ISLAMABAD – Political experts and economists have yesterday unanimously asked the federal government to address the grievances and concerns of smaller provinces regarding CPEC on a priority basis as delay might give room to anti-state elements to exploit the situation to their advantage.
The panelists were also unanimous that Free Trade Agreement (FTA) with China is discriminatory in nature against Pakistan and stressed that Pakistan should be given preferential market status by China.
The economists and political experts recommended to government during the two-day conference ‘CPEC: Macro and Micro Economic Dividends for Pakistan and the Region’ jointly organised by Islamabad Policy Research Institute and Hanns Seidel Foundation.
To avoid division, the federal government is required to correct the impression that Punjab is the only province that will benefit from the CPEC. There is communication gap between the executer of CPEC and the provinces which will create disharmony and mistrust among the provinces instead of making the corridor as a unifying force, the experts said. The experts recommended that federal government should address the grievances and concerns of other provinces like Balochistan on a priority basis, as delay might give room to anti-state elements to exploit the situation to their advantage.
Addressing the concluding session of conference, Federal Minister for Commerce Khurram Dastgir Khan said that to tackle our energy crisis, 3/4 of CPEC investment is dedicated to energy provision only. The impact of energy provision is going to be visible in the coming months.
The CPEC has cemented the time-tested alliance and friendship of both Pakistan and China and marks a very positive metamorphosis of Pak-China’s 65 year-long relationship, the minister said. The corridor puts on ground the depth of this ‘iron friendship’, the minister said, as it has come at the right time. “Due to rising violent extremism and resultant low economic growth, Pakistan had been strategically isolated from the world, investors had refused to make investments, however, due to this historic corridor, foreign investment will begin to trickle into Pakistani market once again, as the EH projects near completion,” he said. Discussing the broader impact of CPEC, Dastgir said that tremendous trade will flow into Gwadar after the port is connected to resource-rich Central Asian States. Thar Coal, which has remained unexploited for decades, will finally be exploited, and will begin to produce energy, which will bring in foreign investors. Sahiwal Project, which is the fastest power plant built in the world, is one example of the successful execution of CPEC. Peaceful political dispensation is vital for effective completion of CPEC. All parts of country will reap benefits, he assured. However, a lot of public opinion in Pakistan is anti-infrastructure development, he condemned. “It is not a zero sum game. We need to support with all our heart the infrastructural development for, it is the basic foundation for CPEC implementation,” he added.
Delivering his inaugural address, Zhao Lijiam, the Charge d’ Affairs, Embassy of the People’s Republic of China, Islamabad, said that ‘CPEC provides an important network and platform of win-win cooperation among countries along the Belt and Road regions. It is the best reflection of the Silk Road Spirit featuring peace, cooperation, openness, inclusiveness, mutual learning and shared prosperity.’
He informed that eight energy projects are being implemented, under CPEC, including Port Qasim Coal-fired Power Project, Sahiwal Coal-fired Power Plant, Dawood Wind Power Project, 720MW Karot Hydro-Power Project, etc.
Looking at the services sector, Dr Saima Shafique, Assistant Professor, National University of Modern Languages (NUML), Islamabad briefly touched upon the economic impacts of highway and energy investments as well as the various types of services industries and factors linked to its growth. She said that particular attention needs to be given to cities such as Turbat, Khuzdar, Dasht, Bostan, Qila Saif Ullah, Mansehra, Nowshera, Dera Ismael Khan, Karak and Bannu in Balochistan and Khyber Pakhtunkhwa where Special Economic Zones have been proposed. In the session on ‘Economic Advantages of the CPEC to the Region’, Dr Tughral Yamin, Associate Dean, Centre for International Peace and Stability (CIPS), National University of Science and Technology (NUST), Islamabad highlighted the economic advantages that India will reap by investing in CPEC. “Given the current tense relationship between India and Pakistan, it is highly unlikely that India will make a formal bid to join the economic corridor linking China and Pakistan within the framework of the One Belt One Road (OBOR),” he remarked.
Dr Fazal ur Rahman, Senior Research Fellow, IPRI, while presenting a paper on behalf of Dr Pervez Tahir, former chief economist, Planning Commission of Pakistan discussed how investment in energy, road, rail, air and optical fibre links between Kashgar in China and Gwadar is likely to impact Bangladesh, Bhutan, Maldives, Nepal and Sri Lanka in several ways. These countries could experience an expansion of trade with China and Pakistan as the movement of goods will become more economical.
With the increase in labour costs in China, incentives to relocate industries to other SAARC countries will grow. Finally, China’s quest for energy and strategic minerals will boost foreign direct investment to these countries, he concluded.
According to Ghulam Qadir, Associate Professor, Ghulam Ishaq Khan Institute (GIKI), CPEC offers Iran the best option to commercially integrate itself with one of the major trade flows in the region. CPEC will provide Iran the opportunity to broadbase its trade and commercial links with China and consolidate it with Pakistan. CPEC will provide Afghanistan a chance to develop its long term economic growth strategy on the basis of the opportunities presented by the CPEC.
http://nation.com.pk/newspaper-picks/22-Sep-2016/experts-urge-govt-to-address-smaller-provinces-concerns-over-cpec
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