The opening ceremony of starting trade activities at Gwadar port was the top news of this week. Pakistan and China kick-started the fourth round of naval drill at Karachi. Jamaat-i-Islami hosted a multi-party conference in Peshawar to demand early working on the western route. Some lawmakers from Senate showed their concern that China might use the China-Pakistan Economic Corridor (CPEC) to boost trade relations with India. Chief Minister of Sindh Syed Murad Ali Shah said that his government has prepared plan to establish Industrial Zone with Chinese assistance at Dhabeji in Sindh.

Gwadar Opening:

Prime Minister Nawaz Sharif launched the first shipment of trade supplies from Gwadar Port in hyped and celebratory manner. Chinese ambassador Sun Weidong, Pakistan’s Army Chief General Raheel Sharif, Balochistan’s Chief Minister Nawab Sanaullah Zehri and other state officials and foreign dignitaries were also present on the occasion. The PM said that “[T]oday we have gathered to witness the dream of CPEC turning into a reality”.[1] The trade consignment included containers of Chinese goods that entered into Pakistan in the end of October and travelled on the western route to Gwadar. Sino Trans, a state owned Chinese logistics company, was managing the shipment of these goods.[2] Pakistan Navy escorted the two ships, MV Cosco Willington and MV al Hussain carrying the goods to Arab and African countries.[3]

All Party Conference on CPEC:

Jamaat-i-Islami (JI) hosted a multi-party conference in Peshawar to push the central government for starting early work on the western route. Leaders from 16 political parties and groups participated in the conference and demanded that the Prime Minister follow the decisions made at the multi-party conference on CPEC on May 28, 2016 in Islamabad. JI provincial chief Mushtaq Ahmad Khan said that “[I]f Nawaz Sharif ignores the joint declaration of conference, then it will not only affect this gigantic project but will also cause major setback to China-Pakistan friendship.”[4]  The joint declaration adopted after the conference said political parties in KP welcome CPEC project but the rights of the province need to be safeguarded. Other participants included representatives and members of Awami National Party (ANP), Jamiat Ulama e Islam (JUI-F), Pakistan Tehreek e Insaaf (PTI), Pakistan People’s Party (PPP), etc. Earlier on November 7, KP government moved the Peshawar High Court against center on the issue of western route.

Navy Drills:

A flotilla of Chinese ships, including the ocean salvage and rescue ship Changxindao and Handan, arrived in Karachi to take part in the fourth round of bilateral exercise between Pakistan Navy (PN) and People’s Liberation Army Navy (PLAN).[5] PLAN was extended a warm welcome on arrival at Karachi by Pakistan Navy. Members of Chinese Consulate were also present on the occasion.[6] The exercise is aimed at promoting maritime security and stability in the region with focus on CPEC.[7] The exercise will continue till 21 November.

CPEC and India:

Some of lawmakers in the Upper House of Parliament expressed concern over the possibility that CPEC might be used by China to enhance trade with India.[8] These apprehensions were expressed at a meeting of the Senate Standing Committee on Planning and Development. Chairman of the Committee Syed Tahir Hussain Mashhadi agreed with the perception of another senator that after improved road and rail links with India through Munabao and Amritsar under CPEC, China would boost trade ties not only with Central Asia and Europe but also with India. He underscored that “China will definitely use the CPEC to expand trade with India because one who invests always watches its interests first.”[9] He added that “[I]rrespective of sour Pakistan-India relations, China will do trade with Indian through the CPEC.” The same senator had compared the payoff of CPEC project with the exploitation of East India Company in October.[10]

Sindh Industrial Zone:

Sindh Chief Minister Syed Murad Ali Shah has said that his government has finalized a plan to establish Industrial Zone (under CPEC) at Dhabeji and develop the Keti Bander project for the betterment of Sindh and Pakistan. He said that “[M]y team will prepare a detailed feasibility of the Keti Bunder project and present it as a commercial scheme” in the next meeting of the CPEC Joint Cooperation Committee (JCC) so that it can be included in CPEC project.[11]  He informed the Chinese delegation, led by Ambassador Sun Weidong, about the land allocation at Dhabeji for the purpose of industrial zone. The Chinese envoy asked for the details of the Keti Bundar project and assured the CM that he will support his plan.[12]

