Harmful delays
China is reportedly upset over a delay in the Gwadar port project
China is reportedly upset over a delay in the Gwadar port project. PHOTO: REUTERS
China is reportedly upset over a delay in the Gwadar port project, as a bid submitted by one of its companies for a contract has not been opened yet even after a gap of months. The $2 billion project includes laying a gas pipeline and setting up an LNG terminal in the port city. It was planned as an alternative solution to the Iran-Pakistan gas pipeline, which could not move ahead due to sanctions against Tehran. Given the government’s repeated statements on the importance of the China-Pakistan Economic Corridor (CPEC) and Gwadar in particular, it is disappointing that a delay has occurred, but hardly surprising that we are the ones causing it. One reason why many countries avoid doing business with us is due to the lethargy of the Pakistani officialdom in meeting deadlines.
At a time when other countries are swiftly moving towards regional agreements, Pakistan is still stuck in bad old habits. The financing for the project was generated through the gas infrastructure development cess (GIDC) levy and is being collected from Pakistani consumers. Given that Pakistan was supposed to arrange 15 per cent of the financing using the GIDC levy, we cannot help but wonder if the money is being utilised elsewhere. There are reports that the GIDC collection is being used for other projects and if this is true, it is both disappointing and appalling. There is a need to speed up work on joint projects before the Chinese start losing patience with us, which is a distinct possibility, as they are known for their efficiency in meeting deadlines and for working within budgets. The government is generating funds for the CPEC’s security and intends to impose the super tax for this purpose for another year. While the tax is generating resources, bureaucratic red tape and convoluted processes are proving to be hurdles in speeding up the required work. Blowing the trumpet on the CPEC just yet may prove to be premature. The government needs to put its act together first.
Published in The Express Tribune, May 5th, 2016.
At a time when other countries are swiftly moving towards regional agreements, Pakistan is still stuck in bad old habits. The financing for the project was generated through the gas infrastructure development cess (GIDC) levy and is being collected from Pakistani consumers. Given that Pakistan was supposed to arrange 15 per cent of the financing using the GIDC levy, we cannot help but wonder if the money is being utilised elsewhere. There are reports that the GIDC collection is being used for other projects and if this is true, it is both disappointing and appalling. There is a need to speed up work on joint projects before the Chinese start losing patience with us, which is a distinct possibility, as they are known for their efficiency in meeting deadlines and for working within budgets. The government is generating funds for the CPEC’s security and intends to impose the super tax for this purpose for another year. While the tax is generating resources, bureaucratic red tape and convoluted processes are proving to be hurdles in speeding up the required work. Blowing the trumpet on the CPEC just yet may prove to be premature. The government needs to put its act together first.
Published in The Express Tribune, May 5th, 2016.