Maroc - EURASIAREVIEW.COM - A la une - 24/Jul 15:54

Recharging The New Silk Axis – OpEd

CPEC is one of the significant components of the grand project BRI (Belt Road Initiative) that brings Pakistan closer to the world economy. The first phase of CPEC was to $18 billion mainly in energy and road connectivity projects. At present the emphasis has shifted to green energy projects such as renewable energy i.e. solar power, wind power, and the development of underdeveloped regions, notably through new infrastructure connecting Gwadar to major urban centers. In Gwadar developmental measures with a new International Airport, and joined with the National Power Grid, the eastern expressway has been laid down. The role played by Pakistan in serving Chinese Geostrategic strategy is paramount as Pakistan holds the key to the Indian Ocean, security against India which is a geostrategic rival of China, and support to China’s military replica in South Asia. The foundation of this cooperation is made on ‘CPEC’a BRI investment that costs over multibillion dollars. CPEC is a mega-project that contemplates establishing a communication linkage of the Gawadar port of Pakistan in southwestern Balochistan province with China’s northwestern area Xinjiang through road, rail, and pipeline. Also, this corridor offers sea connectivity to the Arabian Sea enhances the trade routes to China, and simultaneously, reduces the time and hence the cost, of transport. Besides, this will afford China strategic leverage in overseeing the sea lines of communications (SLOCs) in the Indian Ocean. In geopolitical terms, Pakistan is an ally to China that helps counterbalance the ever-complicated relations between China and India, where the two countries share borders, and economic rivalry, and have many territorial disputes. Thus, the expansion of relations with Pakistan provides China with regional control and a formation of deterrent space against India in the South Asian region. The first and significant pattern of China’s military diplomacy is security and defense cooperation that emerged between China and Pakistan in terms of contracts, military exercises, and sharing of intelligence improving power projection capabilities of China in the South Asian region offsetting the presence of US and India in the region and acting as a force multiplier. The location of Pakistan is prospective to give access to transport energy resources which will reduce China’s reliance on certain vulnerable sea lines of communication like the Strait of Malacca. CPEC has energy projects which are coal, solar, wind, and others meeting Pakistan’s energy requirements while also providing energy links to China. Also, developed by working with Pakistan, China acquired paramount political power in South Asia. Pakistan for long has allying with China and thus often speaks in favor of Beijing’s stance in international organizations such as the United Nations thereby providing firm support to oppose Western political machinations. The second phase of CPEC is more specifically related to the working of Special Economic Zones (SEZs) intended for Chinese investment in Pakistan. Some of the main projects are agriculture scholarships, IT training, railway project ML-1, and KKH phase II. Regarding its strategic cooperation, both countries stress upon the improvement of bilateral cooperation, with the Chinese side contributing to Pakistan’s fight against terrorism. Seaports in the contemporary context of Pakistan including the seaport of Karachi and Gwadar are vital for increasing the foreign exchange reserves. Currently, the Central Asian States (CAS) have shown their inclination to use Pakistan’s ports for trade showing their consideration to be a client of Pakistan which is a significant development in the region. The second and most crucial phase of the CPEC unpacked, as it concentrates on industrial development which involves the development of special economic zones (SEZs) in Pakistan. The first SEZ started operating in early 2020 and was the Allama Iqbal Industrial City which received huge investment. Other SEZs in Rashakai, Dhabeji, and Bostan are under construction, and the main concern is the provision of infrastructure and attracting local and foreign investment. Agricultural collaboration between China and Pakistan is a key component of CPEC, with efforts to enhance productivity and research through joint ventures and investments in high-value crops. Additionally, a new Joint Working Group for Information Technology has been established, promising to strengthen economic ties further. CPEC of Pakistan has marked many successes in terms of the development of Gwadar port, energy generation, better transportation system, and industrial collaboration. The total investment cost estimated was $25. 4 billion, much progress is seen in the social and economic development of Pakistan regarding its CPEC. Projects like the Matiari-Lahore HVDC transmission line and Gwadar Port development initiated have been fruitful whereas new upcoming projects in the sectors of the digital economy, social and economic livelihood, and industry are still under progressive development. Some of the measures applied in the endeavor to modernize Pakistani ports comprise of customs clearance that is accelerated by installing new gears at Port Qasim and Karachi Port. Furthermore, the Lyari Expressway remains open for all sorts of cargo business round the clock to facilitate the unhindered transportation of goods. There is an extended strategy for regulating the shipping laws in action, where the charges of LNG ships at Port Qasim are brought in line with global standards. The focus is on the strategic management process and developing an effective cost-cutting and operational improvement plan for PNSC – Pakistan National Shipping Corporation. The governmental reforms aim at the development of the private sector, liberalization of doing business, and attraction of investments. Pakistani transit trade has invited Tajikistan to use Pakistan seaports, and out of all the seaports Gwadar seaport is the most suitable for the central Asian state to access the Middle Eastern market. China-Pakistan relations remain all the more important as the second phase of CPEC is further picking up the pace of economic integration and is bringing all-round cooperation in the region. There is further emphasis on supporting each other and coordinating in the ever-evolving world political environment for the stability of both nations and the region at large. CPEC project helping in streamlining investors’ entry, formation of Pak-China Relations Steering Committee, and increased support to SEZs. Pakistan has political stability currently; all political parties support CPEC making sure that the project has a better future to come. As President Xi Jinping pointed out China and Pakistan are determined to further the China-Pakistan cooperation and construct a more sustainable China-Pakistan community.