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China Pakistan Economic Corridor (CPEC) | Updates & Discussions

This article is focusing more on CPEC and Pakistan. Hence, I post it here.

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Beyond the economics of OBOR (CPEC)
2017-02-10 09:28:25 CRIENGLISH.com Web Editor: Liang Tao
By Hassan Arshad Chattha

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The world seems to be fixated on the ambitious logistics of the Belt and Road initiative and the breathtaking Chinese economic development of the last couple of decades. Due to the focus on those aspects, some details vital for developing nations are overlooked.

China has been successful in tackling and avoiding many problems that seem to have a stranglehold on the economies of developing countries and it is of great importance to understand the manner in which those problems were handled. The key focus on OBOR/CPEC and related projects remains fixed on the massive investment of over $50 billion dollars into Pakistan for development and economic uplift ranging from the infrastructure, economic development, and the power sector.

However, it is possible for Pakistan to achieve something of even greater potential through this 'once in an era' opportunity. Pakistan has the opportunity to learn immensely from China as through its phenomenal economic growth, China also underwent great socio-economic changes as well and has been incredibly adept developing and harnessing its massive human resource advantage to the fullest.

Pakistan needs to get into the fundamentals and can resolve core issues that are a chronic impediment to tangible and sustainable growth. The issue that any country desirous of positive economic and socio-cultural change needs to tackle is that of taxation. This is an area in which Pakistan, and many other developing nations have tried to make some meaningful strides over the decades but progress has largely been of the one step forward, two steps back variety.

Pakistan's taxation problem is directly linked to vast undocumented economy that functions in the country and renders most tax and economic reform redundant due to the veiled nature of the undocumented economy. One key factor in the resilience of this economy is the prevalence of a paper currency based society in Pakistan.

Current figures put the Pakistan economy at the $250 billion dollar mark, with estimates by experts claiming that the black economy accounts for an astounding 36% of the size of the documented economy. To make matters even worse, later figures obtained through different methodologies by experts at the PIDE (Pakistan Institute of Development Economics) peg the informal economy at a shocking 74% to 91% of the formal, reported economy. This basically deprives the state from a sizable chunk of tax collection, and renders most economic growth very difficult as the state implements dizzying levels of indirect taxation, toxic foreign loans and cutting off development projects to cover expenses. Often times, programs pertaining to education and human resource development are the first to get the axe as those ramifications take time to manifest themselves.

For a country with a tax-to-GDP ratio hovering at 8-9% (much lower than the regional average), these are quite worrisome facts and figures. Similar conditions prevail in India, which recently tried a drastic measure borne of desperation to cut down this issue by removing large denomination currency from the system in a poorly implemented manner, much to the chagrin of the populace.

China took a very different approach and rather than use coercion, it managed the seemingly impossible through convenience. Using technology, and ubiquitous smartphone apps, the Chinese managed to turn the majority of their consumer and retail culture into a cashless, digital, app-powered model. Applications such as WeChat and Alipay offer everything from simple payments, online shopping, purchasing of travel and tickets, online banking, to retail and utilities payments as well as wealth management into one unified, safe, hassle free and fast platform that is ubiquitous. Immense benefit may be reaped from implementing such a system on both micro and macro economic levels for countries like Pakistan.

Rather than forcing poorly implemented draconian measures (though that might also help), the Chinese used technology to leapfrog from paper to digital, cutting out for the most part the plastic (credit card) phase. The combined user bases and regular users of these apps are close to 1 billion. That is a sufficiently large portion of the population that is plugged into the system and prefers the convenience over everything else. This has been so successful that tech giants of the west are also scrambling to implement something close to this system with initiatives a'la Apple Pay and Samsung Pay.

Of course, it is understandable that this is just one aspect of a much more complex issue, but this is one that can be implemented the least painlessly and also enables other benefits with great future potential through vital data collection that has previously been impossible.

These systems though do exist in some rudimentary form in developing countries such as India and Pakistan but it is the typical Chinese holistic implementation and political willpower that makes it very effective. Also, it would be prudent to seek practical and technical assistance in these matters from those that have successfully implemented them to avoid reinventing the wheel through trial and error.

Thus, it can be said that if developing countries like Pakistan pay attention to the true potential offered by understanding its own problems and its closest allies' solutions for them, it can take steps to fundamentally alter its socio-economic prospects for the better, and therein lies in the true potential of the OBOR/CPEC initiative.

