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PIVOT
Volume 1, Issue 3 | 1st July 2019
Quarterly Magazine of China-Pakistan Study Centre
Institute of Strategic Studies Islamabad
Industrialization: CPEC’s New Horizon
Scan QR To Download
Institute of Strategic Studies Islamabad China-Pakistan Study Centre Copy of PIVOT
‘Pakistan is the PIVOT of the world, placed on the frontier on which the future position
of the world revolves.’ Quaid-i-Azam Mohammad Ali Jinnah, January 1948
Chief Editor’s Note
I
n the framework of China-
Patron in Chief Pakistan Economic Corridor
Amb. Aizaz Ahmad Chaudhry (CPEC), Pakistan has entered
the important phase that
Chief Editor provides Pakistan with enormous
Dr. Talat Shabbir opportunities to become an
epicenter of industrialization.
While sustainable growth and
Editor
development is expected from
Uroosa Khan proposed Special Economic Zones
(SEZs), Pakistan needs to formulate
Contributing Editors policies that boost steady and
Neelum Nigar inclusive growth impacting socio-
Mohammad Faisal economic development. The viability of this undertaking merits
Ali Haider ownership and collective support of all stakeholders to turn this
visionary project of Pakistan-China friendship into an enterprise
for shared destiny and prosperity.
Managing Editor
Dost Muhammad Barrech Infrastructure projects, energy units and industrial parks shall
potentially lay foundation for much sought after economic activity
Graphics & Layout Design in Pakistan. Prime Minister Imran Khan directed the ground-
Bushra Mushtaq Khan breaking of three of nine SEZs in the current financial year. The
proposed SEZs aim to achieve huge economic dividends. According
to an estimate, industrialization phase would help realize objectives
Network Administrator of foreign exchange earnings, Foreign Direct Investment (FDI),
Syed Mohammad Farhan export growth, technology transfer, export diversification, and
enhancement trade efficiency by establishing appropriate and
Contact Us sustainable industries. SEZs in Pakistan shall not only open for
Email: pivot@issi.org.pk Chinese financiers but shall be an equal incentive for all investors
Website: www.issi.org.pk world-wide. In this regard, Board of Investment has prepared a
Address: China-Pakistan Study Centre comprehensive plan for fast-track development for SEZs in next two
Institute of Strategic Studies years.
F-5/2, Islamabad
Phone: +92-51-9204423-24 Understandably, CPEC is an undertaking promising substantial
rise in trade and industrial growth in Pakistan that witnessed
Printer stagnation for decades. The mega project has emerged as
Farhan’s International Printers remarkable opportunity for Pakistan not only to address issues
5-A Abbas Centre, Fazal-e-Haq Road its industry faced for long but also steer connectivity in the region
Blue Area, Islamabad and beyond. As success of CPEC essentially hinges on the success
Phone: 051-2150285 - 051-2278837 of industrialization phase, so it is vital to work on war footings
to achieve desired results. It is imperative to learn from Chinese
Disclaimer experience as China managed SEZs and has requisite skill and
he views and opinions expressed herein
T practice since 1980s. It is therefore, necessary to carry out serious
and references if any, are those of the writers appraisal of impediments that cause unnecessary delays in
and contributors, and do not necessarily processes related to CPEC projects and create enabling environment
reflect the outlook of Institute of Strategic
to achieve desired results.
Studies Islamabad, China-Pakistan Study
Centre or the Editorial Board of PIVOT.
Price: Rs. 250 Dr. Talat Shabbir
TABLE OF
CON ENTS
6 China and the New World Order of Trade
Muhammad Nauman Hafeez Khan
15 CPEC: A futuristic Outlook
Asma Hanif
20 CPEC: Strategizing Pakistan’s Narrative
Uroosa Khan
22
This Issue Book Review: War by Other Means:
Geoeconomics and Statecraft
Ali Haider Saleem
24
Special Economic Zones: Future Prospects
and Potentials
Dr. Samina Sabir
28
Sports: Collaboration Potentials of Pakistan
and China
Haider Ali Daud Khan
32
China Pakistan Economic Corridor
Forum-2019: One Day Think- Tank Dialogue
Neelum Nigar
35
Reflections from the Past and Reasons for
Optimism
Major General Sikandar Hayat Khan (Retired)
40 Biryani: The ultimate deal-maker
Arhama Siddiqa
42 Photo Gallery
46 News Brief
8 12 16
China-Pakistan The artistic China Environmental Impact
Cybersecurity Mahak Hamid Assessment of CPEC
Cooperation Projects and Mitigation
Aamna Rafiq Strategies
Dr. Abdul Rauf
36
26 38
BRI and CPEC: Of Austerity, Today a Reader,
Beyond Excellent Documentation and Tomorrow a Leader:
Hardware, Towards Tax Benefits of Reading
Matching Software Takeaways of Budget 2019- Abid Hussain
Irfan Shahzad 2020
Raja Amer Iqbal
View Point
China and the New
World Order of Trade
By Muhammad Nauman Hafeez Khan
T
he fall of Berlin the 2008 economic recession is gaining absolute advantage
Wall and the end of did little harm to the overall in mutual trade. While the
Cold War brought economic structure of USA. great Athenian philosopher
many changes in Yet, the title of USA as the Thucydides in his ‘Thucydides’
International Political scenario. sole superpower of the world Trap’ thinks that war between
United States of America is in danger, and that too from an existing superpower and
(USA) emerged as the sole a state which is not inclined a revisionist power is almost
superpower. World saw to wage a war against USA always inevitable, the case
conversion of world order from in battlegrounds, but in free between USA and China seems
Bipolar to Unipolar system. markets created by USA itself. otherwise.
After 1995, the economy of
USA witnessed meteoric China has emerged as a Apparently, China appears to be
rise in GDP and purchasing giant in manufacturing world. in no hurry of taking the driving
power parity. The base of From around the world, China seat of the world politics. The
US economy after the end of targets markets that provide Belt and Road Initiative (BRI)
Bretton Woods System was it with absolute advantage in by China is the manifestation of
made so strong that even war trade, and USA is one of the this idea. BRI and its flagship
against terror, Iraq war and biggest markets where China project, CPEC cannot proceed
6
View Point
if China opens military fronts and investment in developing Afghan government and Taliban
to gain strategic leverage in countries, China has gained its to find a way for peaceful
battlefield which is very obvious access to key trading routes exit of USA from the region
because China needs strategic and chokepoints. Chinese followed by sustainable peace
partners to successfully execute investment in Hambantota Port in Afghanistan. In Middle East,
its BRI. Wang Yi, the foreign in Sri Lanka and Gwadar Port in China should play its role for the
minister of China said that Pakistan has provided an easy stability in the region.
