Pakistan

India bid to halt Pakistan projects fails

Besides China, Islamabad should also focus on Central Asia

Zafar Bhutta August 30, 2015

Experts believe the India-UAE nexus will try to fail the Gwadar Port development project and create hurdles in the way of exploration activities in Balochistan. PHOTO: REUTERS

ISLAMABAD: In the current year, there have been some major developments on the trade and investment front. Among these, the friendship between Pakistan and China has entered a new phase of expanded cooperation as Beijing pledges investment of $46 billion in building an economic corridor.

According to the plan, Pakistan may become a trade hub in the region after Gwadar Port starts functioning fully and duty-free economic zones are set up. Many Central Asian states have also expressed interest in becoming part of the corridor.

This strategic partnership between Pakistan and China has upset India that openly voiced its opposition and even premier Narendra Modi pressed the president of China during a visit to Beijing to drop the plan of developing the corridor. However, China did not cave in to the pressure and vowed to push ahead with work on the project.

This prompted India to find new strategic partners in the region, which took Modi to the United Arab Emirates (UAE). Recently, Pakistan’s relationship with the UAE has been affected by the former’s refusal to send troops to fight alongside Saudi and UAE forces with Houthi fighters in Yemen. Now, India and UAE appear to have become new strategic partners in the region.

Read: China defends CPEC, hits out at India's oil exploration bid: report

The other major development of the year is a nuclear deal between Iran and global powers, which forced Gulf Arab states like the UAE to search for new strategic partners and India seems to be an obvious choice.

During Modi’s visit in mid-August, India and the UAE were able to establish an infrastructure investment fund, with the aim of reaching the target of $75 billion, to support investments in the rapid expansion of next-generation infrastructure in India, especially railways, ports, roads, airports, industrial corridors and parks.

Also, they agreed to facilitate the participation of Indian companies in infrastructure development in the UAE and promote strategic partnership in the energy sector.

Strategic alliances

Saudi Arabia and the UAE, which are old rivals of Iran in the Middle East, feel that Pakistan has made Iran a strategic partner. The UAE may be thinking that it has given a strong message to Pakistan by entering into a strategic alliance with India, but it must realise that Delhi has multiple choices available and it will not sever relations with Tehran, which has been a major oil supplier.

Observers feel India is trying to send across a message that it is not lagging behind and in response to the $46-billion China-Pakistan Economic Corridor (CPEC) project, it has won promise of $75-billion injection from the UAE.

India is also not happy with the handing over of Gwadar Port development and its operations to China. There have long been reports that Delhi is fuelling insurgency in Balochistan, which is rich in oil and gas resources, but poor law and order conditions have halted work on exploration activities there. Experts believe the India-UAE nexus will try to fail the Gwadar Port development project and create hurdles in the way of exploration activities in Balochistan.

The Government of Pakistan should frame such policies that mainly focus on trade and investment partnerships.

Read: China-Pakistan Economic Corridor 'unacceptable', Modi tells China

Exports from the country have declined and measures need to be undertaken to search for new trade partners in Central Asia. Only Russia has the potential to export food products valuing billions of dollars, but quality issues arise.

It is time to focus on the agriculture sector as the world has a lot of potential to absorb food commodities. Following the lifting of sanctions from Iran in the wake of the nuclear deal, it would be a big market for Pakistan. We have no significant technology-based products to ship to overseas markets but have agricultural goods, which may be a huge source of foreign exchange earnings.

The writer is a staff correspondent

Published in The Express Tribune, August 31^st, 2015.

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COMMENTS (67)

Zahid | 8 years ago | Reply @Raj - USA: Since you live in USA then you should know the importance of highways and infrastructure role in the economy. The CPEC is simply the tip of the ice burg and once it is completed will change the region and yes it is a game changer. It is going to lead to additional investments and project all around the highways and will bring prosperity for the people. India should think about building a better relation with Pakistan and Pakistan has do the same. That would be the right thing to do instead of putting each other down!!!

