Thursday, October 7, 2021

Is CPEC Development Focus Shifting From Gwadar to Karachi?

China has agreed to invest $3.5 billion in Karachi, according to Pakistani and Chinese officials. In a separate announcement earlier, Saudi Arabia said it is moving its planned $10 billion petrochemical complex from Gwadar to Karachi.  These announcements have triggered speculation that the focus of development of China Pakistan Economic Corridor (CPEC) is moving from Gwadar to Karachi. 

Karachi Port, Pakistan

The Karachi project dubbed "Karachi Coastal Comprehensive Development Zone project" or KCCDZ    includes additional new berths to Karachi port, development of a new fisheries port and a 640-hectare special economic zone near the port. The project also envisages building a harbor bridge connecting the port with the nearby Manora islands, according to Nikkei Asia

Gwadar Port City

Saudi decision to shift the $10 billion petrochemical plant from Gwadar to Karachi was triggered by the fact that there is no oil pipeline nor a rail line planned to support it at Gwadar. Karachi already has well-developed roads, rails, telecommunications and pipeline infrastructure for connectivity with the rest of the country. 

Map of Submarine Cable Connections to Karachi, Pakistan. Source: TeleGeography

There are 10  submarine cables currently connecting or planned to connect Pakistan with the world: TransWorld1, Africa1 (2023), 2Africa (2023), AAE1, PEACE,  SeaMeWe3, SeaMeWe4, SeaMeWe5, SeaMeWe6 (2025) and IMEWE. PEACE cable has two landing stations in Pakistan: Karachi and Gwadar. SeaMeWe stands for Southeast Asia Middle East Western Europe, while IMEWE is India Middle East Western Europe and AAE1 Asia Africa Europe 1. PEACE cable is the latest. It is a privately owned submarine cable that originates in Karachi, Pakistan and runs underwater all the way to Marseilles, France via multiple points in the continent of Africa. 

Gwadar East Bay Expressway, Pakistan

China already has a lot invested in Gwadar.  Krzysztof Iwanek, head of the Asia Research Center at Warsaw's War Studies University, told Nikkei that the challenges of developing a major port in an underdeveloped area like Gwadar must have been factored in by China from the outset. "[I]t may be assumed that Chinese involvement in Gwadar may be at least partially strategic. Karachi, in turn, is Pakistan's most important port, and, hence, Chinese involvement there may be of purely economic nature," Iwanek said.

My own view is that Gwadar remains very important to China for strategic reasons. Gwadar sits very close to the strategic Strait of Hormuz that is used by tankers carrying the bulk of China's and the world's energy imports.  Karachi is the fastest and most economical route to making CPEC operational but it does not diminish the long-term importance of Gwadar for China. 

Related Links:

Haq's Musings

South Asia Investor Review

Pakistanis Happier Than Neighbors

Quaid-e-Azam Mohammad Ali Jinnah's Vision

Karachi Safety Ranking Rising

Gangs of Karachi

Gangster Politicians of Karachi

Karachi is World's Fastest Growing Megacity

Karachi's Human Development Index

Pakistan Rising or Failing: Reality vs Perception

Pakistan's Trillion Dollar Economy Among top 25

CPEC Myths and Facts

Gwadar Port

Riaz Haq's Youtube Channel

PakAlumni Social Network


Shams N. said...

Fat chance. China will likely sink with Punjabistan, and it knows that. Hence Chinese $400 Billion hedge in Iran and the Chabahar seaport.

Riaz Haq said...

Shams: "Hence Chinese $400 Billion hedge in Iran and the Chabahar seaport"

China's $400 billion investment in Iran is a myth.

 First off, nowhere in the text of this or any other official document or pronouncement is any numerical figure mentioned. There are also no provisions whatsoever for the sale of islands, military bases, occupation, or anything that would sustain the other alarmist claims. This has been thoroughly debunked by multiple scholars, and a quick glance at the text will confirm their claims. While the draft itself appears to be genuine, the claims of $400 billion of Chinese investment and massive military concessions can be traced to a poorly sourced Petroleum Economy article from 2019, which has since been taken offline.
Get briefed on the story of the week, and developing stories to watch across the Asia-Pacific.Chinese Foreign Ministry spokesperson Zhao Lijian said the day after that the China-Iran Strategic Comprehensive Agreement “neither includes any quantitative, specific contracts and goals nor targets any third party, and will provide a general framework for China-Iran cooperation going forward.”

Ahmed said...

Dear Sir Riaz

Karachi is already mashallah developed and it is a commercial center of Pakistan. All I think we need to focus is on the improvement and uplifting of the departments and sectors of Karachi which are performing poorly.

If all these development projects of CPEC will be shifted to Karachi toh phir ap sochey Allah na karey wohi masla start hosakta hai Balochistan ka jo pehlay start hoa thah.

Pls try to understand this


Z Basha said...

This is double bonanza with both Gwadar and Karachi included in CPEC. China already runs the stock market and power plants in Karachi. With this good news Pakistan should not rest of laurels and try attracting China to other cities as well.

Riaz Haq said...

Z: "China already runs the stock market and power plants in Karachi."

China has invested in the Karachi stock market or the Port Qasim power plant. China does not run these. Both are operated by Pakistanis.

Riaz Haq said...

Ahmed: "If all these development projects of CPEC will be shifted to Karachi toh phir ap sochey Allah na karey wohi masla start hosakta hai Balochistan ka jo pehlay start hoa thah."

NO, not all projects are being shifted from Gwadar to Karachi. Major infrastructure projects are underway...examples: major new $256 million international airport, $168 million East Bay Expressway and a large Special Economic Zone (SEZ).

A new $10 million China Pakistan Technical Institute has just been completed in Gwadar.

Z Basha said...

It is not necessarily a bad thing that China runs stock exchange. We can learn a few things from them.
4-shareholder directors from China and 3-from Pakistan. This is the future we must get used to.

Independent directors are just honorary and insiders know who is pulling the strings. CEO is a paid position and will keep the owners interest protected.

Riaz Haq said...

Thar Energy’s 330MW Thar Coal-based project nears completion under CPEC
The plant will supply electricity to the national grid

In Sindh, the 330-megawatt Thar Energy Limited Power Project Block-II is being completed under China-Pakistan Economic Corridor or CPEC.

According to an official, the power plant would supply electricity to the national grid under a 30-year power purchase agreement.

According to APP news agency, the power plant is a 330MW mine-mouth lignite-fired power project being built by Thar Energy, which is owned by the Hub Power Company or Hubco, China Machinery Engineering Corporation or CMEC and Fauji Fertilizer Company or FFC.

Similarly, two more coal-fired power plants, Engro Thar Block II power plant and Thal Nova, are also being developed in Thar Block II.

Engro’s Thar Block II power plant is a coal-fired power station in Sindh’s Tharparkar district. It was Pakistan’s first power plant to use the indigenous coal reserves of Thar.

The 660MW power plant, which was part of CPEC, was developed by Engro Powergen Thar or EPTL, a joint venture of Engro Powergen or EPL, CMEC, Habib Bank, and Liberty Mills. Construction on the Engro Thar Block II power plant commenced in April 2016. Trial operations at the plant began in July 2018 while commercial operations began in July 2019.

The coal-fired power plant is located five kilometres away from Thar Block II near Thar coalfields. It consists of two 330MW units, which integrated circulating fluidised bed or CFB boilers, tandem compound steam turbine units, and generators. CFB is an ideal option for the low-calorific-value Thar lignite coal.

It helped to regulate the plant’s environmental footprint by reducing nitrogen oxide emissions and capturing sulphur oxides. The 20kV, 50Hz, three-phase intercooled generators featured a hydrogen-cooled rotor and stator core, as well as water-cooled rotor windings.

The power plant is also equipped with associated equipment and systems such as cyclones, air pre-heaters, and water walls. Sindh Engro Coal Mining Company or SECMC supplied nearly 3.8 million tons per annum of coal for the coal-fired power plant from a new opencast mine.

The SECMC is a joint venture by the government of Sindh and Engro Powergen. The joint venture was formed for extracting coal available at the seventh biggest coal mine site in the Thar Desert.

The new coal-fired power plant fed electricity to a 500kV double-circuit transmission line of the grid network between Thar and the Hesco grid station in Jamshoro. The estimated cost of the Engro Thar power plant was $995.4 million – funded by a syndicate led by China Development Bank with the support from China Export and Credit Insurance Corporation.

The syndicate included Habib Bank, United Bank, Bank Alfalah, National Bank Pakistan, Faysal Bank, Construction Bank of China, and Industrial and Commercial Bank of China.

ThalNova is a similar 330MW power plant being developed in the same block. The financial closing for the power plant was achieved in September 2020 and the commercial operations are scheduled to begin in 2022.

samir sardana said...

Coal prices have increased by 300% in 6 months and will rise more !

In this time, Pakistan has Thar !

The entire US/EU supply chain is busted !

CPEC is about to be commissioned !

Pakistan has Coal AND Lignite ! dindooohindoo

And then there is Reko Copper - when Copper and Alumunium smelters,will close down !

Is it magic or is Allah sending a message to the Pakistanis ?

Riaz Haq said...