‘China lacks the gene of external approach to Strait of Hormuz
expansion’, but to what extend that controls 30 per cent of the For China, future has promises
this claim is plausible? world’s energy supply coming and it is likely to gain its
from Middle East. This supply of foothold in the region. China
The title of energy can help energy deficient is the biggest beneficiary of
USA as the sole China to boost its industrial the protectionist posture of
superpower of output. The strait will also USA. Stable GDP growth rate
of China and absence of any
the world is in
provide China with new markets
to export its domestic industry in major military conflict has given
danger, and that Middle East and Central Asia. China a much needed stability
too from a state to emerge as the strongest
which is not
The trade diplomacy is helping economy in the world.
China to win allies in South Asia,
inclined to wage Central Asia and Middle East Stable GDP
a war against USA that USA has not been able to growth rate
in battlegrounds, win through decades of war,
of China and
but in free making alliances and counter
alliances of temporary nature.
absence of any
markets created China on the other hand is using major military
by USA itself the liberalised order of trade to conflict has given
Since 2016, when Donald Trump
introduce its consumer goods China a much
took his office as the President
at less expensive rates than
Western markets particularly
needed stability
of the USA, the foreign policy of the European Union. The recent to emerge as
USA was pushed more towards ‘Huawei’ episode in US-China the strongest
protectionist posture that
adversely impacted the concept
Trade War shows the presence economy in the
of free markets and liberalization
of ‘trade security dilemma’ that
USA is facing from China. The
world
of trade introduced by USA. hasty decision of USA to call for For now, the main focus of
Trade war with China, an end to ban on Huawei followed by the China is on meeting its energy
NAFTA, rift with Europe on trade withdrawal of ban for two years requirements and finding new
gap and withdrawal from Iran shows that USA has no clue how avenues to further its export
Nuclear Deal has completely to tackle the increasing influence net. But China needs to equally
changed the position of USA as of China in the consumer improve its military capabilities
the harbinger of the world order. markets of USA. in line with economic strength.
But what is more important
Chinese military has never been
here is that who is going to take China in future is likely to
in an open conflict with any
advantage from the protectionist increase its political influence
country in decades that gives
posture of USA? The answer around the world and
the war hardened US military an
might lie in the trade diplomacy predominantly in South Asia and
edge over Chinese military. The
.
of China that it is pursuing since Middle East. It is in best interest
ball falls in the Chinese court
President Xi took office. of China to balance deterrence
and it is Chinese leadership
between Pakistan and India. In
China is reshaping the world that would steer the New World
Afghanistan, China will have to
order. It might not be the same Order of trade
play a role of mediator between
order of economic liberalisation
that was introduced by USA,
but China is making the best
use of this order to reshape its The writer is an Environmental Consultant.
own. Through trade diplomacy
7
Analysis
Analysis
China-Pakistan
Cybersecurity
C operation By Aamna Rafiq
W
ith cutting-edge developed a comprehensive of digital economies. Pakistan
technological cyberspace regulation system along with China is playing active
development consisting of new policies, role in negotiation process for
in the field of laws and institutions which international cyberspace treaty at
artificial intelligence, robotics, has transformed the national First and Third Committee of the
quantum computing and and international cyberspace United Nations General Assembly
world`s top class information landscape. The Chinese model (UNGA) and United Nations
and communication technology is based on the ideology of cyber Groups of Governmental Experts
(ICT) companies, China sovereignty. Beijing believes (UNGGE) at United Nations
is all set to rule the global that every country should Security Council (UNSC).
cyberspace. With over 802 be independent to regulate
million users, China has the cyberspace in accordance
The government of
China has developed
world`s highest number of with its national law and cyber
a comprehensive
internet users. Among them culture. Pakistan also shares a
cyberspace regulation
788 million (98 %) are mobile similar ideology. Both countries system consisting of
users which is a proof of emphasize on the establishment new policies, laws
China`s increasing presence in of reliable international and institutions which
the cyberspace and capability cyberspace regime that has transformed
to replace US dominance promotes mutual cooperation the national and
over the internet. According to and have agreed to bridge the international cyberspace
Global Innovation Index 2018, cyberspace development gaps. landscape. The Chinese
China is among the world`s top Both are willing to construct model is based on
20 most innovative economies. international and multilateral the ideology of cyber
The government of China has partnerships for the growth
sovereignty
8
Analysis
Analysis
At bilateral level, the Long Term optical fiber network” in 2016. This This digital corridor will not
Plan for China-Pakistan Economic 820 km long cable from Rawalpindi only ensure a reliable, fast,
Corridor (2017 – 2030) identified to Khunjerab, constructed with the cost-effective connectivity
the ICT infrastructure development total cost of US $ 44 billion became between the two neighbors
as one of the key areas of cyber commercial in February 2019. and other regional countries
security cooperation between but also generate a significant
the two countries. The Ministry The construction of another optical amount of revenue for Pakistan.
of Planning, Development and fiber network from Sukkur to It will increase the internet
Reform in collaboration with the Gwadar is on the cards to complete penetration rate of Pakistan
Chinese National Development & the North-South optical cable silk especially Gilgit-Baltistan and
Reform Commission envisioned route which could be expanded Balochistan. Another landmark
the promotion of cyberspace eastwards to the landlocked achievement is the construction
connectivity through the countries of Central Asia. of China`s first-ever privately
construction of a “cross-border own submarine cable system
Source (s): Government of Pakistan, China-Pakistan Economic Corridor (CPEC) Official Website,
“CPEC Maps,” accessed May 14, 2019, cpec.gov.pk/map-single/3.
9
Analysis
known as the “Pakistan & East in case of damage to the Karachi the establishment of advance
Africa Connecting Europe station. The construction of this Cybersecurity Research Center
(PEACE) in collaboration with new station is expected to start in (CSRC) at NUST in January, 2019.
