Ma’am Asia Karim

Mishayam wajidSadaf QayyumTehreem AminSundas FatimaRija Ali

Now-a-days States have defined their interests and have reshaped their

policies because they have realized that it is not possible for them to

defend their interests with their own capacities. High-level talks and

diplomatic consultations are the hallmark of ever-growing cooperation

among states in multi-faceted fields such as industrial ventures,

infrastructure and development programmes, defense, commerce and

related area of the economy

introduction

In recent years, both China and Pakistan have been making concerted efforts to

revive the historic Silk Road which is one of the oldest known trade route in the

world and will provide a route for trade from Kashgar (China) to Gwadar (Pakistan).

China-Pakistan Economic Corridor plan will help Pakistan to become one of the most

strategically important countries in the region.

What is CPEC?

CPEC is an infrastructural project

Benefit of Pakistan’s geographic position

The China-Pakistan Economic Corridor (CPEC) is a 3,000-

kilometer network of roads, railways and pipelines to transport

oil and gas from southern Pakistan's Gwadar Port to Kashgar city,

northwestern China's Xinjiang Uygur autonomous region

CPEC intends to revive the ancient Silk Road with a focus on infrastructure, and constitutes the strategic framework of bilateral cooperation.

The project links China's strategy to develop its western region with Pakistan's focus on boosting its economy, including the infrastructure construction of Gwadar Port, together with some energy cooperation and investment programs.

It also involves road and railway construction including an upgrade of the 1,300-km Karakoram Highway, the highest paved international road in the world which connects China and Pakistan across the Karakoram Mountains.

Aims to reduce China's routes of oil and gas imports from Africa and the Middle East by

thousands of kilometers, making Gwadar a potentially vital link in China's supply

chain

To lay the foundation for regional cooperation, improving economic growth, offering

trade diversifications, investing in transportation, mining and energy sectors and

creating political flexibility

To create new infrastructure and free trade zones

to create regional stability in South Asia.

to create a primary gateway for trade between China and Africa and the

Middle East.

It is expected that this corridor will help cut the 12,000 kilometer route which

Middle East oil supplies must now take to reach the Chinese ports.

The “One Belt one Road” Project consists of three routes, southern, central

and northern route

southern

• begins from Guangzhou

• moves towards western parts of China and connects Kashgar with Pakistan at Kunjarab

central

• starts from Shanghai and links the country to Tashkent, Tehran and onwards to Bandar Imam Khomeini Port of Iran on the Persian Gulf

northern

• starts from Beijing, passes through Russia, and links it to European cities.

HISTORY It stretches as far back as the Musharraf era.

This idea speculated for many years, gained traction in May 2013 when Chinese

Premier Li Keqiang emphasized the construction of the CPEC during his visit to

Pakistan.

Pakistani Prime Minister Nawaz Sharif visited Beijing and signed eight agreements

approximately costing $18 billion that included building around 200 kilometers

tunnels for the CPEC. Pakistan’s President Mamnoon Hussain visited China in

February 2014 to discuss the plans of the corridor. In the same year, Pakistan’s Prime

Minister Nawaz Sharif again visited China and signed 19 agreements with China.

At that time, the Chinese banks and companies pledged over US$ 45.6 billion

for energy and infrastructure projects along the corridor

Chronological order 2006 : Hu Jintao's first visit to Pakistan.

2014: Xi was to visit Pakistan again during his South Asia trip to Maldives, Sri Lanka and India. It was postponed due to political unrest in Pakistan.

During his visit, a total of 51 agreements were signed between China and Pakistan having worth of $46 billion which also included the development of China Pakistan Economic Corridor. The $46 billion investment China intends to commit to Pakistan under the CPEC is impressive.

The amount exceeds all foreign direct investment Pakistan has received in the past several years, and is considerably more than all the aid Pakistan has received from the US since 9/11.

