【Special attention】
Author: Song Zhihui (Deputy Dean of School of International Relations, Sichuan University and Director of Pakistan Research Center, Sichuan University)
In April 2015, President Xi Jinping visited Pakistan and upgraded China-Pakistan relations from a strategic partnership to an all-weather strategic partnership. Four key "1+4" cooperation layout.
Over the past few years, the China-Pakistan Economic Corridor, as one of the six major corridors of the "Belt and Road" initiative, has not only promoted Pakistan's economic and social development through all-round and multi-field cooperation between the two countries, but has also further strengthened the China-Pakistan all-weather strategy. The partnership has become a model project and flagship project of the "Belt and Road" initiative, and it also provides important opportunities for Pakistan's development.
The open, transparent and pragmatic cooperation between China and Pakistan to jointly build a "community with a shared future" has not only promoted the economic and social development of the two countries, but also benefited neighboring countries and contributed to regional stability and development.
Corridor construction promotes Pakistan's economic and social development
Since the establishment of the China-Pakistan Economic Corridor, the construction of related projects has been progressing smoothly.
In the first phase of construction, Pakistan's energy shortage problem has been greatly alleviated, the construction of transportation infrastructure has been improved, and the corridor project has created a large number of employment opportunities and jobs for Pakistani people during the construction process. These achievements are the second largest in the China-Pakistan Economic Corridor. The stage of construction has laid a solid foundation.
According to incomplete statistics from the Pakistan Planning Commission, the early-harvest projects in the first phase of the China-Pakistan Economic Corridor have created about 38,000 jobs, more than 75% of which are local jobs, of which energy projects have created the most jobs, absorbing 16,000 Pakistani jobs. Employment of workers and engineers.
The construction of transportation infrastructure has created about 13,000 jobs. Among them, the largest infrastructure project under the corridor project, the Peshawar-Karachi Expressway (Sukkur-Multan section), has absorbed 9,800 Pakistani workers, and Karakoram The second phase of highway upgrading and reconstruction created 2,071 local jobs.
In addition to direct employment, the corridor project has created thousands of indirect jobs, bringing prosperity to local industries such as construction and services.
In the second phase of the construction of the China-Pakistan Economic Corridor, the focus of China-Pakistan cooperation should be in the construction of agriculture, manufacturing and industrial parks. Through the economic and social benefits brought about by industrial cooperation, the livelihood of the Pakistani people will be improved and the overall development of the Pakistani economy will be promoted.
According to the "China-Pakistan Economic Corridor Vision Plan", the main directions of China-Pakistan industrial cooperation include textiles, engineering equipment, modern agriculture, logistics and many other aspects.
China-Pakistan cooperation in related fields can drive Pakistan's economic growth and increase residents' income, and the economic and social benefits it generates can promote Pakistan's poverty reduction cause, so that more Pakistani people can get rid of poverty as soon as possible and embark on a path of prosperity through development. the way.
Pakistan is a developing country with agriculture as its main industry.
In addition to agriculture, Pakistan's leather industry, manufacturing industry, textile industry and service industry also have certain advantages, but due to technical and financial reasons, Pakistan's industrial development is relatively slow.
With the launch of the China-Pakistan Economic Corridor, especially the establishment of the Gwadar Free Zone and the Special Economic Zone under the China-Pakistan Economic Corridor, more and more Chinese enterprises have entered Pakistan to carry out industrial cooperation in related fields.
Pakistan is located in the west of South Asia, adjacent to the Middle East and Africa, with superior geographical conditions, low labor costs and raw material advantages.
The industrial cooperation between China and Pakistan through complementary advantages will greatly promote Pakistan's economic development and poverty reduction, and will bring significant economic and social benefits.
Mutually beneficial construction projects did not increase Pakistan's debt burden
Since the end of World War II, it has been a common practice in various countries to implement major projects through international financing.
The International Monetary Fund and the Asian Development Bank have provided loan support to Pakistan for many years.
At present, 47% of the foreign debt held by Pakistan comes from multilateral financial institutions.