Pakistan and South Africa. 2021 after final feasibility report. The objective of CSRC will be to
The Chinese company PEACE According to the initial plan this organize workshops, conferences
Cable International Network Co. station will cover the 10,000 and summer schools to create
will construct 12,000 km cable square meters’ area of Gwadar. and increase cybersecurity
system in collaboration with awareness. This center will also
Pakistani Company Cybernet. The second initiative mentioned facilitate the mutual exchange of
This cable will have landing in the Long Term Plan is the faculty and students enthusiastic
stations in France, Kenya, extensive up-gradation of for the research and development
Djibouti, Egypt and Pakistan. network facilities and national of cyberspace.
It will add 96 Tb/s to the total data centers in Pakistan. The
internet capacity of Pakistan. core objective of this initiative The cooperation
is to increase and diversify in cyberspace will
Before the operationalization the ICT based development strengthen the
of this network, Pakistan was projects in Pakistan e.g. safe strategic partnership
dependent on the other networks city projects, digital monitoring
between Pakistan and
China. The mutual
developed by the consortium of of international borders,
efforts to achieve a
Americans and Indian companies e-governance and e-commerce
secure, stable and
which were posing challenges systems. A significant progress accessible ICT will
to the national cybersecurity has been achieved in this promote regional
of Pakistan and China e.g. respect. Safe City Projects security, peace and
communication surveillance, were successfully completed development. It will
loss of connectivity with global in Lahore and Islamabad in unleash the huge
network in conflict situation. collaboration with the Chinese geopolitical and
company Huawei. The Safe City commercial benefits
The Chinese Projects will be soon started for both countries
company PEACE
Cable International in Karachi, Peshawar, Quetta
The cooperation in cyberspace
Network Co. will and Gwadar as well. Pakistan`s
will strengthen the strategic
construct 12,000 first-ever “National Data Center”
partnership between Pakistan
km cable system in established in collaboration with
and China. The mutual efforts
collaboration with Huawei is already operational.
to achieve a secure, stable and
Pakistani Company Another gigantic and centralized
Cybernet. This cable data center will be completed
accessible ICT will promote
will have landing in 2020 for the improved
regional security, peace and
stations in France, e-governance services for the
development. It will unleash the
Kenya, Djibouti, Egypt citizens of Pakistan.
huge geopolitical and commercial
and Pakistan. It will benefits for both countries. It is a
add 96 Tb/s to the Enhancement of Pakistan`s ICT golden opportunity for Pakistan to
total internet capacity human resource through technical achieve the policy objectives and
of Pakistan expert exchange programs is development of strategic as well
as non-strategic components of
.
another core area of cybersecurity
Another issue directly linked with ICT, accurately identified in the
cooperation. Under this initiative,
this project is the only submarine National Science, Technology and
an MOU was signed between the
internet cable landing station in Innovation Policy 2012 and Digital
National University of Sciences
Karachi that connects Pakistan Pakistan Policy 2018
and Technology (NUST) and
with the global submarine
the Beihang University for
network of internet cables.
The governments of China and
Pakistan have planned a joint
construction of second landing The writer is a Research Associate at
station at Gwadar to minimize Institute of Strategic Studies Islamabad.
the disruption of internet traffic
10Infographic
China Pakistan Economic Corridor (CPEC)
projecting its economic and geopolitical
importance for Pakistan and China.
11Reflection
The artistic
China By Mahak Hamid
C
hina is custodian of colour and hues. After this period, The traditional Chinese
one of the world’s the Chinese art reflects ruling paintings were based on The Six
richest cultural and dynasties of Chinese emperors Principles of Painting by Xie who
artistic legacies. It which lasted several hundred was a famous Chinese writer
dates back to thousands of years. and art historian. According
years ago. As China is one of to Xie, the six elements that
the earliest ancient civilisations defined paintings were Spirit
of the world, one can see its Resonance, Bone Method,
deep cultural influences on correspondence, suitability to
Chinese arts and architecture. type, division and planning.
Chinese art is a blend of Spirit resonance is the artist’s
traditional and modern values. energy translated into his work.
Until the 20th century, Chinese Bone method refers to the brush
art was resistant to change. technique. Correspondence
Early ‘stone age art’ consisted to the Object includes shape
of simple clay sculptures. and line. Suitability to Type
is the application of colour,
division and planning refers to
Traditional Chinese artists composition, space and depth.
were not professionals, they
were scholars influenced by
the teachings of Confucius.
The purpose of their art was to
present philosophical approach
towards life. The art focused on
mastery of brush and technique
and it depicted high level of
abstraction.
According to Xie, the aim of
Chinese painting was to capture
Archaeologists trace these the innate essence or spirit (qi)
artistic pieces back to 10,000 of the subject and endow it.
BC. After Stone Age period, the
Chinese art shows the heavy Early painters dwelled on
influence of Buddhism. Most the human figure and moral
of the focus was on calligraphy teachings, while also conjuring
where the paintings of this era up scenes from everyday life.
resembled to simple symbols Traditionally, the brushwork Landscape paintings came into
and brush strokes devoid of would reveal artist’s moral existence during Tang Dynasty
character.
12Reflection
and were in full bloom during Some of the renowned
Song and Yuan dynasty. traditional artists are Jing Hao,
The landscape paintings Li Cheng, Fan Kuan, and Guo
mostly rested on the artist’s Xi, Dong Yuan, Juran. Things
skill in capturing light and began to take new shape for
atmosphere. These paintings Chinese Arts in the late 19th
were black and white without century.
any hues and emotions.
The imperial Qing’s dynasty
ended with the cultural,
political and social revolution
in China. Due to the effects of
modernisation and the Culture
Movement, the traditional style
of Chinese arts was abandoned.
