PM needs to prioritize projects for CPEC’s success
Zafar Iqbal
Prime Minister Shehbaz Sharif seems to be trying to restore the confidence of China in the China-Pakistan Economic Corridor (CPEC) which was shattered by the PTI government led by former Prime Minister Imran Khan.
The ouster of former Prime Minister Imran Khan who is currently leading a long march against the Shehbaz-led coalition government had not annoyed only United States (US).
He had also annoyed all other key allies of Pakistan-Saudi Arabia, UAE, and China.
This was for the first time in Pak-China relations that one former Ambassador of China had raised their voice against the PTI government when he was leading a Chinese investor delegation in Islamabad.
Chinese foreign minister had also given a statement in Iran over swift changes in Pakistan’s foreign policy apparently on ‘call of United States.
So, PTI leader Imran Khan’s narrative has been too manipulative rather than ‘pro-national.
Pakistani side at the time of PTI government had decided to open coal-based agreements ‘claiming that China was receiving over 30 percent rate of return.
Though China had refused to open an agreement it also caused ‘an anti-Imran element in Chinese power corridors.
In the meantime, China had been too much in love with Prime Minister Shehbaz Sharif.
So, Shehbaz Sharif is in power now and trying to restore the confidence of China.
He is currently visiting China on November 1 where two sides would sign several agreements.
Both sides plan to kick off work on phase 2 of the CPEC.
At a time when the Premier was going to visit China with heavy agenda ahead, he should prioritize projects for CPEC’s success.
Does Pakistan benefit from CEPC?
United States (US) has termed CPEC as a ‘debt trap’ for Pakistan.
It has warned Pakistan to avoid ‘more debt’ in the future.
During the first phase of CPEC, Pakistan handed over Gwadar Port to China which had not been fully operational so far.PM Khan and Fate of SEZs under CPEC
There had been an issue with the Pakistan navy which had not surrendered some areas for defense purposes.
According to port authorities, it had been a hurdle in making the port fully operational.
So, China has control over Gwadar Port but there are no trade activities there.
Moreover, the security situation in Balochistan had also been one of the issues which halted the operations of the Gwadar Port.
Energy Projects Under CPEC
Two sides had also completed multibillion dollars in energy projects which caused increasing electricity installed capacity to 41000 MW.
At present, Pakistan has a surplus capacity.
But high fuel prices led to the shutting down of several plants.
The surplus capacity had also become an issue for Pakistan as the consumers had paid multibillion rupees on account of capacity payments to the plant owners.
So, the consumers were paying for those power plants which had not been operational.
In this way, electricity is available but the consumers cannot use them due to historically high prices of electricity in Pakistan.
Why CPEC failed?
Experts say that CPEC has not been much fruitful for Pakistan.
Pakistan handed over the port to China and worked on highways including energy projects.
But both sides had completely ignored the industrialization in Pakistan which could boost exports of the country.
So, CPEC does not seem to contribute to the growth of the economy.
Rather electricity prices had gone up to record-high levels, halting business activities in the country.
The only option was industrialization which could cause an ‘industrialization revolution’ in the country.
The work on Special Economic Zones (SEZs) under CPEC was started.
But no work on SEZ has been completed so far.
Now, Prime Minister Shehbaz Sharif is going to resume work where PML-N had left.
So, this could be an opportunity for Pakistan to bring investment in special economic zones.
Chinese investors should be encouraged to set up industries in different parts of the country.
This was the only solution to pick the dwindling economy of the country.