Infrastructure of CPEC is the construction period for which is from 2014 to 2030

The China–Pakistan Economic Corridor

(CPEC) is a ongoing development

Infrastructure project which aims to

transform the Pakistani economy by

connecting Gwadar Port in southwestern

Pakistan to China’s northwestern region of

Xinjiang, via a network of Roads, railways

and pipelines to transport oil, gas and other

essential Natural resources.

once the corridor is

completed it will expand the

number of trade routes

between China, the Middle

East and Africa.

1-Internal and External Challenges:

•political unrest

•security situation and

•administrative issues

India, Israel and the US are unhappy. Already one

can notice sudden upsurge in the acts of terror in

the three restive regions and activation of certain

NGOs and think tanks all trying to air misgivings

and create fear psychosis.

some political parties like ANP, Baloch nationalists, PkMAP

raised serious objections to the CPEC project

Security concerns have been the most critical

challenge to the CPEC and both Pakistan and

China have been trying to meet these. An arc of

militancy stretches from Xinjiang to Gwadar

consisting of groups like the Tehreek-e-Taliban

Pakistan (TTP), Lashkar-e-Jhangvi (LeJ), Daesh

(ISIS),Balochistan Liberation Army (BLA),

Balochistan Liberation Front (BLF) and the

militant wings of some political parties.

2-Security Concerns

Most of these groups may not have an

enmity with China itself but rather intend

to attacks the Chinese interests like the

CPEC as a means to deal with the

Pakistani state.

Militants trying to disrupt construction of an

"economic corridor" linking China with Pakistan's

coast have killed 44 workers since 2014.

The army has created division of 10,000 man

special force for protecting the development

projects. The new force, named the Special

Security Division, is comprise on nine army

battalion and six wings of paramilitary forces, the

Rangers and the Frontier Corps to focus specifically on protecting CPEC projects and Chinese workers.FWO, which is owned by the Pakistani army, has been awarded the bulk of road-building contracts in Baluchistan and other volatile areas in Pakistan.

India’s Views about CPEC

According to one widespread theory which

explains India’s stance over CPEC suggests

that thanks to the CPEC, the Gwadar

seaport could turn into China’s naval base

in the Indian Ocean. Thus, China would be

able to monitor Indian and U.S. naval

activities, which Beijing perceives as a

threat to its interests.

For India, CPEC is a thorn in its paw. They have put their heads

together to work out new strategies to block the project forward march.

RAW has opened a special office in Delhi and has been allotted $300

million to disrupt CPEC.

“The unsuspecting submarine was detected and localized south of Pakistani coast on Nov

14,” statement issued by Pakistan Navy. According to navy officers submarine was on

intelligence mission to gather data they wanted to disturb the implementation of CPEC as the date coincided with the first fleet leaving Gwadar port under CPEC.

Anti-submarine expert retired Commodore Zafar Iqbal speculates that the submarine may

have been attempting to get near the coast for delivering saboteurs or weapons supply for

terrorist groups.

When Pakistan’s central bank governor

publicly states that he does not understand

the composition of financing for the

projects, we have a real problem.

Survival of Local industry:

we also need to understand the

potentially long run negative

impact it shall have on

Pakistan’s industrial sector. The

goods from China will likely

flood Pakistan’s market more

rapidly, which will potentially

slow down or in worse case

cripple the local industry.

CPEC is considered economically vital to Pakistan in helping it drive economic

growth. The Pakistani media and government have called CPEC investments a

"game and fate changer" for the region, while both China and Pakistan intend

that the massive investment plan will transform Pakistan into a regional

economic hub and further boost the deepening ties between the two countries.

Benefits specifically For

Baluchistan:

Consequences regarding China Pakistan

Economic corridor are of great concern.

Viewing with a 360 approach and reviews

of the analyst, CPEC is a ground breaking

initiative for Baluchistan. Baluchistan has

been left far behind the other provinces,

having a poor literacy rate, unstable

administration, unemployment and worst

infrastructure. CPEC is spark of boom for

Baluchistan, progressing its infrastructure,

economy and coping it up in advancement

with other provinces.

