Security concerns continue to dominate CPEC related developments in Pakistan, with an “extraordinary” civil-military huddle at GHQ topping the headlines. CPEC allocations, provincial mistrust, and regional cooperation news remained prominent.
Security
The federal as well as the provincial governments are determined to provide security to the Chinese and other experts working on the projects of China-Pakistan Economic Corridor (CPEC).[1] The Interior Minister on Wednesday last week also hinted that there were several powers around the world who did not want to see CPEC succeed.[2] This is a sentiment echoed by Army Chief General Raheel Sharif who said Pakistan is aware of the “hostility” faced by CPEC in a statement alluding to India which has publicly opposed the project.[3]
Key civil and military leaders assembled at the General Headquarters (GHQ) on Tuesday to review the policy towards Afghanistan and deliberate on the challenges to the CPEC.[4] This is an extraordinary meeting, as the civilian government is responsible for ensuring CPEC security and success. Finance Minister Ishaq Dar, Defence Minister Khawaja Asif, Adviser to the PM on Foreign Affairs Sartaj Aziz, PM’s Special Assistant Tariq Fatemi and Foreign Secretary Aizaz Chaudhry attended the meeting from the civilian side. This meeting also comes at a time when the prime minister is incapacitated due to health concerns, having gone through open heart surgery on June 2, 2016. The meeting was concluded with the usual rhetoric, and a condemnation of the US drone strike that killed Mullah Mansur.
CPEC Allocations
The federal government has earmarked Rs 73.678 billion for 32 projects under the China Pakistan Economic Corridor in Public Sector Development Programme 2016-17.[5] [6] Prime Minister Nawaz Sharif has felicitated federal minister for Finance Senator Muhammad Ishaq Dar for producing pro-growth budget for next fiscal year.[7] Finally, Pakistan cleared two strategically important $10 billion projects for upgrading a mainline of the Pakistan Railways to smoothen the CPEC traffic, and construction of a gas pipeline. Finally, Chinese companies have officially signed an engineering procurement construction (EPC) contract for a coal-fired power plant jetty in Balochistan.[8]
Chinese Ambassador to Pakistan Sun Weidong has said that capacity of Gwadar port is being increased and that CPEC will help realize Pakistan’s dream to become Asian Tiger.[9]
Anti-corruption organizations of Pakistan and China will jointly monitor the $46 billion CPEC and its related projects to ensure transparency and avoid chances of corruption.[10] Pakistan is currently embroiled in the Panama Papers controversy, a trove of leaked documents from a Panama based firm that the prime minister’s family is allegedly involved in illegal money movement and tax evasion. Given Pakistan’s track record, and this latest scandal, it is only natural that the Chinese are keen to protect their multi-billion dollar investment. A former federal minister for religious affairs was also sentenced to 16 years in jail for mismanagement and corruption of the annual pilgrimage scheme. This is a good development, as it shows that the system is picking up steam, and also bad, because he clearly did not act alone, and it only continues to tarnish Pakistan’s reputation.
Awami National Party (ANP) General Secretary Mian Iftikhar Hussain said that the CPEC was a key project but the federal and provincial governments had ignored Pakhtun belts in the scheme.[11] Unfortunately for the former minister, the ANP has had a very poor track record of governance and a stellar record of corruption in their 2008-2013 tenure. So much so that the general elections eliminated all but one ANP seats from the parliament. Additionally, the idea that the Pakhtun belt is being ignored is also largely inaccurate, though Punjab is certainly prioritized. This statement means little in the grand scheme of things, and is designed for political point scoring. However, provincial angst over prioritizing Punjab may seem some redress, as a senate panel unanimously recommended the government to further increase budgetary allocations for the western route of CPEC, showing apprehensions that the government was still not serious on building the road on priority.[12]
Regional Cooperation
Pakistan People’s Party Vice President Sherry Rehman said that PPP has always been, and remains committed to, cementing Pakistan’s relationship with the Communist Party of China (CPC) and People’s Republic of China.[13] China is committed to the CPEC project because it will dictate the success of its OBOR initiative, and as such, China will work with whatever government exists in Pakistan to realize this dream. There is a very long history of trust and cooperation between the two countries, and Pakistan is the only country in the world awarded the “All Weather Strategic Cooperation Partnership” title.