OxyMoron | 8 years ago | Reply @IndianDude: Just loved your comment on Superpower China. 1000 upvotes, mate.

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Raj - USA | 8 years ago | Reply @Haider: ET is not allowing me to post the link on the minimum return that Pakistan has guaranteed to China. There are many reports published in ET itself. You can google it. Also google what Nijam Sethi said on Aapas Ki Baat on this.

Shakti | 8 years ago | Reply Thanks for the warning. Since CPEC hasn't even started, I urge India to redouble their efforts and aim at speedy success.

IndianDude | 8 years ago | Reply @Sugarcoat ..Never expected a well learned author to hold such biased views about India… The learned author's qualified opinion is his right. You should accept this fact. There are many graduates from the world famous Pakistani university, Axact, which is the Pakistan's equivalent to Indian IIT, penning their opinions on this site.

Haider | 8 years ago | Reply @Union Jack Every big project faces challenges I asked for 18% interest on Chinese funding as claimed by Raj and Gp65......do u have that stuff

shah | 8 years ago | Reply "Observers feel India is trying to send across a message that it is not lagging behind and in response to the $46-billion China-Pakistan Economic Corridor (CPEC) project, it has won promise of $75-billion injection from the UAE." In This Day And Age Of Globalisation You Cannot Quarantine Any Country Let Alone A Country The Size Of India.UAE and India Have Made A Joint Fund So What It Is Just A Business Deal There Is No Strategic Alliance Indians Do Not Need To Get Over Excited and Pakistanis Do Not Need To Get Over Nervous

Truth | 8 years ago | Reply In every article about India, I see the author's desire to see India lose more than seeing Pakistan prosper. This is one of the disgusting attitude that lead to Pakistan's current predicament

Sugarcoat | 8 years ago | Reply I wish the author would have researched more on this issue instead of coming up with his self-righteous narrative about India... India was concerned with CPEC only to the extent of it being used strategically against India, by China & Pakistan... Any narratives that state otherwise are definitely a figment of imagination... Never expected a well learned author to hold such biased views about India... Sorry to say! but this truly projects the level of "anti-India" indoctrination in Pakistan... Very Unfortunate...

Thriller | 8 years ago | Reply Confusing title, "halts Pakistan projects fails". We know that so-called Muslim country (UAE) has no interest in Pakistan other than hunting rare bird species. But instead of pointing neighbors' policies, we should be confident and strong enough internally to do and achieve whatever is good for us.

slayer | 8 years ago | Reply The tone of endians on pakistani news website revalidates the two nation theory everyday. Look at the malaise they have. Sad but true

IndianDude | 8 years ago | Reply Indians should get used to the fact that China is the super power that owns USA. That is why all the rich Americans are visiting china in droves to have anchor babies. All the Americans send their kids to best colleges in Beijing and buy real estate in China in droves. In Islamabad, there are thousands of Pakistanis standing in lines 24/7 just to get a visa to the super power China. Sour Indians should accept this facts and move on.

Ahmed Ali khan | 8 years ago | Reply @Umair: You are allowed to day dream. You hindu hiding behind a muslim name.

Asok | 8 years ago | Reply Disappointed that ET allowed a news like headline for an opinion peace. Anyways, India's protest about CPEC was clearly just a restatement of the position that AJK and GB are legally Indian territory. It was not intended to sabotage the project. The project will face real difficulties, but from Pakistan's internal jihadi groups, not from India. Good luck!

Union Jack | 8 years ago | Reply Pakistan has no shortage of conspiracy theorists with the most poorest imagination. This article proves so. @Haider Here you go my friend, one of your own has written this http://tribune.com.pk/story/882686/challenges-posed-by-the-pak-china-corridor/

Saif | 8 years ago | Reply Chinese economy is in severe decline ..they will think about saving their economy rather than trying to save a failed state !

