XINHUAAworkermonitorsapowergeneratoratthePortQasimCoal-FiredPowerPlantinSindhProvince,Pakistan,onNovember28,2017MahnoorFatimastudiessociologyattheShaheedZulfikarAliBhuttoInstituteofScienceandTechnologyinKarachi,butshehopestoworkataChinesecompanyaftergraduationsoastoparticipateintheconstructionoftheChinaPakistanEconomicCorridor(CPEC).The21-year-oldsaidthatCPEChasbeenhelpingimprovepeople’slivingconditionsaroundherandisofgreatsignificanceforthefutureofhercountry.
Sinceitwasinitiatedfiveyearsago,CPEC,aflagshipprojectoftheChinaproposedBeltandRoadInitiative—withbillionsininvestmentmoneyanddozensofinfrastructureandenergyprojectscurrentlyunderconstructionthroughoutPakistan—hasbecomethetalkofthetown.
“CPECprojectsarecreatingalargenumberofjobopportunities,andpowerfailuresarebecominglessandlessfrequentthankstoCPEC,”saidFatima.ShetoldBeijingReviewthatsheisalsostudyingChineseinordertoseizeopportunitiestostudyinChinaorlandajobataChineseenterprise.
Profoundchanges
ForKaishifShaikh,CEOofAizaExports,CPECmeansmoreopportunitiesforhisexportbusinesswithChina,whichmainlysellsricetotheChinesemarket.
“Chinahasahugemarket.WhenlandtransportationbetweenPakistanandChinaundertheframeworkofCPECbecomesmoreconvenient,deliveryexpenseswilldropconsiderablyandmoreandmorePakistaniproductscanbesoldtoChina,”Shaikhsaid.
“ThereisconsensusacrosstheboardinPakistanontheimportanceofCPEC,”saidTehminaJanjua,ForeignSecretaryofPakistan,inaninterviewwithBeijingReview.
AccordingtoJanjua,CPEChasachievedsignificantsuccessandenjoyscross-borderpoliticalsupportandwillbeapriorityofthenewgovernmentinhercountry.
WhenmeetingwithChineseForeignMinisterWangYiinIslamabadinearlySeptember,PakistaniPrimeMinisterImranKhansaidthathisgovernmentisfirmlycommittedtofurtherpromotingthedevelopmentofPakistan-ChinarelationsandstandsreadytoworkwithChinaonCPEC.
ChinahasanimportantplaceinPakistan’sforeignpolicyandthenewgovernmentwillworktowardtheswiftcompletionofCPECanditsrelatedprojects,Khanadded.
AccordingtoMuhammadZubairUmar,whoservedasgovernorofSindhProvincefromFebruary2017toAugustthisyear,theimprovementoftransportationfacilitiesandtheincreasingpowersupplyinhisprovincehasbeenobvioussincetheconstructionofCPECprojects.Powershortages—previouslyaheatedtopicinelectioncampaigns—werenotamajorissueinthelatestgeneralelectionthattookplaceinJuly.
ShaukatKhattak,DeputyDirectorofMediaforCPECatPakistan’sMinistryofPlanning,DevelopmentandReforms(MPDR),pointedoutthatCPECprojectshavehelpedsignificantlyalleviatepowershortagesinPakistanandareestimatedtocreateasmanyas1millionjobs.Forinstance,the1,320MWPortQasimCoal-FiredPowerPlant,thesecondmajorenergyprojectunderCPEC,willbeabletoprovidepowertoabout4millionlocalfamiliesayearwhenitisinfulloperation.
OfficialdatashowedthatCPEChasbeendrivinguptheannualeconomicgrowthofPakistanby1to2percentagepointsinrecentyears,creating70,000jobs,whileinthelongrun,thefigurewillbemuchbigger.
“WhatshouldbeparticularlynotedistheriseofthePakistanipeople’sconfidenceinthefutureoftheircountry.AlongwiththeadvancementofCPECconstruction,Pakistanhasmaintainedmoderatelyhighgrowthinrecentyears,potentiallymakingitanotherpromisingemergingeconomy,”saidChengXizhong,aresearcherwiththeCharharInstitute,aBeijing-basedthinktank.
HelmutvonStruve,ManagingDirectorofSiemens(Pakistan)EngineeringCo.,whohasworkedinKarachiformorethanthreeyears,haspersonallyexperiencedtheimprovementofthesecurityandinvestmentenvironmentinthecountry.HesaidthathehasnowbroughthiswholefamilytoliveinKarachi,somethingthatwashardtoimaginethreeyearsagoduetosecurityconcerns.
InasymposiumwithChinesejournalistsinearlyAugust,AbdulAleem,SecretaryGeneralofPakistan’sOverseasInvestorsChamberofCommerceandIndustry(OICCI),saidthatsomeWesternreportsmisleadreadersbysayingthatCPEConlybenefitsChinesecompanies,butmanyopportunitiesareavailablefornon-Chinesecompaniesaswell.OICCIrepresentsover200companiesfromoutsideofPakistan.