Chinese artists started
incorporating modern touch in
their technique and content.
that innovation could be
In an effort to modernise
achieved only within China’s
Chinese Art, the Arts institution
own traditions. As a result,
started teaching European
the main theme of Chinese art
techniques to the artists. Modern
remains the same which reflects
artists started using western
the very soul and essence of the
techniques of oil paintings,
Chinese nation.
water-colour paintings and
drawing in their artworks. Today’s China is much more
adaptive and open towards
modern artistic methods and
techniques. According to a
report by Adrienne Mong, there
The classical landscape are an estimated 20,000 artists
paintings consisted of two in the Peoples’ Republic of
main kinds of scenes and China and one thousand more
techniques. The artists from graduates every year.
the northern parts of China
mostly used black lines, ink Some of the well renowned
wash, dotted brushstrokes modern Chinese painters
techniques throughout their include Huang Binhong, Qi
paintings. Baishi, Xu Beihong, Cai Jin,
Traditional Taoist and Buddhist Chang Ta Chien, Pan Tianshou,
philosophy was overturned.
Some major themes of
Modern Chinese art were
based on contemporary socio-
economic realities such as
consumer culture, materialism,
urbanisation and social change.
By 20th century, Chinese artists
started incorporating socialist-
realism in their paintings.
While their southern fellows However, the traditional artists
painted peaceful scenes with greatly opposed these new
softer rubbed brushwork. concepts of arts and believed
13Reflection
Wu Changshi, Fu Baoshi, In the international market, antiques. The artwork of artists
Wang Kangle, and Zhang traditional and contemporary such as Zhang Xiaogang was
Chongren. Chinese Arts both attracts a sold for a total of $56.8 million
large number of buyers from all at auction in 2007. Some of
There is a great demand of over the world. the Classical paintings such as
Chinese Artwork throughout ‘All the Mountains Blanketed in
the world. Some of the well- Red, 1964’ by Li Keran and Xu
known representatives of the Beihong’s ‘Put Down Your Whip,
Chinese Arts and Crafts are 1939’ were sold for almost $35
Paintings, Clay sculptures, and $72 million respectively.
Chinese Silk, Chinese
traditional and religious Chinese art is reflective of
music, Operas, Paper-cut China’s cultural, political and
items, Chinese handmade social dimensions. The way
silk embroidery, Porcelain, China embraced changes in their
Chinese folk toys made from politico-economic structure; they
cloth, grass, straw, clay, According to a report, Chinese also began to focus on modern
paper, paper umbrellas and art accounts for 23 percent of techniques and contents.
lanterns. world’s total art which makes
China the world’s second Chinese artists have contribution
biggest market for art and in reflecting religious and
political philosophy,
contemporary socio-
economic realities,
transformations that
Chinese society has
gone through since
ages and of course,
.
the Chinese art
reflects the soul and
essence of China as
nation
Much of the best work of
Chinese arts can be seen in
ceramics and textiles. These
items are typical symbols of
Chinese traditional culture The writer holds a Masters degree in Applied
Psychology from Quaid-i-Azam University
and reflect the lifestyle and Islamabad.
beliefs of Chinese people.
14Report
CPEC: A futuristic Outlook By Asma Hanif
O
n June 17, 2019 a workshop was Asian Strategic Stability Institute shared her vision
organized at Azad Jammu & Kashmir with the audience as a practitioner of project. She
University Muzaffarabad by CPEC told that CPEC was able to overcome some of the
Centre and China-Pakistan Study Centre extreme crises. For instance, the energy crisis have
(CPSC), Institute of Strategic Studies Islamabad. been overcome by the project and infrastructure too
The workshop focused on the futuristic outlook of improved to a great extent.
China-Pakistan Economic Corridor (CPEC). The
workshop commenced with the recitation of the Holy
Quran. Afterwards, Dr. Samina Sabir, Coordinator
of CPEC Centre at University gave opening
remarks. Professor Dr. Ayesha Sohail, Dean of
Arts welcomed all the distinguished speakers and
the participants of the workshop and spelled out
the concept and importance of the workshop. Dr.
Talat Shabbir, Director CPSC while discussing the
aims and objectives of the workshop, moderated
the proceedings of the workshop. He said it was
important for all the stake holders of CPEC to know She indicated some of the complications in CPEC
what it entails. loans and spelled out as how these issues can
be addressed. Mr. Yasir Masood, Deputy Director
Media, CPEC Centre of Excellence also explained
the need and importance of the project. He told that
for quite some time no one came to Pakistan for
investment. Energy crisis was on peak at that time.
But CPEC has overcome this problem.
The first speaker Dr. Liaquat Ali Shah, Executive
Director of CPEC Centre of Excellence at PIDE
discussed all the problems relevant to the project.
He spoke about Special Economic Zones (SEZs)
and one SEZ is planned at Mirpur. Besides
generating employment opportunities, SEZs
promise an increase in the well-being of people
including improvement in their living standards. There is substantial progress in different projects of
this mega-venture. However, need of the hour is to
initiate domestic and foreign investment and trade. It
is up to the people of Pakistan to take advantage of
this golden opportunity. A detailed Question-Answer
session followed each presentation and participant
asked the many pertinent questions with regards
to current position of CPEC and future trajectory of
the project. At the end of the workshop, Dr. Abdul
Qayyum, Dean of Sciences addressed and admired
the organisers of the program. He appreciated the
Dr. Nasir Iqbal, Assistant Professor at Pakistan CPEC Centre and China-Pakistan Study Centre
.
Institute Development Economics talked about (CPSC), Institute of Strategic Studies Islamabad for
impact assessment of the project and deliberated conducting such an excellent workshop. At the end of
on how the projects are evaluated. He threw light the event, the chief guest distributed the certificates
on the need and resources of the project. Dr. among the participants of workshop
Shazia Ghani, Director BRI and CPEC at South
15Analysis
Environmental Impact
Assessment of CPEC
Projects and Mitigation
Strategies By Dr. Abdul Rauf
C
limate change, Global warming is evidently Global warming is causing
global warming, the main cause of rise in global climate change and because
environmental greenhouse gas emissions from of that global average surface
degradation, are human activities mainly due to temperature is increasing,
some of the terms we hear burning of fossil fuels, deforestation glaciers are melting, sea
quite often nowadays. All these and land-use change. levels are rising, recurrence
issues not only exist but are
getting worst with each passing
day. Thus we owe it to our future
generations to find ways to
mitigate these effects. These
problems are created in the
name of improving quality of
life but have actually brought
the world to a level where basic
human needs of water, food, and
energy are endangered. Climate
change or global warming is the
greatest environmental threat
humans have ever faced in the
recent history.