Arsalam | 8 years ago | Reply The headline is wrong and misleading. How has Indian attempt failed? I would love to see it fail but we are yet to see how Pakistan responds to India and UAE collaboration. ET should rectify the title of the news report.

observer | 8 years ago | Reply What is good for the goose is good for the gander. If Pakistan is justified in objecting to and disrupting Indian ties in Afghanistan, why shouldn't India have concerns about the presence of its enemy China in Gwadar and Pakistan?

Faiz Muhammad Sial | 8 years ago | Reply INDIA IS BIASED NOT ONLY WITH PAKISTAN BUT ALSO WITH SAARC COUNTRIES BECAUSE NONE OF HER NEIGHBOURS DESIRE THAT INDIA SHOULD DOMINATE THEM.INDIAS UTMOST TRY IS TO BAN CPEC.WHILE CONCENTRATING UPON PAKISTAN INDIA SHOULD NOT FORGET HER VULNERABLE POINTS WHICH STRONGLY DEMANDING FREEDOM FROM HER CLUTCHES.TIME WILL COME WHEN INDIA WILL SCRATCH HER OWN VOUNDS!!!!

Assad | 8 years ago | Reply I think this is a very simplistic opinion by the author. As if at the drop of a hat KSA and UAE would go in the other camp since Pakistan refused to send troops. This is not how International relations work. While Pakistan may not have sent troops, there are many other areas of cooperation between Pakistan and KSA/UAE. UAE will do what they must because they are running out of options given that they are no longer considered a major oil exporter and their own human resource is also very limited. For them the option is to go into large markets and invest what they have, thus the India-ward move. Pakistan will never deal with Iran in place of KSA. For Pakistan both are very important. We should have robust trade ties with KSA, Iran and UAE and beyond this euphoria in the media about UAE-India ties, it would a lot of effort and work to displace UAE-Pak relations if we assume that is the purpose of UAE-India ties. In reality UAE wants to be multi-faceted and its understandable. Pakistan needs to do the same and get over this sentimental nonsense of brotherhood and what not. I agree with the author that Pakistan needs to go deep in Central Asia and expand markets for itself. Software, Services are greater potential areas than the saturated agriculture sector. Pakistan needs to develop its human resources and focus on the services industry which is a trillion dollar market.

shafi | 8 years ago | Reply @akshay, we as a soveriegn country has a right to do economic activity with any major power just like u, u have NO right to object to PCEC if u dont have a brehman mentality, becoz such mentallty forces u to become policeman of the south asia and to interfere in the economical policy of others

usman saeed | 8 years ago | Reply Very good and interesting article showing Pakistani and Indian companions globally. it is politics between countries interesting.............!

Haider | 8 years ago | Reply @Gp65 Can u provide source of 17.5% interest rates as far we know...only 12bn are comcessional loans with 40 yrs of repayment schedule with grace period of 10 yrs and low interest rates to be finalised

Sinha | 8 years ago | Reply CPEC is complete already?? How can you presume that India failed? It has not even begun yet and that to me is success.

Ahsan | 8 years ago | Reply The problem with focusing on Agriculture sector is that, without proper management, it hits the local market very badly. When big fish in the market export the agriculture to other countries, it makes a huge gap in the local domestic market thus everyday vegetables and fruits's prices go way up sometimes beyond the reach of the poor man. We have seen this recently in the case of Mangoes particularly and all the other fruits generally. The prices of fruits and some vegetables have gone double and/or triple over the course of couple of years. There is a need of proper management by the local authorities to first fulfill the needs of local market in a reasonable price and then export it to other countries.

James | 8 years ago | Reply @LOL: How you know that it never happened.....to proof that Japanese and Chinese are investing, you wanted to see Japanese and Chinese on the streets of India in order to believe......anyways your viewpoint doesn't matter much to India.

Vish | 8 years ago | Reply @LOL: There is already a project report is generating between fast train between channai and Bangalore by Chinese firm, a simple case put forward any doubt contact me.. Apart from promised 18 Billion Dollar, Make in India with Xiaomi MI, Asus, Foxconn are all visiting southern part of India to establish their manufacturing unit.. Any doubt.... think who is fool.. What to know Japan ? haa?

