{"id":32864,"date":"2015-04-22T15:06:00","date_gmt":"2015-04-22T15:06:00","guid":{"rendered":""},"modified":"2020-11-12T10:55:32","modified_gmt":"2020-11-12T10:55:32","slug":"7864-china-s-new-silk-road-what-s-in-it-for-pakistan","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/7864-china-s-new-silk-road-what-s-in-it-for-pakistan\/","title":{"rendered":"China\u2019s new silk road: What\u2019s in it for Pakistan?"},"content":{"rendered":"

On a state visit to Islamabad this week, China’s President Xi Jinping put his name to almost US$30 billion of deals<\/a> that will help transform Pakistan\u2019s energy supply and infrastructure as China\u2019s western neighbour aims to modernise its economy and avoid crippling power cuts.<\/p>\n

But the background to the deals is primarily strategic and rooted in geopolitics in a region close to the Middle East’s huge oil and gas production.<\/p>\n

An expanded port could also help China transport its huge resources of metals, minerals and cotton more cheaply.<\/p>\n

Xi\u2019s visit to Pakistan had generated a sense of nervous anticipation as previous plans were postponed last September<\/a> in the wake of prolonged anti-government protests in Islamabad, and Pakistan\u2019s government wanted proceedings to go more smoothly this time around.<\/p>\n

As well as signing a raft of energy, trade and investment agreements, the Chinese president inaugurated Balochistan\u2019s Gwadar port<\/a>, part of the 3,000 km long strategic China-Pakistan Economic Corridor<\/a> (CPEC) which could radically alter the regional dynamics of trade, development and politics in the region.<\/p>\n

Gwadar, once part of Oman before it was sold to Pakistan in 1958, is one of the least developed districts in Balochistan province. It sits strategically near the Persian Gulf and close to the Strait of Hormuz<\/a>, through which 40% of world\u2019s oil passes.<\/p>\n

The construction and operation of this multi-billion dollar deep-sea port<\/a> at Gwadar was contracted to a Chinese company<\/a> in 2013. Some analysts argue<\/a> the port could become China\u2019s naval base<\/a> in the Indian Ocean and enable Beijing to monitor Indian and US naval activities.<\/p>\n

Chinese premier Li Keqiang proposed establishing the China-Pakistan Economic Corridor<\/a> (CPEC) during his visit to Pakistan in May 2013. \u201cOur two sides should focus on carrying out priority projects in connectivity, energy development and power generation,\u201d Li said at the time.<\/p>\n

 <\/p>\n

\"Source:<\/p>\n

(Source: SCMP)<\/p>\n

Pakistan\u2019s strong political relations with China may mean this initiative succeeds where other regional energy projects have become mired in security problems and political disagreements, says Vaqar Zakaria, energy sector expert and managing director of environmental consultancy firm Hagler Bailley Pakistan<\/a>. \u201cThe Pak-Iran pipeline<\/a> is on hold, the World Bank-backed Central Asia South Asia Electricity Transmission and Trade Project<\/a> has to contend with security of passage through Afghanistan, and importing power from India has to wait for core issues between the two countries are resolved,\u201d he said.<\/p>\n

Energy-poor Pakistan<\/a> certainly seems to have found a saviour in China, which has promised to stand by the country in its (literally) darkest hour<\/a> (parts of the country suffer power cuts for most of the day). So overwhelmed was the Pakistani president that he has predicted<\/a> the economic corridor will be a \u201cmonument of the century\u201d benefitting \u201cbillions of people\u201d in the region.<\/p>\n

Zakaria believes projects conceived under CPEC will ease Pakistan\u2019s energy shortages and make a \u201csubstantial difference in the long term with both generation and transmission covered.\u201d However coal figures prominently<\/a> and Chinese money is \u201ctimely and useful\u201d for cash-strapped Pakistan struggling to finance energy projects from western donors.<\/p>\n

