CPEC: The Way Forward

Prime Minister Imran Khan rightly termed the China, Pakistan Economic Corridor (CPEC) a “blessing” while on his maiden visit to China. Undoubtedly, CPEC is a blessing not for Pakistan but also for the whole region. But regional rivalry and international power politics has been trying to tarnish bilateral relations between Pakistan and China through different means since its inception.

CPEC: A Gateway

CPEC is the gateway of progress, prosperity and connectivity and it is hoped that the bilateral ties with China will be further strengthened after Prime Minister Imran Khan’s recent visit to the all-weather friend of the country.

CPEC’s International Trial

CPEC’s international media trial was geared up after US president announcing of trade war against China. The western lobby has succeeded to some extent to pollute the minds of policy makers and politicians of Pakistan too, that is why there has been hue and cry about utility, efficiency, transparency and viability of CPEC in the country. Some greedy think-tanks and so- called pseudo intellectuals of Pakistan have also played negative roles in this context.

Unfortunately, hot debate has again started which is still going on to judge the success or failure of PM Khan’s visit to China which will achieve nothing but further division between the government and opposition in the country. In contrast the foreign ministries of Pakistan and China have termed the visit of Prime minister of Pakistan a “big success” in all respects.

Prime Minister Imran Khan’s recent visit to China has succeeded in removing all misconceptions and misunderstandings about CPEC. Credit must also go to the leadership of China for understanding and realizing Pakistan’s genuine concerns about its fragile economy, rising debts, declining inflows of FDIs and struggling exports to China. In principle China has agreed to lessen Pakistan’s economic worries.

Meeting with Chinese President Xi Jinping

During his stay to China, Prime Minister Imran Khan met with President of China Xi Jinping and exchanged views on further strengthening of bilateral relations in terms of greater socio-economic integration, connectivity, energy cooperation, early completion of ongoing mega projects of CPEC, military cooperation, agricultural collaboration and railways development, etc. The Chinese government also pledged to grant soft loan and aid up to US$4-6 billion which has proved instrumental in overcoming the staggering “crisis of payment “as described as finance minister of Pakistan Asad Omar.

Both countries reaffirmed their complete common understanding on early realization of China-Pakistan Economic Corridor (CPEC) projects besides agreeing to continue strategic communication on regional and global issues of importance.

Initial Expectation

Before going to China, there was high expectation in the circles of the government about seeking substantial financial assistance and revision in the ongoing mega projects of CPEC. Pakistani government also wished to seek more investments in the CPEC project. Composition of wish-list is given below as:

15 MOUs

During the visit both countries signed 15 MOUs in the fields of economy, science and technology, agriculture, poverty reduction, innovation and drug trafficking besides establishing a joint research center on earth sciences and a working group on social and livelihood affairs. Agreements were also signed between Higher Education Commission of Pakistan and Science Academy of China and between Chinese Academy of Science and Pakistan Meteorological Department. Both countries agreed to enhance agriculture and technical cooperation, cooperation between Islamabad Police and Beijing Police, Higher Education Commission of Pakistan and Science Academy of China and between Pakistan Meteorological Department and Chinese Academy of Sciences.

CPEC’s First Stage

The two sides were satisfied that CPEC’s first stage, which comprised of infrastructure and energy sector improvements, has almost been completed. The new growth points created by the China-Pakistan Economic Corridor (CPEC) will further boost economic ties between them in the long run, as they deploy more resources in technological collaboration, infrastructure development and people-to-people exchanges.

Salient Features of Joint Declaration

The joint declaration upheld the strategic importance of bilateral relations. It showed their great commitment to complete the ongoing mega projects of CPEC. It hailed the ties between Pakistan and China, saying they had “withstood the test of time, notwithstanding the changes in domestic, regional and international environments.”