Miscellaneous:

Beijing has approved the provision of financial assistance worth $1.14 billion to Pakistan for three short term projects under CPEC. The projects include KKH Thakot-Raikot (N-35) remaining portion, Khuzdar-Basima Road (N-30) and up-gradation of Dera Ismail Khan-Zhob Road (N-50).[13] Hundreds of protestors in Gilgit-Baltistan blocked the Karakorum Highway (KKH) for several hours on Thursday. They demanded compensation for their land which was used for KKH expansion a decade ago.[14]

This report is compiled by Abdur Rehman Shah, Research Associate at Center for Research and Security Studies.

References:

[1] Our Correspondent. (2016, November 14). Dream debut: Gwadar port ships off first CPEC cargo. Retrieved on November 17, 2016, from http://tribune.com.pk/story/1230240/dream-debut-gwadar-port-ships-off-first-cpec-cargo/

[2] Husain, Khurram. (2016, November 14). First ship leaves Gwadar among fanfare. Retrieved on November 17, 2016, from http://epaper.dawn.com/DetailNews.php?StoryText=14_11_2016_001_006

[3] Our Staff Reporter. (2016, November 16). Retrieved on November 17, 2016 from http://epaper.dawn.com/DetailNews.php?StoryText=16_11_2016_003_004

[4] Bureau Report. (2016, November 16). Center pushed for early work on CPEC western route. Retrieved on November 17, from http://www.dawn.com/news/1296656/centre-pushed-for-early-work-on-cpec-western-route%2016

[5] APP, (2016, November 17). Chinese Navy flotilla to participate in drills. Retrieved on November 17, 2016, from http://epaper.dawn.com/DetailNews.php?StoryText=17_11_2016_003_006

[6] Web Desk. (2016, November 16). Chinese navy flotilla arrives to participate in bilateral exercise. Retrieved on November 17, 2016, from http://arynews.tv/en/chinese-navy-flotilla-arrives-to-participate-in-bilateral-exercise/

[7] Hasan, Shazia. (2016, November 18). Navies of Pakistan, China begin their fourth joint exercise. Retrieved on November 18, 2016, from http://www.dawn.com/news/1297067/navies-of-pakistan-china-begin-their-fourth-joint-exercise

[8] PTI. (2016, November 17). Pakistan lawmakers concerned China may use CPEC to boost India ties. Retrieved on November 17, 2016, from http://indianexpress.com/article/world/world-news/pakistan-lawmakers-concerned-china-may-use-cpec-to-boost-india-ties-4380327/

[9] Raza, Irfan Syed. (2016, November 17). Senators fear China may use CPEC to enhance trade with India. Retrieved on November 17, 2016, from http://epaper.dawn.com/DetailNews.php?StoryText=17_11_2016_003_003

[10] Raza, Irfan Syed. (2016, October 18). ‘CPEC could become another east India Company’. Retrieved on November 17, 2016, from http://www.dawn.com/news/1290677

[11] Our Correspondent. (2016, November 16). Sindh to set up industrial zone in cooperation with China. Retrieved on November 18, 2016, from http://epaper.tribune.com.pk/DisplayDetails.aspx?ENI_ID=11201611160090&EN_ID=11201611160030&EMID=11201611160015

[12] Ghori, Habib Khan. (2016, November 16). Plan to set up China-Pakistan industrial zone in Dhabeji finalized. Retrieved on November 18, 2016, from http://epaper.dawn.com/DetailNews.php?StoryText=16_11_2016_117_003

[13] Wasif, Sehrish. (2016, November 13). Beijing approves funding for three short term projects. Retrieved on November 18, 2016, from http://epaper.tribune.com.pk/DisplayDetails.aspx?ENI_ID=11201611130337&EN_ID=11201611130113&EMID=11201611130055

[14] Mir, Shabbir. (2016, November 18). KKH blocked for hours near Sost. Retrieved on November 18, 2016,from http://epaper.tribune.com.pk/DisplayDetails.aspx?ENI_ID=11201611180070&EN_ID=11201611180030&EMID=11201611180010