#Pakistan minister Ali Zaidi denies #Chinese economic corridor (#cpec) projects shifting from #Gwadar to #Karachi amid worsening security. “Rather, the corridor project is moving into Karachi in addition to Gwadar and is expanding its framework”

A top Pakistani official has said that a proposed $3.5 billion coastal development project in the port city of Karachi is part of the China-Pakistan Economic Corridor, denying that the focus of the multibillion-dollar project was being shifted from Gwadar to Karachi.

Gwadar, in the southwestern province of Balochistan, is the crown jewel of China’s more than $60 billion CPEC investment in Belt and Road Initiative projects in Pakistan. The plan was to turn Gwadar into a trans-shipment hub and megaport to be built alongside special economic zones from which export-focused industries would ship goods worldwide. A web of energy pipelines, roads and rail links would connect Gwadar to China’s western regions.

However, growing insecurity and a rise in attacks by militants in Balochistan has rattled China, which has publicly demanded that Pakistan improve security for Chinese workers. Nine Chinese were killed this year in northwest Pakistan in an attack on a bus carrying them to a construction site. In a separate attack, a convoy of Chinese officials was targeted by a suicide bomber in Gwadar.

Thus, the announcement last month by Pakistan and China to include the Karachi Coastal Comprehensive Development Zone in the CPEC framework unleashed frantic speculation that the corridor project was being moved from the deep-sea port in the volatile Balochistan province.

“CPEC is not moving from Gwadar to Karachi,” Syed Ali Zaidi, the country’s maritime minister, told Arab News in an exclusive interview on Monday. “Rather, the corridor project is moving into Karachi in addition to Gwadar and is expanding its framework, which is great for us.”

“It (CPEC) is going to develop a whole new district in Karachi, which is going to be a state-of-the-art district equipped with technology and all modern infrastructure,” he said.

Elaborating on the financing plan for the project, he said that the $3.5 billion Chinese investment was not a loan or a grant, but the project was a partnership between a Chinese state-owned enterprise and the Karachi Port Trust, which owned the land.

“$3.5 billion will be invested to develop infrastructure where the KPT and (the Chinese) investor both will make money,” Zaidi said. “Instead of a loan or a grant, we have decided to do a win-win project, which means that people who are investing will also make some returns.”

The maritime minister said that the project would add four more berths to the targeted coastal area, providing greater depth to Pakistan’s expanding maritime sector and creating space for cruise ships to dock.

“We will build four berths maybe for cruise ships, and if we build for cruise ships there may be some hotels around it and this all has to be backed by real estate development,” he said. “But the real estate development is not the primary objective; the primary objective (is) to fix our marine environment and, on the top of it, build state-of-the-art modern infrastructure.”

A state-of-the-art fishing port would also be built, Zaidi said, along with a world-class fisheries export processing zone.

“A water treatment plant at the mouth of Lyari River would be built to improve marine ecosystem and reduce pollution in the Arabian Sea,” the minister said.

Zaidi said that the coastal development plan would also benefit the poor slum of Machar Colony in the area, mostly inhabited by the Bengali and Burmese communities: “We have decided to make 20,000 to 25,000 apartments in accordance with Prime Minister Imran Khan’s vision to promote low-cost housing to give respectable living (conditions) to our people.”

Riaz Haq said...

Karachi coastal project under CPEC to boost economy: officials - Pakistan Today

ISLAMABAD: The recent inclusion of the Karachi Coastal Comprehensive Development Zone (KCCDZ) project in the China-Pakistan Economic Corridor (CPEC) will boost Pakistan’s economy and enhance industrial and development cooperation between Pakistan and China, said experts and officials.

The decision to include the project in Karachi into the CPEC was made at the CPEC’s recent 10th Joint Cooperation Committee Meeting.

Covering a total area of about 930 hectares, of which 640 hectares are reclaimed, the environment-friendly KCCDZ envisages four new berths for the Karachi Port Trust (KPT), according to a statement from the Ministry of Maritime Affairs of Pakistan.

The mega project, being built with an expected investment of $3.5 billion, will also house a state-of-the-art fishing port, with a world-class fisheries export processing zone to boost the country’s trade potential, said the ministry.

It will also drastically improve the marine ecosystem and reduce pollution with the establishment of a water treatment plant, the ministry said.

Terming the project a game-changer for Pakistan, Prime Minister Imran Khan recently said the coastal development project will bring Karachi on a par with developed port cities of the world.

The project will present opportunities for investors, he said on Twitter, adding that it will also help clean up marine habitats for fishermen and develop 20,000 low-income housing units.

The KCCDZ is the first of its kind under the CPEC, which reflects the commitment of Pakistan and China to forge high-quality cooperation to improve people’s livelihoods, Minister for Maritime Affairs Ali Haider Zaidi told Xinhua.

“As all-weather strategic cooperative partners, China and Pakistan are stepping up cooperation in various sectors, giving impetus to the growth of bilateral relations, economic and social development of the two countries,” the minister said.

Speaking to Xinhua, Syed Hasan Javed, director of Chinese Studies, School of Social Sciences and Humanities at the National University of Science and Technology in Islamabad, said the KCCDZ is a 21st-century modern project replete with the latest technologies, town planning, urban infrastructure, municipal amenities and environment-friendly marine development.

“It will take Pakistan’s economy to the next level of prosperity by attracting foreign direct investment, generating employment and revenue, boosting exports and promoting regional and global connectivity,” Javed said.

Riaz Haq said...

Pakistan's Gwadar Port Protests Should Be a Wake-Up Call for Islamabad

by Arif Rafiq

Rather than transforming this isolated Pakistani city, China’s Belt and Road Initiative has only created great expectations and even greater disappointment. Ultimately, the responsibility for this failure lies on the Pakistani state, which adopted a fundamentally flawed strategy ill-suited for Gwadar, built on a series of assumptions that have been proven to be incorrect.

For starters, Pakistan assumed that Gwadar was absolutely vital to Chinese interests, especially in helping Beijing overcome its reliance on energy imported via the Malacca Strait. But as a 2020 U.S. Naval War College study makes clear, Chinese analysts generally see a Pakistan-based overland energy pipeline to Xinjiang as economically unviable. And there is even some pushback in China’s strategic community on whether it really faces a “Malacca dilemma.”

These perspectives rarely make it into Pakistan’s domestic discourse on China. One reason for this is that Pakistan lacks independent China experts, despite its close strategic partnership with China. Most Pakistani commentators—some of whom are paid by Beijing—stick to the official script. It’s no wonder Pakistani officials are then left blindsided when Beijing’s policy priorities and risk appetite shift.

A second reason: Pakistan—like Djibouti, Kenya, and Sri Lanka—assumed that China’s Shenzhen or Shekou model is not only replicable but also plug and play. This discounts the fundamentally different natures of the Chinese and Pakistani states. China is an authoritarian, hierarchical, developmental state. Pakistan is a semi-democratic, disaggregated rentier state marred by criminality and incompetence from the top down.

The Pakistani state simply lacks the will to create value in the global economy. It is largely focused on extracting from its populace and foreign donors. And it dithers on any sort of policy reform. In the case of Gwadar, it took years for Islamabad to simply pass into law tax exemptions for the port and free zone that are key to attracting foreign direct investment there.

Third, Pakistan’s trickle-down strategy for Gwadar is inappropriate for Balochistan. To begin with, there’s been little economic growth in Gwadar to actually trickle down to locals. And the province, which is Pakistan’s poorest but also home to its oldest and largest natural gas field, has been hit by multiple secessionist insurgencies since Pakistan’s founding, driven in part by resource nationalism. Separatist terrorist groups have also targeted Pakistani nationals from other provinces, including teachers, deemed as “settlers.”

But insensitive claims of an imminent influx of Chinese nationals, including by a luxury real estate developer in 2017, intensified Baloch fears they would be displaced by outside capital and labor in Gwadar. Those specific fears may be unfounded. But instead of an influx of foreign residents, Gwadar is seeing a surge in fishing trawlers from the neighboring Sindh province and China, whose massive hauls are destroying local incomes.

The original plan for Gwadar under CPEC did contain some admirable social sector projects. For example, China has funded the expansion of a middle school and established an emergency medical center in Gwadar. But these are just drops in the bucket for an area with a population close to 100,000 in 2017. Major projects—including a vocational training center, medical hospital, and desalination plant—have either been delayed, scaled down, or dropped. Given Balochistan’s fraught history with Pakistan’s central government, Islamabad should have front-loaded projects that would have provided basic services, especially clean water.

Riaz Haq said...

#Gwadar Update from #China COPHC Chairman Zhang Baozhong: “Gwadar will become the logistics hub in this region within 5 years” Gwadar Free Zone Manager Dadaullah Yousuf said 46 enterprises have so far been registered for #investment in the free zone. #CPEC

“I will grow up to become a doctor. I want to travel around the world and show them what we are capable of,” declared Habiba Qadir, a student of China-Pakistan Gwadar Faqeer Middle School, in an interview with the China Economic Net.

The China-Pakistan Economic Corridor (CPEC) reached an important milestone on November 13, 2016 with the first shipment of trade cargo from Gwadar Port to international destinations.

Five years on, Gwadar Port has entered 2022 with hope, determination and achievement.

“For those who have visited it before, they do realise that there has been a lot of development here,” Gwadar Port Authority Chairman Naseer Khan Kashani pointed out while reviewing the five-year journey of Gwadar Port.

Reaching to a bigger world

Gwadar has made huge progress when it comes to port operation and port economy.

