PR/Islamabad
12 October 2018
The new government has broadly supported CPEC. Some changes however seem to be in the offing, on which China is on board, saying that “strategic adjustments” of CPEC do not depict reconsideration of the BRI or CPEC. Interestingly, some of the projects considered for closure fall in Balochistan. This despite that the government and its regional allies have called for investing more in Balochistan.
These are the major findings of the CPEC quarterly monitoring report (July-Sep., 2018), released by CPEC Watch, an initiative of Pak Institute for Peace Studies (PIPS), an Islamabad-based think tank.
The quarterly noted that the government has broadly supported the corridor, and like its predecessor, called the project a “game changer”, and it has dispelled the notion that any reconsideration is in the pipeline.
Yet, the government seems to be making specific adjustments in the projects. Reportedly, at least 4 projects of CPEC have been dropped from the on-going Public Sector Development Program (PSDP). Afterwards, Pakistan Railway minister also announced cutting funds for Main Line–1, which connects Peshawar with Karachi.
Interestingly, Balochistan is at the centre stage of these developments. One of the surprising elements of this quarter was western route is not included in CPEC, but that it was being supported under PSDP. While this was somewhat sufficient, it later emerged in reports that some projects that were dropped mostly fell came in Balochistan: 12 schemes in Gwadar. These developments may aggravate regional grievances.
While PTI government is authorized to negotiate the projects, it should also weigh in the socio-economic impact of whatever is being negotiated, the quarterly noted. Before coming into power, Pakistan Tehreek-e-Insaf (PTI) in its 2018 election manifesto had promised to include local population of Gilgit Baltistan and Gwadar in the CPEC. PTI’s regional allies, the Balochistan National Party (BNP) and BalochistanAwami Party (BAP), who otherwise are at loggerheads with each other in Balochistan, were in accord on the point of reaping the benefits of the projects for Balochistan. It is yet to be seen if these promises are met to their own satisfaction.
Meanwhile, Pakistan invited Saudi Arabia (KSA) to join CPEC to which KSA has responded positively and agreed to provide grants for energy and road infrastructure projects, especially in Balochistan. The reported entry of Saudi Arabia in the CPEC was taken with mixed response, especially on whether a third country can even join the project directly, with some calling the corridor a bilateral project and others, a multilateral initiative.
The report also called for strengthening institutional checks on CPEC. There are committees, working groups, bodies formed to oversee the execution. Still findings of the parliamentary committees on CPEC and the decision taken in the last 7th Joint Cooperation Committee (JCC) are not completely implemented. It is hoped the new government pay heeds to them.