16Analysis
of deadly heat waves are on be mitigated whereas, micro Global warming is
rise, precipitation patterns level assessment of each evidently the main
are changing, droughts are project needs to be carried
cause of rise in
common, flash floods are out separately. Major projects
global greenhouse
gas emissions from
getting worse, cyclones are under CPEC include rail and
getting stronger and lot of other road transport infrastructure,
indicators are creating alarms. energy generation, construction human activities
mainly due to
burning of fossil
fuels, deforestation
and land-use change
We also know about three
road corridors that involves
development (up-gradation
and new construction) of road
infrastructure and special
economic zones (industries)
along these corridors as well
as up-gradation / expansion
of existing railway lines and
Pakistan currently ranks 7th of special economic zones, construction of new railway track
most vulnerable country on Gwadar port development, from Havelian to Khunjerab
the Global Climate Risk Index and social sector development Pass is also planned. All
(Germanwatch think tank projects. Gwadar master plan infrastructure developments
report 2018). includes a large number of need cement and steel. Cement
infrastructure development production requires limestone,
It is therefore important to projects including creation of water and burning of lot of
carry out a brief Environmental deep sea port facilities, special fossil fuel, producing carbon
Impact Assessment (EIA) economic zones with industries dioxide (CO2) which is a major
of CPEC projects and including steel, petrochemical, greenhouse gas responsible for
see how the negative airport, power plants and living global warming, limestone on
environmental impacts can facilities in Gwadar. heating also produces additional
17Analysis
CO2. Steel production is also Construction of new roads and that immediately after the
very energy intensive process expansion of existing roads may construction, native trees
producing lot of CO2. cause cutting of trees / flora and are planted and maintained
use of fertile agricultural land, in the area. In addition to
Implementation of Gwadar which needs to be minimised producing clean air and lowering
master plan including by carefully designing the route temperature, trees on road sides
construction of deep sea port and employing environment- are also useful to reduce traffic
must ensure that it does not friendly construction practices. noise.
affect the environment and The issues of soil, water, air
marine life. and noise pollution during the The routes of CPEC are
constructed for the movement of
goods. Trains, especially electric
powered using power generated
by renewable sources, are much
better for environment than
road transport that produces
excessive CO2 by combustion
engines.
Environmental
issues should be
given due weightage
during planning and
execution phase of
CPEC projects
Oil and gas may be transported
by pipelines instead of road or
rail transport. All three CPEC
The blue beaches in the area routes converge in Gilgit-
construction work need to be
must remain blue. Sewerage Baltistan region, with one of
controlled.
water shall not go to the sea the largest glacier system in
without proper treatment. Areas on either side of road the world, and global warming
All other waste from the can be isolated and converted is already causing recession
city including domestic and into pockets which may hinder of these glaciers. Moving a
industrial waste may be movement of local population, large number of trucks will
disposed off properly as at wild species and flood water not only increase greenhouse
present plastic is the main flow, unless overhead bridges, gas emissions in the area but
source of pollution in seas. underpasses, culverts and carbon on snow causes snow to
be less reflective resulting into
It is important that wildlife corridors are carefully
increased melting rates.
immediately after
planned. It is important
the construction,
native trees are
planted and
maintained in the
area. In addition
to producing clean
air and lowering
temperature, trees
on road sides are
also useful to
reduce traffic noise
18Analysis
Although there are certain constructed coal-fired power pollution. Natural resources
renewable (hydro, wind and plants under CPEC. especially underground water
solar) energy projects planned need to be utilised by industry in
which are environment friendly Carbon capture and storage a sustainable way as water table
but still bulk of energy in CPEC (CCS) technology involving in most part of the country has
projects (69%), is planned to capturing and safe disposal of already gone down to dangerous
be produced by coal including, CO2 produced by coal power levels.
660 MW at Port Qasim, 660 plants is mature enough to be
MW at Sahiwal, 300MW at deployed. Beside CO2 emission CPEC projects are critical for
Gwadar, 1,320MW at Hub coal also produce particulate the development of this region,
and large number of coal-fired matter (PM) and sulphur dioxide no one can deny the positive
power plants at Thar using (SO2) which causes air pollution. economic and social benefits
local coal. Efficient scrubbers will be of these projects. Energy is a
required to control the PM and dire requirement and in fact
High efficiency, other pollutant gases from the it is the energy consumption
low emissions exhaust. Our local coal including per capita that indicates the
technologies with Thar coal is inefficient and rich standard of living. Road and
working efficiencies in sulphur contents, burning rail communication is also
of nearly 45% using this coal will release lot of SO2 critical. During this progress we
supercritical or in the atmosphere which may need to make sure that these
ultra-supercritical
cause acid rain and respiratory developments have least impact
diseases, unless efficient on environment. Therefore,
steam cycle and effective desulfurization environmental issues should
technology that equipment to clean sulphur from be given due weightage during
releases less the smoke is utilised. Proper planning and execution phase
pollutants are disposal of coal ash (including of these projects. Detailed EIA
required to be fly ash, bottom ash and boiler of each project is essentially
employed in the slag) to avoid any environmental required. Global regulation for
newly constructed impact is also required. safeguarding the environment
coal-fired power
plants under CPEC
These coal power plants will
emit a lot of greenhouse gases
bulk of which is CO2. Though
bulk of global electricity
generation (around 40%) still
uses coal, due to its availability
and being cheap, nonetheless,
its effect on environment
cannot be ignored. Pakistan
has vast reserves of coals and
hence coal power projects
are economically viable. But exist, we just need to implement
there is a need to look into Although a number of special these regulations for CPEC
controlling the emissions from economic zones are planned as projects. To make CPEC
these plants. High efficiency, part of CPEC but at the moment projects really beneficial and
.
low emissions technologies not many details about the fruitful in economic and social
with working efficiencies of actual industries are available. sectors it is important that these
nearly 45% using supercritical Detailed EIA of each industry do not cause any harm to our
or ultra-supercritical steam is required as these industries environment
cycle technology that releases may cause soil, air and water
less pollutants are required
The writer holds PhD in Telecom
to be employed in the newly Engineering from University of
Sheffield, UK and is a faculty member
at NUST
19Report
CPEC: Strategizing
Pakistan’s Narrative By Uroosa Khan
M
r. Jiang Han, Political Counselor at Mishal Pakistan; Dr. Zafar Iqbal, Chairman
Chinese Embassy Islamabad while Department of Media and Communication
speaking at a seminar on CPEC: Studies, International Islamic University,
Strategizing Pakistan’s Narrative Islamabad.
organized by China-Pakistan Study Center
(CPSC) at the Institute of Strategic Studies Director General ISSI, Ambassador Aizaz
Islamabad (ISSI) on 25 April, 2019 said that Ahmed Chaudhry in his introductory remarks
‘China-Pakistan Economic Corridor (CPEC)
is a flagship project of Xi Jinping’s Belt and
Road Initiative (BRI) which has been very
well received and appreciated world-wide.
