China Pakistan Economic Corridor (CPEC) | Updates & Discussions
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AZADPAKISTAN2009
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Nice initiative but was expecting this to be a bit bigger for 1.5 Billion price tag
Was expecting a bit bigger landscape
1.5 Billion is A lot of cash / investment should construct a fairly large zone
The construction should account for earth quakes as that region does gets Earth quake shocks
Instead of going after fluff the fancy archy entrance is cool but really has no real value
Just go for properly constructed 16-20 story corporate Buildings primed for latest tech
- 5 Times the size of what is in this model
Was expecting a bit bigger landscape
1.5 Billion is A lot of cash / investment should construct a fairly large zone
The construction should account for earth quakes as that region does gets Earth quake shocks
Instead of going after fluff the fancy archy entrance is cool but really has no real value
Just go for properly constructed 16-20 story corporate Buildings primed for latest tech
Last edited:
AZADPAKISTAN2009
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It must be hilarious for Chinese to view our Railways station the technology we use is so outdated
It is like visit to Museum
Stuff made in 1882 as written on the building !!! hahahaah
It is like visit to Museum
Stuff made in 1882 as written on the building !!! hahahaah
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Clutch
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Reservations regarding CPEC echo in Senate
Nadir GuramaniUpdated November 24, 2017
43
2
Senators on Friday presented a motion in the Upper House expressing concerns that Pakistan appears to be getting the short end of the stick in Free-Trade Agreements (FTA) struck up with Beijing as part of the China-Pakistan Economic Corridor (CPEC) project.
Senator Mian Atiq presented a motion in this regard, which also raised concerns that China was not utilising various economic concessions granted to it by Pakistan.
The senator furrther said Pakistan's value-added exports have not benefited under the FTA agreements and there are concerns regarding the promotion of local industry.
A debate regarding the benefits of the project to Pakistan took place in the House after the motion was presented.
ARTICLE CONTINUES AFTER AD
Lawmakers also voiced concerns that information regarding the project was being withheld. They also asked what Balochistan stands to gain from the project.
Senate Chairman Raza Rabbani subsequently asked who in parliament was withholding requested information and summoned all records pertaining to the matter.
Benefits for Balochistan?
"China has arrived in Gwadar and almost all the business conducted in Pakistan is being undertaken by China," PML-N's Senator Kulsoom Parveen said.
"What progress has Gwadar seen under CPEC, so far?" she asked."The people of Balochistan have not gained anything from the project."
"Maybe the people of Balochistan will only be given jobs to fix punctured tires," she said.
Chiming in, Senator Azam Moosa Khel stated that "CPEC will not be successful."
"What benefits have the people of Balochistan gained from the project?" the senator asked, echoing Senator Parveen's concerns.
Transparency sought
PPP's Senator Farhatullah Babar told the Senate that the business community had sought inclusion in the formulation of agreements with China. However, they were not accommodated, he regretted.
He also called for transparency in security arrangements for CPEC, pointing out that "pieces of information regarding the project have been withheld."
"We were told that there is a long-term plan but it cannot be shared," he added.
Nadir GuramaniUpdated November 24, 2017
43
2
Senators on Friday presented a motion in the Upper House expressing concerns that Pakistan appears to be getting the short end of the stick in Free-Trade Agreements (FTA) struck up with Beijing as part of the China-Pakistan Economic Corridor (CPEC) project.
Senator Mian Atiq presented a motion in this regard, which also raised concerns that China was not utilising various economic concessions granted to it by Pakistan.
The senator furrther said Pakistan's value-added exports have not benefited under the FTA agreements and there are concerns regarding the promotion of local industry.
A debate regarding the benefits of the project to Pakistan took place in the House after the motion was presented.
ARTICLE CONTINUES AFTER AD
Lawmakers also voiced concerns that information regarding the project was being withheld. They also asked what Balochistan stands to gain from the project.
Senate Chairman Raza Rabbani subsequently asked who in parliament was withholding requested information and summoned all records pertaining to the matter.
Benefits for Balochistan?
"China has arrived in Gwadar and almost all the business conducted in Pakistan is being undertaken by China," PML-N's Senator Kulsoom Parveen said.
"What progress has Gwadar seen under CPEC, so far?" she asked."The people of Balochistan have not gained anything from the project."
"Maybe the people of Balochistan will only be given jobs to fix punctured tires," she said.
Chiming in, Senator Azam Moosa Khel stated that "CPEC will not be successful."
"What benefits have the people of Balochistan gained from the project?" the senator asked, echoing Senator Parveen's concerns.
Transparency sought
PPP's Senator Farhatullah Babar told the Senate that the business community had sought inclusion in the formulation of agreements with China. However, they were not accommodated, he regretted.
He also called for transparency in security arrangements for CPEC, pointing out that "pieces of information regarding the project have been withheld."
"We were told that there is a long-term plan but it cannot be shared," he added.
AZADPAKISTAN2009
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ghazi52
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ISLAMABAD: Despite surfacing objections from the Chinese side on taxation and banking sectors for signing the Long-Term Plan next week, Prime Minister Shahid Khakan Abbasi has granted approval for inclusion of a dozen fresh projects as part of China-Pakistan Economic Corridor (CPEC)’s agenda of upcoming Joint Cooperation Committee (JCC) meeting, including much-awaited Karachi Circular Railway (KCR) with an estimated cost of $2.07 billion.
On pattern of Chinese model, the senior officials meeting (SOM) will take place on Monday (tomorrow) and after ironing out differences, the JCC will formally meet on Tuesday (Nov 21) for signing of almost a dozen fresh projects for making part of CPEC with jacking up overall cost to $50 billion.
The signing of Long-Term Plan (LTP-2014-2030) is part of upcoming JCC agenda but official circles say that its evolutionary process as the draft shared by Pakistani side resulted into surfacing some “points” from Chinese side especially related to facilitation regarding Customs and State Bank of Pakistan for finalising mode of cooperation for payments related to trade transactions. Hassan Daud, Planning Commission’s Deputy Project Director at the CPEC, told journalists on Saturday that the list of energy projects would be revised with the expectations that more power projects would be made part of the CPEC after getting approval of JCC meeting, including two projects of 100MW and 80MW at Gilgit as well as Taunsa Hydropower Project of 800MW.
