Research and study of ideologies of social and national emancipation and their application to conditions within imperialist society

The China Pakistan Economic Corridor

Report on a study tour of Pakistan, 25 October to 1 November 2018.

Submitted 21 February 2018

 

On the initiative of my long-standing friend and colleague, Hon. Alderman Mushtaq Lasharie CBE and on the kind invitation of the relevant authorities, I made my first visit to Pakistan from October 25-November 1.

 

The main purpose of the visit was to study the China Pakistan Economic Corridor (CPEC).

 

Thanks to the meticulous arrangements of the Pakistan side, we were able in one week to:

  • Visit the cities of Islamabad, Rawalpindi, Karachi, Quetta and Gwadar
  • Meet with government ministers, senior officials, civil servants and development specialists at central, provincial and city levels
  • Meet with high-ranking military personnel from the army and navy
  • Meet with senior politicians from various political parties, think tanks and research institutes
  • Meet with leading figures and major companies from the private sector, academics, the media (including giving five TV interviews), and others.

 

We were also able to visit and see first hand key CPEC projects, including the port of Gwadar and the Karot hydropower project.

 

We also visited military facilities, museums, places of scenic beauty and historic interest and various economic projects, including in retail and real estate.

 

A great deal of useful reference and information material was provided in hard or soft copy.

 

We were especially privileged to witness the arrival to Quetta of the Pakistan Motor Rally and to participate in two high-level functions to greet and honour the participants.

 

Pending the preparation of a more detailed and formal report, we wish at this stage to record the following conclusions we have drawn from our visit:

 

  • CPEC is a game-changer. It is a pioneering initiative of unprecedented scope and scale. It has the capacity and potential to transform Pakistan, turning it into a developed nation, a regional hub and a significant player in the global economy.
  • CPEC also holds major significance for China, not merely, for example, in terms of energy security, but also as a showcase to the world for its globally transformative Belt and Road Initiative (BRI).
  • CPEC also has major implications for other regional countries, including Saudi Arabia, the United Arab Emirates (UAE), Oman, the Central Asian republics, Russia and even for those neighbouring countries that at the present time are unfortunately adopting a negative or sceptical attitude towards it.
  • Support for CPEC represents the considered view and national consensus of the Pakistani people and society. Even if the political situation is at times complex or changeable, this has no negative implications for the determination to pursue the CPEC project. Its importance to Pakistan is firmly grasped by the whole country, from the highest officials to the grassroots levels.
  • The early harvest projects, including the port of Gwadar, are well underway and even running significantly ahead of schedule. This should give confidence to the parties concerned as well as to third party investors.
  • These early harvest projects have been particularly well chosen. A prime example is the natural advantages and strategic location (facing the Straits of Hormuz) of the port of Gwadar. With a depth of 18.5 metres, a distance between deep sea and the port of 4.7 knots and its 110 berthing capacity, Gwadar holds greater potential than that combined of more than 20 westward facing Indian ports. Other early harvest projects will also significantly and positively impact on people’s lives, national development and productivity, for example by addressing and overcoming the energy shortage through increased generation capacity.
  • CPEC is a national project and will benefit all sections of society, all areas of the country and every community. Due to the location of key projects, particular benefits will accrue to hitherto under-developed and marginalised areas, including Baluchistan, KPK and Gilgit Baltistan.
  • Corporate Social Responsibility (CSR) is intrinsic to CPEC, with education, health care, vocational training, etc built into all the main project plans.
  • CPEC is already generating significant employment opportunities for local workers, who predominate in all projects. Moreover, skills training and technology transfer are provided by the Chinese side.
  • Despite continued regional instability and hostile pressures, the security situation in Pakistan is vastly improved, compared to the widely reported state of affairs a few years ago. The very highest importance is attached to the security of CPEC projects and their workers, not least through the dedicated Special Security Division (SSD), which operates with the highest degree of professionalism and has all the resources and personnel it needs. Foreign investors can have full confidence both in their personal safety and that of their investments.
  • Pakistan maintains a moderately high growth rate. In 2016 it was 5.7%. The comparable figure for the USA was 1.6%. A May 2017 report from the World Bank stated: “Pakistan’s growth will continue to benefit from growing consumer and investor confidence in the first half of FY17, following the successful efforts to restore macroeconomic stability during the last 4 years.”
  • With a population of over 207 million, Pakistan is the world’s fifth or sixth most populous nation. The country has a young population, some two thirds of the total, ensuring an abundant labour supply for the foreseeable future.
  • Pakistan has a very significant middle class of more than 80 million people, greater than the entire population of Germany or Turkey. Even the Indian ‘Hindu’ newspaper reported in February 2017: “The general perception still, and unfortunately, held by many people, foreigners and Pakistanis, is that Pakistan is largely an agricultural, rural economy, where ‘feudals’ dominate the economic, social, and particularly political space. Nothing could be further from this outdated, false framing of Pakistan’s political economy. Perhaps the single most significant consequence of the social and structural transformation under way for the last two decades has been the rise and consolidation of a Pakistani middle class, both rural, but especially, urban.” This middle class shares all the education, services, leisure, consumer and retail demands of its global counterparts, creating immense market opportunities.
  • Pakistan is a dynamic and increasingly progressive society, with a free, lively and diverse media, including dozens of TV news channels
  • Women play a full part in society at every level. Constitutionally, a minimum one third of parliamentary seats are reserved for them.