CPEC and Western Propaganda of Debt Trap: Facts and Fallacies
Due to certain socio-economic, geopolitical and geostrategic reasons, the western propaganda has once again tarnished China-Pakistan Economic Corridor (CPEC). The western so-called pseudo intellectuals have dubbed the CPEC as a debt trap for Pakistan which is totally untrue and based on fallacies, not on facts.
Frankly speaking, the loans under the flagship of the CPEC do not have any specific socio-economic, geopolitical or geostrategic condition. It is open, transparent, inclusive, development, human and prosperity-oriented which is commendable.
Interestingly, the composition of the Chinese loans are long term with easy conditions of repayments, rescheduling and restructuring with lowest interest rate which shows its strong political commitment to rescue Pakistan and its declining economy from recession and stagnation.
On the other hand the loans from the World Bank, IMF and ADB are short term having higher interest rates with specific administrative and structural conditions which have been critically harming the viability of its macro-economy, reducing the capacity building of its productive channels and bar on its people, business and investment policies. Moreover, according to many published reports of the State Bank of Pakistan, SECP and Finance Ministry Pakistan is not a high risk to the Chinese loans which clearly negates the false, fake, fictional and fabricated propaganda of the western media outlets terming it as unproductive creating strains of the overall financial health and credibility of the country. The undesirable delay in the ongoing IMF loan negotiations have badly exposed the chronic syndrome of the Western mentality towards developing and under-developed countries restricting these to remain underperformed and directly under the thumb of its financial constraints.
The success of the CPEC Phase-I is permanent and paramount which has already reduced physical and psychological distances through construction of more than 510 KM roads in the country and thus started a new concept of inter & intra-regional connectivity, economic mobilization and social channelization. The success of the CPEC Phase-I is also evident from the addition of more than 6000 MW new energy supplies in the national grid and many hydropower generation projects are near to completion which would further stabilize Pakistan’s energy sector and would also produce an environment-friendly and cheap source of energy in the country.
The Government of Pakistan has already requested the Chinese counterpart for the early initiation, implementation and execution of the CPEC Phase-II in the country which would revolutionize our social development, massive industrialization, health, tourism, ICT, AI, e-commerce, digitalization and last but not the least, reactivation and reconstruction of special free economic zones in the country.
In this regard, most recently Planning Minister Ahsan Iqbal met with Li Chunlin, Vice Chairman of China’s National Development and Reform Commission (NDRC) and discussed important CPEC projects and minutes of the 11th JCC meeting.
During the said meeting, Pakistan urged China to speed up the implementation of the first phase of the Mainline-1 (ML-1), which includes a 1,872km railway track and associated facilities from Karachi to Peshawar. Pakistan requested that China accelerate the Karachi Circular Railway (KCR) project, both of which were agreed upon by the leadership of both nations in November. Furthermore, Pakistan requested strong support from NDRC and other relevant Chinese government institutions to expedite the implementation of important projects like Mainline-1 (ML-1), Karachi Circular Railway (KRC) and key energy projects in line with the leadership consensus.
Interestingly, both sides expressed satisfaction with the smooth implementation of various CPEC projects and agreed that all the pending issues will be resolved amicably in the spirit of traditional cooperation, mutual understanding, complete trust and brotherhood. In this regard, progress was also made in the four priority SEZs namely Rashakai, Allama Iqbal Industrial City, Dhabeji, and Bostan. SEZs agreed to further expedite the progress so as to attract the relocation of high-quality industries. The signing of the Framework Agreement for Industrial Cooperation was highly appreciated and both sides committed to holding bi-annual meetings to review the implementation of the framework.
Obviously 2023 marks a decade of CPEC and a strong partnership between Pakistan and China. Both Pakistan and China are celebrating 10 Years of BRI and CPEC on 5 July 2023 whereby high-level Chinese delegations are scheduled to visit Pakistan to witness the achievements made since the inception of CPEC.
In order to make the 10 years celebrations memorable, both sides agreed to sign the 11th JCC minutes of the meeting before the end of April 2023 so that relevant Technical Joint Working Groups (JWGs) could then hold their meetings by mid of May 2023 and workout the tangible outcomes for the 12th JCC Meeting which is planned to be held in the first week of July 2023 at Islamabad.
To conclude, it is suggested that both countries should introduce green energy projects in the CPEC Phase-II. In this connection, inclusion of blue and green hydrogen power generation technology and projects would be value addition. Close liaison on the construction of projects of lithium battery, solar panels, dry batteries and wind energy should be started as soon as possible in the country. It is also suggested that both countries should cooperate in technological agriculture production so that the desired goals of agriculture self-reliance should be achieved. New hybrid varieties of seeds of wheat, rice, chills, green tea and other agricultural cash crops should be introduced under the flagship project of CPEC Phase-II. AI, e-commerce, ICT, digitalization, converting deserts into hubs of development and sands into systematic factories of robust agriculture production should be included and started as soon as possible.
On a conceptual level, lessons must be learnt from the Chinese Model of Eradication of Poverty, modernization, opening up, industrialization and human development so that true fruits of CPEC Phase-I and Phase-II may be achieved in the days to come.
On an operational level lessons must be learnt from the Chinese counterpart to expedite the ongoing projects of CPEC in the country. In this regard, the policymakers of Pakistan should seek guidance in terms of project management, disaster management, crisis management, Human Resource Management and last but not the least, the art of smooth clubbing of human values and policies into the mainstream policies of economy, industrial growth and rapid exports.
On a philosophical level, there is an urgent need to understand the strategic importance of the Xi Global Development Initiative, Global Security Initiative, Global Civilizational Initiative and last but not the least, shared prosperity for the complete transmission and transformation of our national economy in the days to come.