Mutual Satisfaction

On the China Pakistan Economic Corridor (CPEC), both sides “expressed satisfaction that rapid progress has been made in all areas especially in the energy sector” and underlined “their complete consensus on the future trajectory of the CPEC”.

It is mutually decided that the shape and direction of CPEC is now set to change, with a growing emphasis on “industrial capacity including through joint ventures in priority areas and relocation of labor-intensive industry and SMEs collaboration.

China-Pakistan All Weather Strategic Cooperative Partnership

For the further strengthening of bilateral relations and to achieve the strategic goals, both countries will build on the China-Pakistan All-Weather Strategic Cooperative Partnership and the China-Pakistan Community of Shared Future, “in line with the principles set forth by the Treaty of Friendship, Cooperation and good-neighbourly Relations” that the two countries signed 2005. Both countries also decided to view China-Pakistan relations from a strategic and long-term perspective.

Pakistan’s Important Role in Regional Peace

The Chinese side also “appreciated Pakistan’s important role in promoting regional peace, stability and security and efforts for the peaceful resolution of all outstanding issues with its neighbours” and said that China “supports Pakistan’s efforts for improvement of Pakistan-India relations and for settlement of outstanding disputes between the two countries.

Role of Joint Cooperation Committee (JCC)

It has been agreed that the Joint Cooperation Committee (JCC), which is the steering arm of CPEC, will “explore new areas of cooperation” and its 8^th session will be held in Beijing “before the end of the year”. The last session was held in Islamabad in November 2017, during which the Long-Term Plan was finalised.

Acceleration work on Gwadar and its auxiliary projects

Both sides agreed to accelerate work on Gwadar and its auxiliary projects, as well dismissing “the growing negative propaganda against CPEC” while underscoring their “determination to safeguard the CPEC projects from all threats.” The Chinese side expressed its appreciation for the measures taken for the security of Chinese personnel and projects in Pakistan.

Rectification of Trade Balance

The growing trade imbalance between Pakistan and China will be addressed through the second China Pakistan Free Trade Agreement, which the two sides “agreed to conclude as early as possible” while continuing with discussions on an agreement on trade in services as well.

Extended Cooperation in a Wide Range of Areas

In addition, both sides also agreed to boost cooperation in a wide range of areas, including tourism, maritime issues, navigation security, marine economy, resources, research and environmental protection. In addition to marine economy, emerging technologies like nanotech, biotech and ICT will also see strengthened collaboration to increase their contribution in health, agriculture, water, energy and food security.

Space Cooperation

According to joint declaration space cooperation will also be promoted, building on the launch of Pakistan’s Remote Sensing Satellite earlier this year.

Cooperation in Climate Change & Natural Desertification

The Joint declaration says that cooperation will now be enhanced in areas like climate change, desertification control, desalination, water management, afforestation and ecological restoration, wetland protection and restoration, wildlife protection, forestry industry development, disaster management and risk reduction among others.

All these are areas of cooperation that were already agreed upon in earlier discussions with the Chinese side ended with the finalisation of the LTP in November last year.

The Joint Statement shows that the evolution of CPEC has now come to a point where these cooperative steps are ready to be activated.

Social Sector Cooperation

Moreover, the statement points at social sector cooperation without giving many specifics, only to say areas like “agriculture, education, health, poverty alleviation, safe drinking water and vocational training” will be increasing parts of the policy dialogue going forward. Disease surveillance and control, as well as vaccine production and “traditional medicine” will also be part of the dialogue.

People-to-People Contacts

Both sides agreed to enhance people-to-people contacts, pointing at the 25,000 Pakistani students already enrolled in Chinese universities. “China will offer additional scholarships for Pakistani students”. Cooperation in this area will go beyond to think tanks, vocational training, fellowships as well as “culture, arts, broadcasting, films, publication and sports”.

Both sides will discuss further collaboration in museums, and “the possibility to organise an Ancient Pakistan and Gandhara Artifacts Exhibition in Beijing.”