He said that it is built around prosperity, win-
win outcome and progress for all countries.
However, if we do not build our own positive
narrative on CPEC, this will leave plenty of
room for propagation of negative perceptions.’
The eminent speakers of the seminar were:
Mr. Amir Jahangir, Chief Executive Officer,
20Report
like ours, Mr. Jahangir said, fresh narratives
are emerging with every interaction on social
media, with every post and opinion article.
He suggested that ‘synergizing of minds and
mending of hearts is the creation of a new hope
for humanity’ should be the new narrative of
CPEC under the wider framework of China-
Pakistan relations. Dr. Zafar Iqbal, Chairman
Department of Media and Communication
Studies, International Islamic University,
talked about the ever-growing importance of
figurative interactionism that has come to play
stated that CPEC is very significant for Pakistan an instrumental role in structuring narratives on
not only in the context of economic success any topic.
but also in terms of the strong commitment and
historic friendship that Beijing and Islamabad
have upheld ever since their diplomatic
relations began. Pakistan-China relations are
multidimensional and, henceforth, there is much
more to this bilateral equation than only economy.
Ambassador Chaudhry explained the shades of
negatives narratives and described how some
of them have run their course. He said that we
are holding this seminar to counter the negative
narratives and deliberate on how should we
strategize the narratives on CPEC.
In the concluding remarks, Chairman ISSI,
Ambassador Khalid Mahmood emphasized
the need for counter narratives to compete
against the existing destructive narratives
concerning CPEC, particularly in the West.
A series of seminars on this subject should
follow up so that ideas may come out and an
inter-governmental group can also be set up
including all stakeholders like all concerned
ministries and civil society. This should be
.
the approach to strategize the narratives on
CPEC. The seminar was attended by diplomatic
In his opening note, Director CPSC, Dr. Talat community, academics, media personnel,
Shabbir contextualized the need for planning students and think-tanks representatives
narratives on CPEC and stated that the project
is a mega venture which has been shown in
both positive and negative light. With made-
up narratives being churned out in a massive
amount, Director furthered, the need for Pakistan
to strategize narratives on such mega project like
CPEC has increased ever more.
Mr. Amir Jahangir, Chief Executive Officer of
Mishal Pakistan, spoke about comprehending the
narrative gap on CPEC. In a cosmopolitan world
21Book Review
War by Other Means:
Geoeconomics and
Statecraft By Ali Haider Saleem
extended their efforts in applying
geo-economic strategies, the
traditional superpower, the United
States of America, is facing
difficulties in maintaining its grip
over the world order.
The authors of this book have both
served on key posts of the United
States government. Robert D.
Blackwill served as deputy assistant
to President George W. Bush and
also as deputy national security
advisor for strategic planning
during Bush administration.
Jennifer M. Harris worked for
U.S. Department of State under
Obama’s administration. She was
a member of the Policy Planning
Staff there. They share extensive
foreign policy experience and in this
book they have presented many of
their observations along with policy
recommendations.
Authors: Robert D. Blackwill and Jennifer M. Harris
Publisher: Belknap Press (April 11, 2016) They are critical of United States’
Pages: 384 extensive reliance on military
G
power to achieve its strategic
eo-economic tools have
and foreign policy objectives. For
gained a lot of relevance
them, the United States should
in recent years for policy
add more weight behind the use of
makers. In the era of
its economic power. The authors
globalization, the interconnected
claim that if the United States does
nature of the world economy allows
not effectively integrate economic
countries to exert their influence
and financial tools in its strategic
in multiple ways. Conventional
planning then the likelihood of
weapons are no longer the main
losing its global influence will grow.
tool of achieving foreign policy
In the past, US did apply these
and security objectives. As major
successfully, like the Marshal Plan,
powers across the globe have
22Book Review
which supported the economic
recovery of war ravaged European and security threats. China has been
countries and prevented those able to strengthen countries that are
countries from aligning towards hostile towards the United States and
the Soviets or coming under their it is also becoming an increasingly
influence. important partner for countries that
usually oblige to the desires of the
The authors note that the United United States.
States’ Grand Strategy started
overlooking geo-strategic War by other means is an important
instruments in the later part of the and timely contribution. It will help the
20th century and that move didn’t readers understand the importance
work out favourably for the United of geo-economic strategies and
States. As a result, its economic how the United States looks to
resources have been underutilized achieve its foreign policy objectives.
in serving its interests. They argue Furthermore, the authors have also
that the American government has provided substantial information to
to go back to the drawing board and understand the rise of China in global
adjust its policy initiatives. Failure to politics which is one of the most
do so will allow rival countries who crucial topics nowadays.
are presently taking this approach
to build up their influence at the The present trade war between China
expense of the United States. and the United States encompasses
geo-economic strategies. The
The authors suggest that the rising economic friction between the
powers of the world are increasingly two powers is going to have major
turning towards economic statecraft implications on the global order. The
as it allows them to gain favourable withdrawal of United States from
sentiments from other countries Trans-Pacific Partnership has already
and let them push their geostrategic limited prospects of international
objectives without facing hostility or cooperation mechanisms. With the
drawing criticism. This also clears international system coming under
the possibility of any armed conflict stress due to offensive policies, global
and therefore ensures a sustainable peace and stability remain at risk.
policy track.
