The first formal trade activity between China and Pakistan on CPEC was prominent in the news this week. A report by China’s State Information Center (SIC) categorized Pakistan among the top five countries ‘highly’ cooperating with China on the One Belt One Road (OBOR) initiative. The Express Tribune reported that China is keen to finance and develop Pakistan’s portion of Iran-Pakistan (IP) gas pipeline. As always, politicians from Sindh, KP and Balochistan raised the issue of their respective provincial share in CPEC.
Beginning Trade on CPEC:
Trade on CPEC was formally operationalized on Monday as hundreds of Chinese trucks were unloaded at Sost dry port in Gilgit-Baltistan (GB). The first consignment of 150 to 300 trucks from China was received by GB Chief Minister Hafeezur Rehman and the commander of the Force Command Northern Areas Major General Saqib Mehmood.[1] The containers will be moved to Gwadar port with Pakistani trucks after obtaining customs clearance. Police personnel escorted the consignment as per the security plan under CPEC. Addressing the inaugural ceremony, GB Chief Minister said that “[T]his activity will bring prosperity and end unemployment in the region.”
Belt and Road Initiative Report:
A data report titled “Belt and Road in Big Data 2016” about China’s “belt and road initiative” was released by China’s State Information Centre (SIC) in Beijing. This is an annual report which presents a comprehensive analysis of the implementation of the initiative and authoritative evaluation of the cooperation between China and the 64 countries involved and the engagement of its 31 provinces.[2] The report categorized Pakistan, Russia, Thailand, Kazakhstan and Indonesia as “highly” cooperative countries in advancing China’s connectivity plans via road, rail, air and sea links under the belt and road initiative.[3] There are two volumes of this report. The first one is about ‘Belt and Road Initiative” and the second one evaluates important issues related to China’s economy. It is based on more than 300 billion data points collected by major statistical organizations and internet channels throughout all 64 countries and regions.[4]
IP Gas Pipeline:
Pakistan’s English daily The Express Tribune reported on Wednesday that China has shown its willingness to finance the yet to be built portion of the multi-billion Iran-Pakistan gas pipeline on Pakistan side.[5] The newspaper quoted unnamed officials as saying that China Petroleum Pipeline Bureau (CPPB) was interested in completing the remaining portion of gas pipeline from Gwadar to Iran border. CPPB is already engaged in the $1.4 billion Gwadar-Nawabshah LNG terminal and pipeline project. China is providing 85% of the total financing for LNG pipeline project and wants to construct IP pipeline on the same terms. While Iran has finished its part of the gas pipeline, Pakistan has yet to complete its portion of the project. In the wake of American and international sanctions against Iran, Pakistan could not start working on the project. Now that nuclear deal has already been signed by Iran, hopes of revitalizing this project are up again in Pakistan.
Share in CPEC:
Calls for due share in CPEC projects have been on rise in Pakistan. As is the case every week, politicians from Sindh and Khyber Pakhtunkhwa (KP) presented their reservations and demands in this regard. Chief Minister of Sindh, Syed Murad Ali Shah, expressed his concerns related to Sindh’s share in CPEC. He said that he will attend the CPEC management meeting, to be held at the end of this month, to raise the issue of inclusion of Keti Bundar in corridor and seek due share for his province in the industrial zones to be established under CPEC.[6] Similarly, KP’s Minister for Finance Muzafar Syed complained that majority of CPEC projects were allocated to Punjab. He added that KP should also be given its portion and that Malakand division needs to be included in CPEC.[7] The Corridor Front, a combination of different political workers leaders and trade associations from KP, even threatened to stage a protest in front of the Prime Minister House.[8] It seems that provincial differences over CPEC have to linger for foreseeable future.
Miscellaneous:
Chief of Balochistan National Party-Mengal (BNP), Sardar Akhtar Jan Mengal, has said that Balochis would accept development under CPEC only if their identity was not threatened. He added that his people were not against development process in the province.[9] Advisor to the KP Chief Minister, Malik shah Muhammad Khan, said that he will soon visit China to raise the issue of change in the route of CPEC.[10]
This report is compiled by Abdur Rehman Shah, Research Associate at Center for Research and Security Studies.
References:
[1] Mir, Shabbir. (2016, November 1). First Chinese Shipment rolls into Sost dry port. Retrieved on November 3, 2016, from http://tribune.com.pk/story/1216912/first-chinese-shipment-rolls-sost-dry-port-g-b/
[2] China.org.cn. (2016, October 28). China issues first big data report on Belt and Road Initiative. Retrieved on November 4, 2016, from http://www.scio.gov.cn/32618/Document/1501156/1501156.htm
[3] News Desk. (2016, November 1, 2016). Pakistan among five ‘highly’ cooperative countries in advancing China’s connectivity plans. Retrieved on November 4, 2016, from http://tribune.com.pk/story/1217031/pakistan-among-five-highly-cooperative-countries-advancing-chinas-connectivity-plan/
[4] Reuters. (2016, October 31). Pakistan among three highly cooperative with China advancing connectivity plan. Retrieved on October 31, 2016, from http://nation.com.pk/international/31-Oct-2016/pakistan-among-three-highly-cooperative-with-china-advancing-connectivity-plan
[5] Bhutta, Zafar. (2016, November 3). China wiling to finance Pakistan’s portion of IP pipeline. Retrieved on November 4, 2016, from http://epaper.tribune.com.pk/DisplayDetails.aspx?ENI_ID=11201611030305&EN_ID=11201611030106&EMID=11201611030048
[6] Our Staff Correspondent. (2016, October 29). Murad wants reservations over Sindh part of CPEC addressed. Retrieved on November 4, 2016, from http://www.dawn.com/news/1292884
[7] Our Correspondent. (2016, October 29). Inclusion of Malakand division in CPEC demanded. Retrieved on November 4, 2016, from http://www.dawn.com/news/1292966
[8] Our Correspondent. (2016, November 4). Centre asked to give KP due share in CPEC project. Retrieved on November 4, 2016, from http://epaper.dawn.com/DetailNews.php?StoryText=04_11_2016_182_006
[9] Baloch, Behram. (2016, October 31). Development should not harm Baloch identity. Retrieved on November 4, 2016, from http://www.dawn.com/news/1293347/development-should-not-harm-baloch-identity-mengal
[10] The Newspaper’s Correspondent. (2016, October 31). CM’s advisor to visit China for talks on CPEC route. Retrieved on November 4, 2016, from http://epaper.dawn.com/DetailNews.php?StoryText=31_10_2016_007_003