He said that Karachi Circular Railway (KCR) and Mainline-1 (ML-1) were strategic projects and finalisation of implementation plan for dualisation/ up-gradation of rail line from Peshawar to Karachi (ML-1) was expected to be finalised. When the official was asked to comment regarding Sindh’s claim for blaming the Center for creating stumbling block in the way of KCR, he said that it was strategic and deliverable project and group of experts could find out solution on the table.
The ML-1, he said, has been envisaged with estimated cost of $8.130 billion and first phase will be kick-started in 2018.
He said that it was decided in principle to focus upon increasing cooperation on industrial zones as four feasibility studies related to each one in Punjab, Sindh, Khyber Pakhtunkhwa and Gilgit-Baltistan was so far finalised and would be submitted for Chinese comments out of total nine Special Economic Zones (SEZs). “The sharing of feasibility studies will be done and future roadmap will be finalised,” he added. Currently, he said that there were total 22 projects under construction with the help of CPEC initiative with total cost of $27 billion of which 15 projects having cost of $22 billion were related to energy projects. In shape of Early Harvest Programme (EHP), he said that around 11,110MW related projects were under construction, expected to be completed in 2018.
He said that the design framework agreement for construction of Gwadar International Airport with cost of $260 million grant money was expected to be signed during this JCC meeting. The letter of expression (LOE) for Vocational Training and Friendship Hospital at Gwadar will also be finalised. The groundbreaking of Eastbay Expressway will be done on November 24, 2017, by Prime Minister Shahid Khakan Abbasi alongwith visiting Chinese leaders. For desalination of water of 5 million gallon in Gwadar, he said that this important project would be discussed and would be completed in one and half year period.
On pattern of Chinese model, the senior officials meeting (SOM) will take place on Monday (tomorrow) and after ironing out differences, the JCC will formally meet on Tuesday (Nov 21) for signing of almost a dozen fresh projects for making part of CPEC with jacking up overall cost to $50 billion.
The signing of Long-Term Plan (LTP-2014-2030) is part of upcoming JCC agenda but official circles say that its evolutionary process as the draft shared by Pakistani side resulted into surfacing some “points” from Chinese side especially related to facilitation regarding Customs and State Bank of Pakistan for finalising mode of cooperation for payments related to trade transactions. Hassan Daud, Planning Commission’s Deputy Project Director at the CPEC, told journalists on Saturday that the list of energy projects would be revised with the expectations that more power projects would be made part of the CPEC after getting approval of JCC meeting, including two projects of 100MW and 80MW at Gilgit as well as Taunsa Hydropower Project of 800MW.
He said that Karachi Circular Railway (KCR) and Mainline-1 (ML-1) were strategic projects and finalisation of implementation plan for dualisation/ up-gradation of rail line from Peshawar to Karachi (ML-1) was expected to be finalised. When the official was asked to comment regarding Sindh’s claim for blaming the Center for creating stumbling block in the way of KCR, he said that it was strategic and deliverable project and group of experts could find out solution on the table.
The ML-1, he said, has been envisaged with estimated cost of $8.130 billion and first phase will be kick-started in 2018.
He said that it was decided in principle to focus upon increasing cooperation on industrial zones as four feasibility studies related to each one in Punjab, Sindh, Khyber Pakhtunkhwa and Gilgit-Baltistan was so far finalised and would be submitted for Chinese comments out of total nine Special Economic Zones (SEZs). “The sharing of feasibility studies will be done and future roadmap will be finalised,” he added. Currently, he said that there were total 22 projects under construction with the help of CPEC initiative with total cost of $27 billion of which 15 projects having cost of $22 billion were related to energy projects. In shape of Early Harvest Programme (EHP), he said that around 11,110MW related projects were under construction, expected to be completed in 2018.
He said that the design framework agreement for construction of Gwadar International Airport with cost of $260 million grant money was expected to be signed during this JCC meeting. The letter of expression (LOE) for Vocational Training and Friendship Hospital at Gwadar will also be finalised. The groundbreaking of Eastbay Expressway will be done on November 24, 2017, by Prime Minister Shahid Khakan Abbasi alongwith visiting Chinese leaders. For desalination of water of 5 million gallon in Gwadar, he said that this important project would be discussed and would be completed in one and half year period.
JSCh
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Karachi power station opens, part of CPEC
Source:Global Times Published: 2017/11/30 22:38:39
The first unit of a coal-fired power plant built by PowerChina was inaugurated on Wednesday in Port Qasim, Karachi, Pakistan, a key project in the China-Pakistan Economic Corridor (CPEC), the Xinhua News Agency reported.
The plant's generation capacity is about 9 billion kilowatt-hours and it is scheduled to meet the demand of 4 million households in Pakistan while overcoming power shortages in the country, the news report said.
State-owned hydropower station builder PowerChina and a local company co-financed the $2.08 billion project, which took 36 months to build, the report said.
Source:Global Times Published: 2017/11/30 22:38:39
The first unit of a coal-fired power plant built by PowerChina was inaugurated on Wednesday in Port Qasim, Karachi, Pakistan, a key project in the China-Pakistan Economic Corridor (CPEC), the Xinhua News Agency reported.
The plant's generation capacity is about 9 billion kilowatt-hours and it is scheduled to meet the demand of 4 million households in Pakistan while overcoming power shortages in the country, the news report said.
State-owned hydropower station builder PowerChina and a local company co-financed the $2.08 billion project, which took 36 months to build, the report said.
Muhammad Omar
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They made a proper shed over the coal area to keep it safe from rain etc wonder when they will build one at Port Qasim Coal Plant
monitor
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Real questions persist about Pakistan’s ability to repay CPEC loans: report
Report also takes look at noticeable split between public narratives, private sentiments on CPEC
By RAHIMA SOHAIL
Nov.30,2017
A recently published report by The National Bureau of Asian Research (NBR) takes a look at the implications and obstacles of China-Pakistan Economic Corridor’s (CPEC) energy projects with the possibility of it exacerbating already fraught relations between Pakistan and India.
