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January 2018 NEWS COVERAGE PERIOD from JANUARY 29TH to FEBRUARY 4TH 2017 CPEC and ITS ADVANTAGES Business Recorder, 31 January 2018

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January 2018 NEWS COVERAGE PERIOD from JANUARY 29TH to FEBRUARY 4TH 2017 CPEC and ITS ADVANTAGES Business Recorder, 31 January 2018 The Globalization Bulletin CPEC January 2018 NEWS COVERAGE PERIOD FROM JANUARY 29TH TO FEBRUARY 4TH 2017 CPEC AND ITS ADVANTAGES Business Recorder, 31 January 2018 Prime Minister Shahid Khaqan Abbasi, while inaugurating part of the One Belt One Road (OBOR) initiative stated that “this is perhaps the most important initiative of our generation… China Pakistan Economic Corridor today for Pakistan is this reality; the Gwadar port, the Gwadar free zone, the Eastway expressway and other projects in Gwadar. It is the motorways and the highways that are linking Gwadar to Khunjerab that are linking Peshawar to Karachi. It is the modernization of our railway system. It is the establishment of our power projects and it is the special economic zones that will generate employment that will create exports for Pakistan and that will give prosperity to the people of Pakistan.” This unambiguously overwhelming support for CPEC projects that envisages over 50 billion dollar investment inflows into Pakistan alone, announced during President Xi Jinping’s visit to Pakistan in 2015, is the outcome of the Chinese President’s vision to re-establish a modern equivalent of the Silk Road through creating a network of roads, railways, pipelines and utility grids linking China to as far away as Europe, the Far East and the Middle East; and more importantly to lead and create a platform for economic cooperation, policy coordination, trade and financing collaboration and social and cultural cooperation – a role that was hitherto played by the United States but which appears to have been trampled in the wake of President Trump’s ‘America First’ agenda. The CPEC is a small component of President Xi’s worldview and consists of a set of projects that reflect the long standing solid ties between the peoples of China and Pakistan. To attribute these projects to one specific administration, notably the Sharif administration, makes a mockery of the decades’ long ties between the peoples of our two countries that have withstood the test of time. It is also relevant to note that the PPP-led coalition government did engage in several discussions with their Chinese counterparts before President Xi was willing to sign the Memoranda of Understanding – a process that takes time to reach fruition. But perhaps the most disturbing element of CPEC to-date is the persistent failure of the PML- administration to share details of the projects. It remains unclear which projects are going to be supported in the first phase specifically with respect to road networks, it is unclear at what terms and conditions financing is being made available (and this is all the more worrisome as foreign direct investment from China continues to decline and is at a pace of no more than around one billion dollars per annum at which rate it would take around half a century for CPEC to be completed), it is also unclear whether Chinese labour is being used or local labour as reports indicate that Chinese unskilled labour is engaged in the construction of roads; and, equally disturbingly, it is unclear whether the envisaged economic zones would have a five-year tax-free holiday which would of course benefit the Chinese entrepreneurs who are expected to use Gwadar port as a means to export to the rest of the world. And there are serious concerns about the energy projects under the The Globalization Bulletin CPEC CPEC as the consensus is that environment degradation has not been taken into account – a factor that is raising the costs of healthcare in this country manifold. The government claims that it has shared details of CPEC projects with parliamentarians, a claim that is vociferously denied by members of the opposition. Frequent requests for information are stonewalled by the relevant Minister Ahsan Iqbal who has been unable to satisfy members of the opposition as well as the media as to exactly what terms and conditions have been agreed and whether any would benefit this country more than the Chinese. To overcome these concerns, transparency is the only way forward but unfortunately, the current administration has allowed transparency to be compromised time and again in all sectors which, in turn, has simply fuelled accusations of corruption. It is time to come clean for the economic health of the CPEC projects as well as the country and one would hope that Shahid Khaqan Abbasi leads the way in this regard. https://epaper.brecorder.com/2018/01/31/20-page/697226-news.html SOME CPEC PROJECTS COULD GET LISTED AT PAKISTAN’S STOCK MARKET The Express Tribune, January 30th, 2018. Gwadar Free Trade Zone projects, which fall under the umbrella of the China-Pakistan Economic Corridor (CPEC), could be listed at the Pakistan Stock Exchange (PSX), a move aimed at helping Chinese investors raise funds for the endeavour. In a statement released on Monday, the