Cooperation in Defence and Security

Both countries agreed for the further strengthening of defence and security cooperation against “Three Evils” of extremism, terrorism and separatism.

Chinese Support to Pakistan

The Chinese side conveyed its support to Pakistan’s commitment and efforts to counter terrorism, assured Pakistan of its support in implementing its counter-terrorism strategy, and commended the tremendous sacrifices made by the Pakistani nation in fight against terrorism and for Pakistan’s immense contribution to regional and international peace and security through its achievements and successes.

Chinese Support in FATF

The Chinese side recognised Pakistan’s efforts in actively strengthening financial regulations to combat terrorism financing, and called on all relevant parties to view Pakistan’s counter-terrorism efforts in an objective and fair manner. Both sides underscored the need for all States to avoid politicisation of the UN Sanctions regime and the work of the Financial Action Task Force (FATF).

Pakistan “reaffirmed its support to the Chinese side in safeguarding its sovereignty and security, and combating separatism, terrorism and extremism including East Turkistan Islamic Movement (ETIM). On Afghanistan, both sides underlined their continued support for an “Afghan-owned and Afghan-led peace and reconciliation process.

China appreciates that Pakistan and Afghanistan are coordinating closely through the Afghanistan-Pakistan Action Plan for Peace and Solidarity (APAPPS) to enhance cooperation between the two countries in all areas. Both sides also agreed on the importance of the tripartite foreign minister’s level talks between Pakistan, China and Afghanistan, calling on Afghanistan to host the second round of the dialogue “within this year”.

The two sides underlined the importance of peaceful settlement of all disputes in the Middle East on the basis of mutual respect and in accordance to the precepts of international law.

The statement also had words of support for Iran in its growing confrontation with the United States, which recently announced that it will disengage from the Joint Comprehensive Plan of Action (JCPOA) that was agreed upon after 20 months of negotiations between the United States, European Union and other partners and Iran. “The two sides agreed that JCPOA is an important outcome of multilateralism and a good model of negotiated settlement of complex issues through dialogue and diplomacy”. They called on parties to uphold their respective commitments and to resolve all issues through dialogue. They opposed unilateral measures and long-arm jurisdiction that is inconsistent with the principles of international law.

On nuclear proliferation, China supported Pakistan’s engagement with the Nuclear Suppliers Group and welcomes its adherence to NSG guidelines.

Both sides also agreed that they will “strengthen coordination and cooperation on international and regional issues of common interest” in all international and regional forums. The Pakistani PM invited the Chinese leadership to visit Pakistan “at a mutually convenient time”.

CPEC: Next Stage

Pakistan’s foreign ministry said the leaderships of the two countries decided that the next stage of China-Pakistan Economic Corridor (CPEC) will focus on industrial expansion, agricultural revitalisation and trade integration of the two economies. It will help the government of Pakistan in achieving its objectives of job creation and export growth.

Pakistan CPEC

CPEC has been rightly rated as “game and fate changer “to Pakistan and in the region due to which it has comparative advantage over other regional programs and countries. It is one part of China’s grand Belt and Road Initiative (BRI). It is a bilateral project between China and Pakistan. Like China, Pakistan too has the right to change the conditions of the project but China is doing it silently without creating any fuss. Similarly, China is not sensitive about the involvement of any regional country in the project.

CPEC’s Main Aspects

CPEC is a mega project which has many aspects for mutual benefit not confined to economic, bilateral and of course strategic. China has no objection to the involvement of any other country in the economic aspect of the project. But China would certainly be apprehensive about the involvement of any country which is under the influence of the US.

CPEC: Framework of Regional Connectivity

CPEC, a framework of regional connectivity, aims at enhancement of geographical linkages of China, especially its underdeveloped province, and regional countries through road, rail and air transportation systems. China is the largest trade partner of Pakistan, but the latter has a huge trade deficit despite having a free trade agreement since 2007.