Benefits for China

For China the corridor brings unlimited benefits,

when the construction of the corridor will be

completed, it will expand the number of trade

routes between China, Africa and the Middle

East. Energy security is a prime concern for

China, as it is the world’s biggest energy

consumer and importer, and oil pipelines

crisscrossing through Pakistan would reduce the

travel time by a significant amount.

projects 51 total signed projects

Some already initiated

Some are pending

CPEC completion is

divided into several

phases

The first phase being the completion of

Gwadar International Airport and major

developments of Gwadar Port.

This phase is expected to be

completed by the year 2017.

The project also includes

1. the expansion of Karakoram

Highway- the road that connects

China with Pakistan

2. placement of fiber-optic line ensuring

better communication between the

two countries.

It is estimated that if all the planned

projects are implemented, the value of

those projects would exceed all foreign

direct investment in Pakistan since

The agreements and MOUs signed

Economic and technical cooperation agreement between China and Pakistan.

Exchange of notes of feasibility study of the demonstration project of the DTMB.

Exchange of notes on provision of anti-narcotics equipment.

Exchange of notes on provision of law enforcement equipment.

Exchange of notes on feasibility study of Gwadar hospital

MoU on provision of Chinese governmental concessional loan for second phase up-gradation of the Karakorum Highway (Havelian to Thakot).

MOU on provision of Chinese governmental concessional loan for Karachi-Lahore Motorway (Multan to Sukkur).

MoU on provision of Chinese governmental concessional loan for Gwadar port East Bay Expressway Project.

MoU on provision of Chinese governmental concessional loan for Gwadar international airport.

Protocol on banking services to agreement on trade in services.

MoU on provision of material for tackling climate change.

Framework agreement on cooperation on major

communications infrastructure project.

MoU on cooperation between NDRC of China and Ministry of

Planning Development and Reform of Pakistan.

MoU on Pro Bono Projects in the Port of Gwadar Region.

MoU on establishment of China-Pakistan joint cotton bio-tech

laboratory.

Framework agreement between the National Railway

Administration, China and the Ministry of Railways, Pakistan on

joint feasibility study for up-gradation of ML1 and establishment

of Havelain dry port of Pakistan Railways

Protocol on the establishment of China-Pakistan joint marine research center.

MoU on cooperation between the State Administration of Press, Publication, Radio, Films and Television of

China and Ministry of Information, Broadcasting and National Heritage of Pakistan.

Triple party agreement between China Central Television and PTV and Pakistan Television Foundation on the

re-broadcasting of CCTV-NEWS/CCTV -9 Documentary in Pakistan.

Protocol on establishment of sister cities relationship between Chengdu city Sichuan Province of PRC and

Lahore city.

Protocol on establishment of sister cities Relationship between Zhuhai city, Guangdong province and Gwadar

city.

Protocol on establishment of sister cities relationship between Karamay City, XianjianUgur, and Gwadar city.

Framework agreement between NEA and MoPNR on Gwadar-Nawabshah LNG terminal and pipeline project.

Commercial contract on Lahore Orange Line Metro Train Project.

Agreement on financing for Lahore Orange line Metro Train project.

MoU on financing for KKH up-gradation Phase-2 (Havelian to Takot), KLM, Gwadar east bay expressway,

Gwadar international airport projects.

Financing agreement relating to the 870MW hydro-electric Suki Kinari hydropower project between EXIM

Bank of China, Industrial and Commercial Bank of China Limited and SK Hydro (Private) Limited.

Financing cooperation agreement between the EXIM Bank of China and Port Qasim Electric Power Company

(Private) Limited (on Port Qasim 2x660MW coal-fired power plant).

Framework facility agreement for 720MW Karot hydropower project between China Development Bank

Corporation, EXIM Bank of China and Karot Power Company (Private) Limited.

Term sheet of the facility for Zonergy 9×100 MW solar project in Punjab between China Development Bank

Corporation, EXIM Bank of China and Zonergy Company limited

Drawdown agreement on Jhimpir wind power project between UEP Wind Power (Private) Limited as borrower and China Development Bank Corporation as lender.