Energy is a big part of CPEC, with many high profile projects relating to it, including sixteen which are close to completion. PML-N came into power in 2013 with a mandate to fix a far-reaching energy crisis. In his speech to mark the occasion of CPEC’s launch in April 2015, ex-Prime Minister Nawaz Sharif declared that the project “will benefit all provinces and areas in Pakistan, and transform our country into a regional hub and pivot for commerce and investment.”
Five more CPEC power projects to get special treatment
Islamabad, thus, has a strong political interest in getting as many energy-related projects online as possible before the next national election in 2018 given their recent political struggles, states report’s author Michael Kugelman, who is the South Asia senior associate at The Wilson Center.
Of the over $50 billion in promised Chinese investment in CPEC, 60 per cent is for coal-fired power generation. The project offers “many potential benefits for Pakistan, ranging from improved infrastructure to increased employment and, more broadly, greater access to the global economy”, says Kugelman. Pakistan is currently disastrously short of electricity supplies and while CPEC will help Pakistan generate more power, it will not solve the broader energy crisis that is rooted in more than supply shortages, states the report.
“CPEC will not do much to address the fundamental drivers of that crisis—debt, corruption, a lack of a clear and coordinated energy policy process, and other factors that have little to do with supply-side considerations”, claims Kugelman.
The Belt and Road Initiative (BRI) not only has to look at the environmental implications for the region but also the host countries’ ability to meet their goals for reducing carbon emissions under the Paris Climate Agreement.
Moreover, the project for China is deeply dependent on “the precarious and uncertain security situation in Pakistan”. Stability in Pakistan’s security situation and economic performance is an increasingly critical interest for Beijing. Real questions also continue to persist about Pakistan’s ability to repay loans and whether the country is capable of financing its share of the new energy investments.
In a recent report by The Express Tribune, it was observed that the central government’s debt and liabilities increased to Rs21.4 trillion by June this year, which were about 68% of the total national output and is considered a dangerous level.
The report by Kugelman also takes a look at the noticeable split between public narratives and private sentiments on CPEC in Pakistan. While CPEC is envisioned as the project to integrate Pakistan into the global economy, officials and analysts acknowledge the risks of “placing all of Pakistan’s economic eggs in the CPEC basket”. With heavy investment from China, there is no longer a level playing field in Pakistan for other interested foreign investors.
It further discusses the impact CPEC will have on the already fraught relations between Pakistan and India. Beijing is New Delhi’s biggest strategic competitor in the region and the project “generates additional obstacles for Indian efforts to access markets and natural gas reserves in Central Asia”. India cannot currently reach these regions by land because Pakistan denies it transit rights on Pakistani soil.
India has repeatedly expressed severe reservations on CPEC. Not only is New Delhi critical of CPEC building projects in Gilgit-Baltistan which is part of disputed territory, but many policymakers view CPEC as China ‘encircling’ India in the South Asian region. There are not only infrastructure development and energy deals but also some naval and military-related projects.
“That CPEC is taking place on India’s doorstep and all across Pakistan is even more unsettling for New Delhi,” states Kugelman.
Monitoring CPEC is also a major focus of the US, which has thus far not been too vocal about the project, states the report. “CPEC is problematic because it represents major inroads made by a key strategic competitor in a region where the United States has been much less present than China.”
Five CPEC projects face the axe
However, if looked at through an economic lens, the intended outcomes of the project – energy security, better infrastructure, employment and stability – are desirable for the US because it aligns with its own interests in Pakistan.
The report also points out the benefit Iran gains from CPEC energy projects. The country has long wanted to complete a natural gas pipeline between Pakistan and Iran. Financial constraints have, however, stopped Pakistan from developing its portion.
While CPEC faces many obstacles, Pakistan has moved quickly to address them. It has moved quickly to address concerns about security and offered up a security force of nearly twenty thousand soldiers to protect CPEC workers, as well as a separate maritime force to protect Gwadar port. “The the risks will remain high though, particularly in Balochistan.”
However, at the end of it Pakistan emerges as a winner. In time, the generation of more electricity and harvesting of indigenous resources could end the country’s dependence on imported oil and gas from the Middle East.
CPEC has raised fears in Pakistan of another ‘East India Company’
Islamabad’s objections to some of the preconditions to Chinese investments are a sign of chinks in the ‘all weather’ friendship
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The old port in Gwadar, Pakistan. The development of Gwadar and the infrastructure projects of road and rail linkages across Pakistan are the glamorous aspects of the CPEC
The old port in Gwadar, Pakistan. The development of Gwadar and the infrastructure projects of road and rail linkages across Pakistan are the glamorous aspects of the CPEC(REUTERS)
Updated: Dec 01, 2017 20:53 IST
By Vikram Sood
The sudden announcement in November that Pakistan had withdrawn its proposal to include the long-stalled Bhasha-Diamer Dam as part of the Chinese-financed China Pakistan Economic Corridor (CPEC) caused quite a stir in Pakistan. Both the World Bank and the ADB had refused to fund this project without a ‘No Objection Certificate’ from India. Of course, Pakistan would not approach India for this. Assuming that their all-weather friend would agree to help, Pakistan approached China in May and Beijing agreed to get this project off the ground after it had languished for 15 years. There were preconditions about ownership, maintenance costs and collateral security. Apparently, these were unacceptable to Pakistan. This perhaps marks the first chink in the CPEC, a far cry from the euphoria seen two years ago.
Pakistani leaders were in awe of Chinese President Xi Jinping when he visited Islamabad on April 20, 2015, and received him with full honours. There was delirious frenzy about the gifts the beloved leader was bringing. Xi had described his visit as a “second home coming,” reaffirming that the bilateral friendship remained higher than the mountains. In addition to this, Xi brought with him a magnificent deal of the kind Pakistan could not refuse — a $46 billion proposal for a CPEC fully paid for by the Chinese, a total which was later increased. It was a mega-project that covered energy and infrastructure projects and designed to lift Pakistan’s underperforming economy.
