Any project as large and long term as that as the China-Pakistan Economic Corridor (CPEC) is not going to be without its difficulties. There have already been rumblings of discontent about who and where is going to be the primary beneficiary in Pakistan and the Chinese have concerns particularly about security. The One Belt, One Road (OBOR) project is truly vast, reaching from central African states where China has major interests; to the states of Central Asia and beyond. Pakistan plays a crucial part in the chain of programmes and resources that stitch OBOR together.
The port of Gwadar is vital in this context, and the Chinese wanted to use its currency the yuan (renminbi) in the Gwadar zone on a par with the US dollar and Pakistan refused somewhat to the chagrin of the Chinese, who want to internationalise their currency in the same way that the US dollar is an international currency. The decision came at the latest of the Senior Officials Meeting that oversees the project. It was also decided to formally move towards financing of three special industrial/economic zones (SEZs) as well as a slew of other projects. Not on the list is the Karachi Circular Railway that once again finds itself in limbo.
CPEC is going to be truly a game changer for Pakistan from which the whole country is eventually going to benefit — but not all of the country at the same time. Harmonising every element of CPEC to ensure that they all move forward at the same speed is nigh impossible. Some elements will be completed faster than others and as already is evident not everybody is going to be happy about that. The Chinese are going to powerfully influence our national future for many decades to come. It is essential that Pakistan protects its own sovereign interests, and at this point it is not in our interest to accede to every demand the Chinese make — hence the refusal regarding the renminbi. This is not a deal-breaker for either side.
Published in The Express Tribune, November 22nd, 2017.
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