Terms and conditions in favor of Sindh Engro Coal Mining Company for Thar Block II 3.8Mt/a mining Project, Sindhprovince, Pakistan arranged by China Development Bank Corporation.

Terms and conditions in favor of Engro Powergen Thar (Private) Limited, Sindh province, Pakistan for Thar Block II 2x330MW coal fired power project arranged by China Development Bank Corporation.

Framework agreement of Financing Cooperation in Implementing the China-Pakistan Economic Corridor between China Development Corporation and HBL.

MoU(A memorandum of understanding ) with respect to cooperation between Wapda and CTG.

MoU among PPIB, CTG, and Silk Road Fund on Development of Private Hydro Power Projects.

Facility operating agreement for Dawood Wind Power project between ICBC and PCC of China and HDPPL.

Framework agreement for promoting chinese investments and industrial parks development in Pakistan between ICBC and HBL on financial services corporation.

The financing term sheet agreement for Thar Block –I between ICBC, SSRL.

Energy strategic cooperation framework agreement between Punjab province and China Huaneng Group.

Framework agreement on the China Pakistan Economic Corridor Energy Project Cooperation.

Cooperation agreement between Sino-Sindh Resources (Pvt) Ltd and Shanghai Electric Group for Thar Coalfield Block I Coal-Power integrated Project in Pakistan.

Cooperation agreement for Matiyari-Lahore and Matyari (Port Qasim)-Faisalabad Transmission and Transformation Project between National Transmission Distribution Company (NTDC) and National Grid of China.

Implementation Agreement on Port Qasim Coal fired Power Plant between Power China and Government of Pakistan.

Facility Agreement for the Sahiwal Coal-fired Power Plant Project between industrial and Commercial Bank of China Limited, Huaneng Shandong Electricity limited and Shandong Ruyi Group.

Cooperation agreement on Hubco Coal-fired Power Plant Project between CPIH and Hubco Power Company.

Facilitation Agreement on Salt Range Coal-fired Power Project between CMEC and Punjab Government.

MoU between NUML Pakistan and Xinjiang Normal University, Urumqi China for Cooperation on Higher Education.

Agreement on collaboration on establishment of NUML International Center of education (NICE) between NUML Pakistan and Xinjiang Normal University, Urumqi, China.

Inaugurated projects

Industrial and Commercial Bank of China, Lahore Branch.

Energization of 100 MW solar power plants at Quad-i-Azam solar park, Bahawalpur.

FM 98 Dosti Channel studio PBC-CRI, Islamabad.

Demonstration project of DTMB Broadcasting in Pakistan.

China Cultural center Pakistan.

China-Pakistan Joint Research Center for small hydropower, Islamabad.

China-pakistan cross-border optical fiber cable system project.

Metro rail transit system on the Orange Line in Lahore.

Ground breaking of following power projects was also jointly done

1- Karot 720 MW Hydropower project.

2- Dawood 50 MW Wind-power project.

3- Sachal 50 MW Wind-power project.

4- Zonergy 900 MW solar project.

5- Jhimpir 100 MW Wind-power project.

Recommendations

1. All political parties should express full support for the

implementation of China Pakistan Economic Corridor.

2. .The government should share all details of CPEC project with

all the political parties of all the provinces. The government

should discuss the benefits and challenges of this multi- dollar

project with all the provinces.

3. The Pakistani government should provide full support and

assistance to foreign workers of different CPEC projects.

4. The government should provide security to the foreign workers

on different projects of CPEC.

5. The government should not delay work on CPEC because it

can provide space to the terrorists and militants to create

hurdles in the smooth construction of this project.

Conclusion:

This project is beneficial for both countries both have their own vested

interests but so far it is mutually beneficial. It is an example of Good

international relations. No matter how sincere both countries are with this

project or contract they still facing problems in its implementation whether

problems are internal or external. We have a lot of pressure from

international arena as well and also have to tackle with conspiracies. We

know very well that which countries like India and USA are trying by

different means to disturb this progress but yet we have to deal

diplomatically so that we can progress in peace. This project has its own

importance for both countries and we can complete by taking different

measures and through policies.

