AP explains: Chinese megaprojects fuel Pakistan's malaise

Kathy Gannon, Associate Press

Update

6:10 am PST, Sunday 25 November 2018

ISLAMABAD (AP) – The attack against the Chinese consulate in Karachi is the latest in a series of attacks aimed at China's growing influence in Pakistan, where Beijing is funding megaprojects for the first time. It is worth billions of dollars that detractors fear for plundering the country's resources. leave him with crippling debt.

The Friday attack, which killed two policemen and two Pakistani civilians, was claimed by Baloch separatists who have long accused the federal government of unfairly exploiting the Baluchistan region. , rich in oil and minerals. But the concern over China's growing involvement in Pakistan is more widespread.

The relationship has been defined by the Sino-Pakistan Economic Corridor (CPEC), a vast package encompassing everything from road construction to power plants to agriculture at an estimated cost of $ 75 billion. The most important component is a 3,200 km road linking China to the Pakistani port of Gwadar, located off the Arabian Sea, on the Oman Sea, a highway that runs directly through Baluchistan.

A ROAD, MANY PROJECTS

The CPEC, also known as the One Road Project, is part of China's Belt and Road Initiative, a global initiative to rebuild the Silk Road and connect China to the four corners of the world. Asia. In Pakistan, it has been touted as a massive development program that will bring new prosperity to the South Asian nation, where the average citizen lives on just $ 125 a month.

Chinese companies have been selected for the construction of a number of coal and hydroelectric power plants, as well as wind and solar projects. Other companies will build new road and rail links between Pakistan's cities and their transit systems. China is also helping to expand and develop the port of Gwadar.

In addition to big budget items, China also installs cross-border fiber optic cables, an early warning system for the Pakistan Meteorology Department, and experimental agricultural projects.

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High costs

The total cost of all projects and the exact terms of Chinese loans have never been made public. A recent report in English, Dawn Newspaper, increased the estimated cost of electricity and infrastructure projects from $ 46 billion to $ 57 billion.

Pakistan is already facing a financial crisis and is seeking an $ 8 billion bailout from the International Monetary Fund. The United States, which has a great influence on the global lender, said they would not support a bailout that would feed the Chinese coffers. The week – long discussions with the IMF in Islamabad earlier this month ended without agreement, although negotiations are underway.

Pakistan's new Prime Minister Imran Khan, who visited China earlier this month, acknowledged the balance of payments crisis and pledged to renegotiate agreements unfavorable to his country. But it is unclear whether China is willing to extend more favorable conditions.

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LOCAL ANGER

The projects ignited long-standing grievances in Baluchistan and other areas, where residents blame the central government for favoring Punjab province. The Punjab is home to about 60% of the country's 200 million inhabitants and is home to the bulk of the political elite.

Baluchistan has long been the scene of a low-level insurgency by ethnic Baluches, who want autonomy or absolute independence.

The attack on the Chinese consulate was claimed by the Baloutch Liberation Army, which launched a dozen attacks against projects related to China this year alone. Earlier this year, his gunmen opened fire on two Chinese nationals in Karachi, killing one. In a letter dated August, the group threatened further attacks if China did not stop "the exploitation of Baluchistan's mineral wealth and the occupation of Baloch territory".

Threats have also been made by other militant groups. In October 2017, the Chinese Embassy requested additional security measures as a result of a threat against the ambassador.

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A SECURITY CHALLENGE

China's footprint has increased dramatically in Pakistan, according to some estimates, about 700,000 Chinese nationals are currently in the country, directly or indirectly connected to the One Road project.

The International Crisis Group, a Brussels-based think tank, said a special security division comprising 15,580 soldiers and a maritime force had been tasked with protecting Chinese workers and projects. But this too could end up irritating local residents.

"From the point of entry of the project, Gwadar, to its point of exit, in Gilgit-Baltistan, the state's reaction to local dissent and alienation has has been an invasive security presence, marked by army checkpoints, acts of intimidation and harassment of residents and repressive measures taken against CPEC's protest, "Crisis Group reported in a report published in June.