Communist China, which has
hegemonic designs against neighbouring countries, is exploiting Pakistan’s
abhorrence towards India. Pakistan, which was carved out from India on the
basis of a failed two-nation theory, wants to take revenge from its eastern
neighbour, as it alleges that it was dissected because of India.
China, which views India as a
potential rival, assists Pakistan militarily, financially and diplomatically.
Pakistani authorities projected the China-Pakistan Economic Corridor (CPEC) as
an extremely advantageous project which will end all its economic tribulations
and the country will move rapidly towards the path of economic prosperity.
Islamabad, which claims that
“China is Pakistan’s irreplaceable all-weather friend”, has not evaluated the
pros and cons of the CPEC and the contents of the project were not even
disclosed to the public. On the other hand, the China Development Bank and the
National Development and Reform Commission, after analysing it thoroughly, in a
detailed report said that the CPEC is an important part of the One Belt and One
Road (OBOR) initiative.
Nevertheless, as things are
unfolding, it is becoming clear that China, through CPEC, would snatch several
assets of Pakistan and will reduce it to a Chinese colony. China has surplus
industrial capacity, unemployed technical personnel and foreign exchange, which
will be utilised in CPEC. China is not giving any free money and is charging
high interest rates to develop infrastructural projects in smaller countries.
When these countries fail to repay the loan, it grabs those projects.
Recently, Sri Lanka was forced
to lease out its Hambantota sea port for 99 years to China as it was unable to
repay loan. Maldives too signed a free-trade deal with China which will be
detrimental for the country in the long-run.
Analysts contradict the myth
propagated by Islamabad, saying that as the cost of labour is increasing in
China, several Chinese companies may like to relocate to Pakistan and
once Chinese companies operate from Pakistan, manufacturing units of other
countries may put their factories in the country. No foreign companies,
including Chinese companies, would reposition in Pakistan because of terrorism,
poor infrastructure and non-technical manpower.
Besides, China has built
massive infrastructure in other countries but business was not conducted and
the countries are facing difficulty in payment of loans.
China, which has a massive
population of 1.37 billion, does not have sufficient arable land and is one of
the largest importer of agricultural products. Chinese companies would capture
thousand of acres of Pakistani land under the garb of mechanisation, using
modern electronic gadgets to solve agricultural problems pertaining to
fertilisers, seeds, livestock and supply chain.
In CPEC, a large chunk of the
road and railway line would be built on Pakistan’s resources as China wants to
connect its land-locked restive Province of Xinjiang from Gwadar port. Pakistan
will have to repay $90 billion by 2030, which is a task easier said than done.
China would also disseminate its ideology and culture in Pakistan.
In CPEC, out of the $55
billion, $35 billion will be spent on the power sector. China will be charging
17 per cent to 20 per cent guaranteed return; hence, it will recover its loan
early. China will also charge Rs 8.50 per kilowatt an hour, while the
reasonable rate is rupees five only. In this way, on the one hand, public will
have to pay more, on the other, since there is too much of theft, the
Government will not able to repay the debt.
In 2017, Pakistan had an
outstanding debt of $72 billion, without the inclusion of CPEC loan. Pakistan
also took loan from the International Monetary Fund (IMF) at an interest rate
of 8.75 per cent after mortgaging fixed assets like motor ways, airports, radio
and television stations.
There will be no global
tenders and all contracts would be given to Chinese companies, which might
charge more and may also use sub-standard material as there will be no
competition.
All Chinese companies have
obtained tax concessions. Hence, neither will Islamabad earn money from taxes
nor will the Pakistanis get employment as they do not have sufficient skilled
manpower. Companies in China mostly employ Chinese workers. Beijing would
dump cheap goods in Pakistan and would destroy local industries. Pakistani
industries will also fail to compete because of augmented electricity rates and
excessive taxation.
Pakistan’s economic growth is
3.1 per cent only, which is less for a developing country. Islamabad will
fail to pay interest as well as principal amount. China is aware of it and will
certainly capture several assets of Pakistan. The gap between imports and
exports is increasing and the trade deficit is around $24 billion which is more
than 200 per cent of Pakistan’s exports. Foreign remittances, which are an
important source of foreign exchange, have also dwindled because of sharp
decline in oil prices.
The Pakistan Army has
raised two security divisions only to safeguard the Chinese as maintenance and
security of the CPEC is the responsibility of Pakistan and it would be an
additional burden.
China would be constructing
coal-based power plants under the CPEC which would be harmful for both
environment and health.
Pakistan has hostile relations
with all its neighbours, including India, Afghanistan and Shia Iran. It has
cordial relations only with China. CPEC will be difficult without friendly
relations with neighbouring countries. Corruption would be a major hurdle in
the success of CPEC. There is rampant corruption in all Pakistani institutions
and there will be misappropriation of funds at every step.
China is careful about its
investments and will be quite tough in realising its money back. Islamabad
signed the CPEC considering that it will be beneficial for the country but it
signed an unfair deal for which the country will have to suffer.
Beijing wants to occupy
Pakistan’s immovable assets, including Gwadar port, and hence, it will not
allow CPEC to be a profit-making venture for Pakistan. The reports are
emanating that in view of resistance from the public, and assessments and
analysis of economists, the euphoria about CPEC is evaporating. Therefore, now
China is finding it difficult to deal with the civilian Government and it wants
to deal about CPEC with the Army which is much more dependent on Chinese
assistance. In November 2017, China had not released funds for three major road
projects and informed Islamabad that Beijing was devising new rules and
regulations.
Few months back, Pakistan
turned down the Chinese proposal to construct $14 billion Diamer Bhasha dam as
Chinese put stringent stipulations which included the ownership of the
project. It is an indicator that Islamabad is not realising the hidden
intentions of China that it wants to have permanent foothold in the
country.
In October 2016, a Pakistani
senator stated that China is another East India Company and in CPEC national
interests are not protected. The lawmakers raised doubt about the fixing of
high tariff rates for electricity and also criticised that large number of CPEC
projects were funded locally and not by foreign investments. They mentioned
that the CPEC will be a “national calamity”. China would convert Pakistan to a
dependent country which would look towards China for its day to day its
survival.
Pakistan is isolated because
of sponsoring terrorism and China is taking advantage of this. China blocked
the United States proposal in the United Nations to designate Jaish-e-Mohammed
(JeM) Chief Maulana Masood Azhar as a global terrorist. China also helped
Pakistan in the recently conducted meeting of Financial Action Task Force
(FATF).
Nevertheless, Pakistan must
realise that China has laid a death trap for it and the country must wriggle
out before it is too late
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