Removing CPEC bottlenecks: Tunnels may smoothen trade in winter

Four-month trade stoppage with China because of weather is an irritant


Shabbir Mir December 06, 2016
The first shipment of the China-Pakistan Economic Corridor reaches Gilgit-Baltistan’s Sost Dry Port. PHOTO: FILE

GILGIT: Steps will soon be taken to keep the flow of containers nonstop on the CPEC route even in extreme winter conditions, official spokesperson for the Gilgit-Baltistan government Faizullah Faraq said on Monday.

Expressing optimism regarding removal of bottlenecks in bilateral trade with China, Faraq hinted at the possibility of excavating a series of tunnels along the CPEC route.

Pakistan, China to trade in local currencies

“The first convoy that reached Gwadar via Sost was a test case,” said the spokesman. “It was a success and now (the flow) will not stop.”

Keeping in line with decades-old traditions, the border between the two countries closed on December 1.

The border closure, lasting till April 1 next year, is observed under an agreement signed by both countries in 1985 to avoid losses in harsh weather conditions in this mountainous and rugged region. A month earlier, the multi-billion-dollar China-Pakistan Economic Corridor (CPEC) was formally launched as  hundreds of Chinese trucks loaded with goods rolled into the Sost dry port in Gilgit-Baltistan on November 1 this year.

“The closure of border means suspension of all business activities,” said Imran Ali, who is the president of the Gilgit-Baltistan Chamber of Commerce.

“But that’s under a protocol which is in the interest of traders,” Ali said.

Ali said that because traders involved in trade with China knew the schedule of border closure, it did not affect their businesses. He was confident that this stoppage would soon end under the CPEC. “Neither Pakistan nor China can afford to waste this much time, especially after the start of CPEC,” he said, adding that four-month-long suspension meant huge loss in revenue in customs duties.

China, busy reviving the Old Silk Route under its ‘One Belt, One Road’ initiative, has asked Pakistan recently to suggest ways to reduce trade losses caused by possible extreme weather events.

China organised the International Science Forum of National Scientific Organisations in Beijing, which was participated by 36 heads of Asian and European scientific organisations.

First Chinese trade convoy arrives in Gwadar through CPEC

During the conference, Pakistan urged China to develop a multi-hazard early warning system in areas vulnerable to climate hazards such as tsunamis, flashfloods, landslides, earthquakes, fog, tropical cyclones and dust storms. Pakistan also called for strengthening weather and climate data network, besides improving financial cooperation and sharing skill and technology-based knowledge among member states.

These measures would help Beijing greatly reduce trade and human losses on the route, officials said.

Heavy snowfall, threats of avalanches and other extreme events linked with extreme cold weather in this area of the world, forces stoppage of large vehicles, besides ending all activities at the Sost dry port. The dry port starts closing down by the middle of December before packing up by year end. Life returns to normal after the port opens on April 1 next year.

Trade has not yet picked up, but officials had high hopes of boosting the ailing national economy. So far, no major difference had appeared in domestic revenue on this front.

“So far, the revenue collection is Rs1.85 billion this year,” said Deputy Collector of Customs Akbar Gandapur.

“The number of containers arriving at Sost (dry port) from China is (still) 1,200,” said Gandapur, who is posted at Sost. The first consignment of CPEC goods was received by G-B Chief Minister Hafeezur Rehman and the commander of the Force Command Northern Areas Maj-Gen Saqib Mehmood.

Published in The Express Tribune, December 6th, 2016.

COMMENTS (4)

shah | 7 years ago | Reply @IBN E ASHFAQUE; ok common sense let me tell you some common sense 1 there are 29 industrial zone are planted in cpec which will boost the industries in pakistan 2 good that are manufactured in pakistan will be comparable in price with chinees goods due to cheap labour but due to expensive electricity and taxes it will high or low in price. 3 pakistan produce less electricity then its needs thats why electricity is expensive and we only produce 40 mw through coal so introducing coal which pakistan have one of the largest rreserve and cutting electricity produce from oil and thermal which is imported so electricity will be cheap and remember many hydroelectric powerplants are also being installed. 4 china trading from land not only save heavy amount of money but also give a more secure route then it uses today which is controlled by USA 5 there is only 2% intreset rate on that loan which is very low compare to the rest of the world which give loan to pakistan. 6 many companies are starting bussinesses in pakistan(non cpec) and many in cpec the revenue generated by those companies and due to less use of oil for generating electricity loan can be easily paid remember in musharaf era heavy amount of loan was paid even at that no mega project or anything like that was present at that time 7 dont know about karachi port but we have revive our self from failling to a failed state which was going to be controlled by terrorist to a state which is more safe then many other big countries where crime rate is way higher then pakistan. even if karachi port is running 50% of its capacity cause no one willing to invest in a failed state but now we are improving and karachi port is not world largest natural deep sea port. do some research rather then beleving in propaganda and false news
IBN E ASHFAQUE | 7 years ago | Reply @Truth: You are asking COMMON SENSE questions...........In this land of the PURE do not ask common sense questions.........as everything with CPEC is GOOD........and when you are asking COMMON SENSE questions you can be titles as........ANTI-PAKISTAN........May Allah guide us all..........to acquire some common sense.....
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