China-Pakistan Economic Corridor (CPEC) was the prominent topic in news this week. Prime Minister Nawaz Sharif linked the future of the region to CPEC. Pakistan welcomed the news about the coming tri-lateral talks between Russia, China and Pakistan on the future of Afghanistan. Pakistan’s Planning, Development and Reforms Minister Ahsan Iqbal has said that $35 billion has so far been energized for CPEC. A group of China’s military trade corporations participated in the 9th International Defense Exhibition and Seminar held in Karachi. Pakistan has approved the Russian request for using the Gwadar port for its exports. Britain Secretary of State for Foreign and Commonwealth Affairs Boris Johnson has appreciated the CPEC and desired that UK’s firms would participate in this project.
‘Region’s Future Linked to CPEC’:
Pakistan’s Prime Minister Nawaz Sharif in his meeting with the Turkmen President Gurbanguly Berdimuhamedov has said that “[T]he future of the region’s population is linked to CPEC.”[1] He is on a state visit to Turkmenistan to discuss the matters of bilateral interest, including the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline and reestablishing air links between the two countries. The TAPI project agreement was signed by the four countries in 2010 to build a gas pipeline to bring natural gas from Turkmenistan to Afghanistan, Pakistan and India. The Prime Minster said that Pakistan will welcome any country interested in joining the multibillion-dollar CPEC.[2] Turkmen President Gurbanguly agreed with Premier Sharif’s views on CPEC’s importance and said this project would guarantee prosperity for the entire region.
Trilateral Talks:
Pakistan has hailed the coming together of Russia, China and Pakistan for talks next month in Moscow as “a watershed moment”.[3] Earlier this month, Russia had revealed that trilateral talks between Russia, China and Pakistan will be held to discuss Afghanistan. Zamir Kabulov, Director of the Second Asian Department, said that “we are planning the next Russian-Chinese-Pakistani consultations in December. They will be held in Moscow.”[4] Talking to the Express Tribune, Pakistan Foreign Spokesperson Nafees Zakaria noted that “[T]he deteriorating security situation in Afghanistan has raised concerns about the spillover effect due to the presence of non-state actors and other elements there” on Afghan territory. The exact schedule for talks has not been issued yet but it is believed they will be held during the first two weeks of December. It will help the three countries to enhance mutual coordination on regional issues especially the Afghanistan.
Ahsan on CPEC:
Pakistan’s Planning, Development and Reforms Minister Ahsan Iqbal has said that $35 billion out of $46 billion for CPEC has so far been energized. He added that “[B]y energizing I mean these are projects either in advanced implementation or in a stage of financially closing.”[5] He said that $11 billion has been earmarked for infrastructure projects, as concessional loans provided at about 2 percent with payback in 20 years, including of 5 years as grace period. As the major chunk of investment under CPEC is focused on energy projects, 11,000 MW of electricity is expected to be added by 2018 to national energy supplies. Currently, the maximum power generation is 16,548 MW against the demand of 22,500 MW with the shortfall close to 6,000 MW.[6]
International Defense Exhibition:
A delegation of China’s military trade corporations participated in the 9th International Defense Exhibition and Seminar held in Karachi. It was a four day show that lasted from 22 till 25 November. There were nine major military trade corporations in the Chinese delegation including China Aviation Technology Import-Export Corporation (CATIC), China Shipbuilding Trading Co. Ltd., China North Industries Corporation, China Electronics Import and Export Corporation (CEIEC) etc.[7] The Chinese team exhibited aircraft, missile weaponry systems, tanks vessels and radars. Among the military technologies shown by delegation were FC-1 Fighter Jets, FD-2000 Air Defense Missile System, CM-302 Full-range Supersonic Anti-ship Missiles, Pterosaurs UAV (Unmanned Aerial Vehicle) and Z-9 armed helicopters.
Russia and Gwadar Port:
Pakistan has approved the Russian request for using the Gwadar port for its exports after Moscow’s willingness to be part of CPEC.[8] Pakistan’s Prime Minister Nawaz Sharif who is on a two-day visit to Turkmenistan welcomed the interest of the Russian Federation to become part of the CPEC and said that Pakistan would welcome participation of any country in this project.[9] This development has come at a time of increasing thaw in security relations between Russian and Pakistan. In addition to Moscow’s decision to use warms waters of Gwadar port, Iran and Turkmenistan had also shown interest in CPEC project.[10] Connecting CPEC to these countries will help materialize the broader dream of China under the “One Belt One Road” (OBOR) initiative that is aimed at getting access to energy and economic markets in Asia, Europe and Africa.