Minerva | 8 years ago | Reply Looks like Pakistan is desperately pinning all their hope on CPEC.

Najeeb Ashraf | 8 years ago | Reply Minded, Endia is narrow sighted Nation towards Pakistan,& Muslim States How can this new relation between UAE & Endia will survive,where as Pakistan is Concern about CPEC, it will be Completed with Grace of All Mighty Allah & deep Concern of COAC. This project of CPEC, will be Comple in time, what ever hurdle comes in the way, UAE should be aware of endians, because they are against Muslims of the world, Whereas Pakistan & Pak Army Concerned, UAE are time tested Friends of Pakistan, little hurdles comes between good & real Brothers, time is the best remady.The region will taste the fruit of CPEC, which is benificial ton the region.

Haider | 8 years ago | Reply @Raj-Usa Where did u get data of loans of 18.5% rate... where as all the articles state 34bn $ is the private investments by Chinese Companies in Pakistan And 12bn $ are softloans and govts will negotiate ay lowest concession rates and these loans are of 40 yrs payback with grace period of 10 yrs Where did u get info...give the source

Gp65 | 8 years ago | Reply @khan"China is lending tens of billions of dollars of loans at low 2-3% interest rates with long grace periods. Pakistan could never ever get that sort of low interest loan anywhere else for infrastructure development." Simply not true. China is not lending this at rate of 2.5-3% . Pakistan has given sovereign guarantees for a 17.5% return in U.S. Dollars. Far from being a subsidy, this is an usurious rate. @Bewildered: I was sImply explaining the rationale for GOI objection to this project. Personally if LOC is converted into international boundary, I would be quite okay, Developing Chabahar has become necessary for India since Pakistan will not allow transit to Infian goods going to Afghanistan and through there to Central Asia. It has little to do with undermining Gwadar. Had Pakistan given India transit rights, India would not be investing in Chanahar.

Akshay | 8 years ago | Reply @shafi Why do you have to get Brahman in the debate here dude. Is that the best you can come up with .. You don't get it.. It's not about India or Pak .. It's not about People of India or Pak it's about China's presence in Arabia Sea and the gulf which does not go down we'll with most of the world.. Lol now chill bro

Sajad | 8 years ago | Reply With oil prices like this & immensive debt burden on Dubai, UAE is facing a tough situation on bailing out dubai on every single debt call. UAE emerging as an investor, may be in a future..........far far away.

Aman Pasha | 8 years ago | Reply Indians are confused and delusional. To gain access to Central Asia, India is heavily depending on Chah Bahar, Iranian port. However, facts reveal a different and a grim story for Indians. Indian footprint and Afghan government's authority, have reduced significantly and because of that Indian plans and dreams have started to shatter. In the years to come, especially after American withdrawal, Indian plan of accessing lucrative Central Asian Markets and energy resources, will only fade further. On the other hand, Pakistan is improving its relation with Iran and Russia, which have a greater role to play, in Mideast and Asia, in the years to come. Pakistan is playing its cards expertly.....after negotiating with Baluch rebels and chieftains, our only concern would be Afghanistan....

shafi | 8 years ago | Reply @Akshay, instead of countering PCEC ,come out of ur Brahmen mentality and coperate with Pak and take economic share in PCEC

Mac | 8 years ago | Reply "India bid to halt Pakistan projects" hahaha... yes, India is jealous of Pakistan's growth rate, forex reserve and economic condition

Bewildered | 8 years ago | Reply @Gp65: Shouldn't you be happy that when India take back this "disputed territory" of yours, it will have some additional infrastructure already built without costing you a penny? @Raj - USA: I am convinced by your arguments that CPEC is bad for Pakistan and will take us down if the project went ahead. Shouldn't you Indians be happy then and fully support CPEC instead of trying your best to stop it?

pnpuri | 8 years ago | Reply why this topic and comments regarding what other( india / Pakistan) cannot do or why other will fail. Pakistani commenters talk of Possible India failure and How Pakistan can stop India west ward trade. Indian commenters reciprocate the sentiment. start talking positive let Pakistani commenters talk of what Pakistan can achieve and say Pakistan will do this. Similarly India talk of what positive it can do for itself. May be in the process we find some reason to do something together.

