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The China-Pakistan corridor: A fate-changer?

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ABOUT THE AUTHOR
Anatol Lieven
Anatol Lieven is a professor at Georgetown University in Qatar and a visiting professor at King's College London.

Over the decades during which I have worked in and written about Pakistan, there have been so many supposed national "turning points" at which the country failed to turn that I have almost ceased to notice them.

But when earlier this year the Pakistani Government described China's planned energy and transport corridor through Pakistan to the Arabian Sea as a "fate changer", it may - perhaps - have been telling the truth.

At more than $46bn, the planned Chinese investment in this project is some four and a half times the total US economic aid to Pakistan since 9/11 (though admittedly largely in the form of low-interest loans).


Counting the cost - The China-Pakistan economic corridor

Apart from energy pipelines and road-and-rail links between western China and the Pakistani port of Gwadar, the plans include massive investments in Pakistan's own energy, transport and telecommunications infrastructure, including what would be the world's largest solar power generating complex at Bahawalpur.

Pakistani dream

These projects, if realised - and this is a very big if - have the potential to bring in tens or even hundreds of billions of dollars in additional investments. They could restore Pakistan's economic growth of the early 1960s, which led economists at the time to predict that the country would be one of the future leading economic powers of Asia.

This dream was lost when Pakistan recklessly attacked India over the Kashmir dispute in 1965, and Zulfiqar Ali Bhutto subsequently abandoned free market policies in favour of a horribly corrupt and badly managed populism.

China's commitment to the core energy and transport aspects of the plans does not seem in much doubt. This corridor will be a key part of Beijing's "One Belt, One Road" strategy, intended to link China by land with Europe, Southeast Asia and the Middle East.

[W]hile Beijing certainly regards Pakistan as a potential strategic ally against India, it has also brought strong influence to bear on Pakistan not to back attacks against India, and to seek a reduction of tension with Delhi.



This strategy is driven both by economic interests and security concerns. China depends on imports for 60 percent of its oil, and the great majority of this is carried by tanker across the Indian Ocean and through the Strait of Malacca.

Beijing sees this as rendering China dangerously vulnerable to pressure from India and the US, as well as to attacks from fighters.

Improving security

Security obstacles in Pakistan have greatly diminished in recent years thanks to the successful offensives of the Pakistani army against the Pakistani Taliban rebels. These offensives were supported - at last - by a united Pakistani public opinion.

The separatist rebellion in Balochistan - where the port of Gwadar is situated - remains a threat, but so far its military capacity has been very limited. It would only increase radically if India decided to increase its support for the rebels via Afghanistan with the deliberate aim of blocking the Chinese corridor.

Apart from being extremely dangerous and irresponsible in itself, such an Indian strategy would lead to a breakdown in both diplomatic relations and trade with China. That would be a very unwelcome development as both the Indian National Congress and current Bharatiya Janata Party governments in recent years have tried to improve these relations.

Fears have been expressed in India about the ways in which this new Chinese corridor would both strengthen Pakistan and increase China's geopolitical and economic influence in the region.

Also read: China's Xi Jinping in Pakistan to unveil trade plan

It is important to note, however, that while Beijing certainly regards Pakistan as a potential strategic ally against India, it has also brought strong influence to bear on Pakistan not to back attacks on India, and to seek a reduction of tension with Delhi.

China certainly does not favour either international terrorism or a new security crisis in South Asia. Ideally, therefore, future Indian leaders might come to see an Indian interest in seeking reconciliation with Pakistan so as to link up with the Chinese corridor and open land routes for India to the Middle East and Europe.

f5c49ef94229452d93984be827192ed1_18.jpg

Chinese President Xi Jinping (C) with Pakistan's President Mamnoon Hussain (L) and Prime Minister Nawaz Sharif on display in Islamabad [AP]
This would require, among other things, serious work on a consensus between Delhi, Islamabad, Beijing and Washington on how to seek a peace settlement in Afghanistan.

Rampant problems

The biggest obstacles to China's plans lie not in strategic threats but in the corruption, dysfunction and incompetence of Pakistan's governing structures, and the culture of patronage which dominates Pakistani politics.

