The China-Pakistan Economic Corridor (CPEC), presently under construction at a cost of $46 billion, was considered a game-changer for Pakistan. It was intended to develop our infrastructure and deepen economic and political ties between both countries. The reality is that CPEC has not provided any significant achievements for Pakistan and will worsen our economic condition.
CPEC is considered the flagship of China’s Belt and Road Initiative (BRI) but its progress has been stalled and is no longer sustainable. The project was tilted to favour the Chinese from day one as they wanted the rebuild their Western region and were facing higher costs. The Chinese had no option but to build CPEC for their vested interests. The investment figures which our leaders have shown us are not even realistic and the projects that are underway or have been completed are negligible.
CPEC represents a marked expansion of China’s economic presence in Pakistan but we have not benefited in any way from the megaproject.
The Chinese built the Gwadar Port as part of ‘pearl of strings’ in the Indian Ocean. It was hailed as an economic lifeline where oil will be imported and refineries will be built. CPEC has seen a modest revisit and the addition of a couple of hydro-power projects, motorways and railways projects. Are these really being built with Chinese investments or own money? Pakistan has been renegotiating with China on extending the payback period on existing projects and addressing worsening debts. Our economy has weakened significantly during the pandemic and we are not in a position to finance these projects.
The government has been taking loans for the projects which the Chinese were supposed to finance. It is our failure that we did not place such stringent terms on the table. The Chinese have utilised our land, labour, and resources. They are building projects from our money and increasing our debts. Neither have we been given compensation for our lands, employment opportunities, or partnership in these projects. The Chinese have taken advantage of us and shipping their products back to their country. We were already at the mercy of global financial institutions and will now be indebted to the Chinese.
The CPEC is now focused on moving ahead with the establishment of Special Economic Zones (SEZs). These provide ten-year tax exemptions which are only to benefit the Chinese to set up their factories and refineries without paying any taxes. Businessmen who set up outside these zones will not get any incentives while we would be living in the delusion that foreign investment is pouring in. In return, the people of Pakistan are being offered peanuts.
We were under the impression that CPEC would change the fate of our country and lay a vast network of modern infrastructure. At the end of the day, we will end up being the biggest loser and defaulter. Our leaders are only focused on short-sighted policies. We often run to the World Bank and IMF but the day is not far when we will be heading to the Chinese with the begging bowl.