Vicky | 8 years ago | Reply @Abreez...Nice dreaming, but please wakeup and come out of your self made fantasy, it's not gonna change ground reality... and instead of competing with India …Pakistan should first complete with Bangladesh…. bcoz Bangladesh’s 24 billion forex reserve is higher than Pak’s 17 billion forex reserve…. Bangladesh’s taka is stronger then Pak currency….Bangladesh’s growth is around 6% , compared to Pak growth of around 4% …. so please try compete with Bangladesh…… Otherwise if Bangladesh keep this momentum on then by 2024 it’ll become second largest economy of SAARC ….. leaving Pakistan behind

Valid point | 8 years ago | Reply Truth is Saudi and Gulf states always care for their economic interests, it's only Pakistan which raise flag of so called ummah, but Saudi n gulf don't care about it, specially ever since USA is producing more shell oil and now Iran is also ready to sell it's oil to world, this news brings fears of economic slowdown in mind of Saudi n gulf states because their 95% bread n butter depending on oil business ..... so they are looking for big partnership with big economies like India, China to support their economy ....and that's why they don't give a damn about so called ummah n Pakistan..

Akshay | 8 years ago | Reply @Khan Khan Ji it is just a matter of time. 85 million was to keep chahbahar alive in anticipation of CPEC. Now that CPEC is formalised wait and watch how fast things change.. India has always had a good relationship with Iran and the west has realised to counter China from controlling trade routes in the gulf and Arabian Sea from gawdar they have to build a good relationship with Iran which is happening as we speak.. The investment in Chabahar as I mentioned before will never be as big as CPEC as it is not required .. Shipping to Chabahar from Indian Gujrat, Mumbai and gulf and then transporting inland to Afghanistan and Central Asia is half the price and economically more viable than CPEC... Good luck with CPEC by the way .. Hope the money reaches the people of pak who deserve it the most..

Reddy | 8 years ago | Reply i can write lullabies and pass off as moment of truth in tribune,i guess...this guy copy pasted all of their diatribe in one place and concluded,india had failed at god knows what,ur ishaq dar gave an interview to cctv 3 months back first listen to it ...as far as CPEC is concerned wait for another 10-15 yrs ,on one hand Bangladesh will replace you as 2nd largest economy in the region in 3-5 yrs(just need 40 bill $) and for Chinese they have their own problems with the financial institutions at home and finally india's objection aimed at china more than pakistan as chinese lay claims on entire sea..but again pakistan could never look beyond india...enjoy ur day

Raj - USA | 8 years ago | Reply Why Saudis and UAE are not happy with Pakistan. The reason is not just that Pakistan refused to send its army. When Pakistan took the $1.5 billion from Saudis, Pakistan promised them that Pakistan will send its army whenever Saudis want. Ishaq Dar at that time said that the $1.5 billion was hust half of the gift that Saudis have promised and another $1.5 billion will be coming. The 2nd half of $1.5 billion did not materialize. Saudis are unhappy only because they feel cheated. Pakistan made promises to get the $1.5 billion and went back on its promises. Had Pakistan not taken the $1.5 billion and even if it had taken the $1.5 billion but made it clear to Saudis that Pakistan will not be in a position to sent its troops, Saudis and UAE would have understood and not felt cheated.

