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Wednesday 17 February 2016

CHINA PAKISTAN ECONOMIC CORRIDOR(CPEC)-LATEST DEVELOPMENTS

                               A continuation of article published earlier on the same subject (http://whatholdsthefuture.blogspot.com/2015/05/china-pakistan-economic-corridor-cpec.html)

After Iran's deadline to India for materialization of investment in their Chabahar port expired, Iran decided to go for  much more lucrative business opportunities by siding with China. Chabahar port is the direct strategic competition/alternative to Pakistan's Gawader deep sea port and India's only feasible alternative trade route to Afghanistan/Central Asia bypassing Pakistan. India's decision to invest in the development of Iranian port of Chabahar announced in May 2013 was however, spurred by the Chinese stakes in the Pakistan's Gawader port. India quintessentially forged an alliance with Iran to counter the rise of China and discredit Pakistan in the Asian pacific region through this strategic move in 2013.


The entire Indian game plan was however blunted partly by delay in the materialization of the promised investment at Chabahar by India being an economically non viable trade route compared to Pakistan's extensively developed ground route to Afghanistan and Central Asia. In the global free market economy and its highly competitive environment, choosing a trade route and its subsequent costs are detrimental to any business activity. These reasons constitute the lack of commitment/hesitation on part of India to invest in the Chabahar deep sea port. The Indian dreams to counter the rise of China becoming a counterweight in the region under the US wooing are nothing more than pipe dreams. (Also read http://whatholdsthefuture.blogspot.com/2016/02/indias-pipe-dreams-to-become-superpower.html).

In essence it is the 60 Billion US Dollars China-Iran trade deal signed between the supreme leaders of both countries in the last week of January 2016 comprising on 17 accords. These accords include cooperation on the revival of the old silk route known in China as the one belt, one road mega economic project of President Xi Jingping. China Pakistan Economic Corridor (CPEC) is the flagship project of the Chinese one belt, one road venture. The Chinese prestige and repute is directly related to the success of this project, hence the commitment by China to this venture is paramount. The US led western corporate media has already declared the Chinese initiative as non viable under the political situation essentially created by the US misadventures in the region. Such media reports are part of the info wars chartered under the US desire to stop the rise of the Red Empire. (Also read http://whatholdsthefuture.blogspot.com/2015/07/the-rise-of-red-empire-regional-impacts.html). 

The two biggest challenges to CPEC have been effectively countered by Pakistan in the meanwhile. The security threat to the CPEC is being addressed by raising a special security division by Pakistani Army under a three star General. This security division will exclusively provide protection to the CPEC in the entire breadth of Pakistan while the cooperation of all remaining security forces/law enforcement agencies will also be at their disposal. Pakistani Army has proven its worth fighting against the multidimensional threats, including internal militancy and foreign funded insurgency. The experienced and determined Pakistan Army can be counted upon to provide credible security to the CPEC through its newly raised CPEC special security division. On the political front the various differences on the infrastructure of CPEC and its related economic zones have also been resolved by all the major political entities of Pakistan. The consensus has been achieved by direct assurances by the Chinese officials in conjunction with the Pakistani Army to the various political stake holders that their just demands regarding the CPEC will be met. The essential bone of contention on the political front was the central Punjab concentric route of the CPEC by the current government of Nawaz Sharif. The issue has been resolved by reverting the CPEC route to the original plan which links all the provinces of Pakistan to the CPEC including the Himalayan region of  Gilgit-Baltistan. The fast paced construction of the CPEC linking all the major economic nods of Pakistan to the said project is well under way. 
Courtesy;Wall Street Journal

Under the Chinese narrative it is only imperative for Iran to join the CPEC linking the Iranian economy with the Chinese one road, one belt project. India needs stop dreaming, awaken from her slumber on American beds, and settle long standing political disputes like Kashmir with Pakistan and Aksai Chin with China, which is not likely in the near future. However, by doing so, India would join the humongous economic benefits to its starving population by directly linking her huge economy to China, Iran, Afghanistan, Central Asia and beyond via Chinese one road, one belt.

CPEC is the primary singular focus of Pakistani State with all her stake holders completely on board now. The assurances provided by Pakistani security establishment to China supersedes any political uncertainty which may or may not arise in regards to the CPEC. Infrastructure works on the CPEC are well under progress by the Chinese engineers and Pakistan's Army Engineers led organizations such as FWO which is known for undertaking civil infrastructure projects in harsh environments.

Recently constructed tunnel on the CPEC at Atta Abad GB

There is active opposition to the project by India and some of her Gulf/Western partners who are not interested in seeing the CPEC succeed owing to their own vested interests. However, all such opposition is being successfully blunted by the Pakistani security establishment which is spearheading the CPEC construction operations. 

Pakistani Army Chief Gen Raheel driving Prime Minister Nawaz on the inspection of CPEC construction progress in the province of Baluchistan, Pakistan.

The control of the Gawader deep sea port has already been officially handed over directly to China.  Vast infrastructure developments are taking place in Gawader, undertaken by Chinese engineers.  The Gawader port links the Chinese mainland to the Persian gulf through the CPEC. The CPEC through Gawader provides an alternative trustworthy route of 5000 KM round the year to Chinese energy imports from the Gulf, as compared to the 16000 KM politically precarious, weather restricted sea route currently under use by China. 

Chinese commissioned developments at Gwader deep sea port

The CPEC possess the inherent potential of linking China with the already constructed RCD Highway which links Pakistan to Turkey via Iran. The opportunities for regional trade and commerce are immense in nature after the Iran-China trade agreement in post economic sanctions in Iran. The future of the CPEC seems to be bright and prosperous keeping in view the ground developments.  










      
            






2 comments:

  1. Beijing: China will have “to get involved” if any Indian “plot” disrupts the $46 billion China-Pakistan Economic Corridor (CPEC) in restive Balochistan, an influen
    http://www.terimeri.info/category/china-pakistan-economic-corridor/

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  2. Great Work!
    my blog: https://economyupdown.blogspot.com/2018/05/china-pakistan-economic-corridor-cpec.html

    https://economyupdown.blogspot.com

    ReplyDelete