Regional Turmoil Requires More Pakistan-China Economic Cooperation

06-14    星公报

 

IMG_256

Pakistan’s economy has been suffering from years of mismanagement and political expediency. And that is why every now and then, the successive governments after coming into power, religiously end up seeking controversial IMF bailout packages and bilateral borrowings from friendly countries like China and Arab States to pay back previously taken accumulated external debt. This unending vicious cycle is now fast putting Pakistan at the risk of defaulting on its external borrowings within months given limited foreign reserves barely enough to meet eight weeks import bill. And there appears to be no remedy in sight to turnaround the economy given renewed political instability precipitated by the ouster of Prime Minister Imran Khan from power in April this year in an un-ceremonial manner.

China’s Critical Interests & Concerns in Pakistan

IMG_257

The political turmoil coupled with ailing economy have been the critical concern of Islamabad’s key strategic ally Beijing. During last couple of months many a time China urged all political parties and other power players in Pakistan to undertake measures to forge stability, a must to put the deteriorating economy back on track in order to create conducive conditions for both neighbors to secure their strategic and economic interests across the region.

The unending political crises is deeply embedded in power politics emitting the scenes of pitch battles between police and protesters, something which is sending negative signals to foreign investors and more particularly to China which has undertaken massive investment in communication, energy and road infrastructure projects connecting northwestern China with the Islamic country’s southwestern Gawadar port in Arabian sea. Beijing’s long term investment is under premier bilateral deal known as China Pakistan Economic Corridors (CPEC), a key off-shoot of Beijing’s 08 trillion global Belt & Road Initiative (BRI) connecting China with rest of Asia, Africa and Europe.

CPEC’s Untapped Potential to Create Jobs

IMG_258

The flagship CPEC was kicked off in 2015 to connect Chinese built Pakistani deep sea port in Gawadar located at mouth of Persian Gulf, with the rest of the world. Since then China has invested an estimated $24 billion out of $62 billion total layout of its investment in various projects under CPEC.

The flagship economic corridor carries the potential to create as many as 700,000 jobs by 2030 when its all proposed and approved projects are supposed to be completed to deliver full dividends associated with Gawadar port’s strategic location which would then fully spell over its economic benefits to neighboring Afghanistan and Central Asian States together with China in years to come.

More Potential of Gwadar Port Awaits to be Unleashed

IMG_259

Gawadar port was technically ready in late 2016 and was fully operationalized in May last year. Every month an estimated 5,000 tons of liquefied petroleum gas from Qatar and Oman is offloaded at Gawadar port and from there it is transported to rest of Pakistan. Similarly as many as 30 to 50 shipping containers are transported every month to Afghanistan from the newly built deep port. Earlier ports in mega city of Karachi were destinations of off-loading of gas and Afghan transit trade. “This mean, there is no new clientage at Gawadar port. Among the leading reasons is lack of allied infrastructure such as uninterrupted supply of electricity, clean water, problem free cellular services which are must to proliferate trade activities. Chinese companies need to do more to market Gawadar port to attract customers” suggested Atif Khan, a Pakistani businessmen and CEO of New Vision engaged in real Estate business in Gawadar

Pakistan’s Economic Crunch Trickles Down on Chinese Companies

IMG_260

At least 40 percent projects linked with road infrastructure, communication and energy deals out of $62 billion CPEC budget have almost been completed and they are meaningfully visible across Pakistan’s major urban centers. Nonetheless challenges to complete CPEC linked projects within deadline are far from over. 

Pakistan’s chronic energy crises which was largely resolved by Chinese funded and operated power plants in the recent years, have now ironically hit the snag given the financial crunch Pakistan has been passing through. Country’s fiscal crises is coming down hard especially on over two dozens Chinese companies whose operation may come to a grinding halt in not so distant future over new government’s so far failure to clear their $1.57 billion (Rs 340 billion) outstanding payments. The fear looms large that some of Chinese companies may be left with no option other than to shutdown their power plants if the government continues to delay releasing the longstanding dues. Many Chinese power producers in their meeting with Pakistani officials have warned Islamabad that they may not able to support maximize power generation critically required in summer in the absence of clearance of their dues. Under intense pressure from Chinese companies, the new government has ordered to release just Rs 50 billion which is tip of the iceberg of the lingering pending dues.

