab services

Law firms & Chambers
Private Medical Clinics
Architects/ Town Planners
Business of Contractors
Fish Meal Factory
Avenues for Fish & Shrimp farming along the coast




Investment Opportunities
The construction work at Gwadar Port was started in March 2002. Gwadar Development Authority was established in October 2003 to provide necessary civic amenities to the Gwadar Port City. The Hon’ble Chief Minister Balochistan is the Chairman and the Director General, Gwadar Development Authority is the Chief Executive Officer of the Authority. The Head Office of the Organization is situated on Governor House Road Gwadar and sub office in the Civil Secretariat Balochistan Quetta Block No.9.

The initial phase of the Port Project has been completed in 2005. As this project is of immense national importance, which is also designed particularly to benefit the local people of the area such as job opportunities, improved social services delivery, venues for business and trade etc.

Investors from all parts of the country and abroad are warmly welcomed. The people of Mekran, Gwadar and other adjoining districts are particularly encouraged to invest and avail the benefits from the project.
 
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Rolling Wheels on CPEC

Published inHilal English

brig_syed_wajid_raza.jpg

Written By: Brigadier (R) Syed Wajid Raza

Pakistan and China’s proverbial friendship crosses another monumental landmark. The people of both the nations jubilantly recieved the news that the first ever CPEC-specific Chinese convoy has completed its journey from Xinjiang to Gwadar. This is the first drop of heavenly blissful rain of hope and prosperity. The CPEC is a shining glitter that will cover the skies of regions across Asia, Africa, Europe and beyond. Pakistan sees CPEC as corridor of peace and prosperity by binding regional countries together to bring about an economic transformation through enhanced connectivity and become a major arbiter to placate the superpower rivalries and promote trade cooperation among the regions. This is a daunting task that demands a matching sagacity, commitment and national resolve.


Recent years have seen a profusion of domestic discussion on economic road map connected to China-Pakistan Economic Corridor (CPEC). Pakistan’s geographical advantage has been a source of Beijing's commitment to connect China by land with Europe, Africa, Southeast Asia and the Middle East. Chinese premier Li Keqiang proposed conversion of former Silk Route into Maritime Silk Road in May 2013 during his visit to Pakistan.



rolloingwhell.jpg


Beijing’s transnational economic narrative rests on its policy of connectivity “One Belt, One Road (OBOR)”, envisioning three corridors passing through northern China linking Europe through Moscow, Helsinki, Rotterdam and Berlin. Central corridor is to connect China with Central Asia and eventually with Europe. The southern corridor passes through Chinese Xinjiang autonomous territory in northwest of China and passes through Pakistan till Gwadar and that connects it with sea routes in all directions. (Map 1).

The estimated cost of CPEC is approximately U.S. $75 billion, out of which U.S. $46 billion would be spent on Pakistan. In bilateral terms, the investment portfolio is more than four times compared to total U.S. economic aid to Pakistan in the post 9/11 years.

Geo-strategic importance of Pakistan impacts upon its geo-political significance due to influence on geographic factors of the state power, international conduct and advantages it derives from its position; making it junction of great powers of South Asia, West Asia and Central Asia and a way from resource efficient countries to resource deficient countries of the region. According to Stephen Cohn “While history has been unkind to Pakistan, its geography has been its greatest benefit. It has resource rich area in the north-west, people rich in the north-east.”

China needs energy resources, food and minerals; particularly for its land-locked Western China, which is not possible without altering geographical barriers necessary to connect China physically with giant markets of Asia, Europe and Africa. China in its own part is 4500 km away from Xinjiang compared to the distance of 2500 km from deep waters of Gwadar Port.

The CPEC shall have three corridors (eastern, central and western alignment) within the territories of Pakistan. The eastern alignment for example would pass through remote region of Gwadar, travel Makran Coastal Highway (eastwards towards Karachi), interior Sindh and connect southern, central and northern regions of Punjab before reaching Islamabad. Regional connectivity with India would be possible (if it happens) through the Hyderabad-Mirpur Khas-Khokhrapar-Zero Point link and the Wagah border in Lahore.


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The corridors from Islamabad onward extend to Haripur, Abbottabad and Mansehra, a portion would run through Muzaffarabad, however main alignment connects Khunjerab through Diamer and Gilgit areas in northern Pakistan. The corridor runs through the Pamir Plateau and Karakoram Range after connecting especially constructed nodes to link all provincial capitals.