Johnson on CPEC:
Britain Secretary of State for Foreign and Commonwealth Affairs Boris Johnson has called the CPEC as a wonder project and desires that firms from UK participate in its various construction activities. While addressing the students and faculty of the Government College University (GCU) at Lahore he said that “I am very excited about the CPEC idea.”[11] He added “I hope that British companies get to participate in the construction of this fabulous venture that will revive the ancient Silk Road as rebirth of trading caravans connecting east and west.”[12] Mr. Johnson pointed out that “[I]n trading terms, Pakistan embraces the geographical heart of Asia where India, with over a billion people, lies only 15 miles away, to the wet are Afghanistan and Iran, with a combined population of more than 100 million and to the north-west are the energy-rich states of Central Asia.”[13]
This report is compiled by Abdur Rehman Shah, Research Associate at Center for Research and Security Studies.
[1] APP. (2016, November 26). Future linked to CPEC, PM tells Turkmen President. Retrieved on November 26, 2016, from http://www.dawn.com/news/1298708/future-linked-to-cpec-pm-tells-turkmen-president
[2] Ranan, Aamir Ilyas. (2016, November 26). CPEC open to all says Nawaz. Retrieved on November 28, 2016, from http://epaper.tribune.com.pk/DisplayDetails.aspx?ENI_ID=11201611260122&EN_ID=11201611260042&EMID=11201611260016
[3] Yousaf, Kamran. (2016, November 21). Pakistan, Russia, China seek to crack Afghan conundrum. Retrieved on November 25, 2016, from http://tribune.com.pk/story/1237886/pakistan-russia-china-seek-crack-afghan-conundrum/
[4] Agencies. (2016, November 14). Russia, Pakistan and China to hold talks on Afghanistan. Retrieved on November 25, 2016, from http://nation.com.pk/national/14-Nov-2016/russia-pakistan-and-china-to-hold-talks-on-afghanistan
[5] Gokoluk, Selcuk. (2016, November 24). China about to start $35 billion of Silk Road Plan in Pakistan. Retrieved on November 25, 2016, from https://www.bloomberg.com/news/articles/2016-11-24/china-about-to-start-35-billion-of-silk-road-plan-in-pakistan
[6] Khan, Ahmad Faraz. (2016, May 21). Power shortfall beyond 6,000 MW. Retrieved on November 28, 2016, from http://www.dawn.com/news/1259756
[7] Panyue, Huang. (2016, November 24). China’s national defense delegation debuts at IDEAS 2016 in Pakistan. Retrieved on November 25, 2016, from http://english.chinamil.com.cn/view/2016-11/24/content_7375810.htm
[8] Mustafa, Khalid. (2016, November 26). Pakistan allows Russia use of Gwadar Port. Retrieved on November 28, 2016, from https://www.geo.tv/latest/121689-Pakistan-allows-Russia-use-of-Gwadar-Port
[9] Zaafir, Muhammad Saleh. (2016, November 26). Ruussia allowed use of Gwadar Port. Retrieved on November 28, 2016, from https://www.thenews.com.pk/print/167827-Russia-allowed-use-of-Gwadar-Port
[10] IANS. (2016, November 26). Pakistan allows Russia use of Gwadar Port under China-Pak Economic Corridor. Retrieved on November 28, 2016, from http://www.hindustantimes.com/world-news/pakistan-allows-russia-use-of-gwadar-port-under-china-pak-economic-corridor/story-8YuUCrYTU2Kj7mQIIvpNzO.html
[11] Hasnain, Khalid. (2016, November 26). Boris wants UK firms part of CPEC. Retrieved on November 28, 2016, from http://epaper.dawn.com/DetailNews.php?StoryText=26_11_2016_002_006
[12] Rogers, Jon. (2016, November 26). Boris Johnson forges ties with Pakistan to access old Silk Road trade deal. Retrieved on November 28, 2016, from http://www.express.co.uk/news/world/736776/Boris-Johnson-Pakistan-ties-silk-road-trade
[13] Sindhu, Hader Ali. (2016, November 26). Pakistan to become trade hub through CPEC, says British Foreign Secretary Boris Johnson. Retrieved on November 28, 2016, from https://en.dailypakistan.com.pk/pakistan/pakistan-to-becomes-trade-hub-through-cpec-says-british-foreign-secretary-boris-johnson/