This book provides a sound
The geo-economic approach understanding of how countries
adopted by China is also well attempt to gain influence in global
discussed in this book. The authors affairs and what makes them
maintain that China has successfully successful. It also highlights that
achieved many geopolitical policies of economic superpowers
objectives without entering into any have multiple objectives and partner
war. They argue that China’s soft countries are pushed to make tough
strategy, which is largely based choices. Moreover, this book will help
.
on economic factors, has helped policy makers in different parts of
it induce a number of countries the world to better understand global
to support its regional and global dynamics and shape their strategies
rise. For the United States, this accordingly
approach poses both economic
The writer is Research Associate at
China-Pakistan Study Centre, Institute
of Strategic Studies, Islamabad
23Report
Special Economic Zones: Future
Prospects and Potentials
By Dr. Samina Sabir
A
One-Day National Conference was hosted at Initiative as a patron of peace in the region. He
the University of Azad Jammu and Kashmir stressed that the benefits of CPEC are contingent
under the title of ‘Special Economic Zones: upon effective implementation strategy for the
Future Prospects and Potentials’, organized project, continuance of policy along with keen hunt
by China Pakistan Economic Corridor Centre, of potential opportunities. While elucidating the
University of Azad Jammu and Kashmir in collaboration industrial potentials of Azad Jammu and Kashmir, he
with China-Pakistan Study Centre, Institute of Strategic suggested that focus might be shifted on light mining
Studies Islamabad. and minerals processing, tourism and adventure, light
manufacturing, and green and clean Energy.
His Excellency Muhammad Masood Khan Chancellor
of the University of Azad Jammu and Kashmir
and President, Azad Jammu and Kashmir was
the Keynote Speaker. He highlighted the need
of methodological rebuttal of negativity around
the China Pakistan Economic Corridor through
coordinated efforts of CPEC centres across
Pakistan. While highlighting the importance of
In her briefing, Dr. Samina Sabir Coordinator CPEC Special Economic Zones he emphasized upon the
Centre highlighted the sharp contrast in growth need to consider the natural factor endowments
experiences of both countries and noted that the of respective regions and to offer due regard to
economic uplift of China and industrialization of its environmental and ecological impacts. He pointed
economy is linked with the development of Special out the need to enhance the access to finances for
Economic Zones which strategically keep in view the the entrepreneurial community and investments from
natural factor endowments. Moreover, their location Kashmiri diaspora.
provided China a launch pad of for growth in the
decades to come.
Professor Dr. Muhammad Kaleem Abbasi, Vice
Chancellor University of Azad Jammu and Kashmir
in his welcome remarks lauded the efforts of His
Excellency Muhammad Masood Khan, President of
Azad Jammu and Kashmir in highlighting the Kashmir
cause effectively on national and international media
and at various international forums. He emphasized
the need to counter the negative campaigns around
the China Pakistan Economic Corridor and highlighted
the importance of collaboration of China Pakistan
Economic Corridor Centres across Pakistan. A Memorandum of Understanding on the
collaboration between the CPEC Centre, University
of Azad Jammu and Kashmir and China Pakistan
Study Centre at Institute of Strategic Studies
Islamabad was signed by Dr. Ayesha Sohail, Dean
Faculty of Arts, University of Azad Jammu and
Kashmir and Dr. Talat Shabbir, Director, China
Pakistan Study Centre at Institute of Strategic Studies
Islamabad.
Hasan N. Ansari, Group Director Strategy and The first working session was on ‘Special Economic
projects at JW Special Economic Zones limited Zones and Socio-Economic Impacts’ which was
during his remarks visualized the Belt and Road
24Report
chaired by Dr. Talat Shabbir Director, China- Connectivity, Environmental Aspects and
Pakistan Study Centre, ISSI. Dr. Muhammad Development. This session was chaired by Dr.
Shahbaz, Senior Research Fellow, department of Shazia Ghani, Director BRI and CPEC, South
land economy, University of Cambridge, United Asian Strategic Stability Institute followed by three
Kingdom, highlighted the importance of energy speakers.
efficiency in the context of Pakistan. Dr. Liaqat
Ali Shah Executive Director, CEO-CPEC Centre Dr. Sohail Ahmed from International Relations
of Excellence, spoke on industrial relocation and department COMSATS University Islamabad said
opportunities for Pakistan under China Pakistan that the Special Economic Zones will create an
Economic Corridor and emphasized that there is a overall impact on industrial development and socio-
need to initiate SEZs to use them as a policy tool economic uplift in Pakistan. Moreover, Pakistan
will be the gateway for land-locked countries of
Asia, including Sri Lanka, Afghanistan, Iran, and
Uzbekistan to undertake marine transport. Over $33
Billion will be invested under CPEC to build energy
infrastructures constructed by private organizations
which will help to alleviate Pakistan’s chronic
energy shortage. CPEC will give opportunities to
Gilgit-Baltistan traders to export their fruits and
handicrafts via Xinjiang road, he said. Dr. Inayat
Kaleem from International Relations department
and to boost production efficiency. COMSATS University Islamabad stated that a high
level of competition since late 90s, with “race-to-
Dr. Nasir Iqbal, associate professor at Pakistan the-bottom” fiscal incentives, has led to significant
Institute of Development Economics connected the overlaps and declining efficiency of the zone
employment creation with Special Economic Zones. programs.
He stressed that in this context, Special Economic
Zones under CPEC will be a life-time opportunity for Mr. Yasir Masood from CPEC Centre of Excellence
Pakistan to work with China for the development of
export-oriented manufacturing industries to achieve
growth and employment objectives. Dr. Shazia
Ghani, Director Belt and Road Initiative and China
Pakistan Economic Corridor, SASSI University
discussed the future prospects and potentials
of Special Economic Zones for Pakistan. She
discussed the challenges that Pakistan is facing in
the form of lack of infrastructure, skilled labor force
etc.
at Pakistan Institute of Development Economics
said that the vision of BRI, of which CPEC is a
lynchpin, can contribute to regional and global
growth by integrating more than 70 economies of
the region.
In the concluding remarks of the last session, Dr.
Shazia Ghani said that economic benefits of CPEC
are not beneficial for Pakistan only but for the whole
Dr. Talat Shabbir in his concluding remarks said South Asian region. Pakistan has entered the
that Special Economic Zones will lead to massive second development phase of CPEC, being a nation
.
development of the economy through increase we should be committed to reap benefits from it.
in export, Foreign Direct Investment, creation of
Prof. Dr. Ayesha Sohail gave the vote of thanks and
employment and Gross Domestic Product.
appreciated her organizing team for managing and
The last working session was on CPEC: Regional organizing the National Conference successfully.
