Faisal Ali Ghumman
The China-Pakistan Economic Corridor (CPEC) is no doubt a billions of dollars initiative with multi-dimensional investments to the benefit of both Pakistan and China.
Some key projects in sectors of energy, road and railway infrastructure and special economic zones were accomplished in the last 10 years or so and a good number of others are still in the pipeline.
Caretaker Prime Minister Anwaarul Haq Kakar, who has recently attended the Belt and Road Initiative (BRI) forum, told the participants of the forum that Pakistan had completed $25 billion worth 50 projects under the CPEC.
He announced inauguration of mega airport in Gwadar under the CPEC soon. The premier’s address follows the recent 10-year celebrations of the CPEC.
The continuity of the mega initiative should be a good sign for cash-strapped Pakistan, but some ground realities raise eyebrows over pace of working on projects.
Political instability, post-Covid economic challenges and cost of doing business hurdles have apparently restricted companies from China and other countries to avoid investment.
The country has witnessed a quantum size of investments in road and energy sectors, but investment in building Special Economic Zones (SEZs) and Industrial Parks as part of economic activities and employment generation remained unsatisfactory.
The power projects under the CPEC were also aimed at feeding energy to the SEZs and industrial parks in addition to catering to the needs of general masses.
Taxation, cumbersome official procedures, and regulatory issues in Pakistan are irking the Chinese investors to relocate their units from China to Pakistan. The red-tapism and corruption in the bureaucracy are contributing factors. Non-seriousness on the part of the successive regimes is evident from the fact that around 60 per cent land for SEZs is still unoccupied despite passage of the SEZ Act in 2012.
The CPEC lost its momentum when Chinese investors initially got upset over disturbing statements issued by some members of a previous government.
The functioning of Gwadar port at full scale and ML-1 railway line project (connecting between Karachi and Peshawar) have also not seen any further progress.
Former Federal Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal was quoted as having said in July this year that the much-anticipated ML-1 project might start this year with China’s support. According to the official record, the project has already faced four-year delay.
As far as Gwadar port operations are concerned, top government officials in their official statements are seen showing resolve to make the port [fully] operational soon and overcoming dredging problem.
Ex-prime minister Shehbaz Sharif, during his July 27 visit to Gwadar, had indicated core issue of dredging of the port which was a continuous process to prevent accumulating silt. “The Gwadar port will be operational soon and its commissioning will give a fillip to business and trade activities,” Balochistan’s caretaker Chief Minister Mir Ali Mardan Domki said in last week of September this year.
As 10 years have passed, the caretaker government and regular government after general elections must need to counter “lackluster approach” towards key CPEC projects and expedite them after removing procedural bottlenecks.
While Pakistan is already facing slow economic growth, balance of payment issues, rising inflation and unemployment and dwindling businesses, any further delays in economic activities and criticism by respective opposition parties will further aggravate the economic woes of the country.
Pakistan's economic propserity and well-being of the people of Pakistan seem attached to the success of the CPEC now.