New Delhi: In what can be seen as a significant development, Pakistan's new government is taking bold steps to rejuvenate projects under China's Belt and Road Initiative (BRI) to breathe new life into its ailing economy.
The government's vision includes injecting fresh vigour into these projects, such as fostering joint ventures for renewable energy, forging agricultural partnerships and enticing Chinese companies to consider relocating to Pakistan.
Following recent discussions with Chinese leadership, Ahsan Iqbal, Pakistan’s federal minister for Planning, Development, and Special Initiatives, conveyed his enthusiasm for reigniting progress on the China-Pakistan Economic Corridor (CPEC) and advancing it into its second phase.
Pakistan Premier Shehbaz Sharif, who was elected to a successive term in February, has been looking to bolster economic cooperation with China for the past two years. It is pertinent to note that former PM Nawaz Sharif signed on to the BRI in 2013.
During an interview with ETV Bharat, India's former ambassador, Anil Trigunayat, discussed the relationship between Pakistan and China. He mentioned that Pakistan heavily relies on China for its development projects under the China-Pakistan Economic Corridor (CPEC) and for military support.
"Both countries consider each other as close allies, but China also has its limitations. Despite this, neither the West, Middle East nor China want Pakistan to fail, which gives the latter some leverage. For China, Pakistan serves as a strategic tool against India. However, India has rejected the BRI due to sovereignty concerns, issues with Gwadar, China-Pakistan Economic Corridor (CPEC) and problems in Balochistan. Pakistan faces economic challenges, with the IMF imposing conditions on it. While China does assist, it comes at a significant cost", added the ex-ambassador.
Trigunayat emphasised that India has been dealing with the China-Pakistan alliance for some time. Both China and Pakistan have attempted to isolate India in Afghanistan and create difficulties in Iran, but these efforts have failed. He also noted that both countries will continue to prioritise their interests. However, he highlighted that Pakistan must address the issue of terrorism, as even China may not be able to assist if Pakistan fails to control terrorist activities. Trigunayat suggested that if China can help Pakistan combat terrorism, it would benefit the entire region.
Pakistan Prime Minister Shehbaz Sharif is also expected to travel to Beijing from June 4-7. During his visit, Sharif is scheduled to hold meetings with the Chinese president and prime minister and will discuss the matters related to the CPEC phase II and other issues.
The CPEC, a significant component of the BRI, features a port in the southern town of Gwadar and new power plants. According to sources, the railway upgrade project, scaled down from $10 billion to $6.8 billion, is also moving forward in two phases, connecting Karachi to Multan. Additionally, key BRI projects, such as a water-supply project in Gwadar and an electricity transmission line from Iran, have been completed.
The CPEC is a significant infrastructure project that aims to connect Gwadar Port in southwestern Pakistan to China's northwestern region of Xinjiang, through a network of highways, railways, and pipelines. It's part of China's broader BRI, which seeks to enhance connectivity and trade across Asia and beyond.
CPEC holds strategic importance for both China and Pakistan. For China, it offers a shorter and more secure route for its energy imports from the Middle East and Africa, reducing its dependence on maritime routes through the South China Sea. Additionally, it opens up economic opportunities in Pakistan and provides China with access to the Arabian Sea, thus enhancing its geopolitical influence in the region.
For Pakistan, CPEC promises substantial investments in infrastructure, energy projects, and other sectors, which could potentially stimulate economic growth and development. However, the project has also faced criticism and controversy. Some stakeholders in Pakistan argue that it disproportionately benefits China, raising concerns about debt sustainability, transparency, environmental impacts, and the displacement of local communities.
Despite these challenges, CPEC continues to progress, with ongoing construction and development in various sectors. It remains a focal point in China-Pakistan relations and regional geopolitics, with implications for economic integration, security, and power dynamics in South Asia and beyond.
The first phase of CPEC saw $25 billion worth of projects, including power plants that alleviated Pakistan’s power deficit. Recently, a long-delayed railway upgrade project was approved, scaled down from $10 billion to $6.8 billion, to ease Pakistan’s financial crunches. The project’s first phase will connect Karachi to Multan.
During CPEC's 10th anniversary this year, Beijing announced five corridors to boost Pakistan's troubled economy and to augment growth, livelihood, innovation, green energy and connectivity. In the next phase of CPEC, Pakistan aims to foster partnerships with Chinese firms and attract relocating companies due to rising labour costs and geopolitical tensions.
Growing China-Pak ties and its implications for India
China and Pakistan describe their relationship as an "all-weather friendship" and a "strategic partnership." They share common concerns regarding India's rise as a regional power and have cooperated closely in defence and security matters. This strategic alignment has implications for India's security calculus, particularly along its western borders. Both China and Pakistan have unresolved border disputes with India. The CPEC passes through Pakistan-administered Kashmir, an area claimed by India, which has raised objections from New Delhi. Additionally, China's support for Pakistan's stance on the Kashmir issue adds complexity to India-China relations.
China is a major supplier of military hardware to Pakistan, including aircraft, missiles, and naval vessels. This military cooperation enhances Pakistan's defence capabilities vis-à-vis India and contributes to the regional balance of power. Economic ties between China and Pakistan have deepened with projects like CPEC. While this collaboration promises economic benefits for Pakistan, it also raises concerns in India about China's expanding influence in its neighbourhood, potentially encircling India economically.
It is pertinent to note that China's support for Pakistan in international forums, such as the United Nations Security Council, and its investments in Pakistan's infrastructure and energy sectors strengthen Islamabad's position regionally. This has implications for India's efforts to isolate Pakistan diplomatically, particularly in the context of counter-terrorism. China-Pakistan ties have multifaceted implications for India, affecting its security, diplomacy, and economic interests. The strategic alignment between China and Pakistan poses challenges for India's regional aspirations and requires New Delhi to carefully navigate its relations with both countries while safeguarding its interests.
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