The author is an analyst with a background in journalism focused currently on transition of legacy media to the digital realm, who is currently a senior visiting fellow at the Renmin University of China. email: hassanarshadlive@outlook.com
 
What are the key projects of CPEC in terms of power , infrastructure and transport to benefit karachi and sindh. plz name them kindly thnx :-)

@Zain Malik
 
China-Pakistan Economic Corridor aims to boost trade between two countries
By Ma Jingjing Source:Global Times Published: 2017/2/12 20:08:39

Xinjiang gets taste of South Asian seafood
For the first time, the residents of Northwest China's Xinjiang Uyghur Autonomous Region were able to eat seafood imported from Pakistan by container cars through the Khunjerab Pass in January. This successful trial is expected to improve overland trade between China and Pakistan via the China-Pakistan Economic Corridor, which accounts for 2 percent of the overall trade between the two countries. Meanwhile, the Xinjiang government has decided to invest more than 170 billion yuan ($24.72 billion) in a road network between China and Pakistan to improve transportation capability. However, experts noted that there remain challenges to the growth of bilateral trade, such as a lack of infrastructure and insufficient consumer demand in western China.

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A ship carrying containers in Gwadar port, Pakistan, in November 2016 Photo: CFP

The first batch of Indian Ocean seafood shipped by container cars arrived in Northwest China's Xinjiang Uyghur Autonomous Region through the Khunjerab Pass on January 13, marking the first time that Taxkorgan Tajik Autonomous county, Kashgar prefecture, has received imported seafood.

"We imported 7.46 tons of seafood, including prawns, cuttlefish and squid, worth $26,700. It was sold mainly in western China," said Chen Hai'ou, president of Kashgar Mufeng Biotechnology Co.

The frozen seafood was shipped from the port of Karachi in southern Pakistan to the port of Sost in northern Pakistan, and then transported to China via the Karakoram Highway.

The highway, also known as China-Pakistan Friendship Highway, which connects Xinjiang and northern Pakistan, stretches more than 1,000 kilometers across the Karakoram, Himalayas and Hindu Kush mountains.

Chen said that the container cars started from Pakistan in November 2016 and entered the Khunjerab Pass before the Karakoram Highway closed for the winter. The closure lasts from December to April each year.

This trial shipment is meaningful because it illustrates the growth of overland trade between the two countries since the highway was rebuilt and extended in 2013, said Zhou Rong, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China.

The highway greatly reduced the transnational transportation time.

"It used to take 30 to 40 days to ship goods to Xinjiang [from Pakistan], but we can now receive goods in about 10 days through the China-Pakistan Economic Corridor (CPEC)," Chen told the Global Times on Wednesday.

It was also 10 percent cheaper than transporting seafood from coastal cities in China, Chen noted.

Chinese Premier Li Keqiang proposed the 3,000-kilometer CPEC, which links Xinjiang and Pakistan's Gwadar port, during his visit to Pakistan in May 2013.

As part of China's "One Belt and One Road" initiative, the project aims to strengthen economic cooperation in transportation, energy and other industries.

Revitalized trade

The first shipment of seafood imported via the overland channel will invigorate bilateral trade and will have a demonstration effect on other companies, said Cao Lei, chief of Khunjerab Pass.

China imports an average of 3.9 million to 4.1 million tons of seafood each year, though a small proportion comes from Pakistan, said Cui He, vice chairman of the China Aquatic Products Processing and Marketing Association. The South Asian country doesn't rank among the top 20 seafood importers to China.

However, given that Pakistan doesn't consume a lot of seafood and its seafood resources remain well preserved, it is likely to boost overland shipments to Xinjiang, Cui told the Global Times on Saturday.

Currently, 98 percent of trade between the two countries is by sea, Cao was quoted as saying in a report of domestic news portal chinanews.com on February 4. Bilateral trade across Khunjerab Pass accounts for the remaining 2 percent.

For their part, Chinese companies will likely increase overland exports of large mechanical equipment and construction materials such as cement and steel to Pakistan as they contract more infrastructure projects under the CPEC, Zhou said.

In addition, the CPEC has made it more convenient for domestic companies to transport goods to Pakistan, where they can arrive in the northern city of Sost, he said. In the past, containers were shipped through the port of Karachi, where they had to go through customs.