PSX said it would facilitate Chinese investors – under the broader CPEC projects – in raising funds for projects to be set up at the Gwadar Free Trade Zone and get listed at the bourse. In this regard, the statement added, the PSX and China Overseas Ports Holding Company Pakistan (Pvt.) Limited (COPHS) officials signed a Memorandum of Understanding (MoU). Prime Minister Shahid Khaqan Abbasi, along with other Pakistani and Chinese government officials, witnessed the signing ceremony. “The primary purpose of the MoU is that the PSX will make its best endeavour to help and facilitate the investors, businesses and companies in the Gwadar Free Trade Zone, so that they can raise funds from the exchange,” the statement said. “The COPHC will extend help to the PSX in conducting due diligence on the investors and businesses in Gwadar Free Zone that are applying to the stock market for listing of equity and debt securities.” Through the MoU, both companies have mutually agreed to cooperate for listing of equity and debt securities at PSX, in response to strategic national priorities of the Government of People’s Republic of China and Islamic Republic of Pakistan with respect to ‘One Belt-One Road’ initiative in general and ‘China-Pakistan Economic Corridor (CPEC)’ initiative in particular. Development at Gwadar Port and Gwadar Free Trade Zone suggests that the Chinese government and private sector entities would invest at the free trade zone. The port and the trade zone are both part of The Globalization Bulletin CPEC the broader CPEC projects worth over $60 billion. CPEC projects largely fall in the areas of infrastructure development and setting up of power projects in Pakistan. The PSX is the national securities exchange of Pakistan, whereas the COPHS is a China-based multinational organisation, which provides expert marine services, container terminal management and maintenance of port facility services. COPHS works in Pakistan with an aim to transform one of the most strategically located port of Gwadar into an economic hub of Pakistan and will cater to all types of international commercial activities generated from one business to another, irrespective of quantity, quantum and magnitude. “Gwadar has enormous potential from all angles and dimensions for any kind of business activity, whether known or emerging with ever developing technologies,” added the statement. https://tribune.com.pk/story/1621425/2-cpec-projects-get-listed-pakistans-stock-market/ CHINA NOT LOSING INTEREST IN CPEC PROJECTS: ENVOY Business Recorder , Feb 2nd, 2018 The Ambassador of China, Yao Jing has dispelled the impression that their country losing interest in the CPEC projects, adding that Chinese government wanted expeditious execution of developmental schemes in Khyber Pakhtunkhwa and its adjoining tribal belt. This was told during a meeting of Chinese ambassador Yao Jing with Chief Minister Khyber Pakhtunkhwa Pervez Khattak here on Thursday at CM House, Peshawar. Speaker KP Assembly Asad Qaisar was also present on this occasion. Besides, threadbare discussion other matters of bilateral interest and highlighting the geo-political and economic importance of Khyber Pakhtunkhwa, the chief minister also apprised the Chinese ambassador about reservations of the provincial government on pace of work over CPEC projects, especially about the western route. Yao Jing appreciated the steps of the KP government for expediting developmental process in the province, strengthening the institutions and ensuring welfare of the masses. He said that the Chinese government and people realized the level of poverty and joblessness among people along its bordering countries, including Pakistan and Afghanistan. Hence his government not only wanted their political and economic stability but was also ready to contribute its due share in this respect, he added. He said that Chinese government was unveiling a plan of implementing livelihood and self- employment schemes for the poor people to remove backwardness on both sides of the Pak-Afghan border. He said that his government would need the help of KP government side-by-side with that of the governments of Pakistan and Afghanistan to cherish the real targets of this plan. The Chinese ambassador assured timely and quality completion of the CPEC & non-CPEC developmental projects being launched by his country. He said that his country has sponsored a number of hydel power generation schemes in the province to overcome the energy crisis in the country. He offered further cooperation in various sectors including health, education, skills, culture, The Globalization Bulletin CPEC transport and communication. He said that there were vast opportunities of Sino-Pak by lateral cooperation to promote fraternity among the two nations. https://fp.brecorder.com/2018/02/20180202340469/ BALOCH MILITANTS NO LONGER A THREAT TO CPEC, SAYS CHINESE ENVOY Dawn, February 3rd, 2018 KARACHI: The Baloch militant organizations are no longer a threat to the China-Pakistan Economic Corridor (CPEC), said Chinese Ambassador to Pakistan Yao Jing, adding that members of banned outfits were “not true Pakistanis”.
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