Salim Khan | 8 years ago | Reply How has India failed in stopping CPEC? Its going to take 10-20 years to build this and meanwhile, China's economy has lost $4 trillion in a month. By all accounts India's economy has become the fastest growing in the world,when Chinese are in deep trouble. Pakistan can't jump with joy as yet on just stories. So stop writing fiction and get reality check.

khurram shahzad | 8 years ago | Reply I will be surprised if UAE rides on band wagon along with india against Pakistan's CPEC project. I'm sure strategic alliance will not bring anything good for UAE. We agree ports play major role in economy of UAE but if we check the ground realities then I guess CPEC must not hurt UAE economically. There are 2 emirates of UAE on which produce max. income for its federation. First is Abu Dhabi and second is Dubai. Abu Dhabi is oil rich emirates of UAE and i dont think if Gwadar is developed and CPEC flourish it is going to hurt Abu Dhabi. Dubai has been focusing extensively on infrastructure development and their real estate and tourism have become main sources of income generation for Dubai. Yes, there will be some draw back initially but for longer period of time Gwadar and CPEC will not hurt UAE because of main strengths I've mentioned about UAE's economy. I think UAE must support Gwadar and CPEC because once this port get operational and Gwadar flourish then Pakistan will need develop real estate and facilities management and Dubai can provide its expertise to Pakistan in both the field. In my opinion if UAE invest in Real Estate and construction in Gwadar and Gwadar can huge income for UAE. But aligning India to halt Gwadar & CPEC will sow seeds of mistrust between UAE and Pakistan. It will be counterproductive for UAE because Pakistan and China are not willing to retreat on CPEC. UAE must not foget India is willing to buy Gas from Iran and India has also offered Iran to develop its Charbahar port. India is playing dual policy and trying make both UAE and Iran fool. I hope leaders of UAE are wise and they will not become a party to any strategic alliance against Pakistan and China. At the moment if UAE and Iran go against CPEC then indirectly they will act against China because development of Gwadar and CPEC have more importance for China than Pakistan. UAE and Iran are Pakistan's brotherly countries and we share historical cordial relations with both the countries. UAE must be focus on future and Gwadar and CPEC are the future of this region.

khan | 8 years ago | Reply @Raj - USA: The fact that Pakistan will get the most advanced infrastructure in South Asia (minus airports and public transit) is what will benefit Paksitan. China is lending tens of billions of dollars of loans at low 2-3% interest rates with long grace periods. Pakistan could never ever get that sort of low interest loan anywhere else for infrastructure development. China is in effect subsidizing loans to Pakistan so that Pakistan does not have to ask the IMF or WB or ADB for higher rate interest loans.

khan | 8 years ago | Reply @Akshay: You're alleging that the US, UK, EU are ALL in the process of developing Chah Bahar for market access to Afghanistan and the CARs? Please cite a source for this, because as you know, international sanctions are still in place, and I find it hard to believe they are all flaunting the sanctions they themselves imposed. Afghanistan and the CARs have tiny economies and aren't a major export market for anyone. CPEC isn't about Afghanistan and Central Asia - its about opening up Pakistan and Western China to the world. The value of these two regions is far more important than anything in Central Asia - and besides, Chah Bahar will only compete, not replace, Gwadar, so Pakistan will still get a lot of that transit trade anyway. And finally, look how much money has been firmly committed to Chah Bahar: only $85million dollars from India so far. Pennies compared to CPEC.

Khan | 8 years ago | Reply "Observers feel India is trying to send across a message that it is not lagging behind and in response to the $46-billion China-Pakistan Economic Corridor (CPEC) project, it has won promise of $75-billion injection from the UAE." This is incorrect. india got a promise that the UAE would set up a fund with the GOAL of reaching $75 billion. This does not mean India has already won $75 billion of investment already.

hari | 8 years ago | Reply Lol, insecurities of Pakistanis. The 75 billion deal with Emirates can't be equated with Chinese pert deal as the India UAE deal is between equals and not the slave master one between Pakistan and China which will protect Chinese interest only. More over Chabar port will be closer to the middle Asia and more cost effective for those Nations or even I dare say China to reach middle East and Europe. Not only that the Indian company which is developing Chabar is a big international player and knows how to bring business there. So in effect the 45billion inflated investment will be rendered useless. When Balochistan becomes free and attains nationhood Indian will help with gwadar port too. This is economic warfare at its best and few plays it better than Chanakya the great.