Chen is also optimistic about the prospects that the CPEC will revitalize overland trade. "Besides seafood, we will import fruit and other agricultural products in line with domestic needs," he said, noting he is discussing importing fruit with Pakistani companies.

Eddie Wong, CEO of Shenzhen Hezhengyuan Group, the parent company of Kashgar Mufeng Biotechnology Co, told the Global Times on Sunday that the company will continue to import cotton and sugar in the second phase.

Meanwhile, his firm is negotiating with their Pakistani counterparts to export reasonable cost garments to the country.

Meanwhile, Xinjiang will devote a huge amount of funding in 2017 to building up a highway network to further improve transportation between the two countries, the Associated Press of Pakistan reported on Tuesday.

This year, the region will invest 170 billion yuan ($24.72 billion) in building new roads, 8.1 billion yuan into railway construction and 4.8 billion yuan in civil aviation projects, the report said, noting the total will surpass the combined investment in transportation infrastructure from 2011 to 2015.

Demanding challenges

The CPEC is supposed to bring earth-shaking changes to Pakistan's economy, but has yet to do so due to factors including lack of necessary infrastructure and low consumer demand in western China, Zhou said.

For example, an oil and gas pipeline in Pakistan linking the Middle East and China has not been connected, and thus the country can't get oil transit fees, he explained.

Although the Karakoram Highway is expected to boost overland trade between the two neighbors, objective factors make it hard to measure to what extent the corridor will contribute to its bilateral trade.

The highway's width of roughly six to 10 meters, which may not be able to handle enough traffic, and landslides may occur due to the complex topography, Zhou said. Most important of all, the highway is closed during winter, directly limiting the volume of transported goods.

Pakistan's supply level and western China's consumption demand is another problem that needs to be worked out, Cui told the Global Times on Saturday.

To increase bilateral trade, Xinjiang and western China need to boost their demand for goods from South Asia and the Middle East, Zhou noted.
 
Well how soon will the gdp of pakistan near the trillion dollar mark??, any economic experts here that can provide a conclusive answer as i cant seem to find one online...
 
To increase bilateral trade
Some of the things neccessary for CPEC to take off:-

1. KKH has to be widened and ring roads built around the towns that litter the highway.
2. Increase in number of Han Chinese settlers in West China in particular Kashgar prefecture.
3. Cultural and social change inside Pakistan.

However this will take over two decades so expect a gradual, step by step ramping up of the CPEC.
 

History shows CPEC could be Pakistan’s golden ticket to prosperity


LAHORE:

Despite the several concerns that surround China-Pakistan Economic Corridor (CPEC), the fact remains that the initiative will bring massive amount of money into the country in the form of loans, grants and investments. And if this new wealth is managed strategically and honestly, there’s a high chance Pakistan can turn its economy around. Other countries have done it before and there is no reason why Pakistan cannot do it; the only requirements are good intention, focused policies and a sense of responsibility.

The economic miracle of the following countries after they were devastated by war can be a source of inspiration and motivation for the movers and shakers of Pakistan.

Taiwan

At the end of World War II, Taiwan had a weak economy with severe food and housing shortages. The Chinese Civil War also brought chaos and 1.8 million refugees to the island – further straining a region already exhausted because of the war against communism.

Financial aid and soft credit worth $4 billion in addition to food and military aid by the US between 1945 and 1965 provided Taiwan with the necessary capital to restart its economy. Annual flow of $50-55 million until 1955 focused on agriculture sector to curb food shortages. Later, medium-size private corporations were encouraged to support manufacturing which eventually enabled Taiwan to develop its massive textile industry and boost export. A major chunk of the funds were allocated to public authorities to overhaul the infrastructure – Shihmen Dam was built and irrigation system was modernised on a huge scale.

As a result, Taiwan today is the 18th-largest economy in the world with GDP worth $1.6 trillion. With only 1.7% of its population living below the poverty line, inflation in the country stands at 0.3%. It is ranked highly in terms of freedom of the press, health care, public education, economic freedom, and human development. Since 1954, the percentage of population working in agriculture has reduced from 56% to 1.8%; services sector employs 63% of the people followed by industrial sector (29%) with unemployment rate as low as 3.7%.

