Despite Pakistan’s repeated requests, China has declined to inject fresh investments into the so-called China-Pakistan Economic Corridor (CPEC) project, Nikkei Asia reported Monday (Oct 2), citing minutes of a high-level meeting between the officials of both countries.
Pakistan wanted China to add more projects, related to energy, climate change, electricity transmission and tourism, under the CPEC. However, Beijing showed no enthusiasm. Beijing also declined a proposal by Islamabad to build a 500-kilovolt transmission line from Gwadar port to the national electricity grid in Karachi.
Moreover, China also refused to entertain Pakistan’s plea to move a 300-megawatt coal-fired power plant from Gwadar to another location. Islamabad’s plan was to use domestic-produced coal in the new location, instead of imported coal from China.
Why China is developing cold feet?
Experts blame China’s reluctance to invest more in Pakistan on the deteriorating security situation and persistent political instability, especially after the ouster of former Prime Minister Imran Khan. His government was toppled in April 2022, triggering massive civil unrest and protests against the powerful army.
The second biggest concern for China is security. “Chinese believe that security of their personnel and assets is in jeopardy in Pakistan,” James M. Dorsey, a senior fellow at the S. Rajaratnam School of International Studies in Singapore, was quoted as saying by Nikkei Asia.
Increasing terror attacks across Pakistan have only fueled such concerns.
No economic sense
Some experts also say that China no longer believes investments in the crises-hit country will yield any return. Pakistan’s economy continues to reel under a debt crisis, with the country struggling to pay back $1.2 billion in overdue payments.
Muhammad Tayyab Safdar, assistant professor of global studies at the University of Virginia, says, “[The Chinese will] still make money, but with much angst, at least in the power sector.”
According to Jeremy Garlick, an associate professor of international relations at Prague University of Economics and Business, “China does not believe anymore that it can get economic returns from CPEC.”
Pakistan still optimistic
According to Pakistani officials interviewed by Nikkei Asia, the government is still optimistic that China will resume CPEC investments after elections are over in January next year.
Another Pakistani analyst Qamar Cheema stressed that Pakistan, a country of 240 million, is too important to be ignored and that Beijing would step up investments after negotiations with the government with a fresh mandate.
Source : WION