There is much ambiguity over the Chinese president’s visit to Pakistan. Initial reports suggested: “It is not absolutely clear whether the Chinese President Xi Jinping’s visit to Pakistan will go ahead or will it be cancelled. In a worst case scenario, if this visit is called off even then all the projects approved will still be initiated”. Ensuing reports went on to say: “Due to serious security concerns Chinese President Xi Jinping’s visit to Pakistan has been cancelled. It is a body blow to Pakistan as it is facing increasing isolation in the world”. In August, Sri Lankan President Mahinda Rajapaksa also cancelled his state visit to Pakistan in the wake of the protesters occupying the main access point leading to Parliament and important government buildings.
For Pakistan, the importance of Chinese investment cannot be overstated. The focal point of this new and bold economic programme is the Gwadar port. In all likelihood, Gwadar’s sun-kissed sand will be the foundation material that will give shape and substance to Naya Pakistan. Quite a reversal of fortunes. Pakistan’s most underdeveloped province, Balochistan, is poised at the forefront of events that may change the destiny of Pakistan. All because the Chinese government has decided to invest in the economic development of its neighbouring regions by building multiple new, efficient trade routes into South Asia, the Gulf and the Central Asian Republics (CARs) developing and strengthening connections to its own West China region.
A crucial element of this programme is the China-Pakistan Economic Corridor comprising an integrated trade pathway consisting of road, rail and sea linkages between China, Pakistan and CARs. For China, this economic corridor is vital to securing its long-term economic growth. The corridor halves the travel costs and time required to transport oil and gas from the Gulf region to China and opens a new corridor for the Chinese exports to reach the whole region.
As a sponsoring country, China plans to fund the majority of the costs. In fact, China is considering where possible to accept provincial guarantees rather than sovereign assurances. Both Bilawal Bhutto Zardari and Shahbaz Sharif were in China to convince investors in this regard.
However, despite China’s track record of maintaining excellent ‘brotherly’ relations with Pakistan, it cannot take its commitments for granted. The Pakistani government should be able to provide assurances to Chinese banks and private institutions that it will provide corruption-free governance, transparent allocation of local contacts, security of life and assets. It must demonstrate beyond doubt its ability, commitment and popular support for the programme.
In this context, the current political crisis being played out in Islamabad’s Red Zone is of particular concern — if not resolved quickly it may spook Chinese investors. Meanwhile, the Chinese government is under pressure from various countries on the international front. India, its major trading partner, is publicly opposed to the management takeover of and investment in Gwadar port by China. The Indians argue that this will weaken their marine dominance, by providing for the first time in history, direct access to Chinese to the Arabian Sea and the Strait of Hormuz, gateway for a third of the world’s traded oil.
Some Gulf States have over the years consistently opposed development of a deep-sea port in Gwadar as it will impact port operations in Dubai — historically the only port available for global marine trade passing through the Gulf. The current unrest in Islamabad and its timing, coinciding as it does with the Chinese president’s visit, could be part of a greater plan to curtail development of Pakistan in general and its naturally gifted coastal regions in particular. However, as discussed, quantum of the proposed investment in Pakistan to the tune of $34 billion is unparalleled in its history and opposition to Chinese investment is also unmatched in the world history.
It is imperative that all sections of Pakistani society, including both the Houses of Parliament, political parties, army, civil bureaucracy and its vibrant civil society present a united and committed front on this issue irrespective of political or ideological differences. This unified show of national commitment will provide their Chinese friends further confidence to forge ahead despite the challenges and reaffirm their commitment to Pakistan.
Published in The Express Tribune, September 6th, 2014.
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Many developed countries including UK, France and other EU nations are pulling out all stops to attract Chinese investment and expertise. UK’s £14 billion Hinkley Point nuclear project is just one example. This project is being built by Chinese firms and EDF a French company and the world’s largest energy firm. There are a number of other large infrastructure & energy projects which have been presented to Chinese by the developed countries for investment and expertise.
The proposed trade route from Gwadar to Kashgar region of China reduces the journey of 12000 km to 7500km and approximately halves the travel costs & time required to transport oil & gas from the Gulf regions to China and opens an efficient trade corridor for the Chinese exports to reach the whole region. This new trade route will help this Kashgar region of China to revive its trade activity which can only become viable once this route become operational.
In August, Sri Lankan President Mahinda Rajapaksa also cancelled his state visit to Pakistan in the wake of the protesters occupying the main access point leading to the parliament and important government buildings. Pakistan’s political leaders have to take notice as diplomatically the nation is on a slippery slope. Foreign cricket teams have declined to tour and now it’s the head of friendly countries who are finding it impossible to visit the country. Chinese investment is in great demand across the globe. Many developed countries including UK, France and other EU nations are pulling out all stops to attract Chinese investment and expertise. UK’s £14 billion Hinkley Point nuclear project is just one example which can be quoted here. This project is now being built by Chinese firms and EDF the world’s largest energy firm. There are a number of other energy related projects which have been presented to Chinese by the developed countries.
baloch will die rether then handing baloch ports to china or pakistan. stop day dreaming pakistan and china.
If it is true then pakistani n chinese government should consider vital concern raise by local people of balochistan. But it is unfortunate to say that both are using colonial tactics to suppress local people of balochistan which is for sure not good signal for all parties.
when people in Pakistan starts thinking with their ears instead of their mind, then such Media dramas will be successful 200%. Script writer is sitting abroad but they are paying to movie makers (Media) and characters (Imran, Qadri and many in house) to sabotage the success plan of Pakistan. No other countries wanted that Pakistan will develop specially UAE, Singapore don't want to see Gawadar port comes on the map of this earth. We have no friends and no enemies at the moment because we ourself are the biggest enemy of this country.
