Whether it’s the $6 billion that CWE Investment Corp would be investing in Kohala and Karot hydropower projects; the $3 billion that Lightening Africa is creating as solar energy fund; the construction of a 930,000 MW power plant utilising sugarcane byproduct agreed by Shanghai Marine Diesel Engine Research Institute or the signing of the MoU for the China-Pakistan Economic Corridor, China has vowed to give Pakistan a powerful hand in a wide gamut of power generation manoeuvres. Furthermore, the planned transformation of Gwadar port from a treasure awaiting exploration to being polished to its true value is going ahead under Chinese supervision as well. Pakistan’s “All Weather Friend” is helping its energy starved chum weather the storm and in turn expanding its fiscal hegemony over the region. Even so, the security concerns and the volatility of the regions wherein most of the construction work is taking place, still slashes a veritable question mark over the safety of the projects and even their feasibility.
About this time last year, nine Chinese workers employed on the Gomal Zam Dam project by WAPDA were kidnapped that stopped the progress in the construction of the dam. The work had earlier hit a massive stumbling block when in October 2004 a few militants kidnapped two Chinese engineers who were involved in the project. With dams like the Gomal Zam Dam being constructed in the north west of Pakistan, within proximity of the Afghan border which is the hub of terrorist organisations in the country, and Gwadar itself located in Balochistan, where separatist organisations like the Baloch Liberation Army (BLA) have made the security situation severely iffy, this powerful handshake between Pakistan and China doesn’t herald a cakewalk by any stretch of the imagination. But since both the parties have so much to gain, their respective enthusiasm is understandable.
After this emphatic triumph in the May elections, one of the first steps that Nawaz Sharif took after coming to the PM house was planning a trip to Beijing to hobnob with Chinese Premier Li Keqiang. The meeting with Chinese officials and energy firms has been peddled as a massive triumph on the energy front and a step in the right direction as far as overcoming the energy deficit in Pakistan is concerned. The National Power Policy that was sanctioned last month complemented the deals signed with the Chinese firms, since there was a lot of emphasis on utilising alternative energy sources in the new energy policy. And while positives for Pakistan in this Sino-Pak energy cooperation are pretty conspicuous, China has a lot to gain as well.
The deals between the two countries aim to escalate the development of a trade corridor that links the Indian Ocean to Kashgar in Xingjaing. And the outlet for this corridor would be Gwadar Port. This “trade and energy corridor” would help China link itself to the Middle East. With refineries established at Gwadar, the oil from the Middle East would be refined and then transported to China, via an enhanced transport system. Within proximity of Central Asia and Strait of Hormuz, Gwadar can link China to three of the most pivotal regions in the world today: Central Asia, Middle East and South Asia. This would further cement China’s position as the global economic and geo-strategic frontrunner, especially in the region.
As mentioned above, for this plan to work for Pakistan and China, the security situation in the region is going to be the key. If Pakistan can somehow tame its militants and curb terrorism in the region, the Sino-Pak cooperation bodes well for the long term uplift of both the countries.
The writer is Energy and Finance Correspondent, Pakistan Today. Email:[email protected]; Twitter @khuldune
