One road — too many secrets
It is now being reported that China has temporarily halted the funding of several projects
The concept of the China-Pakistan Economic Corridor (CPEC) is transformative. It is difficult to find a commentator or analyst who thinks otherwise. Whilst the concept, the very big picture, is clear enough its realisation and achievement is already fraught with difficulties that are making the Chinese uneasy and finding political traction in a Pakistan that is united more in theory than practice. In large part this latter is to be laid at the door of the federal government and its chronic inability to be straight or open about anything associated with CPEC which feeds a climate of mistrust everywhere one looks.
It is now being reported that China has temporarily halted the funding of several projects, primarily roads, until it issues a decision in respect of what are being called ‘new guidelines’. This has come as a shock to Pakistani officials closely involved with the project and its various arms. Three roads are affected, all projects of the National Highway Authority with a total value of Rs109.25 billion. Digging deeper it appears that the Chinese are uneasy about multiple reports in Pakistan of corruption associated with CPEC, and given that corruption in Pakistan is endemic it is perhaps hardly surprising that they are being careful with their money. It is likely that the impact of the failed release of funds — which had already been agreed through a complex process — is going to be far wider than the named projects.
Then there is the question of whether Pakistan can afford CPEC, afford to pay back the long-term loans and their mark-up against a background of a galloping balance-of-payments deficit. And how was the arrangement with China worked out that gives it 91 per cent of the revenues generated by Gwadar? Is the projected impact on local labour and industries in the public domain and if not why not? The public and the media have a right to know what is being done in their name that is going to affect the lives of every one of us for generations to come. There are too many known unknowns and the trust deficit is receiving daily deposits.
Published in The Express Tribune, December 6th, 2017.
It is now being reported that China has temporarily halted the funding of several projects, primarily roads, until it issues a decision in respect of what are being called ‘new guidelines’. This has come as a shock to Pakistani officials closely involved with the project and its various arms. Three roads are affected, all projects of the National Highway Authority with a total value of Rs109.25 billion. Digging deeper it appears that the Chinese are uneasy about multiple reports in Pakistan of corruption associated with CPEC, and given that corruption in Pakistan is endemic it is perhaps hardly surprising that they are being careful with their money. It is likely that the impact of the failed release of funds — which had already been agreed through a complex process — is going to be far wider than the named projects.
Then there is the question of whether Pakistan can afford CPEC, afford to pay back the long-term loans and their mark-up against a background of a galloping balance-of-payments deficit. And how was the arrangement with China worked out that gives it 91 per cent of the revenues generated by Gwadar? Is the projected impact on local labour and industries in the public domain and if not why not? The public and the media have a right to know what is being done in their name that is going to affect the lives of every one of us for generations to come. There are too many known unknowns and the trust deficit is receiving daily deposits.
Published in The Express Tribune, December 6th, 2017.