Recent events regarding Pakistan's involvement in the
China-Pakistan Economic Corridor (CPEC) indicate the growing concern among many
Pakistanis about the potential impact of the project on their economy. Prime
Minister has expressed his concern over over-reliance on foreign debt of
Pakistan, and now the government seems to be very careful about the projects of
CPEC than the previous administration.
However, a crucial part of CPEC is still overlooked by the Pakistani government. Still, it deserves attention - namely, the Port-Park-City model that China is implementing in Gwadar, which is better for the Gwadar commercial plots and Gwadar industrial plots value, but it may have undesirable consequences for the country.
Rethinking the BRI Trend
In spite of contradictory messages, the Pakistani administration seems less enthusiastic about CPEC than earlier. By the end of September, Reuters reported that Pakistan was specifically considering the railway line between Peshawar and Karachi, one of the main CPEC projects and that China had only expressed openness to renegotiating projects that had not yet been started. Pakistan has also announced that Saudi Arabia will join CPEC as another investor, thus increasing the diversity of funding sources and Gwadar commercial plots and Gwadar industrial plots.
In spite of contradictory messages, the Pakistani administration seems less enthusiastic about CPEC than earlier. By the end of September, Reuters reported that Pakistan was specifically considering the railway line between Peshawar and Karachi, one of the main CPEC projects and that China had only expressed openness to renegotiating projects that had not yet been started. Pakistan has also announced that Saudi Arabia will join CPEC as another investor, thus increasing the diversity of funding sources and Gwadar commercial plots and Gwadar industrial plots.
These actions, in order not to get involved in Chinese debt, suggest that
Pakistan is aware of the BRI problems of other countries and is trying to avoid
similar mistakes.
Takeaways
Before taking office, Imran Khan took a similar approach to Mahathir when he criticized previous Pakistani administrations for relying too much on foreign aid. It is unclear whether Khan will completely abandon Chinese projects, as Mahathir did because his government claims he is fully involved in CPEC as a general idea. But the Pakistani government seems to be beginning to see the potential risks of CPEC to Pakistan's macroeconomic health, and the cases of Malaysia and Sri Lanka are useful benchmarks.
Before taking office, Imran Khan took a similar approach to Mahathir when he criticized previous Pakistani administrations for relying too much on foreign aid. It is unclear whether Khan will completely abandon Chinese projects, as Mahathir did because his government claims he is fully involved in CPEC as a general idea. But the Pakistani government seems to be beginning to see the potential risks of CPEC to Pakistan's macroeconomic health, and the cases of Malaysia and Sri Lanka are useful benchmarks.
Although Pakistan is in a delicate situation, given the economic and political
interconnectedness of China-Pakistan bilateral relations, Islamabad must
understand the risks associated with the PPC model in Gwadar for both its
economy and internal security and Gwadar commercial plots and
Gwadar
industrial plots.
Pakistan's government should be careful to not allow a promising city to become another example of the empire of China. Controlling infrastructure projects is one thing; resettling a significant number of people is also a completely different game.
Pakistan's government should be careful to not allow a promising city to become another example of the empire of China. Controlling infrastructure projects is one thing; resettling a significant number of people is also a completely different game.
Gwadar's Model of Port-Park-City
The deep-sea port of Gwadar is referred to as the "city gate" to CPEC and " a gateway to Asia." Although China's seeming ambitions to develop a vibrant waterway in the Arabian Sea seem clear, China is also looking for seeds that are conducive to long-term influence and ownership. Because of its Gwadar commercial plots and Gwadar industrial plots value, taking control of Gwadar allows China to connect Islamabad's land transport routes to western China, as well as to build an oil pipeline along this corridor.
The deep-sea port of Gwadar is referred to as the "city gate" to CPEC and " a gateway to Asia." Although China's seeming ambitions to develop a vibrant waterway in the Arabian Sea seem clear, China is also looking for seeds that are conducive to long-term influence and ownership. Because of its Gwadar commercial plots and Gwadar industrial plots value, taking control of Gwadar allows China to connect Islamabad's land transport routes to western China, as well as to build an oil pipeline along this corridor.
Gwadar port control also helps China connect seaports, "pearls" along
the Indian Ocean back to Hainan. Although access to the port of Pakistan
encourages the connection of its global supply chains, port development alone
does not directly provide China with a new shopping center.
The PPC model currently being implemented in Malaysia and Pakistan is reminiscent of the first wave of European colonialism, during which European countries created small trading points on the coasts of Asian and African countries.
The PPC model currently being implemented in Malaysia and Pakistan is reminiscent of the first wave of European colonialism, during which European countries created small trading points on the coasts of Asian and African countries.
If a large number of Chinese citizens actually live in Gwadar, this may have
alarming demographic consequences. Gwadar is located in Balochistan, the least
populated province of Pakistan, but still, the value of the property and Gwadar
commercial plots and Gwadar industrial plots are increasing day by
day. According to The Nation report from 2016, the Baloch population could be
surpassed by Chinese expatriates in the province by 2048.
Given the extensive complaints in Balochistan that already exist against the
Pakistani federal government, a scenario in which foreigners outnumber Baloch
and control the most lucrative industry and port in the province will probably
only contribute to discord.