Misconceptions about CPEC Debts Trap

I personally think both are not debts trap as projected by the western media which has its own vested interests. On the contrary, CPEC is contributing 2.5 percent in Gross Domestic Product (GDP) of Pakistan due to which after the visit of Prime Minister Khan both countries have agreed over further expansion of CPEC. CPEC has total investment of $46 billion through different sources of Chinese lending.

China’s Total Investment under

China has invested around $19 billion dollars in various CPEC projects in the country so far with total financial commitments up to $62 billion. Presently, the work has been ongoing in various 22 projects. Currently, 15 energy projects in Pakistan, with a total capacity of 11,110 megawatts are planned as a priority, of which, 11 are under construction or in operation with a total capacity of 6,910 MW. Moreover, around 7000 Pakistani citizens are working in various projects of CPEC. It can work as a catalyst especially in trade promotion, expanding markets, regional activity and socioeconomic uplift in Pakistan. CPEC can be termed as a gateway of expanding economic activities and a corridor of prosperity. The wide-range projects in the areas of agriculture, industry and services under CPEC will open a corridor of options for the Pakistani masses.

CPEC’s Impact on Pakistan GDP

The Corridor is expected to fuel economic growth of Pakistan by adding 2.0 percentage point to its growth between 2016 and 2020 and another 1.5 percentage point between 2020 and 2030. It is likely to create 800,000 to 2.0 million new jobs. The length of newly-built or upgraded roads and railways should reach 3871km and 1529km respectively. Power generated by newly-built sources will reach 19.785 million KW, and length of optical fiber Cable will reach 2084km.

Regulatory Bodies Reports

Various reports of the State Bank of Pakistan (SBP), Security Exchange Commission of Pakistan (SECP) and Planning Commission of Pakistan have already dismissed and denied the claims of the western media and its lobby that CPEC has nothing to do with the country’s deteriorating external accounts or weak economic conditions. Furthermore, all the regulatory bodies have also reconfirmed that CPEC is not a debts trap to Pakistan.

Ministry of Finance (November 2018)

According to the Ministry of Finance (November 2018), foreign exchange reserves are more than adequate and the debt servicing burden manageable. Its debt and debt servicing projections for the periods (2018-19) to (2022-23) has shown declining debt servicing ratios. The added burden of CPEC debt as well as repatriation of profits on investment would not create any pressure and is quite manageable.

IMF (November 2018)

The International Monetary Fund (IMF) has estimated that at its peak the repayments on both debt and investment account would be between $2.5 and $3 billion annually. This amount can be easily absorbed by increased exports, savings in imports of fuel, transit fee, etc. Thus, the fear of debt entrapment does not stand the test of empirical validity.

CPEC’s Integrated Benefits

It is evident from the above given analytic data that CPEC is not imposing any immediate burden with respect to loans repayment and energy sector outflows, arguing all debt-related outflows will be outweighed by the resultant benefits of the investments to the Pakistan economy. Moreover, CPEC finances are divided into government-to-government loans, investment and grants. The infrastructure sector is being developed through interest-free or government concessionary loans.

Rationale Financing

Energy projects are being financed through independent power producers (IPPs); mode and finances are mainly taken by private companies from China Development Bank and China Exim Bank against their own balance sheets, therefore, any debt would be borne by the Chinese investors instead of any obligation on part of the Pakistani government.

(b) Anti-Regional Peace

The US calls the Belt and Road Initiative (BRI) and of course CPEC a Made in China, Made for China initiative while India says this initiative does not respect sovereignty. It is a totally irresponsible approach to derail the mega projects i.e., CPEC and BRI as both are meant for greater socio-economic integration, regional connectivity, food and energy security and above all better political understanding. The US led misperceptions supported by the western lobby has been trying to malign these projects has now become part of the greater hybrid warfare for dominance in global affairs which must be responded through media and diplomatic means.

