Minister for Planning, Development and Reforms, Ahsan Iqbal, has said that energy projects under CPEC would be operational by 2017 and 2018. Chief Minister of Khyber Pakhtunkhwa (KP), Pervez Khattak expressed his satisfaction with the outcome of deliberations at the Joint Cooperation Committee (JCC) meeting in Beijing. China has responded to India’s criticism of Beijing’s blocking of UN Security Council’s move against Masood Azhar and warned that it will not ‘sit still’ if India goes too far in its arms race against Pakistan. The group of three chambers of commerce and industry termed as “golden industrial triangle” has expressed serious reservations against the plans of setting up industrial units along the CPEC route. Prime Minister Nawaz Sharif has urged that the fruits of CPEC should be equitably distributed among all the federating units.

CPEC Projects:

Minister for Planning, Development and Reforms, Ahsan Iqbal, has said that energy projects with cumulative capacity of about 5,000 megawatts under CPEC would be operational by 2018.[1] Under the CPEC agreement, it was agreed between China and Pakistan that 8,810 MW of electricity would be produced by 2017 and 2018 through thermal, wind and solar power projects. But the minister noted that inter-ministerial disputes and inclusion of financially unviable projects in CPEC have retarded the achievement of this target. On the other hand, Prime Minister Nawaz Sharif asked the officials concerned to include in the CPEC non-controversial hydro-electric power projects to be set up on the Indus.[2] Energy-related projects sits at the core of CPEC and are intended to help Pakistan overcome its acute energy shortages.

Provincial Consensus:

Chief Minister of KP, Pervez Khattak has said that he was satisfied with the outcome of deliberations at the last JCC meeting in Beijing.[3] He also noted that three major development projects will be launched in the province under CPEC. These projects include generation of 1,700 megawatts electricity, construction of a road linking Charsadda with Gilgit and laying of fast railway track to interconnect Peshawar, Charassada, Mardan, Nowshera and Swabi.[4] The expression of satisfaction on the part of KP’s chief minister is a major development for national consensus over CPEC projects. The province has long complained that the western route of corridor has been willfully neglected. It even filed a petition against the central government in Peshawar High Court to ask for answers as to why the western route was neglected while the eastern one was prioritized under CEPC. But the coming together of the three provincial chief ministers, including KP, Sindh and Balochistan, for the sixth JCC meeting might be a good omen for national unity on CPEC.

China’s Response to India:

China has responded to India’s criticism of Beijing’s blocking of UN Security Council’s move against Masood Azhar and warned that it will not ‘sit still’ if India goes too far in its arms race against Pakistan. Chinese Foreign Ministry spokesman, Geng Shuang, justified Beijing’s obstruction of move against Jaish-e-Muhammad’s leader by saying “[W]e have taken a responsible and constructive part in relevant discussion in a professional and objective way.”[5] Meanwhile, an editorial in China’s state-run Global Times warned India that Beijing “will not sit idly if India goes too far” in its nuclear arms race vis-à-vis Pakistan.[6] The editorial added that “Pakistan should have those privileges that India has.” Beijing has become more open in its efforts of backing ‘all-weather’ friend against India’s criticism and assertive policies.

Concerns over ‘Industry along CPEC Route’:

The group of three chambers of commerce and industry termed as “golden industrial triangle” which comprises Gujrat, Gujranwala and Sialkot cities has expressed serious reservations about China’s reported plans of setting up industrial units along the CPEDC route.[7]  They have suggested that such scenario might turn Pakistan into a purely consumer market and further weaken the country’s manufacturing market. Hence the representatives of these industries urged the government to take these industrial cities into confidence about the planned industrial units. The “golden industrial triangle” plays a pivotal role in bringing Pakistan billions of dollars by exporting high quality goods to foreign countries including high-ended markets of Europe. These concerns have some genuine reasons as Pakistan’s trade deficit with China has already reached to $6 billion.[8]

Miscellaneous:

Prime Minister Nawaz Sharif has commended the progress on CPEC and urged that the fruits of these projects should be equitably distributed among all the federating units.[9] Chairman NAB, Qamar Zaman Chaudry, has said that Pakistan will make sure the transparency in CPEC projects.[10] China would provide around $1 billion in soft loans for three new road projects along the western route of CPEC.[11]

This report is compiled and written by Abdur Rehman Shah, Research Associate at the Center for Research and Security Studies (CRSS), and edited by Zeeshan Salahuddin, Senior Research Fellow at CRSS, Islamabad.

[1] Rana, Shahbaz. (2017, January 05). Several China-sponsored power projects hit snags. Retrieved January 06, 2017, from http://tribune.com.pk/story/1284914/several-china-sponsored-power-projects-hit-snags/ 

[2] Kiani, K. (2017, January 05). PM wants Indus projects included in CPEC. Retrieved January 06, 2017, from http://www.dawn.com/news/1306528/pm-wants-indus-projects-included-in-cpec

[3] Our Correspondent. (2016, December 30). Deliberations on CPEC: Khattak satisfied with JCC meeting outcome. Retrieved January 08, 2017, from http://tribune.com.pk/story/1279958/deliberations-cpec-khattak-satisfied-jcc-meeting-outcome/

[4] Radio Pakistan. (2017, January 7). Three major development projects to be launched in KP under CPEC: Khattak. Retrieved January 08, 2017, from http://www.radio.gov.pk/07-Jan-2017/three-major-dev-projects-to-be-launched-in-kp-under-cpec-khattak

[5] Dasgupta, S., & T. (2017, January 05). China responds to India on Masood Azhar, says its stand is ‘professional and objective’. Retrieved January 09, 2017, from http://timesofindia.indiatimes.com/world/china/china-responds-to-india-on-masood-azhar-says-its-stand-professional-and-objective/articleshow/56359637.cms

[6] Sputnik International. (2017, January 05). Chinese Media: If India Makes More ICBMs, Beijing Will Help Pakistan Respond. Retrieved January 09, 2017, from https://sputniknews.com/us/201701061049306870-china-warns-india-against-missiles/

[7] Our Correspondent, (2017, January 02). Chambers voice concern at China. Retrieved January 09, 2017, from http://www.dawn.com/news/1305865/chambers-voice-concern-at-chinas-plan-to-set-up-industry-along-cpec-route

[8] Iqbal, S. (2016, August 16). Trade deficit with China swells to $6.2bn. Retrieved January 09, 2017, from http://www.dawn.com/news/1277774

[9] Our Correspondent. (2017, January 5). Fair distribution of CPEC fruits urged. Retrieved January 09, 2017, from http://epaper.tribune.com.pk/DisplayDetails.aspx?ENI_ID=11201701050322&EN_ID=11201701050114&EMID=11201701050049

[10] Radio Pakistan. (2017, January 6). NAB to work with China to ensure transparency in CPEC. Retrieved January 09, 2017, from http://www.radio.gov.pk/06-Jan-2017/nab-to-work-with-china-to-ensure-transparency-in-cpec

[11] APP. (2017, January 04). China to loan $1b for new road projects. Retrieved January 09, 2017, from http://tribune.com.pk/story/1283498/china-loan-1b-new-road-projects/