The western alignment would be running through Khuzdar and Dera Bugti in Balochistan, districts of Southern Punjab and D.I. Khan in Khyber Pakhtunkhwa. A link from Taxila through Peshawar to Torkham would connect Jalalabad in Afghanistan with additional regional connectivity links through Chaman to Afghanistan and Iran through Quetta Koh-e-Taftan.

The CPEC would offer Central Asian regions the shortest route of 2600 km as compared to Iran’s 4500 km or Turkey’s 5000 km. In geo-economic terms CPEC would facilitate China with crucial links for transporting oil and gas from the Persian Gulf and minerals and food from Africa, besides opening opportunities for Gulf States and Africa to lift trade and business.

The connectivity is critical phase of the project; implying infrastructure development of 3000 kms road and 1800 kms of rail linking Kashgar in China’s western Xinjiang region with the port of Gwadar in Balochistan, with a network of oil pipelines, an airport and railway station in Gwadar, a string of energy projects, special economic zones, dry ports and other setups capable of creating more than two million jobs and reduce demand-supply gap in energy-starved Pakistan.

The South Asia is one of the world’s least economically integrated regions; plagued by conflicts to have kept its focus on “zero-sum geo-strategic posturing” rather than recognizing the benefits of integration. The southern corridor can bring greater cohesion in South Asia to serve as a driver of connectivity between South Asia and East Asia to benefit China, Iran, Afghanistan, and stretching all the way to Myanmar.

China faced with strategic issues in South China Sea and eastern seaboard needs alternative trade routes for the Middle East, Africa and Europe. CPEC affords China an alternative trade route, cutting distance and time from the present long and slow 10,000 km by ship from the Persian Gulf through the Strait of Malacca in the eastern seaboard of China taking approximately 10 days for Chinese shipments to reach the waters of Gwadar and few more days to various destinations along the Indian Ocean.

Through Malacca Strait, China imports 80% of oil and desperately needs a safe passage in the Indian Ocean to avoid its vulnerabilities in the Strait of Malacca controlled by India. Reduction of the Chinese reliance on the Malacca route is important being a potential flashpoint of blockade by the United States Pacific Command (USPACOM) in periods of major hostility.

The geographical disadvantage of landlocked West China region being home to Chinese Uyghurs and hotbed of East Turkestan Islamic Movement (ETIM) is becoming an instrument of instability for Chinese integrity. CPEC is therefore seen as addressing intricate issues of Chinese internal stability through much needed economic revival.

The strategic initiatives however are fraught with challenges in the rebalancing Asia. In the rebalancing environment of Asia, the position and postures of most southern countries would be determined by the growing threats of terrorism, regional conflicts and Indo-U.S. venture of containing China. Therefore, the challenges of rebalancing would confuse most key players to respond on factors of diplomacy, politics, security and economy.

CPEC would be facing political and geopolitical challenges (especially due to foreign powers), for example: unrest in most districts of Balochistan, and, Indian concerns on the alignment of routes in Azad Kashmir etc. Russia is under sanctions over its disputes with Ukraine. There are civil wars in Syria, Afghanistan, and Iraq. Other countries that the OBOR initiative is supposed to connect have been subjected to political instability, international sanctions, or both. CPEC would be faced with exploitable domestic, regional and international interests and therefore, Pakistan needs defining in narrow terms scenarios to be envisioned more broadly that could impact the project.

The domestic consensus building is important during every phase of project development as simmering domestic political disagreements can be a factor shaping position and postures on this initiative. There is also a need to address growing skepticism amongst the international strategic community as many mega projects in the region have been mired in security problems and political disagreements.

Pakistan has a history, where numerous opportunities of "turning points" in the past were missed. In the early 1960s Pakistan was doing so well that economists predicted the country to be one of the future leading economic powers of Asia. The gains were reversed after two wars and after the abandonment of free market policies that were replaced with inefficient, corrupt and badly managed socialist model in 70s.

The Pak-Iran pipeline is on hold, the World Bank-backed Central Asia to South Asian electricity transmission and trade project has to contend withpassage and security issues in Afghanistan and Pakistan. There are serious regional and international interests attached to these projects.

