Pak China Economic Corridor a road to prosperity
Source : The Nation Date : 29-09-2014
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Economic corridor is not only the road to economic prosperity of Pakistan, it can be termed as future of the world. It is estimated that about 3 billion people from China, South Asia and Central Asia, would be benefited from the economic corridor. It has the potential to empower half of the world’s population living in Asia, by developing special trade routes between China and Pakistan. Economic Corridor is the most important agreement signed between Pakistan and China till now.
Pakistan’s prosperity is no more a longer journey as the current leadership is working diligently on such projects whose outcomes would be visible and bright in a shorter period of time.
China-Pakistan Economic Corridor is a development programme to connect Gawadar Port in southern Pakistan to China’s northwestern region of Xinjiang via highways, railways and pipelines to transport oil and gas. Chinese Premier Li Keqiang was among the first advocates of the project. Chinese President Xi Jinping, former Pakistani President Asif Ali Zardari and Pakistan Prime Minister Nawaz Sharif have become strong supporters of the project.
The corridor, after completion, will serve as a primary gateway to trade among China, Middle East and Africa through Pakistan. Particularly, the oil from the Middle East could be offloaded at Gawadar, which is located just outside the mouth of the Persian Gulf. The oil would be transported to China through the Baluchistan province in Pakistan. Such a link would vastly cut the 12,000-kilometres route that Mideast oil supplies must now take to reach Chinese ports.
The government endeavors regarding Economic corridor should not be taken as Chauvinism. This is not the matter of any political party. It is the case of Pakistan’s economic prosperity, which would get a double- triple boost if the Economic Corridor project is implemented in its true spirit. It is worth mentioning that, this year Federal government had announced six development schemes costing Rs130 billion under the Pakistan-China Economic Corridor, marking the beginning of a process that will transform the country into a transit hub for the second largest economy of the world. The reason behind this vital importance is that 60 per cent of oil is being imported from gulf countries that reaches China after covering the distance of 16,000 KMs, and after the completion of Gawadar port project, the distance will reduce to 2500 KMs only which is, from all aspects, more safe and feasible.
Analysts proclaim that, the proposal, when implemented, ‘will re-open the economic artery blocked for years, realise the interconnection in transport, trade, investment and finance and build a new Euro-Asian economic roadmap benefitting countries along the Silk Road and even more.” There is no dearth of energy and recourses in Central Asia which would be available to others in the region, which is likely to become the biggest market in the world and would contribute to regional stability and prosperity.
Recently China has commissioned a preliminary research study to construct an international rail link connecting its province Xinjiang’s border to Pakistan. According to Chinese officials, this new rail link, which runs through the Pamir Plateau and Karakorum mountains, will be one of the hardest to build.
Pakistan is considering to provide shortest access and transit corridor for Kashghar goods. Apart from Karachi and Port Qasim sea ports, Gawadar developed in cooperation with China will provide an additional gateway and for this, China is developing in its west “Kashghar’s Special Economic Zone”, which would link China further on the western side with Central Asia and on its south with South Asia.
China has planned numerous mega projects to be started at Gawadar that would be tremendously beneficial for both countries. In this regard China is planning to replicate the model of Shanghai free Trade Zone at the sideways of Economic Corridor. Remarkably, Under the Early Harvest Program, China had planned to pump $50’billion up to 2017 into a host of projects in Gawadar including coal, solar and wind energy units enabling Gawadar to create a nexus between Pakistan, Iran, China and Central Asian States that would ultimately generate billions of dollars in revenues of Pakistan’s kitty besides creating endurable job opportunities.
Analysts believe that, Shanghai Free Trade Zone is a perfect model to be implemented at Gawadar. Surprisingly the SHFTZ was also initially used as a testing ground for a number of economic and social reforms in China that showed marvelous success regarding economic growth. SHFTZ incorporated numerous relaxations in different sectors. Under the FTZ’s new capital registration system, foreign investors are no longer required to contribute I5 percent capital within three months and full capital within two years of the establishment of a Foreign Invested Enterprise (FIE).
The Free Trade Zone at Gawadar would also introduce the similar incentives to the foreign investors as are offered in the Shanghai Free Trade Zone, which will turn the Gawadar a hub of foreign investment. Both the Pakistani and Chinese governments are eager to invest in this plan. It is expected that, the establishment of the special economic zone, free trade zone, and export processing zone in the port city would create innumerable job opportunities for Pakistan’s skilled and unskilled manpower, which will ultimately raise the living standard of the people of Pakistan.
According to Chinese investment plans, Baluchistan has a share of 38pc, by generating economic activities ensuing to the modern infrastructure facilities and ample employment opportunities for the locals that will also end the anti-state activities in Baluchistan.
The Chinese investors have evinced serious interest in acquiring land in the vicinity of Gawadar Port Free Zone for developing the Industrial parks around. It would, therefore be advantageous for the natural endowments of Baluchistan including Oil, Gas, Copper, Gemstones, Marble and Gold reserves that would better be exploited by providing the professional training to the local manpower in conjunction with the soft loan schemes to help create a network of micro and small enterprises in the province.
Pakistan and China have signed agreements for constructing an international airport at Gawadar, for upgrading a section of the 1,300-kilometre Karakorum Highway connecting to Islamabad and of a fiber-optic cable to be laid from the Chinese border to the Pakistani city of Rawalpindi. According the Analysts with the development of the corridor, Central Asia, traditionally an economically closed region owing to its geography and lack of infrastructure will have greater access to the sea and to the global trade network.
Besides extending cooperation in the developmental projects in Pakistan, China is also providing all out assistance to Pakistan in the field of ‘civil nuclear technology. Prime Minister Nawaz Sharif inaugurated two Chinese sponsored nuclear power projects of 1100MW each in Karachi last year. Earlier, China helped Pakistan in establishing four civil nuclear power plants (including two under construction) at Chasma. China provided this assistance to Pakistan despite the concern of US and its allies on Pak-China civil nuclear cooperation.
China has assured Pakistan that; it would “consolidate its friendship with Pakistan no matter how the international situation is changed.” Pakistan too considers its ‘friendship with China as the cornerstone’ of its foreign policy. In the rapidly changing geo-strategic and security environment, both countries are likely to face many regional and global challenges. The need of the hour is that, leadership of both countries should “work in close collaboration for further cementing the traditional Sino-Pak relationship. In the wordings of Chinese Premier Li, “to be friends forever is the cherished desire of both nations.”