“According to our plan, Gwadar will become the logistics hub in this region within five years,” China Overseas Port Holding Company (COPHC) Chairman Zhang Baozhong said confidently.

There had been no single commercial shipping line connecting Gwadar Port for the past 10 years, and the port merely relied on government-diverted cargo with huge subsidised road transport, noted Baozhong.

But things have changed since COPHC took over the port and infrastructure improved, especially when Afghan transit cargo started going through Gwadar Port on January 14, 2020.

In spite of the negative Covid-19 pandemic impact on business development, more than 100,000 tonnes of Afghan cargo have been handled at the port.

“LPG (liquefied petroleum gas) ships and bulk cargo vessels can be seen coming frequently,” he underlined.

All these activities not only generated a lot of business opportunities for Pakistani stevedoring companies, transporters, customer clearance and many others, but also helped stabilise supply to Afghanistan and other landlocked countries in Central Asia.

Talking about Gwadar Free Zone, the first modern industrial park in Pakistan, Gwadar Free Zone Manager Dadaullah Yousuf said that until now 46 enterprises have been registered for investment in the free zone, mainly covering logistics, warehousing, halal food processing, agriculture, textile, etc.

Right now, Gwadar Free Zone phase-1 has been successfully completed, while work on the much larger phase-2, covering an area of 2,221 acres, has been started.

“More and more investors are showing keen interest in investing here,” Baozhong said.

Development benefits local community

The development of the economy relies a lot on people, and it also empowers people to lead a better life. Education, first of all, is the foundation.

China-Pakistan Gwadar Faqeer Middle School, donated by China Foundation for Peace and Development, has been in operation for five years with the sponsorship of COPHC.

Now, this school is one of the best in Gwadar. More than 700 boys and girls are attending the school to receive education.

Naseem Ahmad, descendant of land donator and teacher at China-Pakistan Gwadar Faqeer Middle School, told the China Economic Net that after the school had been made, the locals got more development programmes, and real estate and businesses have increased.

“We can say that this school has contributed as an integral part of our area.”

Port boosting local employment

“Almost 80% of our workers are locals,” Muhammad Saleem Butt, Head of Gwadar Port Operations GITL, told the China Economic Net.

“Actually almost 90% of our local staff was only capable of, maybe, the watchman job when they first came here,” noted Zing, Office Manager of China Business Centre in Gwadar, adding that there were not too many schools nor technical agencies in the city.

Riaz Haq said...

With 80 buses, Karachi's Green Line becomes fully operational

A new and unknown world of mass transit opened up for Karachiites as the Green Line bus service became fully operational on Mon­day. As many as 80 buses could be spotted moving towards Surjani Town from Numaish and the other way around from 7am till 10pm.

Venturing inside the entrance, you find yourself heading downstairs to a two-level basement. The first level had the ticketing area.

For now one can get tickets in two ways one of which is going to the ticketing booth and pay Rs55 for a ticket for whether you are travelling to the station ahead or to all 22 stations. But another better and economical way is to buy a Rs100 card which can be topped up. As you reach a station to get off, the machines there will deduct your fare as per kilometre of your travelling.

Later, there will be more options for buying tickets.

“You will also have the option of buying tickets through vending machines, which we will be made functional in a week or so. And within two to three months there will also be point of sale or POS machines attached to the vending machines as these can charge you through your credit or debit cards,” Abdul Aziz, the senior manager (bus operation and intelligence transport system) of the Sindh Infrastructure Development Company Ltd (SIDCL), explained to Dawn.

He said that they had tried to replicate UK’s bus system here.

Telling more about the vending machines at the bus stations here, he said that they are state-of-the-art machines bought from Turkey, which can also accept currency notes.

“The vending machines, when fully operational, will issue tickets as well as top-up cards, which will help lessen human interaction in a Covid environment. Still, the less tech savvy can go to the ticketing booth,” he said.

“There will also be another option of topping up your bus cards through your mobile app, which is also going to begin in a couple of months. Your card will carry a unique ID number that you can enter to top up through your credit or debit card, Easypaisa, etc, right from the comfort of your home,” he added.

Non-fare revenue
He also spoke about minimising government subsidy here. “For this we have worked on non-fare revenue, too. The government can earn from bus fares and from non-fare ways as well such as advertisements. For that we have kept digital marketing inside the buses as well as printed ads,” he said.

Meanwhile, going another level down, you can catch your bus, which stops at the station only for two to three minutes.

But that doesn’t mean that you need to hurry as there is no chance of you ever missing your bus. One bus leaves, and another comes in within three minutes of its leaving.

Getting on the bus from Numaish, which for now is an end as well as start of route station, you notice that there are not many people leaving from there and the buses are heading off quite empty.

“That’s because the pattern is such that most people come towards their business or work area in the morning. Most markets and offices happen to be in the Saddar area and so people are travelling this direction. The rush to the way back home will pick up in the afternoon,” Mr Aziz pointed out.

He also said that SIDCL has a central command and control centre in the Garden area. “Currently, we are doing an origin and destination survey also. In about one or two months we will have data about how many travellers are using our buses and travelling from where. After that we may even revise the bus timings,” he said.

He also shared that for park and ride, they will also be opening up parking spaces from Station 2, which is the KDA Flats station to Station 9, which is the U.P. Morr Station.

“That was you can come, park your vehicle and get on the bus. This is also known as ‘last mile connectivity’,” he said.

Riaz Haq said...

#Freight #train service launched to link #Karachi container terminal with rest of #Pakistan. A 3.7km, high-tech train track laid at the Hutchison Ports Pakistan connecting the facility to the rest of the country. #Railway - DAWN.COM

Several terminals for freight service planned: Swati
• Says Railways will become profitable within six months

KARACHI: The huge and powerful dark green locomotive attached to a long line of big and small freight containers awaited the inauguration ceremony to be off on its way at the Hutchison Ports Pakistan, also known as the South Asia Pakistan Terminal, on Monday.

Then as soon as the ribbon was cut, it honked loudly while making the slouching guests sit up straight in their chairs as it chugged away on its new ballastless tracks. Expected to take away the traffic congestion caused by container trucks on roads and highways here, this freight train will reach its destination, Lahore, in up to four days.

The freight train service also coincides with the commissioning of a 3.7km, high-tech train track laid at the Hutchison Ports Pakistan connecting the facility to the rest of the country in a seamless manner through Pakistan Railway’s extensive network spread throughout the country.

This new track laid within the terminal comprised three rail sidings of 700 metres each alongside a crippled wagon sliding. The tracks are embedded in concrete and are ballastless, which is a better, albeit a more expensive option than the traditional sleeper/ballast design used in Pakistan. Switching between the tracks and signalling is carried out using a computer-based interlocking system, eliminating the need for manual switching. As many as three freight trains can be handled simultaneously using rubber-tyred gantry cranes with a quick turnaround. Another track can also be added.

Captain Syed Rashid Jamil, general manager and head of business unit at Hutchison Ports Pakistan, said that with the commencement of the freight train service, they were expanding their contribution towards Pakistan’s trade. “We are extending our physical gates to somewhere in Multan, Sialkot and Lahore as the containers will be discharged from the ships and put on a train that will deliver them to the customers at their factory gates,” he said.


“Karachi needs to be an international standard business hub. Pakistan’s entire business, its industry, its trade all come from here. It only needs good governance to transform this city and this country,” he said.

The federal minister announced they needed to work at connecting Port Qasim Authority with this freight train service too. “We should also be transporting coal and oil via railway,” he said.

Sindh Governor Imran Ismail said port cities across the world were responsible for their country’s prosperity and Karachi was a port city.

Earlier, Pakistan had its flag-carrier PIA, Railways and Pakistan Steel Mills to be proud of, the governor said, “but now PIA is running losses, the Pakistan Railways is running losses and the Steel Mills happen to be a burden on the exchequer. It is so because our country fell in the wrong hands”.

“But now we have people like Railways Minister Swati and Minister for Maritime Affairs like Ali Zaidi, who are powerful pillars. They are doers. [PM] Imran Khan has chosen the best people in his cabinet. We were labelled as incompetent in our first year of governance but we kept working with the uplift of economy as our main focus despite the Covid-19 pandemic and now Imran Khan is the first prime minister in years to have completed the longest term in office,” he said.

PSO, Railways ink MoU
In a related development, Pakistan State Oil (PSO) signed a Memorandum of Understanding (MoU) with Pakistan Railways for the supply of POL products, transportation and other businesses.

Riaz Haq said...

#China, #Pakistan agree to enhance pragmatic ties in #agriculture, #economy and #trade, #finance and information #technology. Joint statement by #Chinese FM Wang Yi & Pak FM Shah Mahmood Qureshi in #Islamabad. #OICInPakistan #OIC #CPEC

During the meeting ahead of the Organization of Islamic Cooperation (OIC) on Tuesday, Wang said that China is willing to work with Pakistan to further synergize their development strategies, conduct systematic exchanges on governance experience and improve long-term cooperation plans. Noting that the Pakistan-China relations are at their best in history, Qureshi described that Pakistani Prime Minister Imran Khan's recent visit to China was very successful, and the leaders of the two countries have reached a large number of important consensus, Xinhua News Agency reported.