The Chinese investment plan for an economic corridor from Kashgar through Gilgit-Baltistan to Gwadar promised twice as much FDI that Pakistan had received since 2008. There was a military-political consensus on the CPEC. In their euphoria, and with eyes constantly fixed on India, the Pakistani establishment failed to neither read the fine print nor do their math. They did not factor in that the billions the Chinese were going to invest was about 20% of Pakistan’s $270 billion economy. In addition, by 2030 Pakistan would have to pay back $90 billion and this would be an additional burden.
The China Development Bank and the National Development Reform Commission of the Chinese government had prepared the full project. For the Chinese the project is an important link to their grandiose Belt Road Initiative and there are at least three major interests for China in the CPEC.
The first is access to Gwadar for obvious geostrategic and economic reasons. The development of Gwadar and the infrastructure projects of road and rail linkages across the country are the glamorous aspects of the projects. The second is establishing a security and communication grid all over Pakistan. A fibre optic link between Pakistan and China that covers the entire country and reaches Gwadar is now part of the CPEC. In addition to the security aspects, the Chinese see this is as a transmission carrier, which would enable the Chinese to popularise their culture. The corridor has to go through the restive Balochistan and the Khyber-Pakhtunkhwa provinces. There are security issues and the Pakistan Army has raised two special security divisions to guard the Chinese labour deployed there and the equipment all the way from Gwadar to Rawalpindi and Khunjerab.
When the plan speaks of joint efforts against terrorists the Chinese have the Uyghurs in mind, not just protection of their own enterprises and labour in Pakistan. The project also includes a system of monitoring and surveillance across Pakistan. The third is establishing control over Pakistan’s agriculture for feeding its impoverished Kashgar district of Xinjiang. Thousands of acres of agricultural land will be leased out to Chinese companies for agricultural projects. The plan is to provide assistance for mechanisation and scientific techniques in various aspects such as livestock breeding, hybrid varieties and precision irrigation.
However, in March, the Nawaz Sharif government informed the Pakistan National Assembly that Chinese firms were given a number of tax concessions across the entire CPEC projects as incentive for working in troubled zones. The Chinese will have industrial parks or special exclusive economic zones that should meet specific conditions with a perfect infrastructure for their investment and projects, with Chinese employees.
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The Chinese plan could be to manage a very dependent nation that provides access to a deep-water port in the Arabian Sea and an opportunity to outflank a rival in south Asia. Some Pakistani parliamentarians fear that the CPEC could mark the arrival of another East India Company.
Vikram Sood is former chief, Research & Analysis Wing
The views expressed are personal
Report also takes look at noticeable split between public narratives, private sentiments on CPEC
By RAHIMA SOHAIL
Nov.30,2017
A recently published report by The National Bureau of Asian Research (NBR) takes a look at the implications and obstacles of China-Pakistan Economic Corridor’s (CPEC) energy projects with the possibility of it exacerbating already fraught relations between Pakistan and India.
Energy is a big part of CPEC, with many high profile projects relating to it, including sixteen which are close to completion. PML-N came into power in 2013 with a mandate to fix a far-reaching energy crisis. In his speech to mark the occasion of CPEC’s launch in April 2015, ex-Prime Minister Nawaz Sharif declared that the project “will benefit all provinces and areas in Pakistan, and transform our country into a regional hub and pivot for commerce and investment.”
Five more CPEC power projects to get special treatment
Islamabad, thus, has a strong political interest in getting as many energy-related projects online as possible before the next national election in 2018 given their recent political struggles, states report’s author Michael Kugelman, who is the South Asia senior associate at The Wilson Center.
Of the over $50 billion in promised Chinese investment in CPEC, 60 per cent is for coal-fired power generation. The project offers “many potential benefits for Pakistan, ranging from improved infrastructure to increased employment and, more broadly, greater access to the global economy”, says Kugelman. Pakistan is currently disastrously short of electricity supplies and while CPEC will help Pakistan generate more power, it will not solve the broader energy crisis that is rooted in more than supply shortages, states the report.
“CPEC will not do much to address the fundamental drivers of that crisis—debt, corruption, a lack of a clear and coordinated energy policy process, and other factors that have little to do with supply-side considerations”, claims Kugelman.
The Belt and Road Initiative (BRI) not only has to look at the environmental implications for the region but also the host countries’ ability to meet their goals for reducing carbon emissions under the Paris Climate Agreement.
Moreover, the project for China is deeply dependent on “the precarious and uncertain security situation in Pakistan”. Stability in Pakistan’s security situation and economic performance is an increasingly critical interest for Beijing. Real questions also continue to persist about Pakistan’s ability to repay loans and whether the country is capable of financing its share of the new energy investments.
In a recent report by The Express Tribune, it was observed that the central government’s debt and liabilities increased to Rs21.4 trillion by June this year, which were about 68% of the total national output and is considered a dangerous level.
The report by Kugelman also takes a look at the noticeable split between public narratives and private sentiments on CPEC in Pakistan. While CPEC is envisioned as the project to integrate Pakistan into the global economy, officials and analysts acknowledge the risks of “placing all of Pakistan’s economic eggs in the CPEC basket”. With heavy investment from China, there is no longer a level playing field in Pakistan for other interested foreign investors.
It further discusses the impact CPEC will have on the already fraught relations between Pakistan and India. Beijing is New Delhi’s biggest strategic competitor in the region and the project “generates additional obstacles for Indian efforts to access markets and natural gas reserves in Central Asia”. India cannot currently reach these regions by land because Pakistan denies it transit rights on Pakistani soil.
India has repeatedly expressed severe reservations on CPEC. Not only is New Delhi critical of CPEC building projects in Gilgit-Baltistan which is part of disputed territory, but many policymakers view CPEC as China ‘encircling’ India in the South Asian region. There are not only infrastructure development and energy deals but also some naval and military-related projects.
“That CPEC is taking place on India’s doorstep and all across Pakistan is even more unsettling for New Delhi,” states Kugelman.
Monitoring CPEC is also a major focus of the US, which has thus far not been too vocal about the project, states the report. “CPEC is problematic because it represents major inroads made by a key strategic competitor in a region where the United States has been much less present than China.”