Meeting with President of AIIB

Asian Infrastructure Investment Bank (AIIB) President Jin Liqun called on Prime Minister Imran Khan in Beijing and announced to invest in the projects pertaining to China-Pakistan Economic Corridor. PM Imran Khan offered AIIB resident investment opportunities in different sectors including power, water and transportation. During the meeting, the PM and AIIB president agreed to ensure transparency in the projects by accountability.

Outcome of Prime Minister’s Visit to China

1. All the misperceptions and misconceptions about CPEC were diminished. The Chinese government was obviously not happy with the increasing negative sentiments about CPEC in the Western and Pakistani media and government circles, these have been removed with the visit of Prime Minister Imran Khan. Pakistan wanted to send a clear message to the international community that we are very close to China. This tour helped in moving the strategic relationship to an economic partnership.

2. Existence and utility of the CPEC was under fire in Pakistani media as designed by some western lobbyists and some government ministers, this has successfully been rectified during the visit of PM Imran Khan. During the visit it was assured that there were no plans to scale back the China-Pakistan Economic Corridor (CPEC).

3. Due to current economic difficulties Pakistan badly needed to seek financial assistance from its strategic ally, China which it pledged to do so and made it clear in principle that the Chinese government will provide necessary support and assistance to Pakistan in tiding over the current economic difficulties. Discussion was held to increase exports. Pakistan has also decided that the second phase of FTA will be completed soon and by April. In this connection, a senior level delegation comprising of federal secretaries of finance, foreign affairs, planning and development and commerce along with the Governor State Bank of Pakistan will undertake a visit to China during the current week to work out the modalities with the Chinese authorities in their respective areas. Pakistan requested immediate market access for Pakistan’s exports as well as balance of payments support. The Chinese leadership expressed their support to Pakistan’s external account and a task force was established by both sides to discuss the matters further. Total trade volume between the two countries significantly increased to $13.77 billion in the fiscal year of 2015/16 from four billion dollar in 2006/07. During the period, Pakistan’s exports grew to $1.69 billion from $575 million. Imports from China, however, witnessed a sharp growth to $12.1 billion from $3.5 billion.

4. Bout countries exchanged information regarding initiating the second phase of the China-Pakistan Economic Corridor (CPEC). Both countries held good discussions on the second phase and it was agreed that the CPEC will be made a gateway for progress prosperity and connectivity.

5. Pakistan successfully showcased its investment potential and range of exports by attending China’s export and import exhibition, where 130 countries participated.

CPEC is development-oriented and has adopted advanced technologies and strict environmental protection standards. These projects strictly follow the principle of market orientation and the international business model. For the next step, China will also explore more pragmatic cooperation with Pakistan in areas such as poverty alleviation and healthcare via development of the CPEC. Now China is considering setting up an agricultural technology demonstration center in Pakistan to improve local agricultural technology, production efficiency and value-added agricultural industry.

Concluding Remarks

China-Pakistan Economic Corridor (CPEC) and Belt and Road Initiative (BRI) are projects of the 21^st century, inching towards achieving highest levels of regional connectivity, socio-economic prosperity, energy and food security, reduction of poverty, generation of new jobs and above all agricultural revolution. It sums of the characteristics of “Asian Century” and diminishing of “virtual colonization”. It reflects new economic model of productivity and human survival. It showcases new economic thinking through which even political survival may also be attained and subsequently sustained without the support of the West in the days to come.

Since the start of the “Trump Era” western the media has been disseminating propaganda against CPEC and BRI through visible and invisible channels labeling both as serious “debts trap” for the participating or connecting countries. Unfortunately, western rhetoric has succeeded in creating some doubts even in our country that is a strategic ally of China. Pseudo intellectuals through their delusion-based articles have badly damaged the “economics of trust and humanity” about the innovative idea of bilateral engagement i.e., CPEC. Even some officials and ministers have polluted the elements of strategic utility, optimal efficiency and productivity associated with the CPEC.