South Korea

The Korean War killed and injured around 1.5 million people and destroyed properties worth $3.1 billion in South Korea. At the end of the conflict, the country had 43% of its industry and 42% of housing demolished and remained one of the poorest countries in the world for over a decade. In 1960, its gross domestic product per capita was $79 – lower than that of some sub-Saharan countries. With almost no natural resources and always suffering from overpopulation in its small territory, South Korean heavily depended on agriculture but productions were low due to small scale farming, government’s restriction on land ownership and lack of modern equipment.

Aid from United States, under International Cooperation Administration and United Nations Korean Reconstruction Agency, poured $6.2 billion between 1955 and 1969 into the country to boost the economy. Railway system and power plants were established and enhanced as part of the aid program; millions more were provided to uplift the healthcare and education sectors taking literacy rate to 90% from 20%.

Called the Miracle on the Han River, the rapid economic growth following the Korean War transformed South Korea from a developing country to a developed country with fourth largest economy in Asia and the 11th largest in the world – having the GDP of almost $2 trillion.

Japan

Japan was in ruins after the World War II; a significant proportion of the Japanese population was wiped out during World War II, including an estimated 210,000 people in the atomic bombings of Hiroshima and Nagasaki alone. At least 40% of national industrial plants and infrastructure were destroyed and manufacturing dropped to less than 10%. Inflation fluctuated between 60% and 130% per year till 1949 and there were severe food shortages.

Between 1946 and 1952, Washington invested $2.2 billion – or $18 billion in real 21st-century dollars adjusted for inflation – in Japan’s reconstruction effort. The Economic Rehabilitation in Occupied Areas programme was introduced to bring industrial raw materials and machinery worth $323 million dollar for the economic revival of Japan. The Government Aid and Relief in Occupied Areas programme provide Japan with $92.63 million in 1946, $287.33 million in 1947 and $351.40 million in 1948 just for food. The US also led free trade negotiations to provide production and export advantage to the growing Japanese economy. Further, with US providing military support to Japan as part of the efforts to restrict Japanese military growth, the island nation also saved on warfare costs.

As a result, Japan became the second largest economy in the world after the United States in 1968, experiencing average growth of up to 9% per year between 1955 and 1973. Today, it is world’s third largest economy with GDP of $4.92 trillion. From being aid-dependent after WWII to fourth largest donor in the world, Japan has truly made a remarkable economic transition.

Germany

The WWII had left around seven million Germans dead which were roughly 8% of the population. Agricultural production stooped to 35% and around 25% of Germany’s pre-Anschluss territory was ceded to Poland and the Soviet Union. Many factories and much of the capital stock were destroyed and the little that was left was not enough to restart the economy.

The Marshall Plan, American aid to reconstruct Western Europe, dedicated 11% of the $13 billion – $120 billion in current dollar value – monetary assistance to Germany alone. A vast amount was invested in the rebuilding of industry, with the coal industry alone receiving 40% of these funds. Business procedures were modernised and best practices were adopted as part of the economic uplift. A new central bank was created and was given much more authority over monetary policy while a Federal Cartel Office was also established to prevent the return of German monopolies and cartels.

Today, Germany is the largest economy in Europe and fourth-largest in the world. Its service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. In 2014, it was the third largest exporter in the world with 1.28 trillion in goods and services exported. And of the world’s 2000 largest publicly listed companies measured by revenue, 53 are headquartered in Germany such as Volkswagen, BMW and Siemens.

http://www.pakistankakhudahafiz.com/news/history-shows-cpec-pakistans-golden-ticket-prosperity/
 
PAK-CHINA ECONOMIC CORRIDOR

THE BLOODLINE OF PAK-CHINA FRIENDSHIP

The suggestion for this mega multi-dimensional project was first put forward by the Chinese politician Li Qui Yang, during his visit to Pakistan in May 2013. This project was finalized and agreed upon on 20th April 2015 with its essence being the connection between Kashghar and Gawadar by building 4 roads interconnected with each other, 2 railway lines, oil & gas pipe lines, airlines and fiber optics with an estimated budget of $46 billion. Along these trade routes several economic zones will be built to assist pumping up their produce precipitating into an economic boom in Pakistan. The total investment in this venture is the 20% of Pakistan’s annual Gross Domestic Product and 90% of it will be paid by China.