India apprehends presence of Chinese at Gwadar to checkmate their economic aspirations and maritime expansion. India contemplates that corridor would strengthen Pakistan and increase China's geopolitical and economic influence in the region. India has expressed its frustration frequently and therefore danger remains if India could succeed in creating a security situation for Pakistan through its agents. The capture of Indian officer serving for RAW speaks volumes of Indian negative intentions.

Western and regional countries may not be comfortable with the prospects of the corridor with Chinese presence at Gwadar Port for two reasons: one; they may not have interest in fostering greater Chinese independence of energy supply, and, fear of hampering smooth supply of oil to West through Gulf in case of crisis. Pakistan needs to secure its own national interests by becoming a diplomatic balancer, ensuring that its own economy doesn’t get trampled beneath.

The biggest challenge to the corridor can be foreign incited and funded threats of extremism, separatism and terrorism. Ostensibly, the deployment of terror network all along the corridor from the Chinese Xinjiang into Pakistani territory upto Gwadar cannot be a coincidence. There is growing evidence of foreign sponsorship and presence of hostile intelligence agencies in making it “terror ground” to disrupt the projects in the corridor.

The security of project is a critical issue, to be guarded from the spillover effects right from the outset. Pakistan Army has raised two Special Security Divisions (SSD) for the security of corridor: A sum of USD 250 million is kept for security needs of the project. SSD would be in addition to 8,000 security personnel already deployed by Pakistan’s security forces to protect 8,100 Chinese working on about 210 projects across Pakistan.

Pakistan’s capacity to handle such a mega project would confront another challenge. In the absence of experts, the project can confront governance issues, being complex in our case due to corruption, dysfunction and incompetence of Pakistan's governing structures and rampant culture of patronage. These problems for instance are reflected in the domain of transportation system in terms of trucking, rail services, port activities, pipelines, and related operations requiring trucks (especially long-haul trucks), railway stock, ships, airplanes, and all of the parts, maintenance, fuel, and servicing needed to keep them all operating.

It requires high level of skill, extensive international networks, and a huge amount of experience to tackle the challenges of operating and managing transport and logistics across the CPEC region. This is to be viewed in the context of Pakistan International Airlines, which has exaggerated grotesque figure of employees per aircraft; one of the highest rates in the world and railways is in shambles.

According to Anatol Lieven, professor at Georgetown University in Qatar and a visiting professor at King's College London, "Pakistan needs a huge outside investment in infrastructure to complement Chinese investment in order to boost outside confidence, raise indigenous tax-collection to a respectable level and technical base in order to benefit from the project."

All governments of Pakistan have suffered from chronic failure to raise taxes, currently there is barely 10 percent of GDP and lowest tax-collection ratio in Asia. Pakistan’s state-owned banks and industries are under influence and often used as a source of political patronage. Pakistan’s financial institutions are constrained to deal with highest profile institutions related to OBOR, most notably the Asian Infrastructure Investment Bank (AIIB), the New Development Bank (formerly “BRICS” Development Bank), and the Silk Road Fund, seen otherwise to fill a gap of multilateral agencies and compensate China’s lack of voice in existing multilateral institutions such as the World Bank, IMF, and Asian Development Bank.

The CPEC initiative will undoubtedly bring various parts of Pakistan closer together through physical, psychological, economic, cultural, and political linkages. It will improve infrastructure in places that need it and promote economic development along the way. However, the success of CPEC is connected with the government’s and institutional capacity and overall governance of project, implying dealing with intricate national security issues, forging domestic political consensus, safeguarding Pakistan’s industrial sector and above all preventing negative geopolitical influences in the region. The question however remains: is governance by chance or by choice? In presence of such challenges national unity and consensus is of vital importance.

We have a ‘Game Changer’ at hand and we must change the Game!


Email: wajid741@gmail.com


1The concept of connectivity under OBOR: Southeast Asia: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Timor-Leste, Vietnam South Asia: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka. Central and Western Asia: Afghanistan, Armenia, Azerbaijan, Georgia, Iran, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan. Middle East and Africa:Bahrain, Egypt, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, Syrian Arab Republic, Turkey, United Arab Emirates, Yemen. Central and Eastern Europe: Albania, Belarus, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia. Hungary, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, and Ukraine.
 
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Enjoy this Full Length Documentary and do Share! It is Amazing!

Actually that documentary does NOT belong to the National Geography but CCTV 9 Documentary (English language channel), a total of six episodes on the One Belt One Road Documentary.