• BCIM EC

• HISTORICAL BACKGROUND

• BCIM FORUM

• KOLKATA TO KUNMING CAR RALLY

• THE RATIONALE

• KEY POINTS BEHIND BCIM EC

• BENEFITS OF BCIM EC

• CHALLENGES

The Bangladesh–China–India–Myanmar Forum for

Regional Cooperation (BCIM) is a sub-regional

organisation of Asian nations aimed at greater

integration of trade and investment between the four

countries

•This interconnectedness would facilitate the cross-border flow of people

and goods, minimize overland trade obstacles, ensure greater market

access and increase multilateral trade.

•The proposed corridor will cover 1.65 million square kilometres,

encompassing an estimated 440 million people in China & apos;s Yunnan

province, Bangladesh, Myanmar, and Bihar in Northern India through the

combination of road, rail, water and air linkages in the region.

The idea of establishing closer economic cooperation within the BCIM

region , was first developed by Professor Rehman Sobhan.

Two of his pioneering works in this context where he articulated his vision

were:

1.“Transforming Eastern South Asia: Building Growth Zones for

Economic Cooperation” and

2.“Rediscovering the Southern Silk Route: Integrating Asia’s Transport

Infrastructure”

The pioneering ideas of Professor Sobhan had informed and motivated the

platform which he helped establish, which later came to be known as the

Kunming initiative.

•BCIM integration through multi-modal transport connectivity

could reduce transaction costs, stimulate trade and investment

and consequently accelerate growth and poverty alleviation in

this region.

•Identification and implementation of concrete projects could

enhance intra-regional trade, stimulate flow of investment and

deepen people to people connectivity.

• The institutions which took the lead role in convening the first meeting in

Kunming in 1999 were :

1.The Centre for Policy Dialogue (CPD) from Bangladesh,

2.Centre for Policy Research (CPR) from India

3.Yunnan Academy of Social Sciences in Kunming, China

4.from the Myanmar side it was the Ministry of Trade which represented the

country

• The objective of the Kunming initiative was to create an opportunity for key

stakeholders from the four countries to come together to discuss and identify

initiatives that could contribute to deepening of cooperation among the four

BCIM countries, in various areas.

• Over the years, the Kunming initiative developed into what

came to be popularly known as the BCIM Forum.

• Successive BCIM Forums, held annually, made a seminal

contribution in raising awareness about the potential benefits

accruing from the BCIM cooperation.

• Along with non-governmental actors government

representatives also began to take an active part in the Forums.

• The eleven BCIM Forums, organised in rotation in the four countries.

• Members of delegation to the various BCIM Forums included academics

and experts, trade and business leaders, members of parliament, and in

more recent Forums, high level government officials.

•the Kolkata to Kunming (K2K) Carry Rally, with active support from the

four BCIM governments, played an important role in taking the idea of BCIM

cooperation from concept to action.

• The rally which covered a 3000 km journey had followed the route: Kolkata-

Jessore-Dhaka-Sylhet-Silchar-Imphal-Ka Lay-Mandalay-Ruili-Tengchong -

Erhai Lake-Dali-Kunming.

•CPD had organised a grand reception for the eighty participants of the Rally

who travelled in 20vehicles and arrived in Dhaka on February 23, 2013.

They were received by Bangladesh’s Minister for Communication with the

event attracting wide media coverage

The Car Rally will be remembered as a key milestone in promoting the idea

of BCIM-wide cooperation and BCIM economic corridor. The rally also

identified the parts of the route where investments were needed to establish

and operationalise the K2K route.