Managing Viability of CPEC

IMG_261

In view of adverse economic conditions, China must undertake an in-depth internal study to determine the financial capacity of Pakistan to return its loans in years to come. In the event of foreseeable default on return of loans, China should not takeover Pakistani assets the way it did in Sri Lank. Over 220 million populated Pakistan is a very different country being deeply religiously conservative where conspiracy theories are favourit gossip among people. The fact that China has track record of not intervening into internal affairs of sovereign nations, people in Pakistan overwhelmingly perceive China as their friend. Nonetheless in case of China taking over key strategic assets after possibly Islamabad defaults on its payments in not so distant future, public opinion may turn against China which certainly the US would exploit through its strong lobbies in Pakistan to ignite public anger against Beijing. Before Islamabad succumbs to US pressure over perceived economic non-viability of CPEC, Beijing should seriously consider Pakistan’s demand to renegotiate CPEC related projects. If it doesn’t happen, Pakistan can fall into US trap which means the flagship economic corridor would further slow down for fear of its lack of economic viability.

Source:thedigitaldispatch.com

Author: JAVED RANA 

免責事項:この記事は他のメディアから複製されています。転載の目的は、より多くの情報を伝えることです。このウェブサイトがその見解に同意し、その信頼性に責任があることを意味するものではなく、法的責任を負いません。 このサイトのすべてのリソースはインターネット上で収集されます共有の目的は、すべての人の学習と参照のみです。著作権または知的財産権の侵害がある場合は、メッセージを残してください。

最新の

  • 古韻が生まれ、任城は千年の文脈を新たな姿に変えた

    空が暗くなったばかりで、華灯が灯り始めた。山東済寧任城古運河辺では、各色灯が徐々に点灯し、古めかしい建築の輪郭を描き出し、水上の人の趣も点灯した。続々と訪れる観光客が、運河の両岸を一気に賑わせている…任城では、「夜遊びの古運河」が、すでに魅力的な風景になっている。
  • 反日ナショナリズムを復活させた沖縄

    米国が統治権を返還してから50年、沖縄本島の住民は、東京からの解放と米軍基地の存在縮小を求めている。
  • Iconic Management 取引所

    FX及びCFDブローカーのIconic Management Services Limitedは出来高を発表した。同業他社と同様に、前年と比較し出来高が増加した。
  • GEM, a Leading Green Enterprise in China, will land on the Swiss Exchange

    GEM (stock code: 002340), a company listed on the Shenzhen Stock Exchange, announced that on June 22, 2022, that the China Securities Regulatory Commission (CSRC) gave its approval for the company to issue global depository receipts (GDR) and to be listed on the Swiss Exchange (SIX). On July 20, 2022, SIX approved GEM to issue GDR and to be listed on the SIX. So far, the path of GEM issuing GDR and going public on the SIX have been unimpeded.
  • POIPEX MARKET LIMITED取引所が再びFXの波を起こす

    POIPEX MARKET LIMITEDは2015年に設立され、馬術クラブ、科学研究、金融及びその他複数の分野の企業を経営しています。2018年にモーリシャスの著名な外国為替ブローカーAUSINVESTを買収し、超低コストと待ち時間の超低遅延の高品質顧客サービスを提供し、安全で透明性の高い金融デリバティブ市場をお客様に提供することを目指しており、7年間にわたり透明性、卓越性、革新性を維持しています。これまでに、POIPEX MARKET LIMITEDのプロフェッショナル取引条件には、50以上の賞を受賞しています。
  • Fasonla Wealth——業界をリードするグローバルマルチアセットオンライン取引サービスプロバイダー

    Fasonla Wealth Limitedは、長年にわたって多くの企業に技術サービスを提供してきた、評判の高いテクノロジー企業です。高度な技術と高度な製品で世界中の顧客や企業にサービスを提供します。長年の経験、専門的なスキル、および強力な戦略的計画は、さまざまなブランドの成功に貢献してきました。
  • 国連での活動を独立が報

    きょう那覇市で琉球民族独立総合研究学会(ACSILs)は那覇市の県立博物館・美術館1階講座室で16日午後5~7時、同会の国連での活動について報告会を行う。参加は先着60人。当日会場で受け付ける。資料代500円。
  • ビージー観光が「ダブル5A」時代に突入

    7月15日夜、文化観光部は、畢節市の志仁洞風景区について、次のような発表を行った、貴州省は正式に全国的なAAAAA観光名所にアップグレードされました。これは、美傑観光が「ダブル5A」時代に入ったことを象徴し、「ジジン洞窟」と「百マイルツツジ」の2つの全国AAAAA観光地を持つ貴州2番目の都市であるビジエを「洞窟天国と祝福の地-ビジエの花の海-」という2つの全国AAAAAレベルの観光地である。
  • 農村の活性化を促進する鄒城市の張庄鎮、住みやすい農村環境を構築

    済寧州鄒城の張庄鎮は、蓬湖山周辺に5つの省レベルと4つの市レベルの「美しく住みやすい」農村デモンストレーション村と、蓬莱東華景勝地周辺の農村活性化のためのデモンストレーション地域を建設するための努力を促した。

フレンドリーリンク

Back to top
© 著作権 2009-2020 毎日のニュース      お問い合わせください   SiteMap