Five CPEC projects face the axe
However, if looked at through an economic lens, the intended outcomes of the project – energy security, better infrastructure, employment and stability – are desirable for the US because it aligns with its own interests in Pakistan.
The report also points out the benefit Iran gains from CPEC energy projects. The country has long wanted to complete a natural gas pipeline between Pakistan and Iran. Financial constraints have, however, stopped Pakistan from developing its portion.
While CPEC faces many obstacles, Pakistan has moved quickly to address them. It has moved quickly to address concerns about security and offered up a security force of nearly twenty thousand soldiers to protect CPEC workers, as well as a separate maritime force to protect Gwadar port. “The the risks will remain high though, particularly in Balochistan.”
However, at the end of it Pakistan emerges as a winner. In time, the generation of more electricity and harvesting of indigenous resources could end the country’s dependence on imported oil and gas from the Middle East.
CPEC has raised fears in Pakistan of another ‘East India Company’
Islamabad’s objections to some of the preconditions to Chinese investments are a sign of chinks in the ‘all weather’ friendship
Share
Share on linkedin
The old port in Gwadar, Pakistan. The development of Gwadar and the infrastructure projects of road and rail linkages across Pakistan are the glamorous aspects of the CPEC
The old port in Gwadar, Pakistan. The development of Gwadar and the infrastructure projects of road and rail linkages across Pakistan are the glamorous aspects of the CPEC(REUTERS)
Updated: Dec 01, 2017 20:53 IST
By Vikram Sood
The sudden announcement in November that Pakistan had withdrawn its proposal to include the long-stalled Bhasha-Diamer Dam as part of the Chinese-financed China Pakistan Economic Corridor (CPEC) caused quite a stir in Pakistan. Both the World Bank and the ADB had refused to fund this project without a ‘No Objection Certificate’ from India. Of course, Pakistan would not approach India for this. Assuming that their all-weather friend would agree to help, Pakistan approached China in May and Beijing agreed to get this project off the ground after it had languished for 15 years. There were preconditions about ownership, maintenance costs and collateral security. Apparently, these were unacceptable to Pakistan. This perhaps marks the first chink in the CPEC, a far cry from the euphoria seen two years ago.
Pakistani leaders were in awe of Chinese President Xi Jinping when he visited Islamabad on April 20, 2015, and received him with full honours. There was delirious frenzy about the gifts the beloved leader was bringing. Xi had described his visit as a “second home coming,” reaffirming that the bilateral friendship remained higher than the mountains. In addition to this, Xi brought with him a magnificent deal of the kind Pakistan could not refuse — a $46 billion proposal for a CPEC fully paid for by the Chinese, a total which was later increased. It was a mega-project that covered energy and infrastructure projects and designed to lift Pakistan’s underperforming economy.
The Chinese investment plan for an economic corridor from Kashgar through Gilgit-Baltistan to Gwadar promised twice as much FDI that Pakistan had received since 2008. There was a military-political consensus on the CPEC. In their euphoria, and with eyes constantly fixed on India, the Pakistani establishment failed to neither read the fine print nor do their math. They did not factor in that the billions the Chinese were going to invest was about 20% of Pakistan’s $270 billion economy. In addition, by 2030 Pakistan would have to pay back $90 billion and this would be an additional burden.
The China Development Bank and the National Development Reform Commission of the Chinese government had prepared the full project. For the Chinese the project is an important link to their grandiose Belt Road Initiative and there are at least three major interests for China in the CPEC.
The first is access to Gwadar for obvious geostrategic and economic reasons. The development of Gwadar and the infrastructure projects of road and rail linkages across the country are the glamorous aspects of the projects. The second is establishing a security and communication grid all over Pakistan. A fibre optic link between Pakistan and China that covers the entire country and reaches Gwadar is now part of the CPEC. In addition to the security aspects, the Chinese see this is as a transmission carrier, which would enable the Chinese to popularise their culture. The corridor has to go through the restive Balochistan and the Khyber-Pakhtunkhwa provinces. There are security issues and the Pakistan Army has raised two special security divisions to guard the Chinese labour deployed there and the equipment all the way from Gwadar to Rawalpindi and Khunjerab.
When the plan speaks of joint efforts against terrorists the Chinese have the Uyghurs in mind, not just protection of their own enterprises and labour in Pakistan. The project also includes a system of monitoring and surveillance across Pakistan. The third is establishing control over Pakistan’s agriculture for feeding its impoverished Kashgar district of Xinjiang. Thousands of acres of agricultural land will be leased out to Chinese companies for agricultural projects. The plan is to provide assistance for mechanisation and scientific techniques in various aspects such as livestock breeding, hybrid varieties and precision irrigation.
However, in March, the Nawaz Sharif government informed the Pakistan National Assembly that Chinese firms were given a number of tax concessions across the entire CPEC projects as incentive for working in troubled zones. The Chinese will have industrial parks or special exclusive economic zones that should meet specific conditions with a perfect infrastructure for their investment and projects, with Chinese employees.
Related story
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It’s Xi Jinping, not Shinzo Abe, who has catalysed the need for Quad
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Pakistani government is a civilian facade used to conceal iron fist of the army
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Chinese veto to UN action against Masood Azhar: Here’s how India can respond
Top Stories
Is the art of courteous conversation on its last legs?
The Chinese plan could be to manage a very dependent nation that provides access to a deep-water port in the Arabian Sea and an opportunity to outflank a rival in south Asia. Some Pakistani parliamentarians fear that the CPEC could mark the arrival of another East India Company.
Vikram Sood is former chief, Research & Analysis Wing
The views expressed are personal
ghazi52
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1956 – Pakistani Prime Minister Huseyn Shaheed Suhrawardy and Chinese Premier Zhou Enlai signing the Treaty of Friendship .
Chairman Mao Zedong (L) interviews the Pakistani Prime Minister Huseyn Shaheed Suhrawardy (R
The Chinese leader Mao Zedong, center, meeting with Zulfikar Ali Bhutto, right, the prime minister of Pakistan, in Beijing in 1976.