"The current unrest in Islamabad and its timing, coinciding as it does with the Chinese president’s visit, could be part of a greater plan to curtail development of Pakistan in general and its naturally gifted coastal regions in particular. "
So IK and TuQ are actually part of a conspiracy to keep Pakistan undeveloped! I was stunned to see such pearls of wisdom emanating from Chatham House until I realized the author is a 'member' of Chatham House. Whew - that had me boggled for a moment.
Know what? I'm a member of Chatham House too - for £110 a year. That's the sole qualification required to be a member. That certainly doesn't qualify me to write on geo-strategic matters with the introduction 'The author is a member of Chatham House'
C'mon ET - this is your Opinions page - have some quality, please.
Not many nations are keen on investment in Pakistan give the unstable conditions.On the comment that a third of oil passes through here is to be viewed in the light of current developments.USA's dependance on gulf oi is significantly down and for the first time USA is in a position to export oil.OPEC clout is already down and only China,India and possibly Japan are dependent of Mid East oil shipments.To China who are ultimately shrewd businessmen Gwadar is important because it will reduce shipment cost.so friendship is another name for smart business deals.
@truthbetold: Spot on. Pakistan gave the port to China in desperation hoping that someone would finally get off their duff and help build it - now that has somehow grown to roads, railways but even those alternatives aren't suitable for transporting oil so you can bet that the next myth will be a pipeline. Further - China funding for projects doesn't mean "gifting" - it means they provide the financing and Pakistan has to pay for it - and of course nobody in Pakistan can tell you "how much" or whether it makes any economic sense.
"For China, this economic corridor is vital to securing its long-term economic growth. The corridor halves the travel costs and time required to transport oil and gas from the Gulf region to China and opens a new corridor for the Chinese exports to reach the whole region"
This just doesn't make any sense to anyone who looks at the map of the Asian region. Over 98% of Chinese population and economic activities are taking place east of Tibet in mainland China. How is the so-called economic corridor through Pakistan is going to help China when it can more efficiently transport oil, gas, raw material and goods through eastern India, Bangladesh and Burma.
Thus the economic argument makes no sense.
So, the only reason China is interested in Gawadar is to base its navy there to encircle India
"The current unrest in Islamabad and its timing, coinciding as it does with the Chinese president’s visit, could be part of a greater plan to curtail development of Pakistan in general and its naturally gifted coastal regions in particular". In democracies it is the inherent right of the citizens to protest peacefully but it was the government in Pakistan which started the blood shed first in Lahore and then in Islamabad. Chinese intend to invest in Pakistan because of their own strategic and economic compulsions regardless who is ruling the country. Gwadar presents and opportunity for the Chines to make inroads into Central Asia and the gulf, how many Gawadars are there that they may switch their investments. This political turmoil is temporary and self created by the incompetent regime but Chines investments are for long range strategic payoffs and they know it well. Prime Ministers in Pakistan will come and go but Chines self interests in Pakistan and it's coastal areas will remain constant. One case in point, how much pressure the EU could put on Russia till it back fire on them, EU needs Russia's gas to heat their homes and winter is not that far off, EU is still buying the gas in spite of Russia's hegemonic and territorial expansion. I don't see the Chines are going to scuttle the agreements they have made with the last and the current government. By the way Pakistani policy makers will be unwise to think that there are eternal friends or enemies, it is all about self interest.
My feeling is that Tahirul Qadri and Imran Khan are being manipulated by forces that are trying to undermine the growth and development of Pakistan. The violent protesters in Islamabad succeeded in turning away the Chinese leader and destabilized the economy. Over the past year a number of economic indices were improving as evidenced by western financial analysts who were upbeat on Pakistan. Moodys of NY even upgraded Pakistan's ranking. All of this was undermined by the protests.
" ... India, its major trading partner, is publicly opposed to the management takeover of and investment in Gwadar port by China. ... "
Look at a map of China. Take out Xinjiang. All access routes OTHER than via the Indian Ocean and the Pacific Ocean are gone. Something to think about.
now every kid with UK degree wants to give Pakistanis a lecture....u r not Bilawal even
Imran khan and so called Allama tahir ul qadri are misleading the whole nation for their own interests or maybe for their masters' interests. Now we know the umpire and one thing is for sure he z not in Pakistan.
The current unrest in Islamabad and its timing, coinciding as it does with the Chinese president’s visit, could be part of a greater plan to curtail development of Pakistan in general and its naturally gifted coastal regions in particular.
ROFL...........Seriously ROFL.....Strategic location..Strategic people......Sir,we pakistanis need to take the blame for once atleast.......let us not involve any other country this time..and for your kind information there are more than 200 countries and pakistan is one of them..not as important as u think......ET,please publish..am talking on facts and whatever Sir has written in above article......
It is the first time we are hearing 35 billion dollars investment from the Government and without any details of the breakdown. I am sure the Government don't want the public to know the details otherwise people will start to question the amount. By the way it is 35 billion dollars and not 35 billion pounds. Unsubstantiated and biased piece of opinion of no value.
In Pakistan, everything will happen in the future. It is a 67 year old country and I don't know when that future will start.