The CPEC project will include building new roads, a 1,800-km railway line <\/a>and a network of oil pipelines to connect Kashgar in China\u2019s western Xinjiang region to the port of Gwadar in southwest of Pakistan. The project also includes an airport at the port and a string of energy projects, special economic zones, dry ports and other infrastructure.<\/p>\n

The estimated cost is expected to be US$75 billion of which US$45 billion will ensure the corridor is operational by 2020. The remaining investment<\/a> will be spent on energy generation and infrastructure development.<\/p>\n

China\u2019s new silk roads<\/strong><\/p>\n

While the trade and energy corridor may be \u2018monumental\u2019 for Pakistan, for China it is part of more ambitious plans to beef up the country\u2019s global economic muscle.<\/p>\n

Chinese officials describe the corridor as the \u201cflagship project\u201d of a broader policy, \u201cOne Belt, One Road<\/a>,\u201d which seeks to physically connect China to its markets in Asia, Europe and beyond.<\/p>\n

This initiative includes the New Silk Road<\/a>  which will link China with Europe through Central Asia and the Maritime Silk Road<\/a> to ensure a safe passage of China\u2019s shipping through the Indian Ocean and South China Sea.<\/p>\n

\"one_belt_one_road_infographic_meitu_1\"<\/a><\/p>\n

\u201cChina is not building the corridor as an act of charity for Pakistan,\u201d says Michael Kugelman, senior associate at the Washington DC based Woodrow Wilson Center. \u201cIt will happily fund and build any structure that plays into this goal\u2013whether we\u2019re talking about roads or ports.\u201d<\/p>\n

Some experts argue this initiative can bring greater cohesion in South Asia, one of the world\u2019s least economically integrated regions<\/a>. Adil Najam, dean of the Boston University Pardee School of Global Studies, believes anything that binds the region together is \u201ca good idea\u201d since countries tend to focus on \u201czero-sum geostrategic posturing\u201d rather than recognising the benefits of integration.<\/p>\n

India, US worried<\/strong><\/p>\n

At the same time, the new silk roads are bound to intensify ongoing competition between India and China\u2013and to a lesser extent between China and the US\u2013to invest in and cultivate influence in the broader Central Asia region, says Kugelman. \u201cIndia has long had its eyes on energy assets in Central Asia and Afghanistan, even as China has gobbled many of these up in recent years. The US has announced its own Silk Road initiative in the broader region,\u201d he said.<\/p>\n

India is concerned about China\u2019s growing investment in Pakistan, particularly its recent decision to fund a new batch of nuclear reactors. Pakistan plans to add four new nuclear plants by 2023, funded by China, with four more reactors in the pipeline (adding up to a total power capacity of 7,930 MW by 2030).<\/p>\n

Many argue that China is supplying nuclear technology to Pakistan in defiance of the Nuclear Suppliers Group<\/a> (NSG) guidelines, which forbid nuclear transfer to Pakistan as it has not signed the Nuclear Nonproliferation Treaty<\/a>. China argues<\/a> that these projects were agreed with Pakistan before it became a member of NSG in 2004.<\/p>\n

Conflict in Balochistan<\/strong><\/p>\n

However, the economic corridor is unlikely to be successful unless there is peace in Gwadar. The district is embroiled in conflicts<\/a> with militant organisations, like the Balochistan Liberation Front, who are highly suspicious of foreign-funded investments. These groups have not only vehemently opposed the development projects but have even attacked Chinese engineers<\/a> working on the port.<\/p>\n

It is the reason given by experts for the change of route to pass mostly through Punjab, thereby avoiding some of the country\u2019s most strife-torn areas in both Khyber-Pakhtunkhwa and Balochistan provinces much to the chagrin of local legislators<\/a>.<\/p>\n

At the same time China has concerns about the growing influence of radical religious groups in Pakistan in its own Xinjiang province, which has a significant majority of Muslim Uighurs.<\/p>\n

For now the Pakistan military plans to train over 12,000 security personnel and form a \u201cspecial division\u201d to provide security to Chinese working on the economic corridor. Some 8,000 security personnel have already been set out to protect over 8,100 Chinese working on 210 projects across Pakistan<\/a>.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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