Chairman Mao Zedong (L) interviews the Pakistani Prime Minister Huseyn Shaheed Suhrawardy (R
The Chinese leader Mao Zedong, center, meeting with Zulfikar Ali Bhutto, right, the prime minister of Pakistan, in Beijing in 1976.
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Spotlight: China transferring high-quality industrial capacity to Pakistan through economic corridor building
Source: Xinhua| 2017-12-06 23:09:16|Editor: yan
by Liu Tian
ISLAMABAD, Dec. 6 (Xinhua) -- China is transferring its high-quality industrial capacity to its close neighbor Pakistan under their multi-billion-U.S.-dollars project of China-Pakistan Economic Corridor, with the latest example being the inauguration of the first unit of Port Qasim coal-fired power plant using the world most advanced super critical thermal technology.
The first unit, which is expected to generate 4.5 billion units of electricity annually, is a highly efficient and environment friendly generator that will consume less amount of coal and reduce emission of sulfide with its limestone-gypsum wet desulfurization technology.
Agha Saeed Khan, a supervisor at HSE department in Port Qasim plant, said that people can use their bare eyes to tell the differences between the modern coal-fired power plant and other thermal plants with outdated technologies. "We have a power plant right beside us which has been running on the fossil fuel since a long time ago. You can see smoke there and compare with the chimneys this power plant is doing, you can see the differences," the young guy told Xinhua.
The Port Qasim is a "zero emission" power plant, according to Yan Zhiyong, chairman of the Power China, the constructor of the new coal-fired plant. He said that "You can see the white smoke' from both the chimney and cooling tower. It is actually water vapor."
He said that during the 168-hour test running period, indicators on emission monitored by the power plant were all better than the World Bank standards. "It is because that we provide the Port Qasim plant the world's most advanced coal-firing technologies and equipment with the world's top design and construction work," he further explained.
Yan said that his team, from planning and designing to constructing and operating, passed their high capacities, advanced technologies and progressive experiences to the Pakistani side to help the country develop its own modern power sector with minimized costs and maximized achievements. "This is the idea of Power China to involve in the Pakistani market," he told reporters in Port Qasim recently.
"We also put great importance to forge a professional Pakistani team in the power plant. We pledged that the first team to operate and maintain the Port Qasim power plant must have our Pakistani friends. And now, we have a Pakistani team that can run such a world top class coal-fried power plant," he added.
The second unit of the power plant is expected to be launched in February next year. At that time, the power plant will provide 9 billion unit of clean and cheapest electricity to about 4 million Pakistani families, according to Prime Minister Shahid Khaqan Abbasi.
Meanwhile, at the edge of Cholistan desert, a 300 megawatt solar power farm has become the major electricity source for about 280,000 families in Bahawalpur. The solar power farm was recently awarded the Luban Prize for Construction Project (Overseas Project), China's top prize in construction industry, for its outstanding construction quality.
In a short period about two months, the first 50 megawatt solar plates were all installed, which was supposed to take half a year to fulfill, and the entire farm was completed in June last year. since then, the farm has generated some 730 million units of electricity for Bahawalpur.
Mohammad, a Bahawalpur resident, told Xinhua that they are happy to have the solar farm as it tremendously shortened local load shedding by about 10 hours in torrid summer.
The high standard of construction in the solar plant allows automatic plate washing system to perform its role to maintain effective power generating.
Gong Xiaobin, executive director of China First Metallurgical Group Co. Ltd. (CFMCC) Pakistan Branch, told Xinhua recently in Karachi that a series of new technologies in China were used in building the solar plant and the company also developed some proprietary technologies during the construction.
"It is the first time for the CFMCC to build a new energy project, we brought China's new technologies to Pakistan and we are following the spirit of the craftsman in this project," Gong said.
He said that as people in Pakistan are growingly aware of the worsening smog weather in Punjab Province, outdated fossil consuming power plant should be replaced and the green energy like solar power is a choice for Pakistan.
Along the economic corridor, Chinese companies like Power China and CFMCC are using their expertise in helping develop Pakistan's infrastructure in various industries, thus paving the way for the country to achieve its "Vision 2025".
According to the blueprint, Vision 2025 will provide a conceptual platform for the revival of sustainable and inclusive growth, benefiting all citizens of Pakistan, strengthen development foundation and enable the country to achieve international development goals within their respective time frames.
Source: Xinhua| 2017-12-06 23:09:16|Editor: yan
by Liu Tian
ISLAMABAD, Dec. 6 (Xinhua) -- China is transferring its high-quality industrial capacity to its close neighbor Pakistan under their multi-billion-U.S.-dollars project of China-Pakistan Economic Corridor, with the latest example being the inauguration of the first unit of Port Qasim coal-fired power plant using the world most advanced super critical thermal technology.
The first unit, which is expected to generate 4.5 billion units of electricity annually, is a highly efficient and environment friendly generator that will consume less amount of coal and reduce emission of sulfide with its limestone-gypsum wet desulfurization technology.
Agha Saeed Khan, a supervisor at HSE department in Port Qasim plant, said that people can use their bare eyes to tell the differences between the modern coal-fired power plant and other thermal plants with outdated technologies. "We have a power plant right beside us which has been running on the fossil fuel since a long time ago. You can see smoke there and compare with the chimneys this power plant is doing, you can see the differences," the young guy told Xinhua.
The Port Qasim is a "zero emission" power plant, according to Yan Zhiyong, chairman of the Power China, the constructor of the new coal-fired plant. He said that "You can see the white smoke' from both the chimney and cooling tower. It is actually water vapor."
He said that during the 168-hour test running period, indicators on emission monitored by the power plant were all better than the World Bank standards. "It is because that we provide the Port Qasim plant the world's most advanced coal-firing technologies and equipment with the world's top design and construction work," he further explained.
Yan said that his team, from planning and designing to constructing and operating, passed their high capacities, advanced technologies and progressive experiences to the Pakistani side to help the country develop its own modern power sector with minimized costs and maximized achievements. "This is the idea of Power China to involve in the Pakistani market," he told reporters in Port Qasim recently.
"We also put great importance to forge a professional Pakistani team in the power plant. We pledged that the first team to operate and maintain the Port Qasim power plant must have our Pakistani friends. And now, we have a Pakistani team that can run such a world top class coal-fried power plant," he added.
