Saifullah Sani
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Soon after taking oath of his office, Prime Minister Nawaz Sharif announced to initiate a great number of projects in a bid to correct the ailing economy of the country. Of the many projects, power seems the most crucial sector, a sector that would strengthen other sectors of the economy. These projects have, enthusiastically, been taken on by the strategic cooperative partnership between Pakistan and China, now being referred to as the Pak-China Economic Corridor.
The name ‘Corridor’ suggests a gateway or a passage that connects the two separate countries, continents or regions. This ‘economic corridor’ will not be the first in history. Rather, as Hedrick points out, the use of sea and land routes have assisted in the globalization process of opening Asia, as early as the 19th century. He argues that the Suez Canal, opened in 1869, acted to aid the empires of great powers during the time. The canal through the Sinai Peninsula made trade and empire faster but also economical. The world’s superpower of the time, Great Britain, made great strategic use of it, by transport of goods, officials and soldiers to Bombay and other key colonial hubs in an easier and affordable manner. Similarly, Pakistan and China’s economic corridor sets out to achieve the same goals in a cooperative and democratic manner.
The China-Pakistan Economic Corridor is an under-construction development program to connect Gwadar Port in southern Pakistan to China’s northwestern autonomous region of Xinjiang via highways, railways and pipelines to transport oil and gas.
Chinese Premier Li Keqiang was among the first advocates of the project; since then Chinese President Xi Jinping, former Pakistani President Asif Ali Zardari and Prime Minister Nawaz Sharif have become strong supporters of the project. When the corridor is constructed it will serve as a primary gateway for trade between China and the Middle East and Africa. In particular oil from the Middle East could be offloaded at Gwadar, which is located just outside the mouth of the Persian Gulf, and transported to China through the Balochistan province in Pakistan. Such a link would vastly cut the 12,000-kilometre route that Mideast oil supplies must now take to reach Chinese ports.
The project received a major boost when control of Gawadar was transferred to China’s state-owned China Overseas Ports Holding in February 2013. Built by Chinese workers and opened in 2007, Gwadar is undergoing a major expansion to turn it into a full-fledged deep-water commercial port. Pakistan and China have signed agreements for constructing an international airport at Gwadar, upgrading a section of the 1,300-Kilometre Karakorum Highway connecting to Islamabad and laying a fibre-optic cable from the Chinese border to the Pakistani city of Rawalpindi. With the development of the corridor Central Asia, traditionally an economically closed region owing to its geography and lack of infrastructure, will have greater access to the sea and to the global trade network. The Pak-China Economic Corridor Secretariat was inaugurated in Islamabad on August 27, 2013.
On November 2014, Chinese government announced that it will finance Chinese companies to build $45.6 billion worth of energy and infrastructure projects in Pakistan as part of CPEC. Documents show that China has promised to invest around $33.8 billion in various energy projects and $11.8 billion in infrastructure projects which will be completed by 2017 at most. The deal includes $622 million for Gwadar port. Under the CPEC agreement, $15.5 billion worth of coal, wind, solar and hydro energy projects will add 10,400 megawatts of energy to the national grid of Pakistan.
Physically, the corridor is a 2,700-Kilometre highway that stretches from Kashghar to Gwadar through Khunjrab. But in essence, these road and rail links will further strengthen the bond of brotherhood, as highlighted by the two governments. China Pakistan Economic Corridor from Kashgar to Gwadar will integrate the economies of the two friendly countries. The project is establishing several economic zones and physical links connecting Pakistan and China. Both the countries believe that this economic corridor will benefit new emerging regional cooperation in South Asia. This project is set out to transform the future of the region, driven by economy and energy, and the building of pipelines and ports with roads rail infrastructure.
Pakistan serves as an important ally for China in the South Asian Region. Pakistan’s geographical location puts it on the main route connecting China and the Middle East and China and Central Asia. For economic and strategic connectivity with these regions, China requires safe passage through Pakistan especially after China’s growing share in world trade. In addition, China wishes to secure its position through Pakistan in South Asia to balance India’s emergence as it can potentially jeopardize the Chinese ambitions of leading Asia.