SindhEngroCoalCo.(SECC)isajointventurebetweentheprovincialgovernmentofSindhandPakistaniconglomerateEngroCorp.ItisdevelopingtheTharEngroCoalPowerProject,oneofthecountry’slargestcoal-miningprojectsunderCPEC.SyedAbulFazalRizvi,chiefoperatingofficerofSECC,toldBeijingReviewthatthereishearsaythatmostoftheCPECprojectsaremajorityownedbyChinesecompaniesandthatChineseinvestorsaregettingalltherevenue.ThatisnotthecasefortheTharcoalproject,where95percentoftheentireequityinminingisownedbyPakistanicompanieswithmorethan4,000jobscreatedforlocalpeople,hesaid.
StruvetoldBeijingReviewthatSiemenshasalsobeenexpandingitsmarketonCPECprojectsinPakistan,benefitingfromtheimprovementofthelocalinvestmentenvironmentbroughtaboutbyCPEC.
AleemsaidthatmanymultinationalsarereinvestinginPakistanbecausetheyseealotofopportunitiesforgrowththankstoCPEC,pointingoutthatmembersoftheOICCIareexpectedtoinvestabout$2.7billionin2018alone.
Clarifyingmisunderstanding
Forthepastfewmonths,Pakistan’seconomyhascomeunderpressureandforeignexchangereservesaredecliningduetoacurrentaccountdeficit.Someforeignmedia,particularlyfromtheWest,hintedinreportsthatitwasCPECthathadcausedPakistan’sdebtproblem.Theyalsodismissedthefutureoftheproject.
Inresponsetothosereports,JanjuatoldBeijingReview,“ObviouslybecauseoftheverycloserelationshipbetweenPakistanandChina,therearemanypeopleouttherewhodon’tlikethisclosenessorthisrelationship.”
AizazAhmadChaudhry,DirectorGeneraloftheInstituteofStrategicStudiesinIslamabad(ISSI),sharedJanjua’sview.“NoteverycountryishappyaboutPakistanChinacooperation,sotheykeepspreadingnegativenewsabout[CPEC],”hetoldBeijingReview.“Alltheprojectsarebasicallyforenergyandinfrastructure.Howwillthatnothelpthelocalpeople?”
InastatementinearlyAugust,theMPDRdeclaredthatCPECprojectshavenotimposedanyimmediatedebtburdenonthegovernmentofPakistansincetheseprojectsarefinancedthroughacompositefinancingpackagecomprisinglong-term,governmentto-governmentconcessionalandpreferentialloans,aswellasgrantsfromthegovernmentofChina.
TheMPDRsaidthatmediareportsquestioningtheviabilityofCPEC“areoftenone-sided,distortfactsandarebasedonirresponsiblestatementsbyindividualswhoeitherhavenounderstandingofCPECoraredrivenbyulteriormotives.”
Foryears,internationalfinancialinstitutionssuchastheInternationalMonetaryFundandtheAsianDevelopmentBankhaveofferedloanstoPakistan.StatisticsfromtheChineseMinistryofForeignAffairsshowthat,atpresent,47percentoftheforeigndebtheldbyPakistancomesfrommultilateralfinancialinstitutions.China,foritspart,hasdirectlyinvestedinorprovidedassistancefor18outofthe22CPECprojects,whileofferingconcessionalloansfortheremainingfour.
AccordingtoKhattak,sincethestartofCPECprojects,Pakistanhasobtainedabout$6billioningovernmentconcessionalloanswithafive-yeargraceperiodbeforea25yearrepaymentplanbegins.
KhalidMahmood,ISSIChairman,saidthatfollowingtheconstructionofCPECprojectsfromenergyandinfrastructureprojectstoports—economicactivitywillbestimulated,enablingPakistantopaybackitsloansandmeetotherfinancialobligations.
Futureprospects
CooperationbetweenChinaandPakistanunderCPECisnotlimitedtoinfrastructureandenergy-relatedprojects.
WheatisamajorcropinPakistan,as80percentofitspeoplerelyonitasastaplefood.However,Pakistan’swheatyieldwasinrapiddecline10yearsago.
Againstthisbackdrop,SinochemGroupCo.,oneofChina’smajorprovidersofagriculturaltechnologies,conductedfieldtrialsofChinesehybridwheatvarietiestogetherwithitsPakistanipartners.Afteryearsofexperiments,thetrialshaverealizedanaverage24.4-percentincreaseincropyields.
AccordingtoZhangShengquan,aseniorresearcherwithSinochem’shybridwheatseedresearchdepartment,widecultivationofhigh-yieldinghybridwheatvarietieswillprovidemoreoptionsforPakistantosecureitsfoodsupply.
AfterCPECtakesshape,China-Pakistancooperationwillbeevenmorecomprehensive,expandingtoallaspectsinthefuture,ChengtoldBeijingReview.
JavedJabbar,aformerfederalministerinthePakistaniGovernmentandrenownedscholar,toldBeijingReviewthatmostpeopleinPakistanwelcomeCPEC.TherealchallengeforPakistantobetterbuildCPECistoimprovetheefficiencyandspeedofadministrativeservices.
“Wehavetodoalotbetter.Wehavetocoordinateamongthelocalandfederalgovernments.Ifthatimprovementtakesplace,theprojectscanbeimplementedontimetothesatisfactionofbothChinaandPakistan,”Jabbarsaid.
CopyeditedbyRebecaToledo
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