The Pakistan-China friendship is the cornerstone of Pakistan's foreign policy, he said, adding that as all-weather strategic partners, Pakistan and China have stood together through thick and thin, helped and supported each other, as well as stood firmly together at critical moments. The Pakistani side stands ready to work with China to implement the consensus reached between the leaders of the two countries, and expand practical cooperation in various fields including agriculture, economy and trade, finance and information technology, Qureshi said while calling for increased investment from China to help push Pakistan's industrialization process, Chinese news agency said.

It further reported that Wang said that the Pakistan-China All-Weather Strategic Cooperative Partnership is unique and time-tested, and the two countries have become good neighbours, good friends, good partners and good brothers who trust each other. The traditional friendship between China and Pakistan is rock-solid, which is a precious treasure for both sides, he added. China hopes that Pakistan will get more deeply involved in China's new development landscape with a further convergence of interests, Wang said.

China is willing to expand imports from Pakistan and support Chinese enterprises in investing in Pakistan, so as to help Pakistan enhance its capacity of independent development. Qureshi welcomed Wang who had come over to attend the 48th session of the Council of Foreign Ministers of the Organization of Islamic Cooperation (OIC), saying that the first time participation by a Chinese foreign minister in the meeting is of historical significance, which shows China's support for Pakistan and that China attaches great importance to Islamic countries.

As an OIC founding member, Pakistan is willing to push the OIC to deepen its friendly ties with China, he said, according to Xinhua News Agency. Wang arrived in the Pakistani capital on Monday to attend the 48th session of the Council of Foreign Ministers of the Organization of Islamic Cooperation. (ANI)

Riaz Haq said...

In a bid to upgrade their economic ties, Saudi Arabia and Pakistan are mulling a long-term investment strategy. The kingdom is encouraging major Saudi companies to expand their business internationally and offering government help and resources through the National Companies Promotion Program (NCPP) if they are not currently active abroad.

Read more:

Meeting on the sidelines of the Tashkent International Investment Forum last week, the chairman of Pakistan’s Board of Investment (BOI) and minister of state, Azfar Ahsan, and the Saudi Minister for Investment, Khalid Al-Falih, discussed options for promoting bilateral investment.

According to the official statement issued by Pakistan’s investment board, “It was agreed that shovel-ready projects, including the expansion project of Pakistan Refinery, will be evaluated by the Saudi government.”

In 2019, the kingdom had announced plans for a $10 billion oil refinery at Gwadar port, but logistics issues hampered the project. A 600-km oil pipeline connecting Gwadar to the main oil hub, Karachi, would be needed to make the Saudi investment worthwhile, and — according to the feasibility report prepared by Aramco — the transportation of processed oil from Gwadar would be too expensive even then.

This time, Saudi Aramco will be kicking off “preferred projects” in Pakistan’s oil refinery sector, and the expansion of a decades-old refinery in Karachi is most likely. Next, Saudi investors will receive some exceptional incentives in special economic zones in Pakistan. According to the BOI chairman, several proactive measures have been taken to facilitate investment.

“Saudi Arabia and Pakistan are historically close allies," Mohammed Alhamed, president of the Saudi Elite Group, told Al-Monitor, "and Riyadh’s investment comes to make Pakistan’s economic development stable and strong.”

Agriculture, mining, renewable energy, food processing, refineries, petrochemicals and information technology have been identified as potential areas of investment. Proposing a joint BOI-NCPP team for finalizing projects in Pakistan, Falih also suggested that the Pakistani side visit the kingdom and market investment projects both from the public and private sectors.

Alhamed said, “The Saudi investments in Pakistan today are an example of a power, security and economic partnership which will lead to shared prosperity, regional stability and mutual respect based on long term-investment, strategic and social ties.”

Despite a gradual increase to around $2.181 billion in 2020, low bilateral trade volume still remains a major shortcoming in Saudi-Pakistan relations. However, nearly 2.5 million Pakistani expats live in the kingdom, which is still Islamabad’s largest source of remittances.

Without strong bilateral economic connections, the Saudi-Pakistan relationship is incomplete. Even though it was once described as “probably one of the closest relationships between any two countries” by the former head of Saudi intelligence, Prince Turki bin Faisal, it has been affected by regional issues in recent years.

Pakistan adopted a neutral stance in the Yemen war and refused to send any troops in response to the kingdom’s request in 2015, as it was trying to balance Saudi Arabia and Iran.

Then in August 2019, India abrogated Article 370 and ended the special status of the disputed part of Kashmir valley in its control. As one of the three claimants in the Kashmir issue, Pakistan felt that the cause was not highlighted by the Saudi-led Organization of Islamic Cooperation (OIC), of which it is a founding member since 1969.

Next, in November 2019, Qatar, Turkey, Iran, Pakistan and Malaysia organized an Islamic summit in Kuala Lumpur without Saudi Arabia, which feared a rival bloc of Muslim countries outside the OIC, which it heads. Pakistan’s Prime Minister Imran Khan had planned to attend the event but backed out at the last minute due to Riyadh’s insistence.

Riaz Haq said...

Xinhua Video: New Gwadar International Airport

Key Highlights

Being built by China Airport Construction Company

Rising Phoenix shape like a wing

4F class---2nd greenfield airport after New Islamabad Airport (longer than 1,800 meters)

3,650 meters long runway

Project started October 2019

Original schedule was for completion in 36 months

Delayed due to pandemic, now expected to be completed by December, 2022

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For a greener and richer Gwadar: B&R Tropical Arid Non-wood Forest Center

GWADAR, Jun. 15 (Gwadar Pro) – “In the eyes of outsiders, high temperature and scorching sun may be a disadvantage of Gwadar, but in our view, the light and heat conditions here are a natural advantage for the development of agriculture and non-wood forest”, noted Zhang Saiyang, vice director of the Belt and Road Engineering Research Center for Tropical Arid Non-wood Forest and doctoral candidate of Central South University of forestry and technology, in an exclusive interview with Gwadar Pro.

The Belt and Road Engineering Research Center for Tropical Arid Non-wood Forest was jointly initiated and established by Central South University of forestry and technology, China Overseas Ports Holdings Co., Ltd. and Yulin Holdings Co., Ltd. for Gwadar ecological construction and industrial development. Since 2018, it has systematically improved the local soil conditions in Gwadar. Zhang told Gwadar Pro that the Chinese team combined the organic fertilizer collected from local sheep farm and leaves and other humus to mix with local soil in a certain proportion to improve the fertility and pH of the local soil. Besides, the local soil conditions were greatly improved by the team members planting legumes to use the nitrogen fixation of legume rhizobia.

“In addition to the soil, moisture is our long-term focus as well. With arid climate here, the irrigation method appears to be particularly important,” Zhang said, “after enhancing the soil water retention capacity through soil improvement, we mainly use a combination of sprinkling irrigation and drip irrigation to maximize water conservation. Not to mention that our selected varieties are drought tolerant crop with very developed root systems.”

By now, nearly 100,000 seedlings such as bananas, dates, orchid and figs have been cultivated here. Among them, bananas (Musa nana) are selected local varieties that can adapt to drought and high temperature and produce a large amount of fruit. In May, the center successfully held the first non-wood forest products-banana harvest festival in Gwadar Port. “Our production of bananas has attracted the attention of local farmers, who hope to buy banana seedlings to grow on their own land,” Zhang mentioned.

Moreover, figs are also a key economic crop here. Hundreds of fig seedlings have already produced a lot of fruit in just one month. More than 10 hours of sufficient sunlight per day and the temperature difference between day and night in the Gwadar region allow figs, a drought-tolerant and light-loving plant, to accumulate more sugar. According to the promotion plan, the fresh and dried figs launched by the center will have a place in the market.

“In addition to bananas and figs, which are familiar to Chinese people, the endemic crops of Pakistan, including Sesbania grandiflora and Ziziphus spina-christi, can also give full play to their economic value through our breeding techniques,” Zhang listed the local valuable economic crops one by one, “the leguminous plant Sesbania grandiflora is resistant to high temperature and drought, and has a large amount of fruit. It is a very good tree species for ecological greening and economic forest. Its fruit, as a woody vegetable, has been widely promoted by us in Gwadar, and then sold in the market. The local unique Ziziphus spina-christi is also drought-tolerant and light-loving, which can bear fruit several times a year. The seedling breeding, fresh fruit sales and juice processing of it have also been put on the agenda.”

As for the future planning, Zhang Saiyang mentioned that the center has set up “Gwadar Classroom” to train local workers. Opened in March this year, it has trained the first batch of modern agricultural skilled workers in the local area, laying a solid foundation for the local development of agriculture and non-wood forest industry, as well as promoting farmers’ employment and using their own land to start businesses.

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Oman offer to build Gwadar railway conjures Pakistan port's past - Nikkei Asia

ISLAMABAD -- A company from Oman is looking to invest in a train line that would link the Pakistani port town of Gwadar -- envisioned as a key stop on China's Belt and Road infrastructure network -- with Pakistan's main railway system.

The proposed multibillion-dollar project could go a long way toward resolving the seafront city's lack of rail connectivity. It also conjures up the past of Gwadar, which was part of Oman for 175 years. But at the same time, Pakistan's turbulent political situation is casting doubt on the prospects for pushing the plan forward and realizing the port's potential.

