The Iron Brothers

We must not embarrass our Chinese friends by overstretching demands that might one day amount to ransoming the country


Shamshad Ahmad November 21, 2014

Prime Minister Nawaz Sharif’s recent visit to Beijing aroused great interest and curiosity among the people, especially after governmental claims on the outcome of the visit. According to federal minister Ahsan Iqbal, at least 19 agreements were signed during this visit, involving a huge portfolio of Chinese investment worth $45.6 billion. There were all sorts of speculations on the nature of the Chinese financing — whether it consisted of loans or investment — and if loans, what sovereign guarantees were involved.

Also, there are fears that given the enormity of the size and cost of the projects and knowing our system, we may not be able to avert situations of ‘force majeure’ or inevitable delays, with hidden cost-escalation as experienced in some earlier projects, notably the controversial Nandipur plant. Whatever the reality, the government owes it to the people to bring transparency into all aspects of the Chinese ‘investment’ package. Our relationship with China is too important to be dragged into domestic controversies.

The Chinese, on their part, were indeed quick to dispel any speculations. In a media briefing in Islamabad, a senior Chinese official confirmed the signing of 19 agreements during the prime minister’s visit to Beijing earlier this month. Though he did not give the exact value of the agreed projects, he made it clear that China wants to ensure their early and transparent completion. “For us, their execution is a challenge as we have signed these documents with firm commitment,” he said. According to him, out of the 19 projects, 13 were energy related, which will be functional by 2018.

China’s projects, he said, were all for the people of Pakistan. Specifically citing the Pakistan-China Economic Corridor, the Gwadar Port and the newly launched Asia Infrastructure Investment Bank as the major “engagements” between the two neighbours, the Chinese official made it clear that Pakistan-China economic cooperation was without any political preconditions. Reiterating China’s known position, he said: “We will not let our friends suffer in testing times. We are strong friends — ‘The Iron Brothers’ — and we will continue to discuss issues of mutual benefit and cooperation.”

This indeed is a factual reflection of the China-Pakistan friendship, which is not based on transient interests or expediencies and is above such events like change of governments or personalities in both countries. The unmatched special feature of this relationship is the mutual trust and confidence based on convergence of strategic interests that the two countries have built over the decades as an asset of their friendship. Both countries have been supporting each other in their just causes, which for Pakistan include a peaceful settlement of the Kashmir issue and preservation of its independence and territorial integrity, and for China, the issues of Taiwan, human rights in Tibet and Xinjiang.

There is a strong strategic mutuality in this approach, making economic and security cooperation the bedrock of this multi-dimensional relationship as a factor of peace and stability in this region. From the Karakoram Highway to the newly completed Gwadar Port, a string of industrial plants, factories, electrical and mechanical complexes, power-producing units, including hydro and nuclear power plants, stand testimony to China’s vital contribution to our country’s economic development. Their new plans encompass a whole range of connectivity, construction, and economic and technical cooperation, including the Pakistan-China Economic Corridor linking Pakistan’s coastal areas with northwest China.

This indeed is a huge agenda with mutual interests rooted in their common vision for a better future for their own peoples and for peace and prosperity of the region itself. For China, it is the ‘national rejuvenation’ through accelerated development of its backward western regions, whereas for Pakistan, it is the imperative of converting its geopolitical location into an asset rather than a liability. The real challenge for both now remains how vigorously and faithfully they can translate this common vision into reality.

On their part, the Chinese have always delivered on their commitment. Their help has always been selflessly unconditioned involving even sacrifices in terms of many Chinese lives. Even today, thousands of Chinese engineers and workers are engaged under most difficult conditions in building roads, bridges, tunnels, dams, schools and hospitals for the people of Pakistan. The problem is on our side. Economic activity’s basic ingredients comprise consistent policies, a stable law and order situation and supporting infrastructure, including requisite energy. These are missing in our country.

The history of two vital aspects of our cooperation with China — trade potential and the Gwadar Port — totally neglected by us for almost a decade, should be an eye-opener as far as our capacity or ability to ensure time-barred and cost-effective completion of new projects is concerned. The problem is that we do not even have a policy or priority framework nor an integrated approach in handling development projects and funds, which often lapse due to non-utilisation. A number of projects are lost or abandoned only because there is no coordination among the relevant agencies of our government.

The perilous security situation, the continuing energy crisis and our corrupt politico-bureaucratic machinery are the biggest bottlenecks and warrant immediate attention if we are serious about honouring our own commitment to realise the common goals envisioned as part of the new China-Pakistan plans. Our industrial wheel is mostly non-operational constricting our export productivity. No wonder, our trade with China remains one-sided. It’s also a pity that a country of 200 million people and tremendous engineering skills and a talent reservoir today can’t even run its own ports, railways or airlines.

We are still waiting for the Chinese to come and start operating the Gwadar Port. A nation that leaves itself completely at the mercy of others and continues to look for disinterested favours from them is not worthy of independence. We must not embarrass our Chinese friends by overstretching our demands that might one day amount to ransoming the country. The situation needs a change in our mindset and a paradigm shift in our governance patterns, which require hard decisions.

Also, the two countries need to rise above meaningless cliches that they often use in describing their friendship such as ‘higher than the mountains and deeper than the oceans’. Lately, for whatever reason, the Chinese are using a new title for this relationship — ‘The Iron Brothers’. Perhaps, they don’t understand its connotation in the Pakistani context.

The two countries will be better off without all these titles, remaining good friends, sincere to each other and steadfast in their common interests guided by mutuality — neither too high nor too deep — but strong enough to face the fast-changing regional and global ground realities and common challenges of peace, cooperation and prosperity.

Published in The Express Tribune, November 22nd, 2014.

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COMMENTS (23)

Rex Minor | 9 years ago | Reply

@bahadur khan: Well said. Education is the only remedy for the countries problems. The author has simply expressed his opinion which may or may not provide aggregate benefits. The Chinese are investing in African countries as well to capitalise on the low cost labour in foreign lands.

Rex Minor

AB | 9 years ago | Reply

1-First of all, these r not MoUs anymore, 19 binding projects have actually been "SIGNED" under the 'Early Harvest Program' (means they r binding now). 2-Chinese companies are supposed to provide electricity at decided upon rates (7.5-8.5c/Unit).So if they delay or plants breakdown, it will be the company's loss, not Pakistan's.When agreements r of such nature, Companies have to ensure quality for their own sake. 3-If projects r delayed beyond stipulated time, the investing company does not get it's IRR for delayed time (unless delay is caused by Govt of Pakistan's fault). So once again, the risk is on investors' shoulders.

Now the real thing we need to do is provide some degree of stability to the investor and make sure we meet our own part of the commitment (provision of land, coal transport infrastructure, transmission lines, etc). If we can do that, it's a win-win for all, Pakistan needs investments, and Chinese need good rate of return, which they r getting here.

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