According to The Economic Times report, the Chinese companies for the first time have pointed out a slew of risks in the project of the China-Pakistan Economic Corridor (CPEC) in Pakistan. The project is under China’s Belt and Road Initiative. The Chinese companies have even threatened to relocate their headquarters in the country to a safer location.
Individuals aware of the issue were quoted by the publication stating that the China Harbour Engineering Corporation (CHEC) which is a subsidiary of China Communication Construction Company has notified the security environment, bureaucratic delays, and anti- china sentiments among other challenges associated with projects in Pakistan. Furthermore, it also identified the country as a ‘high-risk’ proposition.
China Harbour Engineering Corporation is involved in Gwadar Port that is considered the crown jewel of China- Pakistan Economic Corridor (CPEC). Following CHEC, China Shipbuilding Offshore Corporation has also emphasized the grim security situation in Pakistan. It has put forward risks under eight sections namely, political instability under the Imran Khan government, social instability due to terrorist attack, Pakistan Rupees Volatility, economic uncertainty and risk of payment default, Pakistan’s depleting forex reserves, higher rate of tax for Chinese companies in Pakistan, project delays accompanied by limited measures to control COVID 19 in the recent times.
As per the report, CHEC looks forward to constructing LNG terminals, a bridge at the Karachi port, and probably a maintenance base for the Pakistan Navy for warship at the eastern side of the Gwadar Port. CHEC has also proposed certainly related to the improvement of the situation. The suggestions propose improving the image of China among Pakistanis, training of Chinese workers in local laws in Pakistan along with the improvement in the security mechanism to prevent any attack on projects.
The most ambitious component of the Belt and Road Initiative, CPEC was initially valued at $47 billion and later increased to $ 62 billion eventually as of 2020. The CPEC was determined to upgrade Pakistan’s required infrastructure and thereby intensifying the country’s economy by the construction of modern transportation networks, several energy projects, and special economic zones. However, in accordance with the critics as cited by the publication, the project violates India’s sovereignty as it passes through Pakistan-occupied Kashmir and is pushing Pakistan into a debt trap.