Earlier this month, officials from Anvwar Asian Investments, an Omani project financing firm, met with officials of Pakistan's Board of Investment and expressed interest in building a 1,087-kilometer railway between Gwadar and Jacobabad in central Pakistan. The investment would be worth $2.3 billion, and the Omani side says it is ready to provide an immediate tranche of $500 million as initial financing, according to the BOI.

Many see the plan as fitting, given the history that binds Gwadar with Oman -- about 450 km away, across the mouth of the Gulf of Oman.

In 1783, the ruler of what was then Kalat State -- now Balochistan -- gifted Gwadar to Oman's Taimur Sultan, a defeated prince on the run, who later mounted a comeback and reigned as sultan in Muscat. Gwadar remained part of Oman until roughly a decade after Pakistan's inception, when Islamabad purchased it in 1958 with British help.

Many of Gwadar's older residents still have Omani nationality as well.

Nasir Sohrabi, president of the Rural Community Development Council in Gwadar, said Oman has been the primary overseas destination for the people of Gwadar, even after the town became part of Pakistan. "Plenty of people from Gwadar live in Oman and do business or work as employees in many sectors, including the army," he told Nikkei Asia.

Oman is well-regarded among many locals. Sohrabi added that when Gwadar suffered severe power shortages in 2001, Oman's then-ruler, Sultan Qaboos, gave the city 45 power generators.

"This is one instance of the people of Gwadar having a special bond with Oman," Sohrabi said.

The railway investment offer, if it comes to fruition, would significantly ease access to Gwadar and its Chinese-built and operated port, part of the $50 billion China-Pakistan Economic Corridor.

Despite being in the middle of BRI activity in Pakistan, no train lines run to Gwadar, and uncertainty shrouds plans for other railway upgrades under CPEC. Plans call for improving tracks between Peshawar and Karachi, the latter of which is about 600 km from Gwadar. But this project, known as Main Line-1 or ML-1, appears at risk of being shelved due to a disagreement on costs between Islamabad and Beijing, according to local reports in April.

"China wanted ML-1 to have a price tag of $9 billion, which Pakistan reduced to $6.8 billion," an official who deals with the planning of federal projects in Pakistan told Nikkei Asia on condition of anonymity, as he is not authorized to talk to the media.

The official added that Islamabad wants loans at a lower rate than what Beijing is prepared to offer.

Sohrabi stressed that Gwadar can never be a successful major port without a strong railway network.

"Currently, the cargo which is unloaded at Gwadar Port is transported by road to Karachi [and] from there it's shipped to other parts of the country via rail," he said. "If this is the case, then it makes more sense to unload cargo directly at Karachi Port instead of Gwadar."

Riaz Haq said...

Oman offer to build Gwadar railway conjures Pakistan port's past - Nikkei Asia

"Currently, the cargo which is unloaded at Gwadar Port is transported by road to Karachi [and] from there it's shipped to other parts of the country via rail," he said. "If this is the case, then it makes more sense to unload cargo directly at Karachi Port instead of Gwadar."

Some see the Omani offer to develop Gwadar's infrastructure as a quid pro quo effort to support CPEC. China is investing in an industrial park in Oman's Duqm, a port town about 1,000 km south of the Strait of Hormuz, a key shipping lane.

Yet, Oman's Anvwar Asian Investments is not the only one interested in building a railway link for Gwadar.

"A Singaporean company, Pathfinder, has expressed its interest to invest $5 billion to develop a high-speed rail network from Gwadar to Hub," a town in Balochistan, Saeed Ahmed Sarparah, chairman of the Balochistan Board of Investment and Trade, told Nikkei. He added that the Singaporean offer is undergoing an assessment by the federal government.

Neither the Omani company nor the Singaporean one had responded to requests for comment as of publication time.

Some are skeptical about the chances of moving forward with such a high-stakes, long-term endeavor given the persistent political instability in Pakistan. The coalition government of Prime Minister Shehbaz Sharif is locked in a power struggle with the man he replaced, Imran Khan, amid an economic crisis. Khan now faces terrorism charges. And investments in Balochistan, whether by China or a Canadian gold miner, have become targets of separatists.

Aslam Bhootani, a member of the National Assembly representing Gwadar, told Nikkei he was unaware of the rail investment offers as he had "not been taken into confidence yet."

But Bhootani said, "I do not see how Oman and Singaporean companies can benefit from investing in the rail network of Gwadar at such a turbulent time."

Riaz Haq said...

China Is Investing Billions in Pakistan. Its Workers There Are Under Attack.
Beijing’s Belt and Road investment strategy meets resistance in the developing world it seeks to influence

China is the largest lender to the developing world, mainly through Chinese leader Xi Jinping’s Belt and Road infrastructure program. The country has worked to portray itself as a benevolent partner to the countries where it is spending money, in an attempt to draw a distinction with Western powers.

Still, as its global reach expands, China is increasingly grappling with the consequences of projecting power around the world, including corruption, local resentment, political instability and violence. For developing countries, China offers perhaps the best chance of quickly building major infrastructure.

Beijing accepts a degree of security risk in pursuing its Belt and Road program and is committed to working with partner governments, such as in Pakistan, to mitigate threats to Chinese personnel and assets, Chinese experts say.

“We couldn’t possibly wait until all terror attacks cease before starting new projects,” said Qian Feng, a senior fellow at Tsinghua University’s National Strategy Institute. “We have to keep working, studying the issues, and undertake preventative measures at the same time.”

Chinese businesses and workers in several countries where it is making investments have become favored targets. Chinese nationals are seen as wealthier than most locals and, in some cases, are perceived to be reaping too much of the economic benefits and job opportunities created by Beijing’s investments.

Gunmen in Nigeria abducted four Chinese workers in June during an attack at a mine in the country’s northwest. In October, unidentified “thugs” attacked a Chinese-funded business in Nigeria and killed a Chinese employee there, according to the Chinese consulate in Lagos. The consulate urged Chinese companies to hire private security and fortify their work areas.

In the Democratic Republic of Congo, where Chinese investors dominate the mining industry, Chinese business groups and workers have sounded alarms about armed robberies and kidnappings in recent months. Beijing has urged local authorities to step up security for Chinese assets and personnel.

There were about 440,000 Chinese people working abroad for Chinese contractors in Asia and roughly 93,500 in Africa at the end of last year, according to the China International Contractors Association, a Beijing-based industry group.

The Oxus Society, a Washington-based think tank, counted about 160 incidents of civil unrest in Central Asia between 2018 and mid-2021 where China was the key issue.

Beijing recognizes the rising threat to its workers in developing countries but doesn’t want to send in its army as it professes noninterference abroad, said Alessandro Arduino, author of “China’s Private Army: Protecting the New Silk Road.” Instead, China is deploying technology such as facial recognition and hiring more private Chinese security contractors, he said.

China chose Pakistan—one of its closest allies, with deep military ties and a common rival in India—as a showcase of its investment in developing nations. Beijing has spent about $25 billion here on roads, power plants and a port.

Riaz Haq said...

More than 150,000 people visited the 17th Karachi International Book Fair in just two days and organisers of the event expect at least 400,000 people to take the trip to the five-day expo that ends on December 12.

The Pakistan Publishers and Booksellers Association (PPBA) has organised the annual exhibition at the Karachi Expo Centre that is open from 9am to 10pm daily.

Some 40 foreign publishing houses from 17 countries and over 130 noted publishers from Pakistan are participating in the event by setting up 330 book stalls.

According to the event organisers, the annual exhibition serves as a platform to let book publishers and retailers around the world share with each other the latest trends, technological improvements, and innovations introduced to upgrade the publishing industry.

Sindh Education and Culture Minister, Syed Sardar Ali Shah, said such events provided the opportunity to teach the new generation to stay away from violent and gory video games played on smartphones and reconnect with their native culture that stands for peace and security for everyone.

He conceded that the number of book readers had sharply gone down over the last several years due to excessive reliance on digital means of communication but still books play an important role in the lives of coming generations.

He advised the PPBA to organise fairs in other cities including in Hyderabad, Sukkur, Mirpurkhas, and Larkana as the authorities would provide all help in this regard.

The provincial government aims to expand the network of public libraries to small towns and in the first phase the number of libraries was being increased in Karachi.

The retired bureaucrat and former lawmaker, Mehtab Akbar Rashdi, said that the recent pandemic had provided an opportunity for many people in the world to reconnect with the hobby of book reading.

PPBA Chairman, Aziz Khalid, appealed to the government to lessen the duty on paper and also introduce incentives for local paper producers for promoting the Pakistani publishing industry which had been facing a challenging situation due to economic woes.

Haroon Aziz, a first-year college student, said it was an amazing sight for him that the Karachi Expo Centre, which just a month back had hosted an international arms expo was now exhibiting thousands of books under one roof.

He said the books displayed at the expo would be highly helpful in his studies in addition to encouraging him to adopt the reading habit in his leisure time.

Riaz Haq said...

Sindh CM inaugurates headquarters of Rescue 1122 in Karachi

Sindh Chief Minister Syed Murad Ali Shah inaugurated the headquarters of Rescue 1122 established in cooperation with the World Bank in Karachi on Friday.

Addressing the ceremony on the occasion, Syed Murad Ali Shah said Rescue 1122 service is already working in Karachi, Larkana, Thatta, Sujawal, Qambar-Shahdadkot and Hyderabad districts and from tomorrow it will also start working in Badin as well.

