CPEC Monitor | February 2018
February 2018
A review of national, bilateral
and regional dynamics
1
CPEC Monitor | February 2018
CONTENTSEXECUTIVE SUMMARY
A / NATIONAL PERSPECTIVE ON CPEC
B / BILATERAL
(PAK-CHINA) PERSPECTIVE
C / REGIONAL / INTERNATIONAL DYNAMICS
D / ANALYSIS
Executive Summary
Government remains optimist over CPEC, pitching it as a project having great potential in promoting regional and global trade. The two-day CPEC cultural caravan festival held in Islamabad helped promote animage of the mega project as a trade and sociocultural connector.
But internally, voices still are raised in small provincesand regions especially Balochistan and Gilgit Baltistan, as well asamong local industrialists, about one or another aspect of CPEC transparency; the latter, for instance, questioned the rationale of granting tax exemption to a Chinese company oraccording second priority to local industry.
CPEC is now entering the phase where Special Economic Zones (SEZs) will be developed. Both sides are now calling for promptly laying them down.
To avoid long bureaucratic procedures for CPEC-related proceedings, China urged Pakistan for “one-window operation” similar to a free zone in Dubai, where all permissions can be obtained in a week.
Yet another country showed interest ininvesting in CPEC. Before Egypt, several others did, but the investment has yet to come in concrete shape on ground. China wants to include Afghanistan, andhasdecided to form a regional forum including Pakistan, Afghanistan, and Tajikistan. Pakistan’s Prime Minister also proposed linking CPEC to SCO’s six approved routes.
On February 2, some unknown militants gunned down a Chinese national, working for a local shipping firm in a senior position, in what police described as a targeted attack; a passerby was also injured.[1] Other than that there was no security issue observed this month on CEPC front. The federal government is planning to establish offices of Intelligence Bureau all over the country. Punjab government has also asked to conduct security audit of CPEC projects at divisional level. Meanwhile, Chief Justice of Pakistan called upon all chief justices of high courts to discuss dispute resolution mechanism for the CPEC.
A report emerged in February that China might be in contact with Baloch militants for CPEC security. But this story was denied by both China and Baloch separatists.
A / NATIONAL PERSPECTIVE ON CPEC- Politico-economic
Statements
Executive Director of Center of Excellence (COE) for CPEC Dr. Shahid Rashid stated that the cost of CPEC can go “up to $100 billion by 2030 with the inclusion of more projects in CPEC.” / Mehtab Haider, The News, February 9, 2018
Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Regional Chairman and Vice President Chaudhry Arfan Yousaf said that CPEC has promoted the regional significance of Pakistan. / Parvez Jabri, Business Recorder, February 13, 2018
Sustainable Development Policy Institute (SDPI) Joint Executive Director Dr. Waqar Ahmed emphasized on economic reforms to reap the maximum benefit of CPEC. / Fawad Maqsood, Business Recorder, February 23, 2018;
Farhan Zaheer, The Express Tribune, February 24, 2018
Action/Visits
Prime Minister’s Advisor on Finance, Miftah Ismail called on Punjab Chief Minister Shahbaz Sharif to discuss the economic development of Pakistan, emphasizing the worth of ongoing CPEC linked projects. / Parvez Jabri, Business Recorder, February 1, 2018
President Islamabad Chamber of Commerce and Industry (ICCI) Sheikh Amir urged the government to timely build the CPEC SEZs in federal capital to accelerate the economic development of the state and region. / The Nation, February 6, 2018
Pakistan Steel Melter’s Association (PSMA) feared that Chinese company working under CPEC will cost national exchequer of around Rs 11 billion in revenue collection. It requested the Prime Minister to discard this tax exemption at the cost of local steel industry. / Dawn, February 8, 2018;
The Express Tribune, February 8, 2018
Chief Minister Punjab Shahbaz Sharif visited the Chinese Consulate and discussed the pace of CPEC with Chinese Consul General Mr. Long Dingbin. / Imad-u-Din, Business Recorder, February 15, 2018
The engineering community in Peshawar has requested policy makers to create employment opportunities under the CPEC. / The Express Tribune, February 16, 2018
Report/Analysis
National Judicial Policymaking Committee called a meeting of secretaries, heads of 12 federal ministries and other entities to discuss the possible disputes resolution mechanism regarding the execution of CPEC-linked projects in Pakistan. / Ansar Abbasi, The News, February 2, 2018;
Ansar Abbasi, Jang, February 2, 2018