The actual SOURCE of this video is the Episode Three as below.

One Belt One Road Documentary Episode Three: Energy Ties - CCTV News
Published on Nov 11, 2016

This full segment of the CCTV 9 Documentary Series (with English narration) on the One Belt, One Road (OBOR) aka. the New Silk Road, focuses on China Pakistan Economic Corridor (CPEC).

1080HD Version, English narration, duration: 55 minutes
YouTube watch?v=f0ilIHipjDQ
 
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CPEC project: Nascent industries afraid of big Chinese firms
By Peer Muhammad
Published: November 20, 2016
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ISLAMABAD: Despite prospects of hefty benefits in many aspects, the business community sees the $45-billion China-Pakistan Economic Corridor (CPEC) project a threat to the domestic industry if the government does not come up with certain preemptive measures to give protection to vulnerable sectors of the economy.

Some business segments think that the flagship project poses new challenges to the industry in Pakistan, especially those sectors that are at the stage of infancy or smaller in size compared to gigantic Chinese industries.

China has so far poured $14b into CPEC projects

The industries in China have achieved economies of scale over the years primarily because of a huge domestic market, industrial-friendly policies and scores of incentives from the government.

Apart from CPEC, Pakistan has also not been a major beneficiary of the free trade agreement (FTA) with China as the arrangement gives an edge to Beijing and promotes more imports than exports from Pakistan.

The business community fears that if the corridor is used only for exports from China without giving a fillip to Pakistan’s industries by providing a competitive environment, it will prove damaging to the domestic industrial units.

“It is imperative for the government of Pakistan to keep in mind all these factors while negotiating the second phase of the FTA with China,” suggests Atif Iqbal, Executive Director of the Organisation for Advancement and Safeguard of Industrial Sector. He is of the view that in talks with China some leverage should be provided for Pakistan’s products to enable the local industry to compete well in the race.

“CPEC can only be beneficial if Pakistan’s exports are ramped up with facilitation for the local industry,” he says.

Sindh to set up industrial zone in cooperation with China

In order to create a win-win situation under CPEC, the two neighbours will have to pave the way for a healthy competition among different industries without cutting roots of each other through unfair price wars or dumping of goods.

A new vision needs to be developed by the two sides who will pledge to facilitate each other’s economies.

Incentives-filled policies

Individually, in order to shield its infant and vulnerable industries, Pakistan should frame policies in such a manner that these could offer incentives for giving a boost to productivity and pushing exports to China and other markets by taking advantage of the infrastructure being built under CPEC, rather than turning Pakistan into a consumer market.

Owing to electricity and gas shortages, high production costs and the terrorism and extremism threat, the domestic industries have been operating at a disadvantage over the years.

Though some gains have been made on the political and security fronts, the economic indicators have yet to show a marked turnaround. Exports, in particular, are an area of concern as shipments have dwindled to less than $20 billion from $24 billion in the past two years and are still falling.

Policy-makers should draft such policies that have a clear roadmap and a growing focus on future developments.

However, before achieving economic stability as well as economies of scale, the domestic industries are direly in need of protection. If the government desires to have sustainable industrial growth, it must not only ensure provision of basic utility services including gas and electricity, but also create an atmosphere conducive for business and strengthen the institutions responsible for keeping a check on unfair trade practices.

Effective policy implementation

Some recent government decisions such as announcement of the Strategic Trade Policy Framework 2015-18 and reactivating the National Tariff Commission are pragmatic steps for improving the situation. However, such policies will only bear fruit when these are implemented forcefully.

CPEC: Chinese work ethic and its implication for Pakistan

The tariff commission needs to be extra vigilant and take immediate notice of unfair trade practices like dumping and subsidisation of foreign goods. The survival of the domestic industry largely depends on price equilibrium in the market.

In the current scenario when free trade accords are increasingly being negotiated and signed, it is imperative for the trade regulatory authorities of Pakistan to stem the unfair trade practices and safeguard the interests of domestic industry.

The business community also wants to see that investigations are conducted timely by the tariff commission for trade remedy, strictly in accordance with the international treaties and commitments. In case of delay, the importers or exporters will take undue advantage by resorting to unnecessary litigation to abuse the process of law as has been observed in the past.

the writer is a staff correspondent

Published in The Express Tribune, November 21st, 2016.
 
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