Several regional groupings have successfully developed and

implemented the idea of economic corridor by:

• building multimodal transport networks, setting up special

economic zones,

• establishing industrial clusters,

• export processing zones and business hubs

• and by developing a diverse range of other economic

activities

•Viewed from the perspective of Bangladesh and Myanmar,

deepening of BCIM cooperation should be of special interest to

these two countries. It would offer them an opportunity to

benefit from greater access in the growing markets of China and

India

•Closer cooperation within the BCIM region would create new

opportunities for Bangladesh and Myanmar to significantly

enhance their exports to the BCIM region.

The key concept behind the BCIM initiative was that

by harnessing the comparative advantage in the

respective member countries, each nation could

significantly benefit through the operationalisation of

crucial infrastructure connectivity and BCIM-wide

economic co-operation

India can invest in potential sectors such as the electrical

machinery and equipment, vegetable, agro processing,

automobiles, textiles, etc. in the manufacturing front and

software, pharmaceuticals, hospital and medical equipment,

tourism among others in services.

China also has highlighted five core areas where it wants to

invest - energy exploration, power generation, agriculture,

industry, and transportation.

• By developing connectivity with China, India, and Myanmar by roads, rail

and other ways, Bangladesh can transform itself into a part of an industrial

nexus and commercial hub linking up South and Southeast Asia.

• Indo-Bangladesh connectivity could be strengthened through rail link

between Akhaura and Agartala providing a direct railway route between

Bangladesh and the North-Eastern States of India thus generating almost

50 percent savings in travel.

• Economic co-operation with Myanmar would spell benefits for

Bangladesh in many ways. Myanmar is setting up special economic zones

offering investment incentives which may allow Bangladeshi firms to

exploit the improving investment climate of its neighbor.

• Stronger trade, investment, and people-to-people linkages between the

two countries could also set the ground for peaceful and sustainable

resolution of issues like the Rohingya question.

• The BCIM initiative would also open up new avenues of cross border

energy trading for Bangladesh.

• The four countries have four different religious and cultural make-ups;

yet shared legacies could bring them closer. If the road and rail routes

are set up, tourists from neighboring countries could travel to

Bangladesh easily and at a low cost.

• Bangladesh has to brace itself for getting a chunk of the tourism

markets of India, China, and Myanmar which would generate revenue,

jobs, and socio-economic development while promoting a better country

image abroad.

• The 1.1 billion young people in the four countries can be brought closer

with stronger connectivity.

• Connectivity would spur faster economic growth in the region and would

cascade into stronger co-operation between South and Southeast Asia.

• Bangladesh stands to avail manifold opportunities through leveraging

the connectivity options for realizing concrete and substantial gains in

many sectors.

• The BCIM-EC building will truly be successful if there is collaboration

on strategies, policies, plans and measures for co-operation thus bringing

about common development and mutual benefits for all the countries.

• Access to numerous markets in Southeast Asia.

• Improvement of transport infrastructure.

• Creation of industrial zones.

CONSTRUCTION OF INDUSTRIAL ZONE HAVE

TWOFOLD BENEFIT:1. It will lead to industrial transfer boosting industries such as

processing, manufacturing and commerce logistics.

2. As labor costs rise in China, labor-intensive industries such as

texila and agro processing will eventually be shifted out of

China. These industries will need to be transferred to new

regions with lower labor costs. Companies operating in China will

likely give priority to the trade corridor region given its established

infrastructure, improved logistics and ease of access.

India’s isolated eastern and north-eastern states also stand to gain by

higher trade and connectivity with China and the rest of Asia.

• Armed Insurgencies in Myanmar.

• Cross-border communication of general people of Bangladesh

and Myanmar.

• Lack of full confidence between China and India.

• Bangladesh and Myanmar may work for reducing the mistrust

between China and India, making it easier for these two Asian giants to

cooperate with each other in order to make the BCIM-EC a reality.

• Moreover, taking a step towards genuine solution regarding the

Rohingya (Bengali) issue would likely to normalize relation between

people of Bangladesh and Myanmar.

• As Bangladesh and Myanmar governments have good relations, a

good relation between the general mass from both sides would help to

make progressive ideas like BCIM-EC to become operational and,

thereby, functional.