Power Generation
Chinese companies have officially signed an engineering procurement construction (EPC) contract for a coal-fired power plant jetty in Balochistan. The project is being jointly invested in by China Power International Holding Ltd and the Hub Power Co, and it will be constructed as a whole by China Harbor Engineering Co, a subsidiary of China State Construction Engineering Corp, according to a press release issued by China Harbor on Wednesday.[14]
General
Secretary Ministry of Water and Power Muhammad Younus Dagha has said that Pakistan is of the early recipients of the One-Belt-One Road initiative of Chinese President His Excellency President Xi and the Government of Pakistan has developed a policy framework, which is flexible enough to provide for all forms of assistance to the initiative.[15]
Kashmiri leaders under the All Parties Hurriyat Conference (APHC) have also universally and unanimously supported CPEC.[16]
by Zeeshan Salahuddin, a journalist and researcher, who serves as a Senior Research Fellow at the Center for Research and Security Studies, Islamabad, and holds a bachelor and master degree in strategic communications from Ithaca College, NY. He can be reached via zeeshan[dot]salahuddin[at]gmail.com and tweets @zeesalahuddin.
[1] Staff Reporter. (2016, June 04). Govt determined to provide security to experts working on CPEC: IG. Retrieved June 13, 2016, from http://www.pakistantoday.com.pk/2016/06/04/city/karachi/govt-determined-to-provide-security-to-experts-working-on-cpec-ig/
[2] Staff Reporter. (2016, June 07). Many countries averse to CPEC: Nisar. Retrieved June 13, 2016, from (https://www.geo.tv/latest/107439-Many-countries-averse-to-CPEC-Nisar
[3] Staff Reporter. (2016, June 03). Pakistan aware of hostility towards CPEC: Gen Raheel. Retrieved June 13, 2016, from http://tribune.com.pk/story/1115487/pakistan-aware-hostility-towards-cpec-gen-raheel/
[4] Syed, B.S. (2016, June 08). ‘Extraordinary’ huddle at GHQ focuses on CPEC. Retrieved June 13, 2016, from http://www.dawn.com/news/1263511/extraordinary-huddle-at-ghq-focuses-on-cpec
[5] Sahi, N. (2016, June 04). Rs73.7b for 32 CPEC projects. Retrieved June 13, 2016, from http://nation.com.pk/national/04-Jun-2016/rs73-7b-for-32-cpec-projects
[6] Last week: Further, the government has also approved an Rs 33.2 billion for 24 development projects during the next financial year 2016-17 under the CPEC, out of which Rs 9.7 billion have been reserved for 12 Gwadar-related projects.
[7] Zaafir, M.S. (2016, June 05). PM greets Dar for presenting pro-growth budget. Retrieved June 13, 2016, from http://www.thenews.com.pk/print/125450-PM-greets-Dar-for-presenting-pro-growth-budget
[8] Staff Reporter. (2016, June 09). Pak, China firms ink agreement for coal power generation. Retrived June 13, 2016, from http://nation.com.pk/business/09-Jun-2016/pak-china-firms-ink-agreement-for-coal-power-generation
[9] http://www.turkishweekly.net/2016/06/03/news/cpec-to-help-realize-pakistan-s-dream-to-become-asian-tiger-sun-weidong/
[10] Asia News. (2016, June 03). CPEC to help realize Pakistan’s dream to become Asian Tiger: Sun Weidong. Retrieved June 13, 2016, from http://www.dawn.com/news/1262428/china-pakistan-to-jointly-monitor-46bn-cpec-projects-to-check-corruption-nab-chief
[11] Staff Reporter. (2016, June 04). Pakhtun belt ignored in CPEC project, claims ANP. Retrieved June 13, 2016, from http://www.thenews.com.pk/print/125201-Pakhtun-belt-ignored-in-CPEC-project-claims-ANP
[12] Staff Reporter. (2016, June 08). Raise in CPEC’s western route budget proposed. Retrieved June 13, 2016, from http://tribune.com.pk/story/1118251/raise-cpecs-western-route-budget-proposed/
[13] (2016, June 05). PPP supports China’s principled position on South China Sea, says Sherry. Retrieved June 13, 2016, from http://www.pakistantoday.com.pk/2016/06/05/city/islamabad/ppp-supports-chinas-principled-position-on-south-china-sea-says-sherry/
[14] Staff Reporter. (2016, June 09). Pak, China firms ink agreement for coal power generation. Retrieved June 13, 2016, from http://nation.com.pk/business/09-Jun-2016/pak-china-firms-ink-agreement-for-coal-power-generation
[15] Staff Reporter. (2016, June 03). Pakistan is main beneficiary of One-Belt-One-Road initiative of Chinese government: Younus Dagha. Retrieved June 13, 2016, from http://dailytimes.com.pk/business/03-Jun-16/pakistan-is-main-beneficiary-of-one-belt-one-road-initiative-of-chinese-government-younus-dagha
[16] Staff Reporter. (2016, June 07). Kashmiri leaders express support for CPEC. Retrieved June 13, 2016, from http://tribune.com.pk/story/1117535/kashmiri-leaders-express-support-cpec/