Thus in the area of transport, Pakistan railways are a shambles compared with those of India, though the two countries inherited the same systems at independence. Pakistan International Airlines has been in crisis for years, above all because - as with state-owned banks and industries - politicians (and generals when in power) have used it as a source of patronage and stuffed it with their relatives and supporters. This has led to the grotesque figure of 776 PIA employees per aircraft, one of the highest rates in the world.

Pakistan needs a huge outside investment in infrastructure in part because of its own chronic inability to raise taxes. At barely 10 percent of GDP, Pakistan's tax-collection rates are among the lowest in Asia. Pakistan suffers chronic electricity shortages in part because it cannot get the population to pay its electricity bills.


It does not have to be this way. Under President Ayub Khan in the late 1950s and early 1960s, a combination of a relatively honest, dynamic and far-sighted administration with plentiful US aid (above all for infrastructure, as with China's plans) and sound international advice led to Pakistan achieving some of the highest rates of economic growth in the world.

If Chinese money and Chinese influence can return Pakistan to those rates of growth, then this will not only help to stabilise Pakistan and create a barrier to violence there. It will also mark China's arrival as a truly great - and positive - force on the world stage.

Anatol Lieven is a professor at Georgetown University in Qatar and a visiting professor at King's College London. He is the author, among other books, of Ukraine and Russia: A Fraternal Rivalry and Pakistan: A Hard Country.

The views expressed in this article are the author's own and do not necessarily reflect Al Jazeera's editorial policy.

Source: Al Jazeera







The China-Pakistan corridor: A fate-changer? - Al Jazeera English
 
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It will provide the infastracture/energy that the economy needs, but the chinese will be making the profit not pakistan, the revenue going through china will go to chinese banks, the main thing pakistan gets out of this is energy related projects and the foundation to take the economy to the next step, its the step in the right direction, i think we need to build on this and engage in more projects. develop Baluchistan, sindh and FATA even more, its the best way to destroy the terrorism for good.
 
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How many Pakistanis really believe China will pass goods through Pakistan. Road transport is costlier that sea transport. Especially when you have to transport it through Himalayas.
 
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How many Pakistanis really believe China will pass goods through Pakistan. Road transport is costlier that sea transport. Especially when you have to transport it through Himalayas.

Yes, your superior Indian intellect knows much better than expert Chinese officials who have invested a whopping 46 billion dollars just for it to fail.

1. Trade length is also cut by 6-8x; which also means cost will be cut.
2. Thanks to K-Highway, its not that hard and expensive to transport goods through "Himalayas"
3. If your @ss still burns, i suggest you apply more burnol.

It will provide the infastracture/energy that the economy needs, but the chinese will be making the profit not pakistan, the revenue going through china will go to chinese banks, the main thing pakistan gets out of this is energy related projects and the foundation to take the economy to the next step, its the step in the right direction, i think we need to build on this and engage in more projects. develop Baluchistan, sindh and FATA even more, its the best way to destroy the terrorism for good.

Please look up the benefits of being in the middle of a thriving trade route. Once CPEC is completed; all gulf ports will be out of business. CPEC is expected to generate us dozens of billions of dollars.
 
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Yes, your superior Indian intellect knows much better than expert Chinese officials who have invested a whopping 46 billion dollars just for it to fail.

1. Trade length is also cut by 6-8x; which also means cost will be cut.
2. Thanks to K-Highway, its not that hard and expensive to transport goods through "Himalayas"
3. If your @ss still burns, i suggest you apply more burnol.
As of now the only investment seen from China is a solar power plant selling expensive electricity to Pakistan.
 
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As of now the only investment seen from China is a solar power plant selling expensive electricity to Pakistan.

Shhh....dont reveal anything....let Pakistanis put all their eggs in one basket :coffee:
 
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As of now the only investment seen from China is a solar power plant selling expensive electricity to Pakistan.
Everything is under construction. The smoke from your @ss does not allow you to see anything else.
 
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As of now the only investment seen from China is a solar power plant selling expensive electricity to Pakistan.


In order to know more about the progress of CPEC you will have to visit Pakistan for it. But, for your curiosity here is the link which will give you a slightly bit of idea that what kinda progress is going on on CPEC. Either you will be satisfied, or as my friend said earlier,
Everything is under construction. The smoke from your @ss does not allow you to see anything else.

http://www.express.pk/slideshows/407535/
 
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As of now the only investment seen from China is a solar power plant selling expensive electricity to Pakistan.

