To mark a decade of progress within the China-Pakistan Economic Corridor (CPEC), Islamabad declared a day of celebration and hosted exclusive festivities.
With the presence of distinguished guests, including Chinese President Xi Jinping’s envoy and Chinese Vice Premier He Leifeng, an important gathering took place. On this significant moment, the two nations restated their dedication to ensuring the ‘swift accomplishment’ of CPEC ventures and the overcoming of any impediments impeding its progress. But congratulated each other.
But the same question is still being repeated in Pakistan what happened to CPEC projects?
With much enthusiasm, the beginning of the China-Pakistan Economic Corridor became the main focus, seen as a powerful change for Pakistan. However, the once-prominent timetables for these endeavors began to slip through the cracks, casting shadows of doubt upon the significance attributed to them.
The Genesis and Evolution of CPEC: A Tale of Foundations and Historical Significance
Please observe that as part of the China-Pakistan Economic Corridor, a substantial investment of 62 billion dollars by China is earmarked for Pakistan. It shall embrace endeavors encompassing pathways, agrarian pursuits, energy networks, and aqueous infrastructures.
During the tenure of former President Pervez Musharraf, notable agreements were inked with China back in 2006, outlining the blueprint for approximately 50 diverse projects to be undertaken. CPEC is a very important part of Beijing’s Belt and Road Initiative, which was formally launched in 2013 under the Muslim League-N.
In April 2015, 51 MoUs worth $46 billion were signed between the two countries. In November 2017, they made a deal that stretches from 2017 to 2030. The inaugural stage of this accord was slated for fulfillment by the year 2020. The time frame for the intermediate phase was set to 2025. And the third phase was to be completed by 2030.
Called ‘One Plus Four’, the plan is called ‘One’ CPEC and has four projects under it, including Gwadar port, energy, and communication system, and upgrading of industrial zones. The Pakistan-China Economic Corridor started with much fanfare, but suddenly the deadlines of these projects started to be missed and the importance of these projects started to be questioned.
Progress Report: Completed vs. Ongoing Projects
Now let’s take a look at the projects that were to be completed under CPEC and also see how many projects are completed or still incomplete through CPEC.
Generation of 17,045 MW of electricity in Pakistan through CPEC, modernization of railway and road infrastructure across the country, new optical fiber connections, improvement and trade in Gwadar and other ports, and completion of four urban mass transit schemes in major cities. Plans were made and these projects were to be completed by 2030.
Out of these, 27 projects worth 19 billion dollars are finished, and 63 projects worth over 35 billion dollars are still in progress.
According to the report of China Three Gorges South Asia Investment Limited, a Chinese company investing in these projects, 11 of the completed projects are related to the energy sector and seven projects were for improving infrastructure in Pakistan. Apart from three port projects, six welfare projects have also been completed in Gwadar.
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Political Disputes Over Project Delays
The delay in the completion of these projects cannot be denied, but this delay also took a political form at one point. Leaders of the Muslim League-Nawaz, who consider CPEC to be an important economic project launched during their tenure, accuse the Pakistan Tehreek-e-Insaaf of deliberately delaying these projects.
Federal Minister for Planning Ahsan Iqbal said that work continued on these projects until the beginning of 2018, but the government that came in 2018 made irresponsible statements regarding the CPEC, raising unnecessary doubts.
He said that when the Muslim League-Nawaz government returns in 2022, efforts are being made again to ‘work on these projects with the same speed as we were doing before.’ Ahsan Iqbal emphasized that the prevailing economic conditions and challenges in Pakistan have significantly diminished the magnitude of our development fund, leaving little room for embarking on fresh initiatives, reminiscent of times gone by.
PTI member and former Federal Minister for Planning Asad Umar claimed that ‘CPEC roads and highways were built more during the Tehreek-e-Insaaf regime and less construction was done during the PML-N government.
“Only power plants were installed in his government. His delivery system had not worked. Our delivery plan was also completed.’
CPEC: Economic Growth or Financial Burden?
While some people associate CPEC with the revival of Pakistan, some people also consider it responsible for the economic problems faced by Pakistan. In Balochistan’s coastal city of Gwadar, one of the main reasons for criticism is the uncompleted projects under CPEC. Periodically, inhabitants of Gwadar take to the streets, rallying against the scarcity of both water and electricity.
A citizen of Gwadar said that it is not the responsibility of China and Habco to provide water and electricity. The government of Pakistan is responsible for our basic needs, which we will keep questioning all the time.
Balochistan’s nationalist parties are worried about the CPEC projects because they think China might use the Gwadar port to reach all markets, taking advantage of its control over 50% of the world’s oil and 38% of its natural resources.
Regarding this, Dr. Qaiser Bengali says that if you look at the Gwadar port agreement, 91 percent of the revenue share is China’s and the rest is Pakistan’s. Which shows who will benefit more from it and whose interest is more.’
He mentioned that within Pakistan’s array of political parties, the primary aim of the Muslim League-Nawaz revolved around channeling capital into Punjab. That’s why China also funded the Orange train and installed two power plants.
CPEC: A Game Changer or Just a Wishlist?
After the 18th Amendment, the provinces have the right to send their recommendations regarding the CPEC projects to the federal government for approval.
Throughout this period, the majority of suggestions emanated from Punjab and Sindh, while Khyber Pakhtunkhwa and Balochistan joined the discourse belatedly, subsequently inducing a phase of political hush. While development projects are necessary, we must consider their cost and who decides.
Words like ‘game changer’, and ‘fate changer’ have been used many times about CPEC, but Dr. Fazlur Rehman, director of Pakistan Institute of China Studies at Sargodha University, said that CPEC has been made very political. Many high hopes are being made from it and due to delays in the projects, it is said that CPEC is not proving to be as effective as expected.
Dr. Qaiser Bengali, the former advisor to the Chief Minister of Balochistan, said that it was more of a wish list than a plan. Work could not be done under this MoU because it was impossible.’
Lack Of Information About CPEC
There is also not much information available about the CPEC plans, which are often mentioned by experts like Qaiser Bengali. This is the reason why questions are raised now and then about the ongoing projects under this plan and its completion. For example, China has provided loans to Pakistan at what rate of interest?
A government spokesman said that Pakistan had ‘worked quickly on those projects in the previous government period that required less debt. A common perception is that CPEC projects are very good for development but they lead to further increase in debt.’
The spokesman said that the loan rate for building roads and highways does not increase due to which these projects are being completed as soon as possible.
According to him, apart from this, the Thar coal projects are still running at the same pace as before, but on the other hand, these projects are being stopped at this pace to limit the rate of borrowing in the energy sector. Actions are not being implemented as claimed by the government.