On the contrary, Beijing has decided to extend further trade facilitations under CPEC in order to help Pakistan solve its current economic problems. In this regard, the Chinese officials are trying to tailor CPEC as a “demand-driven programme” for Pakistan.

Thanks God that at last sanity prevailed which has rescued the country as well as the CPEC from the shores of uncertainty to the banks of political maturity, economic sensibility, business connectivity and above all “human survival”. The Chinese Embassy in Pakistan has played a remarkable role in removing all misconceptions about CPEC. COAS Pakistan, General Bajwa personally visited China to stop any further derailing to CPEC. Ultimately, Prime Minister Imran Khan paid his maiden visit to China and succeeded to remove all qualms against the CPEC. Prime Minister Khan rightly termed China, Pakistan Economic Corridor (CPEC) a “blessing”. Undoubtedly, CPEC is blessing not for Pakistan but also for the whole region. But regional rivalry and international power politics has been trying to tarnish bilateral relations between Pakistan and China since its inception.

Emerging socio-economic compulsions and geopolitical trends show that CPEC is under serious threat from the US government, western lobby/ media, domestic pseudo intellectuals, regional power brokers and above all elements of distrust and dependability. Regional power brokers have tried to sabotage the ongoing CPEC by targeting its Consulate General in Karachi which is indeed a wake-up for the government and establishment alike.

During his visit to China PM Imran Khan met various high officials i.e., President, Prime Minister, ministers and Chairman of the Standing Committee of the National People’s Congress. During his visit several avenues of mutually beneficial collaboration were identified and a number of memoranda of understanding were signed sides in the sphere of economic cooperation. These included agreements in the area of socioeconomic development, poverty alleviation, agriculture, economic and technical cooperation, forestry, earth sciences, higher education and technology.

The two sides were satisfied that CPEC’s first stage, which comprised of infrastructure and energy sector improvements, has almost been completed. CPEC is a framework of regional connectivity, aiming at enhancement of geographical linkages of China, especially its underdeveloped province, and regional countries through road, rail and air transportation systems. China is the largest trade partner of Pakistan but the latter has a huge trade deficit despite having a free trade agreement since 2007.

Total trade volume between the two countries significantly increased to $13.77 billion in fiscal year 2015/16 from US$4 billion in 2006/07. During the period, Pakistan’s exports grew to $1.69 billion from $575 million. Imports from China, however, witnessed a sharp growth to $12.1 billion from $3.5 billion. China must help to find the primary reasons for low exports to China and corrective actions may be taken on priority. China can help mitigate the existing trade deficit by addressing the trade barriers and frictions, including tariff and non-tariff barriers, to create an enabling environment for entrepreneurs to give a boost to the exportable merchandise.

Being prominent regional expert on CPEC & BRI I am confident that CPEC being game changer will boost Pakistan’s Gross Domestic Product growth (GDP) from 5 to 7.5 percent and create 2 million direct and indirect jobs during 2015-2030. Most businessmen, investors and importers in Pakistan show their genuine concerns about Chinese Customs and authorities not so friendly attitudes and policies towards them which should be rectified. Swapping of national currencies, establishment of joint ventures, formation of special economic zone, capacity building measures and above all strong political commitment is the way forward for both the countries. Government of Pakistan has now agreed to provide market access to its local investors and businessmen in CPEC projects.

I am also hopeful that the corridor is expected to fuel economic growth of Pakistan by adding 2.0 percentage point to its growth between 2016 and 2020; another 1.5 percentage point between 2020 and 2030. It is likely to create 800,000 to 2.0 million new jobs. The length of newly-built or upgraded roads and railways should reach 3871km and 1529km, respectively. Power generated by newly-built sources will reach 19.785 million KW, and length of optical fiber Cable will reach 2084km.

