China is not just looking to build a trade corridor in Pakistan. An exclusive report published in Pakistan daily Dawn, which printed the blueprint for the China-Pakistan Economic Corridor (CPEC), clearly lays out China’s plans to dominate Pakistan’s trade and commerce.
Pakistan seems to have traded sovereignty for economic growth, and will have to deal with the fallout eventually. But what does it mean for India? While some foreign policy mandarins see a major threat in the massive Chinese investment and expanding military presence in Pakistan, others believe that the project itself is far too expensive and ambitious and will eventually put Beijing in a bind.
“Even today, there were protests in Gilgit and in Balochistan against the project. Now with the whole game plan exposed, you soon see many Pakistanis questioning the project, since it seriously impinges on their sovereignty,” said a senior Indian diplomat who has served in Pakistan.
“There already are murmurs about another East India Company setting up shop in Pakistan, and these voices are only going to grow louder. Then, there is the issue of security. All these grandiose plans look good on paper, and I am sure the Chinese, in their own methodical way, have thought things through. But will they be able to bear the huge cost of protecting all these investments, particularly when Pakistanis realize that they are only eligible for the fringe benefits?”
“We usually talk of a two-front war… now it is going to be just a one front war with China. So apart from economic benefits, this whole plan is to not just contain, but to dominate and isolate India,” says Rahul Bhosle, CEO of Security Risks Asia. Prakash Nanda, distinguished fellow at the Institute of Peace and Conflict Studies, has a different take. “It’s all about the money.
Where will China get all this funding from? From the Asian Infrastructure Investment Bank and others? China has opposed funding for projects in India’s northeast on the grounds that it is disputed territory. Why can’t we do the same for CPEC?”
What’s China’s business in Pakistan?
Pakistani daily Dawn has exclusively reported on the master plan of China-Pakistan Economic Corridor. According to it, China will have almost complete access inside Pakistan, across various industry segments. A look
Security
China will build a full system of monitoring and surveillance in Pakistani cities, from Peshawar to Karachi, with 24-hour video recordings for law and order. Here’s what are covered
■ Fibreoptic connectivity between China and Pakistan
■ A submarine landing station in Gwadar
■ “Transmission of Chinese culture” in Pak through TV
■ Plan to build a pilot safe city in Peshawar
Finance
The primary financial risk in Pakistan, according to the long-term plan drawn up by China Development Bank, is politics and security.
■ Efforts will be made to furnish “free and low interest loans to Pakistan
■ But, Pakistan’s federal and involved local governments should also bear part of the responsibility for financing
■ $1 billion China’s maximum annual FDI in Pak
■ $1 billion Pak’s ceiling for preferential loans
■ $1.5 billion ceiling for non-preferential loans
Industry
Beijing is looking to take control of industries in Pakistan in a big way. The sectors they are looking to explore are:
■ Household appliances (Haier) ■ Telecom (Huawei) ■ Mining & minerals (MCC) ■ Textiles and garments ■ Cement and building materials ■ Agri technologies, fertilisers ■ Building SEZs, industrial parks
Tourism
The plan also speaks of a long belt of coastal enjoyment industry that includes yacht wharfs, cruise, nightlife, hot spring hotels and water sports
■ Gwadar will feature international cruise clubs
■ The clubs will provide ‘living in the ocean’ experience
■ Visa-free entry proposed for Chinese to Pak, no reciprocal arrangement discussed
Agriculture
6,500 acres of agricultural land would be provided by Pakistan to Chinese enterprises to setup demonstration projects. Every year, China will produce
■ 1 million tons of grains
■ 100,000 tons of cotton
■ 800,000 tons of fertiliser
■ 200,000 tons of meat
■ 200,000 tons of milk
■ 10,000 tons of jam and juice