An opportunity for Japan
It is around 22 months now that CPEC was offered to Pakistan by China. Within this short space of time, Pakistan has made an amazing development on related projects
Prime Minister Nawaz Sharif inaugurated part of the section of the motorway between Karachi and Hyderabad, first phase of 75 km, (M-9), on 3 February. The project began on 17 September 2016 and the remaining will be completed by 17 March next year. The project is part of the China-Pakistan Economic Corridor (CPEC), which has revolutionised the Pakistani economy.
At present, the government is spending Rs1200 billion on various roads infrastructure projects all over the country. The under-construction motorways projects include the Thakot-Havelian, Lahore-Abdul Hakeem (M-3), Sukkur-Multan (M-5), Gojra-Shorkot, and Shorkot-Khaniwal motorways. After the completion of these projects, the total length of motorways will reach 2000km, promising greater connectivity within the diverse regions of the country that could be later used to connect Iran, Afghanistan, China, and Central Asian countries and even beyond like Russia and Mongolia.
It is around 22 months now that CPEC was offered to Pakistan by China. Within this short space of time, Pakistan has made an amazing development on related projects. This has shown the Chinese zeal with Pakistani spirit. Pakistanis have followed the Chinese speed. Pakistan can tell the world that it can also make speedy progress. Within 22 months Pakistan has attained many goals.
The Gwadar Port was inaugurated on 13 November, hailing a revolution in world’s connectivity like the Suez Canal opening. Two cargo vessels loaded with Chinese goods and Pakistani cotton and rice to the Middle East and Africa is the beginning of the success story of CPEC. It is a financial, economic, and commercial initiative between Pakistan and China.
CPEC is the flagship project of the One Belt One Road (OBOR). It is offered to five other regions. Of all six OBOR projects, CPEC has shown and actually made speedy progress than all other economic corridors.
Initially, Pakistan faced internal disharmony on CPEC. Provinces had shown their reservations. The government held three national level conferences to build consensus on CPEC routes and projects. Now there is no difference among provinces on CPEC projects and routes. There is an agreed national consensus achieved.
Within 22 months, CPEC’s financial commitment and pledges have increased from $46 billion to as high as $63 billion as new projects were added after consultation between the Pakistani and Chinese governments. There is a large number of projects that has been included all over the provinces.
Pakistan’s economy has become a CPEC-led economy and it is making amazing progress. The world’s institutions have been looking at CPEC mainly from this angle. he Karachi Stock Exchange has become Asia’s best stock market and word’s fifth best stock market. Foreign reserves have increased to $25 billion. On the export side, the government has to make efforts and when the whole connectivity is completed and industrial zones are built, exports would be tremendously increased. Millions of jobs will be created. Pakistan would become a hub and a transit connecting a number of countries.
From the beginning, CPEC was not exclusive between Pakistan and China. It was all inclusive — open to other countries and institutions. So far, a number of countries have shown interest to join the project. They include Iran and Afghanistan. Then five Central Asian Republics Kazakistan, Kyrgyzstan, Tajikistan, Uzbekistan, and Turkmenistan have also shown interest to become part of the CPEC.
Russia may also become part of CPEC soon. Great Britain, France, and Germany have also shown interest. Lately, Romania has been inquisitive as well. India has also been invited but is still showing its reluctance and opposing the project on flimsy grounds. With the increasing interests of around thirteen countries, India looks diplomatically isolated on CPEC connectivity.
Investors and businessmen from South Korea, Japan, Singapore, Malaysia, and other East Asian countries should also grab the opportunities offered by CPEC. Most of these countries, except Japan, are part of OBOR. Japan has been wrongly reluctant to become part of CPEC because of its differences with China and the issues in the South China Sea but CPEC and OBOR offer reconciliation postures to shun their differences and to build a strong trading connectivity across the Asia-Pacific region.
Japan possesses technology, know how, and huge capital. It has been facing economic and financial stagnation over the past two decades. Prime Minister Shinzo Abe’s economic philosophy ”Abenomics” has not produced tangible outcomes yet. If Japan invests its available capital on the CPEC project, Abenomics could be revived putting the Japanese economy back on the fast track. There had been stronger economic ties developed between Pakistan and Japan in the 1950s and 1960s. Both countries had developed exemplary relations in the past. CPEC has the key to revive these robust economic ties.