A new stage of China-Pakistan cooperation and the Middle East
The China Pakistan Economic Corridor (CPEC), the flagship project of China’s Belt and Road Initiative, is entering into a very promising second phase. While the first phase was about developing road infrastructure and launching new power projects, the second phase will focus on establishing Special Economic Zones (SEZs), modernizing Pakistan’s agriculture, and developing the information technology and mining sectors. This will not only give Pakistan a much-needed boost in its current challenging economic situation, but will also open new avenues for investment in the Middle East.
CPEC already connects Kashgar with the deep seaport of Gwadar, which will be the base of this expensive and ambitious international project. Gwadar is blessed with excellent beaches and abundant sunshine, so tourist resorts will be developed around it. But even more interesting for regional energy exporters will be the oil terminal city of Gwadar, with its large storage facilities and associated petrochemical industry. China is a major importer of oil from the GCC countries and Iran. CPEC will allow China to significantly shorten its export route to the Middle East and Africa, while providing energy exporters with an import route for oil and gas.
China’s Xinjiang Uygur Autonomous Region is the country’s largest province, with a vast area. However, its distance from the main hubs of economic activity along the east coast has made it less developed than other parts of the country. The Chinese leadership is determined to bring the province on par with the rest of the country. The development of western China will require intensive use of energy resources not only in the near future but for years to come. Industrial parks being established in Xinjiang Uygur Autonomous Region will be able to export products to the Middle East and Africa via a much shorter route. China-Middle East trade will increase significantly with Pakistan playing a role in facilitating this connection.
Future phases of CPEC will bring the GCC countries, Pakistan and China closer together, promoting peace and economic development.
Javed Hafeez
Despite China’s concerns about the safety of its personnel, the $62 billion project in Pakistan is proceeding unhindered. This is a testament to the all-round strategic relationship between China and Pakistan. Chinese leaders often refer to Pakistan as their “iron brother” and these feelings of mutual trust and empathy were evident during Prime Minister Sharif’s visit to China last month. Soon after that visit, Liu Jianchao, head of external affairs at the Communist Party of China, led a large delegation to Pakistan and held bilateral talks with representatives of various Pakistani political parties, including the opposition. This fully reflects that CPEC has gained national consensus in Pakistan.
The second phase will see the establishment of five large SEZs, the largest of which will be in the industrial city of Gwadar. These SEZs will benefit from the existing road infrastructure and will boost economic development across Pakistan, especially in Balochistan. Pakistan’s main railway line from Peshawar to Karachi will be upgraded. One can imagine Karachi and Gwadar becoming bustling ports in the near future, benefiting the entire region in terms of trade through connectivity. Thus, the next phase of CPEC will bring the GCC countries, Pakistan and China closer together, promoting peace and economic development.
The Karakoram Highway (KKH), often referred to as the “Wonder of the World” due to its notorious terrain, is undergoing an upgrade. This vital highway will not only strengthen north-south connectivity but also east-west land and sea trade links. For Afghanistan and landlocked Central Asia, Gwadar port would be a natural choice. The Lahore-Peshawar road and rail link can also be used by India in future for trade between Afghanistan and Central Asia. During his visit to Dushanbe on July 1, Prime Minister Shehbaz Sharif said Tajikistan and Afghanistan also want to benefit from CPEC and Pakistani ports.
Though CPEC is essentially an economic project, aimed at enhancing trade through connectivity, some countries insist on giving it a geopolitical overtone. They argue that Gwadar could be used by China as a naval base in case of tensions rising in the Indian Ocean. This argument is far-fetched for two obvious reasons. First, China has hardly fought any international wars. Second, Pakistan itself has a powerful navy that is capable enough to defend its maritime interests.
CPEC is a win-win project for China, Pakistan, GCC countries and Africa. It will bring prosperity to underdeveloped areas of both China and Pakistan. Energy exports from GCC countries and Iran will increase through the pipeline going north through Pakistan and it will place Gwadar on the world map as an important international port.
– Javed Hafeez is a former Pakistani diplomat with extensive experience in the Middle East. He writes weekly columns for Pakistani and Gulf newspapers and appears regularly on satellite TV channels as a defence and political analyst.
X: @JavedHafiz8
Disclaimer: The views expressed by the authors in this section are their own and do not necessarily reflect the views of Arab News.