It is suggested that trade and market access can be improved by developing a market system, entrepreneurship, value addition, and competitiveness of major traded items coupled with promoting business-to-business linkages between Pakistan and China and major trading partners. There are bright prospects in the field of agriculture with China especially in the 2nd stage of CPEC and its projects in the country.

It is hoped that integration of commercial agriculture will facilitate both the sides for food processing, value-added agriculture products and effective marketing. Pakistan can extensively use hybrid seeds of the selected variety of a single crop (i.e. rice, soybean, olives etc.), technologically-advanced equipment and provision of key inputs like irrigation water, fertilisers and pesticides. The current government is also aiming to enhance productivity in agriculture through innovative village enterprises, modern scientific technology and cold supply chain, genetic engineering, biotechnology-based seed breeding and drip irrigation/sprinkler etc. Promoting agribusiness internet and IT-based marketing, e-commerce would also modernise Pakistan’s trade and market access by leaps and bounds.

Newly appointed Chinese Ambassador to Pakistan Yao Jing showed satisfaction on the progress of China-Pakistan Economic Corridor projects and has said that work on 21 projects is in progress while 20 more projects are in pipeline. China is also satisfied with the security arrangements initiated by Pakistan government, he added. He further elaborated that ten thousand Chinese nationals and sixty thousand Pakistanis are working with CPEC projects.

Despite sever political uncertainty in the country the 7th Joint Coordination Committee (JCC) meeting on CPEC was successfully held on November 21, 2017 in Islamabad. Chinese delegates showed complete resolve and commitment to successfully complete all CPEC projects in a timely manner. It also officially approved the Long-Term Plan (LTP) of CPEC. CPEC has been projected worldwide due to its significant contribution towards lessening “energy deficit” and infrastructure growth issues from Pakistan’s economy. It also provides Pakistan a great opportunity to leapfrog to expedite the processes of industrialization.

The LTP provides a conceptual framework for CPEC up to 2030; it also gives a framework for the industrialization of Pakistan. To finalise the LTP, the government of Pakistan consulted provinces, federal ministries and their respective technical groups. The plan is completely in line with the seven pillars of “Pakistan Vision 2025”.The LTP is based on connectivity, energy, trade and industrial parks, agricultural development and poverty alleviation, tourism, cooperation in areas concerning people’s livelihood and non-governmental exchanges and financial cooperation.

It included construction and development of Kashgar-Islamabad, Peshawar-Islamabad-Karachi, D I Khan-Hakla, Sukkur-Gwadar Port and Dera Ismail Khan-Quetta-Sohrab-Gwadar road infrastructure to improve inter/intra-connectivity in Pakistan and China. The development of Gwadar Port city, Gwadar airport and Easy Bay expressway are going to transform the city of Gwadar into a maritime trade hub and a new smart port city of the region. It will also lead to the industrialisation of Balochistan.

China and Pakistan will enhance cooperation in the fields of oil and gas, electricity and power grids. The focus is on thermal power, hydropower, coal gasification and renewable power generation and modernising power transmission networks. CPEC has already addressed the major energy bottleneck in Pakistan. Almost over half of the 10,000 MW energy added recently to the national grid comes from CPEC.

According to the LTP, the implementation of CPEC will take place in three phases, with clear goals. In the first phase, that is by 2020 reducing red-lines from Pakistan’s socio-economic development will be completely addressed and CPEC shall start to boost the economic growth along it for both countries.

The second phase will be achieved by 2025, all the infrastructure of CPEC will be ready and all industrial projects will have been completed. As a result, CPEC will have a major impact on the livelihoods of people living along the corridor. It is hoped that there will be more balanced regional economic development.

The third phase of the LTP will mature by 2030. As per the LTP: “CPEC’s role in stimulating economic growth in Central Asia and South Asia will be brought into holistic play, and South Asia shall grow into an international economic zone with global influence.