25View point
BRI and CPEC:
Beyond Excellent Hardware, Towards
Matching Software
By Irfan Shahzad
T
he month of July 2019 marks the 6th is said to be around $ 62 billion, by 2030, while
anniversary of signing of Memorandum additional projects to be added later will add to
of Understanding (MoU) between China the overall total investment that the corridor will
and Pakistan for the Long-term Plan of generate.
the China-Pakistan Economic Corridor (CPEC).
The MoU was signed on July 5, 2013, in Beijing. However, as is universally known, every set of
During these past six years, CPEC has emerged hardware needs matching software for it to be of
as the flagship project, and so far most successful any meaningful use. This makes us to state that
component, of China’s mega Belt and Road for BRI, at this point of time, the need of the hour
Initiative (BRI). is to move towards matching software. This holds
equally true for CPEC.
On a larger global and regional scene, BRI has
doubtlessly emerged as one of the greatest- So what this software should contain?
ever plans of trans-national connectivity and
The first and foremost is image building. Negative
development. That is well-established, globally,
portrayal by anti-BRI forces is too strong as
now. It needs little mention that excellent
compared to positive projection of its benefits
communications infrastructure, the much needed
by China and recipient countries, for their own
hardware of trans-national connectivity; and large-
respective people. Ironically, untrue propagandas
scale energy generation projects, the key to smooth
about the so-called ‘debt trap’ and ‘dumping’, even
running of any economic activity – have been
in the name of ‘new colonialisms’ is increasing
ensured in a number of countries as part of BRI.
despite a number of clarifications from Beijing
The largest of such initiatives – both in case as well as capitals of other partners countries.
of communications infrastructure and energy The need is to bring forth the truth, forcefully.
generation – are being witnessed as part of CPEC. Enhanced, and specifically targeted, media
collaboration between China and partner nations
So far, according to Pakistan Economic Survey needs to be stepped up.
2018-19 released by, Economic Advisor’s Wing,
Ministry of Finance, and Government of Pakistan on In case of CPEC, in particular, while the negative
10 June 2019, “Pakistan and China has successfully propagandas such as the ‘new East India
launched 22 projects on the ground, costing more Company’ have met the reality of potent Pakistan-
than US$ 28.5 billion.” Overall portfolio of the CPEC China on-the-ground cooperation, certain
misconceptions about the flow of goods, services
26View point
and natural persons need to be tackled with jointly towards which has already been started – would
devised strategies. be pivotal for the long-term success of BRI and
CPEC.
Connectivity is primarily for the purpose of cross-
border trade and movement of the people. This With increased people-to-people exchanges,
is supplemented by free and preferential trade it becomes vital to sensitise businessperson,
arrangements, for desired results. China and the workers, and other visitors about religious,
partner countries need to ensure win-win bilateral cultural and social norms of China and its partner
and regional trade arrangements; where no country countries. This is significant for the mutual goodwill
feels flooded with one way traffic of goods and to continue, and for much needs acceptance of
services. each other in the long-run. Recent, not-so-positive
incidents necessitate it all the more, and without
On a larger global and regional delay.
scene, BRI has doubtlessly
emerged as one of the greatest- And last but not the least: it is the time for
ever plans of trans-national
meaningful partnerships for socio-economic
development and poverty reduction so that every
connectivity and development. person in the partner nations sees the fruits of BRI
That is well-established, as a mega global initiative coming directly towards
globally, now him/her. CPEC, in this case too, is emerging as
an example for the rest of BRI partnerships as
It is good to note that Pakistan and China have now Pakistan and China embark upon a $ 1 billion
started implementation of FTA 2 (Free Trade Area (grant from China to Pakistan) initiative for 27
Agreement, Second Phase) which would facilitate projects of socio-economic uplift.
enhanced bilateral trade and to some extent would
address the negative trade balance – presently hugely It is good to note that leadership in China and
in favour of China. Yet, if an initiative of the size and partner countries realizes the need for this rather
scope of CPEC is to be seen as a successful venture; lesser focussed ‘software’ in addition to the great
it would require an across-the-board feeling of win- infrastructure that BRI has built and is building.
win trade cooperation on both the sides. There was notable progress towards this ‘software’
.
in the recently held 2nd Belt and Road Forum of
Connectivity also is the name of smooth movement international leaders held in China at the end of
of people: for this, immigration and customs laws, April 2019. This needs to be taken forward and
regulations and procedures have to be harnessed with greater vigour
in ways that BRI- and particularly CPEC-built
infrastructure becomes rewarding for all the partners.
Wherever there is increased business, inter-business The writer is a policy analyst and
focuses on China-led connectivity and
frictions are bound to grow. A full-fledged Business development initiatives
Disputes Settlement Mechanism – the journey
27Perspective
Sports & Culture
Sports: Collaboration
Potentials of
Pakistan and China By Haider Ali Daud Khan
S
ports hold the power to reform Pakistan-China relations have been a
the world It is a universal symbol of strength and unity in the world.
language that transcends China Pakistan Economic Corridor (CPEC)
religion, race, ethnicity and project brought Pakistan and China even
language; uniting people for a common closer as both countries embarked upon joint
cause. Sports serve as the forum to create ventures in variety of fields.
better relations between individuals of
one group or team with other group or With China soon
team. During the Cold War era, the field
of sports was seen as one of the main
becoming the top
battlegrounds between the US and the contender to be
former USSR. To prove their might,
the next global
superpower,
both countries would field hundreds and
thousands of athletes at international
events in a bid to secure the most number
another factor
that builds on its
of medals. China too, has harnessed
the power of sport to help build a great
empire. With China soon becoming
impressive image
is the massive
the top contender to be the next global
superpower, another factor that builds
on its impressive image is the massive development
of sports in the
development of sports in the country.
China ranked at the third place in the
medal tally for the Rio Summer Olympic country
Games, 2016 and has cumulatively, won
608 Olympic medals and ranks 8th. At the CPEC is tipped as the Game Changer for
Asian Games, China leads the medal tally the region and not just for Pakistan and
with 3,187 cumulative medals. China. Both countries are co-operating in
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