Table 1 – Budget allocation to the segments of CPEC

Segment Budget
Power Generation Programs $33.97 Billion
Roads $6.90 Billion
Trains $3.69 Billion
Lahore Transport Plan $1.60 Billion
Gawadar Port Projects $0.66 Billion
Pak-China Fiber Optics Project $0.04 Billion


These plans are divided in three terms.

  1. Short term plans from 2014 to 2017.
  2. Medium term plans from 2017 to 2025.
  3. Long term plans from 2025 to 2030.
Until now only short term planning has been revealed but others are unclear yet.

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Power Generation
The short term plan will consume $28 billion of the total budget until its completion by the deadline in 2017 and will inject 10400 megawatts of electricity into the national grid. 870 megawatts of this electricity will be generated by the Karwat Hydroelectric Plant ($1.6 billion) and Saki Kinar Hydroelectric Plant ($1.8 billion) by 2020.

On the other hand by 2017 coal power generation plants in:

  1. Sahiwal ($1.6 billion) will produce 1320 megawatts.
  2. Muzaffargarh ($1.9 billion) will produce 1320 megawatts.
  3. Rahim Yar Khan ($1.9 billion) will produce 1320 megawatts.
  4. Thar ($900 million) will produce 600 megawatts.
  5. Port Qasim ($1.8 billion) will produce 1320 megawatts.
  6. Gawadar ($360 million) will produce 300 megawatts.
Along with this $1.3 billion and $900 million for excavation of coal from two mines will be invested in Thar.

Moreover by 2016 wind power generation plans in:

  1. Haiderabad ($390 million), two projects will produce 150 megawatts.
  2. Karachi ($260 million), two projects will produce 100 megawatts.
  3. Dadu ($130 million), projects will produce 50 megawatts.
A solar power plant ($1.3 billion) will also be built in Bahawalpur, of which 100 megawatt project is currently operational.

The long term plan will produce a total of 16520 megawatts of electricity. The current nationwide requirement right now is 12000 megawatts and the short fall is approximately 4500 megawatts.

Roads
Karakoram Highway will be 806 km from Havelian to Khunjraab and it will be connected to Gawadar through four different roadways interconnected with each other. The 2674 km western route will be completed by 2016 and will connect to Gawadar via Quetta, Zhob, Dera Ismail Khan, Mianwali and Hassan Abdaal. This route will cover 23% through KPK, 16% through Punjab, 11% through southern areas and 50% through Baluchistan. This segment is in progress in five divisions.

The Eastern route 3 is also in progress which will be 2688 km via Faisalabad and 2781 km via Lahore. It will be completed by 2017. Route 2 via Dera Ghazi Khan (Indus Highway) will be 2756km long. The shortest and the last route to complete (long term) 2442 km will be via Khuzdar, Jacobabad, Rajanpur, Bhakar and Mianwali. Besides this the Orange Metro train will be 27.1 km completed with $1.62 billion.

Gawadar Port
After its completion, the port was handed over in 2015, to the Chinese for the duration of 40 years. Its 1200 meter container terminal, 300 meter cargo terminal and 4 harbor berths have already been completed. According to the Gawadar Port Authority the port will be fully operational by the end of 2015. This port is immensely important because of warm waters, for being on the mouth of world’s 20% oil resources (Strait of Harmuz) and key international trade route. China will trade a great deal of imports and exports in this area and for this many other projects are also in progress.

Table 2 – Projects in Gawadar completing by 2017

Project Budget
Gawadar International Airport $230 Million
Pak-China Friendship Hospital $100 Million
Pak-China Technical & vocational Institute $28 Million
Clean Water Plant $130 Million
2282 Acres of landscape levelling $65 Million
Break Water $122 Million
East Bay Expressway $230 Million
Digging for harbor $28 Million
Free zone Infrastructure $12 Million


Moreover 2 projects of export infrastructure are to be completed by 2018 with a budget of $21 million. In long term a four lane road will be constructed from Muzaffarabad to Deena with a budget of Rs75 Billion.

Train Routes
Firstly, this segment of CPEC will require Pakistan to build a 662 km railway track from Khunjraab to Havelian. Its construction will be difficult due to the mountainous terrain of Karakoram but is doable. Secondly, the other portion of the track will be laid by China. It will connect Khunjraab to Kashghar, stretching 445 km. Both countries are very enthusiastically working towards it. Authorities in the Chinese province Xinjiang have allocated preliminary research funds for this international standard railway track connecting Kashghar with Karachi.