He said that Rescue 1122 emergency service has been established under World Bank Sindh Resilience Project.

The Chief Minister Sindh said that ambulance service, fire service, urban rescue and search service, water rescue service will be provided in Karachi city under this service.

He said that the rescue service will be started at main roads and highways every after 50 kilometers to ensure provision of immediate services to the people in emergencies in the province.

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ML-1, KCR (Karachi Circular Railway) upgrade projects to start in March

He (Ambassador Non Rong) recalled that under the CPEC, 192,000 jobs were created, 6000MW of electricity was generated, 510 km of highway was constructed and 886 km of transmission was set up, which laid a solid foundation for Pakistan’s socio-economic development. “In fact, Pakistan’s trade surplus of agricultural products is expected to exceed a record high of $1 billion in 2022,” the ambassador said.

The Chinese sources said the ML-1 is the largest infrastructure project of CPEC worth $6.86 billion. The project involves the up-gradation and dualization of ML-1 to increase the operating speed from the current 60 km/h and 105 km/h to a proposed 160 km/h. The project also involves the establishment of a dry port near Havelian. ML-1, the Karachi to Peshawar line, is one of four main railway lines in Pakistan, operated and maintained by Pakistan Railways. The line begins from Karachi City Station or Kiamari station and ends at Peshawar Cantonment Station. The total length of this railway line is 1,687 kilometers. There are 184 railway stations from Kiamari to Peshawar Cantonment on this line. The line serves as the main passenger and freight line of the country. 75 percent of the country’s cargo and passenger traffic uses the ML-1. The existing timeline for the completion of ML-1 extends to December 2024. Under the umbrella of this project, level crossing will be converted into flyovers or underpasses so that the speed can be increased by getting rid of the obstacles.

The project could not be started during the PTI government due to China’s concerns over debt repayment plan, the sources pointed out. ML-I railway line project is very important to achieve connectivity between Gwadar (Pakistan) and Kashgar (China) through a train track that will provide the easiest and safest way to transport oil between China and the Middle East, saving China travel costs. The railway line upgrade will provide faster travel facilities to the people of Pakistan and commercial benefits like bringing raw materials to the Special Economic Zone (SEZ) and faster delivery of finished goods to remote areas of the country as well Gwadar port. Another great benefit is that coal will be delivered for fuel to the power plants through the railway track, which will also generate good revenue for the railways. Due to unnecessary delays, the cost of this historic project has increased. The Imran’s PTI government failed to convince the IMF and the Chinese government to start the project. Another reason for the increase is the recent floods in Pakistan, which has destroyed the railway lines of most parts of the country. As soon as the new government was formed in April, 2022, Pakistan’s Minister for Planning Ahsan Iqbal restarted the discussion with the Chinese authorities on revival of the project.

The revived KCR operation is intended to become an inter-regional public transit system in Karachi, with an aim to connect the city centre with several industrial and commercial districts within the city and the outlying localities. In May 2017, the then government approved Rs27.9 billion ($120 million) restoration package for the KCR. However, delays and disputes with the Sindh provincial government ultimately led to cancellation of the funding. KCR would be constructed with the cost of Rs294 billion and used by 500,000 passengers/day, which would increase to 1 million in later years. KCR will have 250 modern driverless electric bullet trains, which would run 17-hours a day throughout a week. The KCR project would be run by the Sindh government through Karachi Urban Transport Corporation (KUTC) and likely to be completed by 2025.

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India’s Trade Dreams Snubbed As The World’s Biggest Ship Gives It A Miss

India’s goal of being a trade hub hit a major snag on January 11, when the world’s biggest boxship, Ever Alot, gave it a miss because of port infrastructural issues. Meanwhile, the economically hit Sri Lanka and the south-east nation Malaysia have been visited by Ever Alot in recent times.

Although the Jawaharlal Nehru Port Trust highlighted that the Mundra Port run by Adani could handle the 24000 TEU ship, Ever Alot decided to skip it over the lack of a 17-meter draft. To berth the 400 meters long ship, such a draft was crucial.

So far, the Mundra Port has handled ships as big as APL Raffles, a 17,292-TEU ship, in January last year. The vessel was carrying 13,159 TEUs onboard at that time.

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The rocky road ahead for Pakistan’s start-up ecosystem | fDi Intelligence – Your source for foreign direct investment information -

Alex Irwin-Hunt
February 22, 2023

Based out of the NED University of Engineering and Technology, NIC Karachi is funded by Pakistan’s national technology fund, Ignite, and operated by LMKT, a private tech company which runs two other NICs in the cities of Hyderabad and Peshawar.

Atif Khan, the chairman and CEO of LMKT, says the philosophy behind the incubation centres “was not to create unicorns”, but to act as digital skills development centres: “We are training and grooming a lot of talent in the country.”

NIC Karachi has already incubated more than 250 start-ups, such as ride-hailing app Bykea and London-based proptech platform Gridizen. Kamran Mahmood, the CEO of Gridizen, who recently returned to Pakistan to join NIC Karachi, says he has found it even easier to meet decision makers at large companies in Pakistan than the UK.

“[NIC Karachi] is doing an excellent job of internationalising and progressing the start-up scene in the country,” he says. Data Darbar figures show that Karachi-based start-ups attracted $236.7m of funding in 2022, equivalent to two-thirds of Pakistan's total and almost double the previous year. The financial capital is followed by Lahore ($69.2m) and Islamabad ($41.6m).


In July 2022, Pakistan’s fledgling start-up scene was dealt a major blow. Airlift, a fast delivery start-up that had raised $85m barely a year earlier, said it would permanently close operations due to the “devastating impact” of worsening economic conditions.

“This has been an extremely taxing decision that impacts a large set of stakeholders and an emerging technology ecosystem,” Airlift wrote in a statement. Start-up failures are common in more mature markets, and seen as an integral part of the innovation and disruption process. But the collapse of a company hoped to be Pakistan’s first ‘unicorn’, or start-up valued at above $1bn, rattled the country’s nascent tech scene.

Several advisors, investors and entrepreneurs tell fDi that Airlift’s failure has caused Pakistani start-up founders and investors to shift their focus away from pursuing “hyper-growth” to building more “sustainable” business models.

Similar to the caution permeating the global tech and venture capital (VC) industry, start-up funding in Pakistan has dropped considerably. Start-ups in Pakistan raised just over $15m in the final quarter of 2022, the worst volumes since the first quarter of 2020 and 79% lower than the same period a year earlier, according to Data Darbar, which tracks the Pakistani start-up scene.

“Given the global slowdown and Pakistan’s macroeconomic and political challenges, things are tough right now and will likely remain so in 2023,” says Aatif Awan, the founder of early stage venture fund Indus Valley Capital, which is focused on Pakistan and had invested in Airlift.

Several acute challenges currently facing the country — including dwindling foreign exchange reserves, security issues, blackouts and severe flood risks — are causing many young Pakistanis to leave. Despite significant obstacles, those involved in Pakistan’s ecosystem believe that the country’s demographics and rapidly digitalising economy make it an untapped opportunity with potential for long-term growth.

Democratising technology

When Shamim Rajani co-founded her software development business Genetech Solutions in Pakistan’s commercial capital Karachi back in 2004, she remembers a “lot of stubbornness” from the government and local corporates towards the IT sector.

“Pakistan wasn’t [even] ready for women CEOs in the tech sector then,” remarks Ms Rajani, adding that she had to look for global clients in countries like the US. “Saying these words today, I don’t even believe it myself.”

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20 new projects in Gwadar on the way of completion during 2023: Report | Pakistan Today

These projects entail desalination potable water plant, Gwadar Free Zone North (Phase 11), Gwadar Safe City Project, New Gwadar International Airport, three electricity projects, Gwadar Smart Port City Master Plan, Gwadar Tourism Project, New management model of Pak-China Technical and Vocational Institute (PCT & VI), State of Art Shipyard Project, Oil Refinery project, Green Gwadar Project, Pak-China Friendship Hospital, fisher community projects, Gwadar Port dredging project, Export-oriented projects, Fishing industry, Warehouse industry, and Gwadar Huafa Exhibition and Trading Center.

According to the report, over the last 10 years since CPEC set its foot in 2013, Gwadar outlook is changing gradually and constructively, getting over daunting challenges including poverty, civic issues, water, electricity, employment, infrastructure, agriculture and on top of them blue economy.

In the past Gwadar was in shamble and disarray. Later in the course of 10 years, Gwadar has been making headway toward progress in a sustainable manner.

Many development projects have been completed so far including Gwadar Port, Gwadar Free Zone South (Phase I), Eastbay Expressway, Pak-China Technical and Vocational Institute (PCT & VI), China-Pakistan Gwadar Faqeer Middle School, Fiber Optic, E-Custom system (WeBOC), Plant Tissue Culture Lab & Green House, livestock, women-led garment factory, Gwadar University and GDA-Indus Hospital.

The city’s strategic location at the mouth of the Persian Gulf, coupled with its deep-sea port and modern infrastructure, makes it a hub for trade, transportation, and investment.

As a result, Gwadar is expected to attract a significant amount of foreign investment and economic activity in the coming years, emerging as a major contributor to Pakistan’s economic growth.

One of the most significant projects is the 1.2 Million Gallon Per Day (MGD) de-salination plant, expected to be fully operational by April 2023. This plant will provide a reliable source of clean drinking water to the residents of Gwadar.

