China losing hope in Pakistan: a false assumption

Domestic inefficiencies, global propaganda complicate but fail to weaken enduring Pak-China partnership

ISLAMABAD:

It is unfortunate but a reality. Pakistan-China relationship has always been under scrutiny and the target of malicious propaganda. Western powers never approve it and advise Pakistan to curtail or minimise its relationship.

On the contrary, Pakistan helped the West establish close relationship with China, which opened a new world of opportunities for both parties. It was Pakistan that led the backdoor diplomacy to facilitate the approach and development of linkages with China. In this way, the West is the direct and biggest beneficiary of Pakistan-China brotherhood. Although Pakistan never listened to the advice of diminishing the friendship with China and kept strengthening the relationship, the launch of the China-Pakistan Economic Corridor (CPEC) further accelerated the propaganda.

First, they came up with the allegation of debt trap. They propagated that CPEC is a debt trap and is responsible for Islamabad's financial challenges. Second, they tagged CPEC as an East India Company and a tactic to capture the South Asian nation.

Third, there was propaganda that China was exporting its labour. Fourth, most recently, they ran a comprehensive and targeted campaign against CPEC energy projects. It was designed to create a bad image of China among the common people in Pakistan.

All these campaigns failed miserably, as these statements had no rationale or data to support them. However, the opponents have now adopted a new tool or phrase for propaganda, saying that China is losing hope in Pakistan. It is totally false, rather a stupid assumption.

There is no sign of weakness in the relationship between the two countries. Recently, both countries have signed new agreements and MoUs to strengthen the relationship further.

For example, Pakistan and China have launched five new corridors under CPEC 2.0: Growth Corridor, Economic Development Projects Corridor, Innovation Corridor, Green Corridor, and Regional Connectivity Corridor. They are also working to enhance cooperation in the fields of science, technology, and agriculture. Pakistan will be sending 1,000 agriculturists for training in China.

The two sides have decided to focus on high-level exchanges. Their leadership is aware that we are living through a century of unprecedented changes, and deep consultations are needed. Therefore, the prime minister of Pakistan visited China, and a high-level Chinese delegation led by the prime minister of China will visit Pakistan. These few examples show that the relationship is going on well.

Now, the question is, why is this notion being promoted by certain groups? And from where do propagandists get the support or material to frame assumptions or propaganda campaigns? The analysis of ground realities and propaganda campaigns highlights a few disturbing facts.

First, there were certain things that Pakistan could not deliver according to requirements or commitments. For example, it was assumed, rather than decided, that the construction of all Special Economic Zones (SEZs) should be completed well before the completion of the first phase of CPEC.

The construction of SEZs was necessary to kick-start the industrialisation process in Pakistan. Only two SEZs, Faisalabad and Rashakai SEZs, are in the operational phase.

However, Rashakai is still facing challenges in attracting investment, like not being able to get a licence to purchase electricity directly from energy producers. There is one more interesting case study. A private company from China constructed a textile-related economic zone, but it is facing the challenge of getting connectivity to the main road.

Second, it is common knowledge that business-friendly environment is a prerequisite for attracting investment. Despite all promises and slogans, Pakistan's business environment is extremely complicated and promotes rent-seeking. It is considered one of the most inefficient systems. In recent years, Pakistan has shown progress in the ranking of ease of doing business (EODB), but on the ground inefficiency rules. The government's rhetoric of facilitation for the business community could not translate into action.

For example, according to the EODB ranking, it takes 113 days to get an electricity connection, 125 days for a construction permit, and 105 days for property registration. In reality, it takes many more days; rather, it can take many more months.

The tax system is even more complex and run by a complicated nexus of departments and agencies. According to famous tax expert Dr Ikramul Haq, 35 departments or agencies are involved in the taxation system.

On top of that, provincial tax systems and legal requirements further aggravate the situation. The lack of harmonisation of provinces' tax policies is one of the biggest bottlenecks to attracting foreign direct investment.

Inconsistency is another problem in taxation policy, impacting the business community's trust. Dispute resolution is a key area where the business community has serious concerns. It takes years to settle a dispute in the country.

According to the EOBD ranking, it takes, on average, three to four years to settle a dispute in Pakistan. In a nutshell, inefficiency rules the whole system. Third, the ruling elite play a big role in strengthening propagandists' hands. In their game of credit and political point scoring, they undermine the progress of CPEC and the China-Pakistan relationship.

It is a common observation that when a party is in opposition, it criticises the government for not implementing CPEC projects properly. They keep on criticising without realising the impact of their statements on the national interest, CPEC, and the China-Pakistan relationship. It has been observed that the international media or propagandists use Pakistani politicians' statements to justify their points.

Fourth, this new wave of propaganda also has a global dimension. Western powers and their allies have intensified their efforts to encircle China and sabotage its development pace to prevent its peaceful rise. Therefore, they are building alliances like the Quadrilateral Security Dialogue (QSD).

They are also trying to neutralise friends of China. Pakistan, one of China's oldest and closest friends, is a prime target. Therefore, they are working to create a wedge between the leadership and people of both countries. Hence, Pakistan and China need to be vigilant and very careful in their communication and selection of words.

From the above discussion, we can infer two conclusions. First, there is nothing wrong with the China-Pakistan relationship; it is progressing well, rather getting stronger over time. Thus, there is no truth in the assumption that China is losing hope in Pakistan. Second, Pakistan needs to correct its mistakes and try to complete the SEZs as soon as possible. It also needs to improve and revamp the business environment. Besides, political parties and responsible personalities must learn to distinguish between party and national interests and forgo party benefits in the national interest. The writer is a political economist and

a visiting research fellow at Hebei University, China