The government could not provide any logical explanation for the amount of tax exemption given to a Chinese company working on the Multan-Sukkur section of CPEC, according to a report. The issue triggered debate among senators against this exemption. / Shahbaz Rana, The Express Tribune, February 2, 2018
The Higher Education Commission (HEC) Pakistan has decided to promote the potential of institutions of higher education so they can support socio-economic transformation under the CPEC. / Gohar Ali Khan, Dawn, February 9, 2018
Governor Punjab, Malik Muhammad Rafique opined that government should address the “genuine concerns” of local industries and private sector on CPEC. / The Express Tribune, February 10, 2018;
Saeed Ahmed, The News, February 10, 2018;
The Frontier Post, February 11, 2018
A report said that the federal government has decided to distribute CPEC revenue among provinces via 7th National Finance Commission (NFC) Award rather than creating a new NFC. / The Nation, February 11, 2018
To explore and discuss the business, trade opportunities under CPEC, the Rawalpindi Chamber of Commerce and Industry has decided to hold three-day All Pakistan Chambers Presidents Conference International on March 11-14 at Gwadar. / Dawn, February 14, 2018
Pakistan Tourism Development Corporation has decided to establish resort along the CPEC silk route to improve the tourism services. / The News, February 14, 2018
Commerce Minister Pervez Malik notified increased FDI in CPEC related energy and infrastructure projects. / Dawn, February 14, 2018
As per media report, the government of Pakistan has rejected Japanese interest to join CPEC due to Chinese resistance, and that Pakistan did not accept their cheap loan offer for infrastructure development, citing the already large credit it has borrowed. / Zafar Bhutta, The Express Tribune, February 18, 2018
A report said that under the CPEC, Pakistan’s imports of machinery and construction material increased last year. / Salman, Siddiqui, The Express Tribune, February 21, 2018
Economic and political expert hinted that after the completion of CPEC, Pakistan’s position will be vital in Asian and global trade. / The Express Tribune, February 27, 2018;
Pakistan Observer, February 27, 2018
The Consul General of Switzerland in Karachi has termed CPEC an economic turning point in the region, saying CPEC will attract foreign investors to Pakistan. / The Nation, February 27, 2018
Senate Standing Committee on trade noticed that trade policies and CPEC are not linked together and it has destroyed the local industries in Pakistan. / AzharJatoi, 92, February 27, 2018
- Provincial/regional developments and concerns
Statements
Governor Sindh Mohammad Zubair underlined in a conference that consent and cooperation of all investors, political parties are essential for the successful execution of CPEC. / The News, February 6, 2018
President Azad Jammu Kashmir (AJK) Sardar Masood Khan stated that occupied Kashmir’s willingness to be a part of CPEC can be realized into reality if it stops supporting India’s oppressive rule in Indian-occupied Jammu & Kashmir. / The Nation, February 12, 2018
AJK Minister for Sports and Culture Muhammad Saeed said CPEC would not only promote the socio-economic development of country but the whole region. / The Nation, February 13, 2018
Former minister Local Bodies Engineer Ismail said that local people of GB are not happy and have reservations about the absence of their due share in CPEC projects. / The Express Tribune, February 19, 2017
Chairman Senate Raza Rabbani said that issue pertaining to a due share of GB in CPEC will be discussed in upcoming Senate session. / K2, February 21, 2018
Senator Mushahid Hussain underlined that national consent on CPEC has expanded and said that CPEC would be equally beneficial to all provinces. / Fawad Maqsood, Business Recorder, February 24, 2018
Action/Visits
Report/Analysis
The Higher Education Commission (HEC) unit of CPEC is committed to the timely completion of “government university and educational city projects in Gwadar.” / The Express Tribune, February 2, 2018
Head of the World Baloch Women Forum (WBWF), Professor NaelaQuadri has expressed distrust over CPEC, in a letter to the French Senator Pascal, as a French delegation visited Pakistan to understand if the CPEC is a project of regional connectivity or a Chinese agenda to expand its influence. / Business Standard, February 7, 2018
Prime Minister ShahidKhaqan Abbasi stressed upon the development of GB under the CPEC. / Pakistan Observer, February 15, 2018;
The Express Tribune, February 15, 2018;
Jamil Nagri, Dawn, February 17, 2018
