The new government has broadly supported CPEC. Though there might be some changes to which China is on board, saying that “strategic adjustments” of CPEC do not depict reconsideration of the BRI or CPEC. To allay the concerns of provinces, the government, in line with its manifesto, has claimed to ensure an equitable development of Balochistan and Gilgit-Baltistan (GB) under CPEC. But closure of some CPEC projects in Balochistan in light of the modifications in CPEC might pave way for mistrust between government and locals. Saudi Arabia inclusion in CPEC by the new government is appreciated by China.
These were the major findings of the quarterly monitoring report on CPEC, covering July to September 2018. Some salient ones are summarized below:
- Broad agreement: A significant development in the last three months was the swearing in of the new government after fresh elections were conducted in July 2018. The previous government, of PML-N, took credit for CPEC projects. After its tenure ended, it was asked if there will be any change in any approach towards CPEC.
The incoming government continued to extol the benefits of CPEC. Prime Minister Imran Khan mentioned China more than once, in his post-victory speech. Nevertheless, Chief of Army Staff (COAS) Gen Qamar Bajwa visited China and ensured the Chinese government that “Pakistani military and its new government are consistent in their policy towards China.”
- Specific adjustment: At the same time, reports emerged that the government is planning to reconsider some of the CPEC projects, or their ToRs. A report in The Financial Times quoted new economic advisory as making similar statements. Official statements from both China and Pakistan followed to deny the report.
Yet, these denials were doubted as it later emerged that 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.
These developments lent credence to the belief that the government is considering a review of CPEC projects. This much is established now.
Responding to reports by western media about Pakistan’s revision of CPEC, China underlined that “strategic adjustments” in development projects are common and in no way mean to reconsideration of the BRI or CPEC.