Point | 8 years ago | Reply @Strategic Asset: I guess you forgot how much modi was crying and in feet of Chinese Premier to stop CPEC!!

Anticorruption | 8 years ago | Reply This piece has put too many things in terms of black and wite binaries. Either UAE is Pak's strategic partner or India's. Either Pak is Iran's partner or UAE/Saudia Arabia's. etc etc. These things are not in such mutually exclusive binaries as the language of this piece suggests. Overall, not a very mature piece

LOL | 8 years ago | Reply India is living in a fool's paradise. Japan promised $20bn last year when Modi visited. Not even one penny invested until now. Same happened with China's promise of $16bn investment in India. Nothing happened. Correct me if Im wrong. Let them sleep.

Raj - USA | 8 years ago | Reply If other countries are going to invest in CPEC, obviously, Gawadar port cannot be handed over to China and China cannot make it a naval port. Should this be so, India would not have any objection. Handing over Gawadar to China and China building a naval port there will not be allowed by any country in the region and also USA at any time. Everyone in Pakistan talks of CPEC and that this will bring so much prosperity to Pakistan that it will be a game changer. But I have not read even one report that says how Pakistan is going to earn revenues or how much revenues will Pakistan earn. From what I have read, first, CPEC is not an investment from China. It is a loan from China at usurious interest rates of 18.5% per annum for a period of 45 - 50 years. Pakistan has provided sovereign guarantees to make this interest payment for 45-50 years and there are no guarantees from China assuring a minimum revenue, even to cover the interest that Pakistan has to pay China, which amounts to nearly $8.5 billion per year in interest costs alone. In addition, the investment has to be repaid at some time. If China does not use CPEC for whatever reasons, may be slow down of China's economy or security reasons, CPEC will not earn any revenue but Pakistan should still pay interests to China and also pay back the loan to China. China is insisting that all projects under CPEC should be awarded to Chinese companies designated by China without any bidding. China insisted this in the recent meeting about a month ago. Pakistan has been borrowing finds from international markets in USA at interest rates of between 6.5% and 8.5%. Pakistan borrows from World bank at interest rates of 4% - 5%. If Pakistan is factoring in that CPEC will be used for goods traffic between China and Central Asian states, it must first improve its relations with Afghanistan and Afghanistan will insist that Pakistan allow Afghanistan - India trade via land route through Wagah post.

Shiraz | 8 years ago | Reply Also, Dubai doesn't want to lose out to Gwadar. So it's not just simply about Pakistan not participating in war in Yemen.

MQ | 8 years ago | Reply Poorly written article. No flow or structure.

Gp65 | 8 years ago | Reply "Observers feel India is trying to send across a message that it is not lagging behind and in response to the $46-billion China-Pakistan Economic Corridor (CPEC) project, it has won promise of $75-billion injection from the UAE" $46 billion CPEC -assuming it materializes in full is spread over 15 years ie $3 billion a year. Last year in.a single year, India got FDI of $36 billion - so where is the question pf lagging behind? Yes, India openly lodged its grievance to Chona against CPEC since it passes through GB which is disputed. That is the extent of India's opposition tI this project. Describing any and every terror incident in the country he it Safoora or Sabeen's murder as Indian conspiracy to stop CPEC is absurd. Palistan has supposedly found culprits for both and they were LeJ functionaries. Please note a project where there is sovereign guarantee of 17% return in dollar terms is not true FDI. It is more like a loan with a fixed return. Plus in any normal FDI host country does not commit 10,000 soldiers as have been promised for CPEC. So please stop with conspiracy theories.