Rs1 billion has been earmarked for execution of ongoing development projects in Gwadar; an official said Gwadar development is prioritized due to CPEC in the region. / Saleem Shahid, Dawn, February 21, 2018
- Socio-cultural
Statements
Minister of State for Information, Broadcasting, National History and Literary Heritage Mariyam Aurangzeb stated that CPEC is not only an economic project but it will also promote socio-cultural development. / The Nation, February 4, 2018
During the CPEC cultural caravan festival, Chinese Ambassador said that successful execution of CPEC depended on enhanced people-to-people contact among both countries. / Jamal Shahid, Dawn, February 26, 2018;
AfshanS.Khan, The News, February 26, 2018
Chairman Technical Education and Vocational Training Authority (TEVTA) Irfan Qaiser Sheikh stated that CPEC would create about 40,000 jobs of Chinese language interpreters. / Business Recorder, February 28, 2018
Action/Visits
Minister of State for Information Mariyam Aurangzeb on her visit to China suggested setting FM Radio with an access along the CPEC route in Pakistan. / Shehrish Wasif, The Express Tribune, February 6, 2018
To promote bilateral cultural relations, CPEC cultural caravan grand exhibition will be held at Pakistan National Council of the Arts (PNCA) from February 24. / The Express Tribune, February 10, 2018;
China Pakistan Economic Corridor, February 25, 2018
Report/Analysis
Chief Executive Aman Foundation Malik Ahmad said the foundation is keen to collaborate with China, by tending to expand its ambulatory services in CPEC projects areas. / The Express Tribune, February 14, 2018
Artists from Pakistan believed that after the launch of CPEC, bilateral cultural exchange is significant to develop cordial relations. / Liangyu, Xinhua, February 16, 2018
- Security
Statements
Chinese ambassador to Pakistan Yao Jing acknowledged the improved security situation in Pakistan, saying CPEC is not vulnerable to Baloch militant outfits anymore. / Dawn, February 3, 2018;
Dunya, February 3, 2018
China’s ambassador to Pakistan, Yao Jing said the execution of CPEC will continue despite opposition. / Nawa-i-Waqt, February 10, 2018
Senator Mushahid Hussain underlined that it is India and its western supporters who have been encouraging misconceptions about CPEC. / Kalb-e-Ali, Dawn, February 19, 2018;
Pak-China Institute, February 19, 2018
Security Incidents
Action/Visits
China’s ambassador to Pakistan, Yao Jing visited Khyber Pakhtunkhwa (KP) and expressed satisfaction over the security of Chinese CPEC workers under the improved law and order in Pakistan. He further showed interest in the development of KP and FATA under the CPEC. / The News, February 2, 2018;
The Nation, February 3, 2018
Punjab government has ordered the civil administration and divisional police chiefs to conduct the security audit of CPEC and non-CPEC projects, asking them to submit their reports; some divisional chiefs have not submitted their report yet. / Mohammad Asghar, Dawn, February 10, 2018;
Daily Express, February 10, 2018
Commander V Corps Lt-Gen ShahidBaig visited Thar coal power project Block II and underlined Pakistan army will ensure the security of CPEC projects in Sindh. / Dawn, February 10, 2018
In order to promote transparency and awareness among people about CPEC, the federal government has decided to set research centers in public universities that will enable students to conduct research on seven areas of CPEC Long-Term Plan. / AzharJatoi, Roznama 92, February 13, 2018
Report/Analysis
The Interior Ministry has informed the Gilgit-Baltistan’s home department about Indians plans to sabotage CPEC, instructed to ensure strict security measures to avert any harm to CPEC. / Jamil Nagri, Dawn, February 5, 2018;
Times of India, February 5, 2018
Despite the explicit clarification of Balochistan government about bidder’s criteria, the provincial bureaucracy has provoked a fight among Chinese bidders halting the execution of safe city project in Quetta. / Khaleeq Kiani, Dawn, February 5, 2018
A group of around 40 geologists is set to survey the Makran Trench in Balochistan in order to assess the possibility of an earthquake, a threat to the implementation of CPEC-linked projects in region. / Times of India, February 10, 2018;
Hindustan Times, February 10, 2018;
Business Standard, February 11, 2018
To ensure the security of CPEC routes, the federal government has decided to establish the Intelligence Bureau offices. The decision will be implemented next fiscal year costing 47 crores. / Haseeb Hanif, Daily Express, February 16, 2018