The second unit of the power plant is expected to be launched in February next year. At that time, the power plant will provide 9 billion unit of clean and cheapest electricity to about 4 million Pakistani families, according to Prime Minister Shahid Khaqan Abbasi.
Meanwhile, at the edge of Cholistan desert, a 300 megawatt solar power farm has become the major electricity source for about 280,000 families in Bahawalpur. The solar power farm was recently awarded the Luban Prize for Construction Project (Overseas Project), China's top prize in construction industry, for its outstanding construction quality.
In a short period about two months, the first 50 megawatt solar plates were all installed, which was supposed to take half a year to fulfill, and the entire farm was completed in June last year. since then, the farm has generated some 730 million units of electricity for Bahawalpur.
Mohammad, a Bahawalpur resident, told Xinhua that they are happy to have the solar farm as it tremendously shortened local load shedding by about 10 hours in torrid summer.
The high standard of construction in the solar plant allows automatic plate washing system to perform its role to maintain effective power generating.
Gong Xiaobin, executive director of China First Metallurgical Group Co. Ltd. (CFMCC) Pakistan Branch, told Xinhua recently in Karachi that a series of new technologies in China were used in building the solar plant and the company also developed some proprietary technologies during the construction.
"It is the first time for the CFMCC to build a new energy project, we brought China's new technologies to Pakistan and we are following the spirit of the craftsman in this project," Gong said.
He said that as people in Pakistan are growingly aware of the worsening smog weather in Punjab Province, outdated fossil consuming power plant should be replaced and the green energy like solar power is a choice for Pakistan.
Along the economic corridor, Chinese companies like Power China and CFMCC are using their expertise in helping develop Pakistan's infrastructure in various industries, thus paving the way for the country to achieve its "Vision 2025".
According to the blueprint, Vision 2025 will provide a conceptual platform for the revival of sustainable and inclusive growth, benefiting all citizens of Pakistan, strengthen development foundation and enable the country to achieve international development goals within their respective time frames.
Clutch
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CPEC Balochistan and Western Route
December 09, 2017
We are living in a world that in spite of advancement is also fastened to the barbaric ways that justify annihilation in the name of personal interests. Previously if territorial disputes had torn the world apart, today ideological and cultural differences under the prevailing concept of sovereignty have disrupted the world order. We have never yearned for peace as much as we do today. The new phenomenon of non-state actors has given rise to a faceless enemy who is hard to identify, easy to buy, and capable of causing incalculable and unexpected destruction. Terrorism is a new name of world conflict. Its scourge inflicts almost the entire world and Pakistan is no exception. For the last 15 years, since the start of the war against terror in Afghanistan, Pakistan is struggling to eliminate this menace. Almost 70,000 people have died that includes casualties of army and police officers. It obliterated Pakistan’s economic hub, Karachi into, pieces. It rampaged through our schools killing innocent children. It turned the peaceful terrains of FATA into terror machinery. It diverted our resources from education and health to the capacity building of security and law enforcement forces. Unfortunately, Pakistan has to face conflicts on two fronts, one from India and another from Afghanistan. Now with both joining hands to stop Pakistan from getting its share of global economic development from China Pakistan Economic Corridor (CPEC), the need is greater than ever to learn, how to avoid war, resolve conflicts and establish peace. In times to come Pakistan, because of its strategic location, and being an essential partner in the CPEC , would rise and shine. And the jewel in this decoration would be Balochistan . Pakistan’s future lies in Balochistan . It is for this very reason that the country should focus on Balochistan , especially the economic, social and political implications of CPEC on the Western Route . Running through one of the toughest and most underdeveloped regions, the Western Route is seen both as the reason for hope and fear for the people living there.
Balochistan is areas-wise the largest and the least populated province of Pakistan. Rich in mineral resources, the province has been the source of comfort and economic activity for the rest of Pakistan. The irony is that the province itself could not savour the benefits of its resources. Most of the blame for this underdevelopment is laid on the tribal chiefs who by design wanted to see their people uncultured, uneducated and poor. However, it was the responsibility of the centre to ensure that Balochistanreceived its share of socio-economic development. Education, health and law and order were federal subjects until the arrival of 18th Amendment in 2010. Somehow inertia prevailed both in the provincial and federal governments on providing the Baloch their due rights. Consequently, a sense of deprivation led to a feeling, in the natives of Balochistan , that the state was biased and the Punjab-led bureaucracy and military had exploitative relations with Balochistan . These negative feelings against the state, compounded with the insurgency in Balochistan , kept the province politically unstable for decades. Five military operations have been carried out so far to suppress the insurgency. An Army Corps along with police, frontier constabulary and different shades of law enforcement agencies have been put in place to keep Balochistan from withering. Local Lashkars were raised to defeat insurgents, but a toxic mixture of sectarian and Islamist militants made these Lashkars even more deadly. Balochistan saw the worst sectarian killing of the Hazara Shias at the hands of Lashkar-e-Jhangvi. The group has been largely supressed.
Balochistan today needs more attention than a simple development strategy does. A policy shift to empower the people of Balochistan so that they become the real stakeholders of the project is required. It makes essential for the government to look at the Western Route from five angles. One, the development of economic zones, so that the route does not comprise just roads passing through difficult terrains. Two, development of human resource to give ownership of the project to the locals so that they are directly involved in economic activities. Three, arrangements are made to manage migration and urbanisation. Four, development of a policy framework to handle ethnic and sectarian divide likely to ensue due to in-migration and urbanization. Five, increasing peace prospects with countries that could potentially intervene to disrupt development in Balochistan . India could challenge CPEC in more than one ways.
The question is what kind of peace do we want in Balochistan ? A peace obtained by just averting conflicts or insurgency would have no real value. Often oppressive policies leading to the human rights violation are used to enforce such superficial calm. This kind of peace has existed in Balochistan for over seven decades with the result that the province gives a spectacle of a garrison.