In 2023, more than 4 lakhs of people of Gwadar are going to get rid of painful power woes as three electricity projects will power up Gwadar. The first project is about 100 MW Irani electricity from Gabd-Remdan (Pak-Iran border) to Jiwani Grid Station to Gwadar that will come on 1st March.

The second project is another 100 MW from Iran-Pangjur-Turban-Pasni to Gwadar that is going to be completed in current year. The third project is from Quetta, Nag-Besima section to Pangjur and then Turbat-Pasni to Gwadar.

Meanwhile 5 MW power supply will be available to Gwadar Free Zones North (Phase II). If all goes well, in the second step 12 MW power supply will be ensured for Gwadar Free Zone South (phase I) and Gwadar Port in coming months. Finally, the government also approved 300 MW coal-fired power project for Gwadar.

Another major project that is expected to pick more pace in 2023 is the development of the Gwadar Free Zone North (Phase II) spreading over 2,221 acres of land. Currently, export-based Chinese companies are very near building and running their factories in a few months.

The year of 2023 has also brought many fortunes for Gwadar’s fishermen regarding their livelihood to new housing schemes. The Balochistan Government has approved 200 acres of land for new fishermen housing colony for low-income fishmen of Gwadar.

Around Rs300 million has been allocated. Around 3,291 poor fishermen of Gwadar are going to get free of cost boat engines as the government has allocated funds of Rs823 million.

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From #Karachi with love: exploring #Pakistan’s annual #flower show run by Pak #Horticulture Society at Karachi Boat Club: Big-headed yellow marigolds; purple & white stocks & annual carnations displayed with a distinctive style.

I have just been exploring links forged by flowers in dry south Pakistan. I was there on separate business, my life-long object of study, Alexander the Great. In 326-325BC he conquered his way down the Indus river valley, but he never planted a garden. He banned a curved fruit that was new to the Greeks and was thought to be upsetting his soldiers’ stomachs. It was probably a banana. Obedient to Alexander I never eat bananas.

Between lectures on his legend and localised study of his campaign, I have explored aspects of their setting, all new to me, and noticed how joined-up gardening links us to Pakistan. I was set on my path by a tree.

In the exclusive Karachi Boat Club, a fine old tree surveys the lawn, beautifully groomed for the members’ benefit. On its trunk a notice proclaims: “I have closely witnessed the evolutions of the upper middle classes of this metropolis for more than a century.”

If trees could talk, what would the plane trees in Berkeley Square be telling us about changes in London’s high society?

“Music and the playing of military bands,” the tree’s notice continues, “reminds me of the RAJ ERA when such parties were most prominent.” The tree is a bodhi tree, like the one under which the Buddha is said to have attained enlightenment.

Seeking sociological enlightenment, I looked at the gardening round the club’s lawn. Postcolonial petunias; big-headed yellow marigolds; purple and white stocks and annual carnations were displayed with a distinctive style: single plants of each had been planted in a painted clay pot, and then the pots were massed by the dozen to make lines and curves.

In the paved courtyard of the Gymkhana club in Hyderabad, plants in individual pots are banked up into a circular centrepiece which is a blaze of colour. I watched while the club’s gardeners took each pot to a tap in order to water it. At home I sometimes plant a spare petunia in a single pot, but it never reaches such a diameter. I need to give it some Pakistani care.

Admiring these bright variations on mere flowerbeds, I widened my social survey. I went to a popular gathering, the Pakistan Annual Flower Show, run by the Horticulture Society of Pakistan. As it began in the first spring of Pakistan’s existence, this year is its 75th anniversary. For three days, visitors flocked to Seaview and the AK Khan park, which commemorates Abdul Karim Khan, a founding genius of the show in 1948.

What a delight to see plants in profusion, packing individual nurseries’ tents and spilling out on to the grass while a military band played favourite Pakistani tunes. The show occupies a space that measures up to the Royal Hospital site of London’s Chelsea Show and the crowds are as dense as on any of Chelsea’s days. So much is on sale throughout, from excellent foliage plants to roses, including a superb flat-petalled crimson and a prizewinning red with white streaks called Double Delight.

Nurseries have joyful banners on their tents: “we do rockeries and manures” or “we are the Blossoming Nursery for rented plants”. Orange awnings brighten the scene, lit with those mainstays of Pakistani staging, lines of bare lightbulbs.


Much of the audience was middle class: how have flowers’ uses evolved elsewhere in society? Outside Karachi I was securely escorted to a great evening occasion, a Friday celebration at the famous shrine in the westerly town of Sehwan. It is the resting place of the 13th-century Sufi saint, Lal Shahbaz Qalandar, and is a place of pilgrimage from far and wide.

Inside, red-robed dancers twirled to the beat of hand drums before thousands of packed spectators, entranced by the music and the rhythms, boys and men in the front, girls and women in the side chapels.

Riaz Haq said...

AD Ports Group inks MoU to develop Karachi Port

Abu Dhabi’s AD Ports Group has reached an agreement with Pakistan to develop and enhance port projects in the country, after a senior UAE delegation visited Karachi.
Peter Shaw-Smith | May 19, 2023

“The UAE aims to foster economic growth in Pakistan by signing an MoU with the Karachi Port Trust (KPT),” AD Ports Group said. “The MoU paves the way for enhancing bilateral cooperation and increasing efforts in the development, expansion, and digitalisation of port projects within Pakistan.”

AD Ports Group said the collaboration encompasses a wide range of initiatives and projects aimed at enhancing port infrastructure, optimising operational efficiencies, and embracing digitalisation. The group will leverage its technical expertise to conduct feasibility studies and analysis, to ensure commercial success of the project.

Related: AD Ports Group expands dry bulk fleet, moves into tankers

“We aim to leverage our group’s extensive experience and capabilities to transform Karachi Port’s Container Terminal into a premier hub for transshipment as well as imported and exported cargo,” said Captain Mohamed Juma Al Shamisi, CEO and Managing Director of AD Ports Group.

“In line with [the UAE’s] economic diversification, we anticipate that this collaboration will propel Karachi Port towards becoming a global hub of global trade and reinforce its significance as a key player in the trade and maritime industries, further stimulating economic prosperity in the region.”

"This partnership with AD Ports Group is a significant milestone for Karachi Port Trust. By combining our strengths and expertise, we are poised to unlock unprecedented growth opportunities for our port and the wider trade community,” said Syed Syedain Raza Zaidi, Chairman Karachi Port Trust.

“Together, we will work towards transforming Karachi Port into a world-class maritime hub that can effectively meet the demands of the evolving global trade landscape."

AD Ports Group’s move into Pakistan is not the UAE’s first foray into Pakistan. DP World has been operating Qasim International Container Terminal (QICT) for several years.

“The Muhammad Bin Qasim Port Project is the one of the largest port privatisation projects in Pakistan and is a testament to the Government’s commitment to providing the international trade community with a world class port facility supported by the latest technologies and second to none efficiency,” it said.

Qasim International Container Terminal started operations in 1997. “Today the capacity of Terminal 1 and Terminal 2 is 1.38m teu. Over the last 25 years of operations the terminal has grown and now handles more than 650 vessels annually,” DP World said.

Hutchison Ports also operates in the Port of Karachi.

Riaz Haq said...

UAE offers to acquire Karachi Port terminals
According to the offer, the UAE company will pay $18 per cross berth royalty fee and $3.21 per square meter fee

According to the offer made by the Abu Dhabi Ports Company of the UAE, Pakistan will get $50 million upfront price for the fixed equipment and infrastructure. According to the offer, the UAE company will pay $18 per cross berth royalty fee and $3.21 per square meter fee.

These terms are subject to the approval of the federal cabinet.

The Karachi Port Trust will get about $23 million to $24 million per annum at the current projected sea cargo traffic, according to a member of the cabinet committee that discussed the draft Operations, Maintenance, Investment and Development Agreement between the Karachi Port Trust (KPT) and Abu Dhabi Ports.


Berths 6 to 9 are being handed over to the UAE government firm for a period of “50 years from the commencement date, as may be extended in accordance with this Agreement”, according to the draft agreement.

Although the agreement mentions 50 year one terms, some of the cabinet members were of the view that Pakistan should give two terms of 25 years each.
Any dispute arising out of or in connection with this Agreement is proposed to be settled by arbitration in accordance with the rules of London Court of International Arbitration, by one or more arbitrators appointed in compliance with the rules, according to the draft agreement. The place and seat of arbitration will also be London, United Kingdom.

The Abu Dhabi Ports -- an affiliate of the Abu Dhabi Ports Group of the UAE-- will pay an upfront amount of $50 million within 45 working days. Pakistan will charge a $3.21 per square meter fee for containers per annum in respect to the area of site in occupation of the UA, according to the offer.

From the Commencement Date, the Abu Dhabi port will pay to KPT a royalty at the rate of $18 per cross berth revenue move, excluding sales tax. There will be indexation of five 5% after every three years. First indexation shall start after three years from the commencement date.

The UAE company has promised to make $100 million investment in five years in addition to paying Rs2 billion litigation charges.

The Abu Dhabi Port will have the right from time to time to revise its container handling charges. However, in case the increase in fee is more than 15%, the UAE government would seek the permission of the KP.