Importance of CPEC
CPEC has become a game changer because of its sheer scale and for becoming the doorway to one of the world’s largest economic trade route of the modern era as it will serve as the bloodline for the second strongest economy. This mega project will connect Kashghar to Gawadar through various roads, railway tracks, oil & gas pipelines, airlines and fiber optics. When this project becomes operational, it will boost Pakistan’s economy by at least 2 to 3 times.

CPEC will reduce China’s distance to the Persian Gulf from 16000 km to only 2600 km and will also provide a comparatively safer passage as well. Experts speculate that with this modern Silk Route, Asia will have unprecedented economic benefits from trade with Europe and Africa. It will act as the bloodline of the largest population centric regions of the world, the gigantic market of Asia, which in return will strengthen Pakistan as its focal point.

Moreover, the country most influenced by this Pak-China collaborative effort will be India. Pak-China strategic ties will diminish India’s prospect of dominance in the Indian Ocean and by the time Gawadar Port is completely operational, it will ensure relief for Pak Navy and civil shipment from Indian espionage and its range as India had blocked 95% of Pakistan’s trade in 1971. All the ports up till Karachi are in the range of 100 km from Indian sea territory but Gawadar stands 400 km away giving it a secure vantage point. This will end India’s desire for supremacy in the Arabian Sea.

Most importantly, CPEC will yield tremendous amount of fruits for Pakistan. It will generate a large pool of employment throughout Pakistan, bringing economic well-being to various parts of the nation. This project will have 38% of Baluchistan’s share and 25% of Punjab’s share. 11 of the economic zones will be situated in Baluchistan which will provide a better and modern living standard and eradicate poverty that is prevalent in the province which in return will help derail the anti-Pakistan ideology, eliminate insurgency and develop a sense of trust towards the federal center. Chinese investors are acquiring lands near Gawadar to develop industrial zones. CPEC will also assist the flow of minerals like oil, natural gas, copper, gold and precious stones from Baluchistan. Gawadar International Airport and the nationwide roads & railways network will connect under-developed areas with the developed areas which contribute to their growth.

The power development projects will cover the energy short falls in Pakistan, provide more with growth in demand as well as suffice for the newly developing industrial zones. This will embark every sector upon progress. According to the Chinese Prime Minister, this project will bring prosperity to both nations.

CPEC will directly link Kashghar to the Indian Ocean. China spends $18 million daily on importing 6.3 million barrels of crude oil from the Middle East. Furthermore, China meets 80% of its needs from the Strait of Malaka which results in the distance from Middle East to China being nearly 9912 miles. With the development of the economic corridor, China’s expenses will be reduced by almost 33%, resulting from distance reduced to 3626 miles from Central China and 2295 miles from Western China to the Middle East. The distance from Europe to Western China will be reduced from 19132 miles to only 9597 miles and to Central China, from 17820 to only 10910 miles. The same factor will influence China’s trade with Africa as well.

Additionally, America is continuously struggling to increase its dominance in East and South-East Asia, especially in the islands of Philippines, where the presence of numerous American military basis pose a grave threat to the Chinese trade routes in the region. Through CPEC, China will no longer have to worry about the Americans as it will provide a direct supply line. If in the condition of war in the strait of Malaka, Gawadar will provide China the safest passage for all of its trade through Pakistan. It will ensure China’s better stance in the Strait of Harmuz as compared to America. As already mentioned, strait of Harmuz is the channel that facilitates 40% of the world’s total oil supply which will also have Iranian oil added to it as well. If China only imports 50% of its oil supply from CPEC, it will save $6 million daily and more than $2 billion annually. Another benefit China will reap from CPEC will be that half of its exports are from Western China so its transportation charges will be hugely decreased. By next year Iran promises more and cheaper oil for the world which will save China any sea route for oil supply.

In August 2015, Pak-China agreed upon 20 more projects worth $1.6 billion to speed up the process. Furthermore, Asia bank and Britain have agreed upon investing $327 million. Kirghizstan has also shown determination to take part in it. Agreement have been signed to lay road and railway from Quetta to Zahidan and Iran. Pakistan is developing relations with Central Asia along with numerous other efforts coming along.

