Pakistan’s Planning and Development Minister Ahsan Iqbal said his country was not opposed to Afghanistan’s participation in a huge Chinese-funded development project, but urged Kabul to force Islamabad to crack down on terrorist groups operating on its soil. He said he wants the Chinese government to do so.
The new government of Prime Minister Shehbaz Sharif, which was inaugurated in March, is eager to revive the China-Pakistan Economic Corridor (CPEC), a flagship project worth approximately $62 billion as part of the Chinese government’s Belt and Road Initiative, which has slumped in recent years. are doing. This is due to Pakistan’s political, economic and security issues.
Mr. Iqbal recently held talks with Chinese officials in preparation for Mr. Sharif’s visit to Japan, which is aimed at accelerating the pace and expanding the scope of CPEC.
Securing CPEC
In recent years, intimidation against Chinese nationals has become a major obstacle to CPEC’s progress. At least 17 Chinese nationals have been killed in targeted attacks in Pakistan since 2021.
In late March, a suicide bomber rammed a vehicle loaded with explosives, killing five Chinese workers and a Pakistani driver. Pakistani authorities identified the attacker as an Afghan national and claimed the attack was planned in Afghanistan.
“I think this is a cause for concern,” Iqbal said of the alleged use of Afghan territory in attacks on Chinese nationals in Pakistan.
Speaking exclusively to VOA, Iqbal said the government hopes Beijing will use its influence to push Kabul to take action against cross-border terrorists.
“We also hope that China will persuade Afghanistan. [Afghans] Please also listen to the Chinese government in the region,” he said.
Afghanistan’s Taliban deny giving space to terrorists, but research suggests they have a presence there.
Asked whether Islamabad had formally requested the Chinese government to promote the Afghan Taliban to curb anti-Pakistan terror groups, Iqbal referred VOA to the Ministry of Foreign Affairs.
The minister said the attack on the Chinese people was a failure on Pakistan’s side and rejected the idea that special forces and local law enforcement were tasked with ensuring the safety of the Chinese people.
“In the fight against terrorism, terrorists always find a way,” Iqbal said, adding that major powers such as the United States and Russia were also victims.
Chinese authorities have publicly called on Pakistan to ensure the safety of workers and hold accountable those responsible for the killings.
Iqbal said the Chinese government was right to demand improved security for its people and was aware that Pakistan was doing more.
“However, the Chinese government has made it very clear that such dastardly incidents will not deter it from pursuing CPEC,” he added.
Washington vs. Beijing
While funding from China is welcome, it mainly comes in the form of large-ticket loans. According to a study by AidData, a research institute based at the College of William and Mary in Virginia, USA, Pakistan’s cumulative debt to China from 2000 to 2021 reached $67.2 billion.
Iqbal dismissed Washington’s concerns about Pakistan’s growing Chinese debt. The United States has also accused China of predatory lending practices, an allegation that Beijing denies.
“I think China showed that.” [a] “I hope there will be a great deal of understanding. Just as China understands Pakistan’s difficulties, so do I. [the] IMF [International Monetary Fund] And other friends will also give understanding to Pakistan. ”
When CPEC was launched in 2013, Iqbal told officials in Washington, “Currently, China is making $46 billion of hard investments in infrastructure, but we have not received approval from Congress for $4 million for Pakistan.” I very much doubt whether it will be possible,” he said.
Despite being allies in the two-decade-long US-led war in Afghanistan, Washington and Islamabad share a long history of mistrust.
Iqbal, who is walking a tightrope between Washington and China as the two countries vie for geopolitical influence, said Islamabad could use US “soft power” to attract Pakistan’s Ph.D. He said he would like to send scholars and researchers to the area.
“So if China is going to help us build our infrastructure and hardware, we hope that the United States will help us build the software that runs that hardware,” Iqbal said. Ta. “I think then Pakistan can really benefit from both its friends, the United States and China.”
CPEC Phase 2
Launched in 2013, CPEC has given Pakistan about 2,000 kilometers of roads, added 8,000 megawatts of electricity to the national grid and created nearly 200,000 jobs, according to Pakistani and Chinese officials.
In the much-delayed and much-talked-about second phase of CPEC, Pakistan is hopeful that some of the pending projects of the first phase will be completed. Pakistan wants to stay away from government-to-government efforts and have Chinese private companies work with Pakistani companies in the second phase. In addition, rising labor costs have led to an outflow of jobs from China, and the company is aiming to send jobs to Pakistan, where human resources are plentiful and cheap.
When asked why more Chinese companies are expanding into Pakistan when the country’s companies are struggling to get dues, Iqbal said, “China considers Pakistan a strategic friend and has confidence in Pakistan.” “I have this,” he said.
Pakistan owes about $2 million to Chinese power producers that have set up operations under CPEC. Although the size of the economy is about $350 billion, Pakistan’s total debt hovers around $290 billion, according to the country’s central bank, the State Bank of Pakistan.
After avoiding default last year, Islamabad is seeking a fresh bailout from the IMF, which expects Pakistan’s economy to grow 2% in 2024.
Iqbal said China invested in Pakistan when the country was going through difficult times.
“When China decided to invest $25 billion in Pakistan, this [in] The minister said, “In 2013, there was an 18-hour power shortage and there were frequent suicide bombings. At that time, they decided to come to Pakistan and support Pakistan. It was because they had confidence in Pakistan. It shows that he is confident.”
Iqbal said that the recent bullish performance of the country’s stock exchanges shows that “…local investors have full confidence in the direction the government is following, and Chinese investors… I think it’s the same confidence that the Chinese government has in this government.” ”