Agent | 8 years ago | Reply Only fools can believe that with the $46 billion economic corridor the economy of pakistan will turn upside down and there will be prosperity everywhere. No country can become prosper on loans and borrowed money. ET reporter can make all the stories without mentioning his EXPERTS's names but that would not change the facts. This century is all about innovation and building markets to attract global players and Pakistan has nothing but terrorists to sell to the world.

kartikey mishra | 8 years ago | Reply china's economy is aready in declining & they also said they may be rething on that corridore because we have so many threat in pakistan our engrs are not willing to go there because of terror threat the China's globlem times paper said . so there are so many problem in pakistan,so we have to look again whether we are able to complete that project or not.

voice of Gilgit | 8 years ago | Reply Relation between India-U.A.E is for short term and has no impact globally. U.A.E is nothing but a small hospitality market, oil reserve is all most at the end and their market can collapse anytime. Pakistan should proceed with Pak-China economic corridor at any cost, once this project start to work so many stupid Islamic countries will come back to Pakistan in the end.

usman777 | 8 years ago | Reply Don't brush aside UAE and Saudi. They will be back with Pakistan once the Yemeni naraazgi is over. They have been with us for too long providing entire squadrons of jets to pakistan during indo-pak wars. Just think after all that India is still willing to run to them for friendship. Surely we can take a temporary narazgi with the gulf states. We need to be the bridge between Iran and Arabia as only we can with our sunni/shia population and historical ties with both regions. Make everyone a stakeholder in Gwadar and CPEC. We cannot abandon any of our brotherly countries in which we have invested significant political capital over 60 years.

Sameer | 8 years ago | Reply hahaha so whole pak depends on one CPEC project which was controlled and funded by some other country.....but India has many projects running with it's own money and control in overseas... like golden rule for investment is "never put all your eggs in one basket ....same India has invested in many projects in many countries...but it looks Pakistan's future depends on one particular project

Akshay | 8 years ago | Reply Sad to say but the author does not seem to be updated. India, US UK,EU are already working with Iran to develop Chabar Port to gain access to Afghanistan and markets in Central Asia. The proximity of Chabar from the gulf, Indian Gujrat and Mumbai makes it a strategic and economic success unlike the CPEC which includes thousands of kilometres of road in hostile terrain before the goods can be shipped. further developing Chabar port, building a road from Chabar to Afghanistan and then extending to Central Asia, Iran Nuclear Deal, Opening of the British embassy in Tehran are all signs of bids to counter CPEC. Look Let CPEC bring prosperity to Pakistan but to think that the rest of the world is still in a fairy land not doing anything to counter this would be stupid.

Umair | 8 years ago | Reply @abreez: I only want to say that the two men (Ambani brothers) of the poor country of India can buy all the stock exchanges and listed companies of Pakistan with half their wealth. Pakistan is 50 years behind India AND the gap will keep increasing till we buy off every poltician and political party in apkistan with our unlimited money and wealth

the Skunk | 8 years ago | Reply A good article with an overview of India's chicanery, of which we are all very well aware. Some suggestions on improving our internal economy would have added flavor. Salams

Johar | 8 years ago | Reply CPEC is never going to happen. Not because the Chinese don't want it but because Pakistanis will derail the project through infighting. Some of that infighting will be incentivized by RAW which has our politicians in its pocket.

Strategic Asset | 8 years ago | Reply What is the need for this article that too by an ET Staff Reporter which mentions nothing concrete, but instead hypothesizes the future of a few projects? Is this article a message to UAE and Iran? Why even mention India when it is clear that India has done nothing to up the ante on CPEC yet?

abreez | 8 years ago | Reply Pakistan should focus on Pak-China, Pak-Russia, Pak-Central Asia, Pak-Iran and Pak-Oman relations, think positively. World economy needs contribution of more people and rail and road links will insure that more people are involve in world economic recovery. Once Pakistan will involve in building bridges between different countries of the World, these countries will feel positive effects of Pakistan’s efforts then Indian will ask Pakistan to help World’s biggest poverty to reduce its poverty. Politics is a simple game with simple rules, a game where one find neither friends nor foes, feed your foes to make them friends and ask your friends to make them foes. In near future when Pakistan will give 10-20 million tourists to Oman, UAE and Saudi Arab annually, I think then these countries will think positively for Pakistan. World is changing very fast and the only country will lose ultimately will be World’s biggest poverty.

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