China-Pakistan Economic Corridor (CPEC) would be definitely game and fate changer for both countries. To achieve this goal, China must come out of “comparative advantage” equation and try to develop befitting propositions for Pakistan under CPEC which would further enhance its ties with Pakistan. Being a strategic ally of Pakistan, China must utilize its smarter technologies, infrastructures, communications and finances and wholeheartedly support Pakistan and its people to make CPEC, the “Project of the Century”.

Being icon of smarter technologies, China must try to develop “Capacity Building Measures” in Pakistan’s macro-economy, industry, agriculture, communications, society, banking and finance sectors, which may be further translated/ transformed into successful models of joint ventures in the days to come between the two countries. It would generate “Strategic Dividends” for both sides during the centuries to come.

Moreover, SEZs are being are being set up exclusively for Chinese companies where they will be exempt from taxes. The CPEC plan provides the Chinese with visa-free access to Pakistan but there is no such reciprocal arrangement for Pakistanis and China’s visa rules for Pakistanis have in fact been tightened. There is even little clarity regarding who will run or supervise the elaborate electronic surveillance system that China will install in Pakistani cities. With such free rein over debt, policing and tax collection, there is concern over CPEC’s implications for Pakistan’s sovereignty. Developing and branding SEZs for modern industry, realisation of economies of scale and scope to achieve exportable surplus through establishing business alliances/ joint ventures with Chinese and third-party firms/ enterprises and synergising and leveraging SEZs to develop complementarity with Small and Medium Enterprises (SMEs) for workable and effective backward and forward linkages would form a win-win situation for both the sides.

Three major powers, the US, Japan and India, seem to be disproportionately uneasy with ongoing project of CPEC in different parts of Pakistan. The US fears that successful completion of CPEC would be fatal for its “hegemonic rule”. Moreover, Pakistan would create another “strategic alliance” with China and Russia in the days to come which would be a great set back of US vested interests in the Central Asian Region and South Caucasus in the days to come.

Japan considers completion of CPEC as a setback to its geo-political maneuvering in the South East Asia and CIS in the days to come. Japan considers China as a “potential superpower” and does not want further Chinese socio-economic development and regional connectivity via CPEC.

India is also worried about the safety and security of its oil supplies that pass through the Strait of Hormuz at the mouth of which Gwadar is located. It fears that China may set up a naval base here. India seems also concerned about the future of Chahbahar Port that it is helping build in Iran along the Strait of Hormuz about 72km from Gwadar for which it is contributing as much as $20 billion. India is using all its resources along with non-state actors to sabotage ongoing projects of CPEC in the country.

Every country has its own vested socio-economic, geo-political and geo-strategic interests and a protection of those is the legitimate right of every country/state in our civilized world where hawks and doves fly side by side without any act of beast. Being independent and sovereign country, Pakistan has every right to enhance its regional connectivity by using its strategic location with the help of a trustworthy friend/brother in shape of China. Concerns of most of the regional countries and international power brokers are self-perceived threats and ground realities are totally different.

CPEC has become a success story within a period of five years. The work is progressing well on the building of Gwadar port and Thar coal power and mining project as well as other infrastructure development projects. The Chinese embassy should contact the media to focus on the development process and counter propaganda being generated by the vested interests.

It is hoped that CPEC will improve Pakistan’s competitiveness internationally and link it with more countries than it is doing business with at present. That will create a huge space for foreign direct investment in the country’s export industries.

It is the need of the hour to pursue joint efforts to highlight cooperation between the two countries and counter propaganda against the China-Pakistan Economic Corridor (CPEC) framework. In this regard, the role of the Chinese embassy in Islamabad is most crucial by segregating fake and money minting so called “one table-one chair”, “husband-wife” and “one room” think tanks from the list of the embassy. It must differentiate between an expert and pseudo-intellectual for safe guarding the interests associated with the CPEC, BRI and of course both countries. It must contact genuine experts, scholars, researchers and media people to project the economic significance of the CPEC.