When your knowledge is zilch on a subject then its best to research more, because you will sound like an ignorant prat. Karot hydro-power project officially started last month and is expected to be completed by 2018. The coal project in Sahiwal began in June and their are numerous pictures online on its progress. The Orange Metro Line project also started in October and work is ongoing since you can easily ask any person who lives in Lahore. The CPEC investment has increased to $55 billion, because in July a further $1.6 billion deals were signed on 20 agreements in Xinjiang with Karamey Declaration. Three Gorges Corporation put a bid on two separate projects worth $5.3 billion and their proposal is being reviewed by the PPIB. Furthermore the same company is reviewing the technical data on 14 projects and want to invest another $50 billion and evidence of this is made clear when the next JCC meeting will discuss the issue of including Bhasha Dam in CPEC. The Russians are going to invest $2 billion on a pipeline from Karachi to Lahore. The British will fund $135 million on the E35 expressway. Lets not also forget two companies have already invested in the Bahawalpur Solar Power Project. FWO has completed nearly 60% of the road that would connect Gwadar to the rest of Pakistan, therefore at least know some decent information before criticizing.
 
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CPEC may not make Pakistan a developed country, but if executed will definitely move Pakistan to the next level of development. China's total foreign trade is USD 4 trillion. If 2% of this trade passes through Pakistan that will amount to USD 80 billion. Add another 20 billion of Afghan and central Asian trade and we are talking about 100 billion dollars of trade. That will potentially transform Gawadar into a city like Karachi (of the 60s) and the CPEC into a corridor like the N5 highway with a number of small and large cities dotting it. That will provide a decent livelihood to about 10 million Pakistanis, add 50% to the government tax revenues and 25% to the GDP of Pakistan.

Then there will be trickle down effect, such as when gawadar develops world class infrastructure, it will be the only city in the gulf region with unlimited supply of cheap labour. Global companies doing business in the middle east will like to have their assembling/warehousing/back office facilities in Gawadar.

If all of the above development happens in next 10 years, it will add 2 to 3% to Pakistan's GDP growth rate, implying Pakistan's GDP will grow by around 8% during the next 10 years.
 
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When your knowledge is zilch on a subject then its best to research more, because you will sound like an ignorant prat. Karot hydro-power project officially started last month and is expected to be completed by 2018. The coal project in Sahiwal began in June and their are numerous pictures online on its progress. The Orange Metro Line project also started in October and work is ongoing since you can easily ask any person who lives in Lahore. The CPEC investment has increased to $55 billion, because in July a further $1.6 billion deals were signed on 20 agreements in Xinjiang with Karamey Declaration. Three Gorges Corporation put a bid on two separate projects worth $5.3 billion and their proposal is being reviewed by the PPIB. Furthermore the same company is reviewing the technical data on 14 projects and want to invest another $50 billion and evidence of this is made clear when the next JCC meeting will discuss the issue of including Bhasha Dam in CPEC. The Russians are going to invest $2 billion on a pipeline from Karachi to Lahore. The British will fund $135 million on the E35 expressway. Lets not also forget two companies have already invested in the Bahawalpur Solar Power Project. FWO has completed nearly 60% of the road that would connect Gwadar to the rest of Pakistan, therefore at least know some decent information before criticizing.
All these projects are transfer of Pakistani business opportunity to Chinese companies. No exports.
 
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In order to know more about the progress of CPEC you will have to visit Pakistan for it. But, for your curiosity here is the link which will give you a slightly bit of idea that what kinda progress is going on on CPEC. Either you will be satisfied, or as my friend said earlier,


http://www.express.pk/slideshows/407535/

Dedicated to Indians :enjoy:
407535-image-1447601580-792-640x480.jpg
 
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How many Pakistanis really believe China will pass goods through Pakistan. Road transport is costlier that sea transport. Especially when you have to transport it through Himalayas.

Expecting Pakistanis to see reason and logic is a tricky proposition
 
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Expecting Pakistanis to see reason and logic is a tricky proposition
Why are commenting here in a Pakistani forum if you think so? I think burnol is not the answer for you, you need immediate medical emergency, should we send Edhi to you?
 
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