During a meeting with all chief justices of high courts, the Chief Justice of Pakistan (CJP) Mian Saqib Nisar told them investment under CPEC may trigger civil and criminal disputes on Pakistan and therefore discussed the dispute resolution mechanism. One member in the meeting suggested a forum like International Financial Corporation (IFC) Dubai be constituted to take care of the foreign direct investment. / Hasnat Malik, The Express Tribune, February 18, 2018
To ensure the security of CPEC projects, it was reported by an international paper, that China is involved in direct contact with militants in south-western part of Balochistan. / Farhan Bokhari, Financial Times, February 19, 2018;
Dawn, February 20, 2018;
Mohammad Idress, Daily Pakistan, February 20, 2018;
Shailaja Neelakantan, Times of India, February 20, 2018;
Economic Times, February 20, 2018;
Nawa-i-Waqt, February 21, 2018;
Voice of America (VoA) has denied the reports of talks between China and Baloch militants for the security of CPEC. Also, one official of the Baloch Republican Army denied any such contact. Chinese Foreign Ministry spokesman stated, “I have never heard the report mentioned by you,” when asked about reported Chinese dialogue with Baloch militants. / The Express Tribune, February 21, 2018;
Ayesha Tanzeem, Voice of America, February 22, 2018;
The Hindu, February 22, 2018
Chief Minister Khyber Pakhtunkhwa Pervez Khattak expected the support of international community in removing misunderstandings and misperceptions against CPEC. / Parvez Jabri, Business Recorder, February 22, 2018
MNA from PPP allegedly reported that Chinese criminals who were imprisoned in China arrived in Pakistan to work on CPEC linked projects, while Interior Ministry discarded the claim of Chinese prisoners working in Pakistan. / Dawn, February 27, 2018
- Progress on CPEC-linked projects
Statements
President Azad Jammu and Kashmir (AJK) Sardar Muhammad Masood informed about the speedy execution of four CPEC projects in the region. These included Mirpur industrial zone, Karto-Kohala hydropower projects, and Mansehra-Mirpur Expressway. / The Nation, February 14, 2018;
The News on Sunday, February 14, 2018
Minister for Planning, Development, and Reforms, Ahsan Iqbal underlined that increased power supply under CPEC has contributed to reducing load shedding in Pakistan from “18 hours a day in 2013 to zero today.” / The News, February 18, 2018
Minister for Planning, Development, and Reforms Ahsan Iqbal informed Senate that CPEC would include energy projects of 17,045 megawatts while projects of 11,110 megawatts are included in the “active list.” / Mohammad Irfan, Daily Pakistan, February 21, 2018;
Pakistan Observer, February 21, 2018
Action/Visits
Chinese ambassador to Pakistan Yao Jing ensured the timely and quality completion of CPEC and non-CPEC projects. / Pakistan Observer, February 2, 2018
During a special meeting of the National Judicial Committee (NJC), Chief Justice Pakistan Mian Saqib NIsar instructed the chief justices of high courts to “advise civil courts not to pass stay orders to ex-party related to CPEC projects.” / Sardar Sikandar, The Express Tribune, February 3, 2018
A Chinese delegation tends to visit Pakistan next month to ensure the prompt establishment of SEZs and review the progress projects under the CPEC. / Board of Investment, February 11, 2018;
Fawad Yousafzai, The Nation, February 15, 2018
Foreign Minister Khawaja Muhammad Asif underlined that Gwadar port and other CPEC related projects would accelerate the employment opportunities for people at large. / Imad-u-Din, Business Recorder, February 19, 2018
In order to attract investment under the CPEC, Balochistan government approved Bostan Industrial Estate s an economic zone. Meanwhile, Balochistan Chief Minister Abdul QuddusBizenjo lamented the delayed implementation of CPEC in the region and requested the concerned authorities to expedite the pace of development work. / Mohammad Zafar, The Express Tribune, February 21, 2018
National Electric Power Regulatory Authority (NEPRA) has allotted a 25-year special purpose transmission license to Pak Matiari-Lahore Transmission Company Ltd (PMLTCPL) to manufacture Matiari-Lahore Transmission line under the CPEC. / Khaleeq Kiani, Dawn, February 22, 2018
Chief of his own faction of Jamiat-Ulema-e-Islam Maulana Fazl-u-Rehman visited the western route of CPEC and discussed various prospects of its development with the project director of National Highway Authority (NHA). He further objected to the provincial government for setting up an industrial zone in Nowshera than Dera Ismail Khan (DIK). / Dawn, February 26, 2018;
The News, February 26, 2018;
The Express Tribune, February 26, 2018
To expedite the implementation of SEZs under CPEC, the Council of Common Interests (CCI) has asked provinces to submit their lucrative proposals related to the establishment of SEZs. / The News, February 26, 2018