Wednesday 8 February 2017

China-Pakistan Economic Corridor Unites Pakistan’s Rival Political Big Shots in a Cafe in Beijing

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(YicaiGlobal) Dec. 30 — Pakistan is home to diverse political parties. Yet on a Wednesday afternoon, on Dec 28, the ‘big shots’ of each political faction gathered together at an ordinary cafe in Beijing. “This may well mark the first such event in Pakistan’s history,” a Pakistani diplomat told YicaiGlobal.

At the cafe near Dengshikou, downtown Beijing, chief ministers of four provinces of Pakistan, and the minister of planning, development and reforms and the minister of railways in the federal government gathered together to discuss details about the upcoming 6th Joint Cooperation Committee (JCC) meeting on the Long-Term Planning of China-Pakistan Economic Corridor (CPEC), which marks the only all-round bilateral CPEC meeting at a top level in 2016.

During an exclusive interview with YicaiGlobal, Ashan Iqbal, Pakistani co-chairman of the JCC and the minister of planning, development and reforms of Pakistan, said the fact that the chief ministers of all provinces of Pakistan will attend the 6th JCC meeting reflects the political commitment of the Pakistani leadership to the CPEC.

“In my view, the attendance of the chief ministers of each province at this meeting in China sends out a positive signal for investors, demonstrating Pakistan’s unified all-party support for the CPEC. This project is expected to be accomplished at a faster pace under the stronger political commitment and support of each province” Iqbal pointed out.

CPEC and Chinese investments in Pakistan not only serve as main drivers for the economic growth of Pakistan against the backdrop of sluggish global economy, but have also improved the confidence of international institutions and investors, including the World Bank and the International Monetary Fund (IMF), in the development of Pakistan. Additionally, they have also helped boost political consensus and solidarity between the ruling party and the opposition parties, as well as between the federal government and local provinces. This is evidently reflected by the gathering of top Pakistani officials from different political factions and provinces in Beijing.

Railway And Port Projects Are Center Pieces for Future Development

On Dec. 29, the sixth conference of the JCC, as one of the flagship projects of the “Belt and Road” strategy, convened in Beijing. Both parties discussed future development plans as well as some newly added projects. The conference has concluded the development of Gwadar Port and the China-Pakistan Railway projects will be the focus for the future development of the bilateral cooperation within the CPEC framework.

The idea to set up the CPEC first emerged in 2013. During President Xi Jinping’s visit to Pakistan last year, both countries announced the project, with Gwadar Port, energy, traffic infrastructure, and industrial cooperation decided to be central underpinnings of the CPEC’s work sphere. To this aim, they signed more than 50 cooperation agreements with total investments exceeding USD40 billion.

Just before Yicai Global’s exclusive interview with Iqbal, Pervez Khattak, chief minister of Khyber Pakhtunkhwa (KP), a northwestern province of Pakistan, came to Iqbal in quick pace as soon as he saw him. They shook hands and patted on shoulders. In fact, during the CPEC process over the past two years, Khattak was said to be a troublemaker for Iqbal.

Khattak and Imran Khan, chairman of the Pakistan Movement for Justice (PTI) and an opposition member, who appointed Khattak as the chief minister at the time, were once publicly active critics of Ashan Iqbal and current prime minister Nawaz Sharif. They accused Sharif and Iqbal of unfair and problematic implementation of the CPEC, saying that they ignored the interests of the west Khyber Pakhtunkhwa and other provinces controlled by the opposition parties and made more favors to provinces like Punjab controlled by the ruling party.

Among the ruling cadres of Pakistan, Iqbal acts as a key figure of the Muslim League led by Sharif. He is one of the most trusted officials of Sharif, whereas Khattak is one of the most loyal followers of Imran Khan, a political rival of the Muslim League.

However, CPEC and more than USD40 billion investments the project generates has also functioned as a driver for cooperation among different political parties and provinces in Pakistan as much as it has led to competition for various projects and resources.

Vision Brought by a Light Rail

During the JCC conference on Dec.29, Chinese and Pakistani officials discussed whether to add more projects to the CPEC, YicaiGlobal learned. Many projects will cover provinces controlled by the opposition, like Sindh controlled by Pakistan People’s Party (PPP) and other less developed provinces including Balochistan and KP, which had doubts about the project implementation by the ruling party.
Balochistan is the province where Gwadar Port, the main strategic project of the CPEC, is located. It is the largest province with the least population in Pakistan, which is remote and less developed. The JCC conference discussed ways for further development of Gwadar Port and the Gwadar Free Trade Zone, as well as construction of supporting facilities.

Khattak also came prepared, along with the CEO of Special Economic Zone Development and Management Company of KP. During the meeting with some Chinese entrepreneurs, Khattak’s delegation of chief ministers made it clear that financing and investment in industrial parks and development zones is what KP needs the most, and expressed interest in cooperating with Chinese organizations in such fields as energy, education and information.

Located in the southeastern part of Pakistan, Sindh is Pakistan’s main economic province and home of the opposition party PPP. Pakistan’s economic and financial center Karachi city and important transport hub Karachi port are also situated in Sindh province.

In an exclusive interview with Yicai Global, Syed Murad Ali Shah, Sindh’s chief minister, said the CPEC initiative was originally proposed in 2013 when the PPP was in power, adding that he is pleased to see the continuation of the cooperation on CPEC project despite power changes hands among Pakistani parties.

Set up in 2013, the JCC witnessed multiple changes in the Pakistani government and political parties, but the cooperation between China and Pakistan and the cooperation on CPEC project have continued. Syed Murad Ali Shah told Yicai Global that at the JCC meeting Sindh wanted to add the Karachi ring road project to the CPEC scheme.

The ruling party-controlled Punjab province has previously implemented the light rail orange line project in its provincial capital city of Lahore. With loans offered by Chinese financial institutions and the construction work by Chinese enterprises, the project will become Pakistan’s first light rail system after completion. The construction of the light rail has also drawn attention from other the provinces of Pakistan.

Ashan Iqbal told Yicai Global that Pakistan’s federal government and prime minister are concerned about many underdeveloped parts of Pakistan and they hope that through the construction of CPEC, the remote and backward areas of Balochistan and KP provinces can get more investment opportunities to enable them to achieve more trade in and out of Pakistan.

“We hope that further projects in more provinces will be initiated under the framework of the CPEC cooperation process so that more provinces could be involved in it. The achievements and dividends of the CPEC will benefit all parts of Pakistan and create inclusive development in the country, ” Iqbal noted.
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