CPEC IS FLAGSHIP PROJECT: MASOOD
cpec-is-flagship-project-masood-1488542868-1877.jpg

05:07 PM, 3 Mar, 2017

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Pakistan Ambassador to China Masood Khalid has said that One Belt and One Road initiative would bring incomparable benefits to economy, trade, and infrastructure and energy development to the region.

In an interview with Chinese Edition of Takungpao newspaper, he said China-Pakistan Economic Corridor is a flagship project and it would bring the already consolidated China-Pakistan all-weather strategic partnership to a new dimension of social economic development.

The Ambassador said that Silk Road economic belt and Maritime Silk Road, like the traditional Silk Road, would connect various areas and civilizations.

Pakistan CPEC Discussed in the European Parliament
BRUSSELS, March 3, 2017 /PRNewswire/ --

A conference titled 'Opposition against CPEC in Pakistan' was held at the European Parliament in Brussels on March 1, 2017. Hosted by Members of the European Parliament and the Baluchistan House, the conference was aimed at highlighting the deep-seated antipathy to the project among the residents of Gilgit-Baltistan, Sindh and Baluchistan, three Pakistani provinces through which the China-Pakistan Economic Corridor (CPEC) passes.

Among the speakers representing the various regions in Pakistan were Mehran Baluch (Baluch Representative to the EU), Rubina Greenwood (Chairperson, World Sindhi Congress) and Wajahat Hassan (G-B leader-in-exile and Head of the Gilgit-Baltistan Thinkers Forum). The MEPs who spoke on this occasion were Fulvio Martusciello and Alberto Cirio, and Paulo Casaca, Executive Director of the South Asia Development Forum, moderated the event.

The conference commenced with a documentary film that showed how the CPEC was negatively impacting the lives of locals all along its route due to the loss of jobs, environmental degradation, forced displacement and increase in Army deployment and control.

In his opening remarks, Paulo Casaca said that though the CPEC was touted as a game-changer by both Pakistan and China, the reality was far removed from that. He also highlighted the fact that the projects under the CPEC were being built largely against the will of the locals of Baluchistan, Sindh and Gilgit-Baltistan.

Baluch representative Mehran Baloch opined that the construction of the CPEC in Baluchistan and Gilgit-Baltistan was illegal, as Baluchistan was territory occupied by Pakistan and Gilgit-Baltistan was disputed territory, even as per Pakistan's Constitution. He further stated that the CPEC was being used to suppress the Baloch identity and culture, and the Pakistani government was subtly pursuing a policy of changing the demography of the province. He added that on the pretext of the CPEC, there was a deliberate move by the government to bring in and re-settle Punjabis and Chinese nationals in the region, thereby attempting to dilute and eventually wipe-out the Baloch identity. Similar concerns were expressed by Rubina Greenwood, who feared that the CPEC would merely result in the transfer of Sindh's natural resources to China, without any corresponding benefit to the province. Wajahat Hassan, while highlighting cases of human rights violations in Gilgit Baltistan, accused Islamabad of allowing foreign countries, particularly China, to exploit the resources of the region. He also stated that the Pakistani government had initiated a process of altering the demography of Gilgit Baltistan, with the objective to increase its influence there.

In his address, Fulvio Martusciello MEP highlighted the human rights violations being carried out by Pakistan's security forces, in a bid to suppress protests against the CPEC. He referred to incidents of enforced disappearances, land-grabbing and forced eviction of locals from their homes, all in the name of the CPEC. He cautioned European Union member-states not to respond to Pakistan's overtures to invest in the CPEC, as the project was being built by trampling upon the rights of the locals and major portions of the corridor traversed through disputed territory.

Alberto Cirio, MEP, described the CPEC as a project in which, under the pretext of 'development', the State was indulging in corrupt practices for short-term gains, even at the cost of human rights violations against the people of Gilgit-Baltistan and Baluchistan. He also expressed concern about the charter of the Special Security Division (SSD), apparently set up to protect Chinese workers in Pakistan. He stated that the number of personnel in the SSD was higher than the number of Chinese workers in Pakistan, indicating that it would probably be used for other purposes, including suppressing of the locals.

All the panellists agreed that the Pakistan government was violating human rights of the locals by imposing a foreign-led project on the various regions, without consultation. There was also agreement that the project would only lead to the enrichment of China and the Pakistani province of Punjab, at the cost of the other regions in Pakistan.
 
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