Chairman of the Pakistan-China Institute, Senator Mushahid Hussain Sayed believes that the economic corridor “will play a crucial role in regional integration of the ‘Greater South Asia’, which includes China, Iran, Afghanistan, and stretches all the way to Myanmar.” A strong Pakistan is valuable as it warrants that Indian claim of regional hegemony will not go unchallenged. He opined that the Pakistan-China Economic Corridor is of immense importance for the revival of Pakistan’s economy, resolution of energy crisis and strengthening the Federation through development and infrastructure.
The emergence of the Asian Infrastructure Investment Bank, with an outlay of $ 100 billion, would be an Asian alternative to the Western financial system, he added.
He said relations with China were a factor of national unity in Pakistan since all political parties and provinces supported it, while Pakistan has always backed China in its ‘core interests’ including China’s unity and territorial integrity, leading role of the Communist Party in China, China’s peaceful rise and issues like Taiwan, Tibet and terrorism in Xinjiang, and strongly opposes any policy of ‘containment of China’ as Asia cannot afford a New Cold War.
According to Director General, Planning Commission, Syed Mujtaba Hussain, Pakistan-China Economic Corridor is strategically important for both China and Pakistan keeping in view the growing regional trade and investment collaboration. It is a win-win opportunity for Pakistan and China and the agreements of early harvest projects during Prime Minister Nawaz Sharif visit to China have great significance. These projects would be completed within a span of two to three years time and these include rail, road network besides several long and short term energy projects.
Pakistan is the first South Asian country to sign a free trade agreement and currency swap agreement with China and is also the largest destination of Chinese investment in South Asia. China is Pakistan’s second largest trading partner and fourth largest export market. China-Pakistan Economic Corridor has the potential to turn Pakistan into a hub of regional cooperation. If Pakistan uses this opportunity wisely and is able to reap the economic benefits this corridor has to offer, it can greatly enhance its regional power and prestige and prove a more valuable long-term ally for Beijing.
Pak-China Economic Corridor a ‘fate changer’ for Pakistan
The name ‘Corridor’ suggests a gateway or a passage that connects the two separate countries, continents or regions. This ‘economic corridor’ will not be the first in history. Rather, as Hedrick points out, the use of sea and land routes have assisted in the globalization process of opening Asia, as early as the 19th century. He argues that the Suez Canal, opened in 1869, acted to aid the empires of great powers during the time. The canal through the Sinai Peninsula made trade and empire faster but also economical. The world’s superpower of the time, Great Britain, made great strategic use of it, by transport of goods, officials and soldiers to Bombay and other key colonial hubs in an easier and affordable manner. Similarly, Pakistan and China’s economic corridor sets out to achieve the same goals in a cooperative and democratic manner.
The China-Pakistan Economic Corridor is an under-construction development program to connect Gwadar Port in southern Pakistan to China’s northwestern autonomous region of Xinjiang via highways, railways and pipelines to transport oil and gas.
Chinese Premier Li Keqiang was among the first advocates of the project; since then Chinese President Xi Jinping, former Pakistani President Asif Ali Zardari and Prime Minister Nawaz Sharif have become strong supporters of the project. When the corridor is constructed it will serve as a primary gateway for trade between China and the Middle East and Africa. In particular oil from the Middle East could be offloaded at Gwadar, which is located just outside the mouth of the Persian Gulf, and transported to China through the Balochistan province in Pakistan. Such a link would vastly cut the 12,000-kilometre route that Mideast oil supplies must now take to reach Chinese ports.