What we require today is lasting or positive peace. Peace, resulting from respect for human rights. Peace, incurred from justice dispensed to every person without discrimination. Peace, borne out of maintenance of the rule of law, good governance, and social cohesion. It is this peace that would eventually bring about a sustainable change in Balochistan . No foreign hand would be able to play any negative role to the extent that it annihilates our system if our people have faith in the state and its institutions.
Unfortunately, in Pakistan injustice and institutional and administrative corruption has made people desperate. People take law into their hands without qualms. The powerful make the weak rot in subjugation. Health and education have become so expensive that people survive to eventually die of incurable diseases and a lead a life devoid of knowledge and learning. Such treatment makes people lose their trust in the government.
In this equation, China would be loath to see Pakistan at war with itself. China knows that terrorism will haunt CPEC and that the hostile regional forces would try to sabotage this initiative. But China would have little patience for Pakistan’s policies leading to political instability. The roots of ethnic and sectarian violence are entrenched in the psyche of this nation. One spur and people can start killing one another. Balochistan can be engulfed in this fire easily unless the government in the centre makes Balochistanautonomous under the 18th Amendment and trusts its people for their loyalty towards the state.
The writer is a freelance journalist based in Lahore.
December 09, 2017
We are living in a world that in spite of advancement is also fastened to the barbaric ways that justify annihilation in the name of personal interests. Previously if territorial disputes had torn the world apart, today ideological and cultural differences under the prevailing concept of sovereignty have disrupted the world order. We have never yearned for peace as much as we do today. The new phenomenon of non-state actors has given rise to a faceless enemy who is hard to identify, easy to buy, and capable of causing incalculable and unexpected destruction. Terrorism is a new name of world conflict. Its scourge inflicts almost the entire world and Pakistan is no exception. For the last 15 years, since the start of the war against terror in Afghanistan, Pakistan is struggling to eliminate this menace. Almost 70,000 people have died that includes casualties of army and police officers. It obliterated Pakistan’s economic hub, Karachi into, pieces. It rampaged through our schools killing innocent children. It turned the peaceful terrains of FATA into terror machinery. It diverted our resources from education and health to the capacity building of security and law enforcement forces. Unfortunately, Pakistan has to face conflicts on two fronts, one from India and another from Afghanistan. Now with both joining hands to stop Pakistan from getting its share of global economic development from China Pakistan Economic Corridor (CPEC), the need is greater than ever to learn, how to avoid war, resolve conflicts and establish peace. In times to come Pakistan, because of its strategic location, and being an essential partner in the CPEC , would rise and shine. And the jewel in this decoration would be Balochistan . Pakistan’s future lies in Balochistan . It is for this very reason that the country should focus on Balochistan , especially the economic, social and political implications of CPEC on the Western Route . Running through one of the toughest and most underdeveloped regions, the Western Route is seen both as the reason for hope and fear for the people living there.
Balochistan is areas-wise the largest and the least populated province of Pakistan. Rich in mineral resources, the province has been the source of comfort and economic activity for the rest of Pakistan. The irony is that the province itself could not savour the benefits of its resources. Most of the blame for this underdevelopment is laid on the tribal chiefs who by design wanted to see their people uncultured, uneducated and poor. However, it was the responsibility of the centre to ensure that Balochistanreceived its share of socio-economic development. Education, health and law and order were federal subjects until the arrival of 18th Amendment in 2010. Somehow inertia prevailed both in the provincial and federal governments on providing the Baloch their due rights. Consequently, a sense of deprivation led to a feeling, in the natives of Balochistan , that the state was biased and the Punjab-led bureaucracy and military had exploitative relations with Balochistan . These negative feelings against the state, compounded with the insurgency in Balochistan , kept the province politically unstable for decades. Five military operations have been carried out so far to suppress the insurgency. An Army Corps along with police, frontier constabulary and different shades of law enforcement agencies have been put in place to keep Balochistan from withering. Local Lashkars were raised to defeat insurgents, but a toxic mixture of sectarian and Islamist militants made these Lashkars even more deadly. Balochistan saw the worst sectarian killing of the Hazara Shias at the hands of Lashkar-e-Jhangvi. The group has been largely supressed.
Balochistan today needs more attention than a simple development strategy does. A policy shift to empower the people of Balochistan so that they become the real stakeholders of the project is required. It makes essential for the government to look at the Western Route from five angles. One, the development of economic zones, so that the route does not comprise just roads passing through difficult terrains. Two, development of human resource to give ownership of the project to the locals so that they are directly involved in economic activities. Three, arrangements are made to manage migration and urbanisation. Four, development of a policy framework to handle ethnic and sectarian divide likely to ensue due to in-migration and urbanization. Five, increasing peace prospects with countries that could potentially intervene to disrupt development in Balochistan . India could challenge CPEC in more than one ways.
The question is what kind of peace do we want in Balochistan ? A peace obtained by just averting conflicts or insurgency would have no real value. Often oppressive policies leading to the human rights violation are used to enforce such superficial calm. This kind of peace has existed in Balochistan for over seven decades with the result that the province gives a spectacle of a garrison.
What we require today is lasting or positive peace. Peace, resulting from respect for human rights. Peace, incurred from justice dispensed to every person without discrimination. Peace, borne out of maintenance of the rule of law, good governance, and social cohesion. It is this peace that would eventually bring about a sustainable change in Balochistan . No foreign hand would be able to play any negative role to the extent that it annihilates our system if our people have faith in the state and its institutions.
Unfortunately, in Pakistan injustice and institutional and administrative corruption has made people desperate. People take law into their hands without qualms. The powerful make the weak rot in subjugation. Health and education have become so expensive that people survive to eventually die of incurable diseases and a lead a life devoid of knowledge and learning. Such treatment makes people lose their trust in the government.
In this equation, China would be loath to see Pakistan at war with itself. China knows that terrorism will haunt CPEC and that the hostile regional forces would try to sabotage this initiative. But China would have little patience for Pakistan’s policies leading to political instability. The roots of ethnic and sectarian violence are entrenched in the psyche of this nation. One spur and people can start killing one another. Balochistan can be engulfed in this fire easily unless the government in the centre makes Balochistanautonomous under the 18th Amendment and trusts its people for their loyalty towards the state.
The writer is a freelance journalist based in Lahore.
