Afghanistan stands to gain from CPEC option

Published: September 25, 2016
Email
Peace will prevail in Afghanistan in the long term if it goes for economic development. Kabul should welcome Islamabad’s offer to join the CPEC as it will have multiple options for using the ports. PHOTO: AFP

Peace will prevail in Afghanistan in the long term if it goes for economic development. Kabul should welcome Islamabad’s offer to join the CPEC as it will have multiple options for using the ports. PHOTO: AFP

ISLAMABAD: The United States has spent billions of dollars in Afghanistan to cushion the sinking ship of the landlocked country’s economy, but there are no visible signs of improvement.

An immediate workable solution for Afghanistan to boost its economy is forging better relations with Pakistan. Instead Kabul has resorted to blame game, holding Pakistan responsible for almost all recent terrorist attacks in its territory.

China touts CPEC as model for ‘one-belt, one-road plan’

According to a report published by the Office of the Special Inspector General for Afghanistan Reconstruction (Sigar), created by the US Congress for an independent oversight of Afghan reconstruction projects, multibillion-dollar American investment in Afghan economy was spent uselessly and not followed by any significant results as expected by the international society and the Afghan people.

Though the US poured $113 billion into the Afghan economy from 2002 to 2015, the socio-economic situation in the country showed no signs of improvement and continued to worsen, it said.

From a total of 44 projects sponsored by the US, only 20 were completed and received by Afghan officials. The report cited different problems for the failure including illicit and unprofessional planning of the programmes and baseless projects that had nothing to do with restoration of the Afghan economy, for instance, the Taliban reintegration support fund.

It also pointed to the low efficiency of anti-drug projects on which billions of dollars were spent and stealing of huge amounts of money invested in the construction of schools and hospitals by local officials that mostly gave the projects to companies of their relatives.

John Sopko, Special Inspector General for Afghanistan Reconstruction who reports to Congress on how US aid money has been spent, told Irin news agency that US-funded programmes were successful, but overall reconstruction had been characterised by mismanagement and waste.

“Such a scattershot approach has led directly to the current economic crisis. While USAID and other agencies may have had their own strategies to ease Afghanistan through the transition period, there seems to have been little coordination and no overarching plan,” he said.

Significance of CPEC

According to the World Bank, the deteriorating security environment and persisting political uncertainty continue to undermine private-sector confidence and affect economic activity in Afghanistan.

Domestic demand remained weak with no sign of a pickup in private consumption and investment. The number of new company registrations, as a proxy for business activities, indicated only a small increase in new investment activities in 2015, but it remained significantly below the levels of 2012-13, the bank said.

Time for strong cooperation

However, instead of focusing on the issues highlighted by Sigar, Afghanistan is engaged in a blame game with Pakistan. This is a time for integration and strong cooperation in order to steer out of the economic problems.

Afghanistan is a transit country and can become a trade hub as China has taken over control of Gwadar Port. Pakistan and China are working on a gigantic economic corridor project called CPEC that offers myriad investment opportunities for all countries in the region, including Afghanistan.

Almost all Central Asian states have expressed interest in becoming part of the China-Pakistan Economic Corridor (CPEC). Beijing is also keen to reach Central Asia and Afghanistan provides a suitable transit route. Peace will prevail in Afghanistan in the long term if it goes for economic development. Kabul should welcome Islamabad’s offer to join the CPEC as it will have multiple options for using the ports.

However, rather than capitalising on the opportunity, Afghanistan has become part of the Chabahar port deal between Iran and India to show its muscles to Pakistan and China.

the writer is a staff correspondent

Published in The Express Tribune, September 26th, 2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

 

Facebook Conversations

Reader Comments (7)

  • AnonPK
    Sep 26, 2016 - 8:29AM

    Inviting snakes and backstabbers will make it even more complicated. Don’t you learn from what they did at UN votes, quarrel at the border and the constant enemy of Pakistan is our friend initiatives? Author, learn to respect your countries integrity, otherwise suffer from the consequences of your decisions.Recommend

  • Iqbal
    Sep 26, 2016 - 9:35AM

    I would say that we Afghans have learned a lot from our dependence on Pakistan and now we have put a lot of efforts in place diversify our trade routes and bring to minimum our dependence on Pakistan who by the time when our fruits’ crops ripe close the doors and try to create problems for our traders. In short Pakistan does not know the norms of Trade and Economic development, wearing the glasses of security, everything they make it politicized. I am not confident that SPEC would be materialized, keeping in view the usurpation of Baloch and Pushtoons’ rightsRecommend

  • abreez
    Sep 26, 2016 - 10:39AM

    After India, the worst enemies of Pakistan are Afghans, the sooner every Pakistani will learn this better.Recommend

  • Sohaib
    Sep 26, 2016 - 10:50AM

    Its obvious Afghani government is in the pocket of India. India has been using Afghan land to create anarchy in Baluchistan for a long time while Pakistan has already reaped the consequences of harboring millions of Afghani’s over the past 3 decades so why should Pakistan involve them?

    Its not like that Afghanistan is a huge market so unless they get a real government which isn’t a pwn for India Pakistan should cut all ties with them at all levels.Recommend

  • jay
    Sep 26, 2016 - 12:06PM

    @Sohaib: Where is Muslims brotherhood love that most Pakistan talk off ? We all Muslims are brothers isnt this line overused by Pakistani ? Now the same Muslims have become an Indian agent ? So basically anyone who goes against Pakistan is an Indian agent . Paranoia at best Recommend

  • Merwais Afghani
    Sep 26, 2016 - 4:01PM

    Today New law introduced by Afghanistan which blocks access to Pakistani trucks entering Afghanistan I don’t think that’s a sign of joining CPEC.Recommend

  • Sheraz
    Sep 26, 2016 - 8:37PM

    @ Merwais Aghani Good Luck Mr. Also please don’t bother to cross over to Pakistan even for medical reasons. Lets see how long you can survive.Recommend

More in World