The project received a major boost when control of Gawadar was transferred to China’s state-owned China Overseas Ports Holding in February 2013. Built by Chinese workers and opened in 2007, Gwadar is undergoing a major expansion to turn it into a full-fledged deep-water commercial port. Pakistan and China have signed agreements for constructing an international airport at Gwadar, upgrading a section of the 1,300-Kilometre Karakorum Highway connecting to Islamabad and laying a fibre-optic cable from the Chinese border to the Pakistani city of Rawalpindi. With the development of the corridor Central Asia, traditionally an economically closed region owing to its geography and lack of infrastructure, will have greater access to the sea and to the global trade network. The Pak-China Economic Corridor Secretariat was inaugurated in Islamabad on August 27, 2013.
On November 2014, Chinese government announced that it will finance Chinese companies to build $45.6 billion worth of energy and infrastructure projects in Pakistan as part of CPEC. Documents show that China has promised to invest around $33.8 billion in various energy projects and $11.8 billion in infrastructure projects which will be completed by 2017 at most. The deal includes $622 million for Gwadar port. Under the CPEC agreement, $15.5 billion worth of coal, wind, solar and hydro energy projects will add 10,400 megawatts of energy to the national grid of Pakistan.
Physically, the corridor is a 2,700-Kilometre highway that stretches from Kashghar to Gwadar through Khunjrab. But in essence, these road and rail links will further strengthen the bond of brotherhood, as highlighted by the two governments. China Pakistan Economic Corridor from Kashgar to Gwadar will integrate the economies of the two friendly countries. The project is establishing several economic zones and physical links connecting Pakistan and China. Both the countries believe that this economic corridor will benefit new emerging regional cooperation in South Asia. This project is set out to transform the future of the region, driven by economy and energy, and the building of pipelines and ports with roads rail infrastructure.
Pakistan serves as an important ally for China in the South Asian Region. Pakistan’s geographical location puts it on the main route connecting China and the Middle East and China and Central Asia. For economic and strategic connectivity with these regions, China requires safe passage through Pakistan especially after China’s growing share in world trade. In addition, China wishes to secure its position through Pakistan in South Asia to balance India’s emergence as it can potentially jeopardize the Chinese ambitions of leading Asia.
Chairman of the Pakistan-China Institute, Senator Mushahid Hussain Sayed believes that the economic corridor “will play a crucial role in regional integration of the ‘Greater South Asia’, which includes China, Iran, Afghanistan, and stretches all the way to Myanmar.” A strong Pakistan is valuable as it warrants that Indian claim of regional hegemony will not go unchallenged. He opined that the Pakistan-China Economic Corridor is of immense importance for the revival of Pakistan’s economy, resolution of energy crisis and strengthening the Federation through development and infrastructure.
The emergence of the Asian Infrastructure Investment Bank, with an outlay of $ 100 billion, would be an Asian alternative to the Western financial system, he added.
He said relations with China were a factor of national unity in Pakistan since all political parties and provinces supported it, while Pakistan has always backed China in its ‘core interests’ including China’s unity and territorial integrity, leading role of the Communist Party in China, China’s peaceful rise and issues like Taiwan, Tibet and terrorism in Xinjiang, and strongly opposes any policy of ‘containment of China’ as Asia cannot afford a New Cold War.
According to Director General, Planning Commission, Syed Mujtaba Hussain, Pakistan-China Economic Corridor is strategically important for both China and Pakistan keeping in view the growing regional trade and investment collaboration. It is a win-win opportunity for Pakistan and China and the agreements of early harvest projects during Prime Minister Nawaz Sharif visit to China have great significance. These projects would be completed within a span of two to three years time and these include rail, road network besides several long and short term energy projects.
Pakistan is the first South Asian country to sign a free trade agreement and currency swap agreement with China and is also the largest destination of Chinese investment in South Asia. China is Pakistan’s second largest trading partner and fourth largest export market. China-Pakistan Economic Corridor has the potential to turn Pakistan into a hub of regional cooperation. If Pakistan uses this opportunity wisely and is able to reap the economic benefits this corridor has to offer, it can greatly enhance its regional power and prestige and prove a more valuable long-term ally for Beijing.
Pak-China Economic Corridor a ‘fate changer’ for Pakistan