Of the 22 projects in the China-Pakistan Economic Corridor, 18 are directly invested or assisted by China, and only 4 use Chinese concessional loans.
Therefore, it can be clearly stated that the corridor project has not increased Pakistan's debt burden.
On the contrary, the successive completion and operation of these projects will release due economic benefits and bring considerable economic returns to Pakistan.
Corridor projects have always been transparent, and all projects have been scientifically proven and fulfilled due procedures.
While China-Pakistan Economic Corridor has helped Pakistan grow rapidly, there has also been some noise, calling the multi-billion dollar project a "debt trap" and saying it will weigh heavily on the country's economy.
In response, Nur Ahmed, Permanent Secretary of Pakistan's Ministry of Economic Affairs, refuted the misleading remarks about the "debt trap".
He said that Pakistan's total foreign debt is about 106 billion US dollars, of which Chinese loans only account for 10% to 11%, while the remaining 89% to 90% of the country's overseas debt mainly comes from the International Monetary Fund, Paris Club and other Western institutions.
Some of the funds provided by China for Pakistani infrastructure projects are pure investment, some are interest-free loans, and some loan terms are very simple.
China lends money to Pakistan at the world's lowest interest rate, and there is no "debt trap" at all.
The government loan related to CPEC has an interest rate of just 2% and a repayment period of 20 to 25 years, with debt repayments starting in 2021.
Corridor projects did not impose any direct burden on loan repayments and capital outflows from the energy sector.
It should be noted that the Gwadar port is a grant-based investment, which means that the Pakistani government will not have to repay the amount invested in developing the port.
Before the construction of the China-Pakistan Economic Corridor project, Pakistan was facing the worst energy crisis in history.
The early harvest phase of the project enables Pakistan to generate electricity from its own resources, including coal and solar, thus avoiding an energy crisis.
Not only local people think so, foreign rating agencies and economic organizations also believe that the China-Pakistan Economic Corridor is a huge boon to Pakistan, and it is by no means a "debt trap".
China's loan to Pakistan and investment in Pakistan will not only promote Pakistan's development, but China will also benefit from it, so it is a win-win situation.
Corridor extension will promote regional development and social stability
The construction of the China-Pakistan Economic Corridor has significantly improved Pakistan's business environment and greatly increased Pakistan's attractiveness to foreign investment, arousing strong interest from neighboring countries, the Middle East and even European countries, such as Afghanistan, Tajikistan, Kazakhstan and other Central Asian countries Also expressed interest in joining the China-Pakistan Economic Corridor.
In recent years, the economic and trade investment relationship between China and Afghanistan has gradually warmed up.
Saudi Arabia, the United Arab Emirates and other countries have also expressed their desire to invest in Pakistan and the China-Pakistan Economic Corridor.
In September 2018, the British Parliament established the cross-party Belt and Road and China-Pakistan Economic Corridor Group to promote understanding of the Belt and Road Initiative and China-Pakistan Economic Corridor projects, and to provide active participation and opportunities for the British business community platform.
In February 2019, Saudi Crown Prince Mohammed bin Salman visited Pakistan, brought a $20 billion investment order, and participated in the construction of an oil refining facility in Gwadar Port.
In February 2020, Iran's ambassador to Pakistan, Husseini, in a speech entitled "Pakistan-Iran Peace and Security Cooperation" at the Islamabad Policy Institute, reiterated that Iran hopes to join the China-Pakistan Economic Corridor in a bilateral or trilateral form.
The China-Pakistan Economic Corridor not only promotes the economic and social development of China and Pakistan, but is also committed to promoting regional connectivity and common prosperity.
Facts have proved that the China-Pakistan Economic Corridor is being recognized and participated by more and more countries.
With the extension of the corridor, as a demonstration project of high-quality construction of the "Belt and Road", the China-Pakistan Economic Corridor will surely benefit more relevant countries and people of China and Pakistan and the people of all countries in the region.
"Guangming Daily" (page 16 on March 21, 2022)