The KPT board has already ratified the commercial agreement for the approval of the Federal Government. The Framework Agreement was approved by the Cabinet on Tuesday, immediately after the cabinet committee recommendations without discussing it.

According to the draft of the Operations, Maintenance, Investment and Development Agreement, the UAE company will also have the right to be listed on a stock exchange in Pakistan and to issue and sell shares not exceeding 49%of its paid-up share capital to the public.

Pakistan will have the right to take over the terminals in the event of any national emergency or under supreme security conditions.

The UAE government will obtain Pakistan’s prior clearance before appointing any foreign national for working at the terminal. Pakistan will have the right to refuse clearance but purely because of security reasons.

Pakistan will also have the right to establish another container terminal facility at Karachi Port only when the aggregate container traffic at Karachi Port exceeds by more than 80% of five million TEUs and establish further terminals each time the aggregate annual container traffic at Karachi Port increases by 500,000 TEUs.

At any time such thresholds are reached, KPT shall first enter into good faith negotiations with the Dubai company to allow them to establish such additional terminal facility. If such discussions are not concluded within a period of two months, KPT can expand the port.

Riaz Haq said...

CPEC Results According to Wang Wenbin of China

Bilal I Gilani
CPEC projects are creating 192,000 jobs, generating 6,000MW of power, building 510 km (316 miles) of highways, and expanding the national transmission network by 886 km (550 miles),” Foreign Ministry spokesman Wang Wenbin told reporters in Beijing."

Associated Press of Pakistan: On July 5, Prime Minister Shahbaz Sharif while addressing a ceremony to mark a decade of signing of the China-Pakistan Economic Corridor (CPEC), said that CPEC has been playing a key role in transforming Pakistan’s economic landscape. He also said that the mega project helped Pakistan progress in the region and beyond. What is your response?

Wang Wenbin: The China-Pakistan Economic Corridor (CPEC) is a signature project of China-Pakistan cooperation in the new era, and an important project under the Belt and Road Initiative. This year marks the 10th anniversary of the launch of CPEC. After ten years of development, a “1+4” cooperation layout has been formed, with the CPEC at the center and Gwadar Port, transport infrastructure, energy and industrial cooperation being the four key areas. Projects under CPEC are flourishing all across Pakistan, attracting USD 25.4 billion of direct investment, creating 192,000 jobs, producing 6,000 megawatts of electric power, building 510 kilometers of highways and adding 886 kilometers to the core national transmission network. CPEC has made tangible contribution to the national development of Pakistan and connectivity in the region. China and Pakistan have also explored new areas for cooperation under the framework of CPEC, creating new highlights in cooperation on agriculture, science and technology, telecommunication and people’s wellbeing.

China stands ready to work with Pakistan to build on the past achievements and follow the guidance of the important common understandings between the leaders of the two countries on promoting high-quality development of CPEC to boost the development of China and Pakistan and the region and bring more benefits to the people of all countries.

Riaz Haq said...

The mega undertaking (China-Pakistan Economic Corridor or CPEC) has created nearly 200,000 direct local jobs, built more than 1,400 kilometers (870 miles) of highways and roads, and added 8,000 megawatts of electricity to the national grid, ending years of blackouts caused by power outages in the country of 230 million people.

Chinese Foreign Ministry spokesman Wang Wenbin told reporters in Beijing earlier this month that CPEC projects "are flourishing all across Pakistan," making a "tangible contribution" to the national development of the country and to regional connectivity.

But critics say many projects have suffered delays, including several much-touted industrial zones that were supposed to help Pakistan enhance its exports to earn much-needed foreign exchange.

The country's declining dollar reserves have prevented Islamabad from paying Chinese power producers, leading to strains in many ties.

Pakistan owes more than $1.26 billion (350 billion rupees) to Chinese power plants. The amount keeps growing, and China has been reluctant to defer or restructure the payment and CPEC debts. All the Chinese loans – both government and commercial banks – makeup nearly 30% of Islamabad's external debt.

Some critics blame CPEC investments for contributing to Pakistan's economic troubles. The government fended off the risk of an imminent default by securing a short-term $3 billion International Monetary Fund bailout agreement this month.

Security threats to its citizens and interests in Pakistan have also been a cause of concern for China. Militant attacks have killed several Chinese nationals in recent years, prompting Beijing to press Islamabad to ensure security measures for CPEC projects.

Diplomatic sources told VOA that China has lately directed its diplomats and citizens working on CPEC programs to strictly limit their movements and avoid visiting certain Pakistani cities for security reasons.

"They [Chinese] believe this security issue is becoming an impediment in taking CPEC forward," Senator Mushahid Hussain, the chairman of the defense committee of the upper house of the Pakistani parliament, told VOA in an interview earlier this month.

"Recurring expressions of concern about the safety and security of Chinese citizens and investors in Pakistan by top Chinese leaders indicate that Pakistan's promises of 'foolproof security' for Chinese working in Pakistan have yet to be fulfilled," said Hussain, who represents Prime Minister Shehbaz Sharif's ruling party in the Senate.

Riaz Haq said...

Why fears of a Chinese naval base at Pakistan’s Gwadar port are overblown

China’s continued investment in the port, despite its lacklustre performance, has raised suspicions that it is intended for use as a Chinese navy base
However, despite its strategic location, the port is not as attractive as the ones in Karachi and Ormara, nor does Islamabad seem interested in a permanent Chinese naval presence

By Riaz Khokhar

On August 14, a roadside bomb targeted a convoy carrying Chinese engineers in Gwadar, Pakistan. While none were injured, the continued presence of Chinese workers in Gwadar, despite recurring terrorist attacks, might puzzle casual observers.
By accepting Pakistan’s 40-year lease proposal for the Gwadar port’s construction and operation in 2013, Beijing also signed up to the inherent risks of working in Balochistan, a province marred by insurgency. The choice underscored a prioritisation of strategic interests over purely economic ones.
Despite Gwadar Port operating since 2008, it has seen minimal economic activity. While trade activity at Karachi Port and Port Qasim averaged 41 and 48 million tonnes respectively between 2020 and 2023, Gwadar Port reported under 100,000 tonnes.
This disparity, combined with persistent Chinese investment despite obvious risks, has bolstered the idea that Beijing may be helping Pakistan construct a larger naval facility at Gwadar for potential access and use by the Chinese navy.

In the early 2000s, Pakistan began reaching out to China to help build a naval base at Gwadar. By 2005, Pakistan’s naval chief had envisioned it as the nation’s third naval base, complementing the Karachi base and the Jinnah base at Ormara.
Gwadar is seen as a probable location for a Chinese naval base due to its strategic position near the Strait of Hormuz and ability to host large warships. It is anticipated that Chinese navy warships will dock at Gwadar for repairs and replenishment, as they have in Karachi in the past. This would address China’s ability to sustain a fleet in the Indian Ocean and may allow Beijing access to regional maritime data.
However, to what extent will this potential be realised? Key considerations include the nature of China’s intelligence operations concerning US naval activities and whether Pakistan would allow the Chinese navy permanent access to its bases.

Riaz Haq said...

Why fears of a Chinese naval base at Pakistan’s Gwadar port are overblown

Intelligence gathering by Chinese entities or navy personnel at such facilities is hardly new. US Navy Lieutenant Commander Joseph McGinnis’ research highlighted the Karachi and Jinnah naval bases as primary choices for the Chinese navy due to their “superior repair, logistics, and military facilities”. If China were to use Pakistan-based facilities for overseas operations, these two bases would be prioritised.

Besides, Pakistan hosts most of its naval assets – much of them Chinese-supplied – at the Karachi and Jinnah bases. Chinese technicians have been present at the former for years and are likely to be at the latter too, given the relocation of strategic assets there since 2011.
Beijing would probably have been gathering intel on US naval activities in the Persian Gulf through its assets and personnel at these bases. If the US had reservations, it would have exercised its leverage over Pakistan to address them.
Additionally, such surveillance is hardly unique. Chinese firms operating ports in over 50 countries similarly monitor naval operations, according to Isaac B. Kardon and Wendy Leutert in their 2022 International Security article, “Pier competitor: China’s power position in global ports”.
Pakistan is likely to accept this trade-off in return for Chinese naval transfers, given the constraints on obtaining military equipment from the US and Europe. Islamabad aims to increase its intelligence, surveillance and reconnaissance (ISR) capabilities not only against India but against terrorists, who have previously targeted Pakistan’s naval strategic assets.

The Pakistani cabinet’s recent nod towards renewing the Communications Interoperability and Security Memorandum of Agreement with the US after its 2020 expiration indicates Islamabad’s interest in US military tech integrated with ISR features. If China offers similar tech, it might understandably want access for regional data collection.
Yet, this is vastly different from the Chinese navy deploying surveillance ships directly on the Pakistani coast. Currently, the Chinese navy primarily utilises its Djibouti base for noncombat and anti-piracy missions near the Gulf of Aden and Red Sea, up to North Africa. Having a foothold in Pakistan’s southwestern shores would significantly aid operations extending to the Persian Gulf.

Riaz Haq said...

Why fears of a Chinese naval base at Pakistan’s Gwadar port are overblown

Islamabad has previously allowed port calls by the Chinese navy, including submarine visits. Pakistan’s chief of naval staff recently indicated an openness to more such visits, including from Chinese aircraft carriers.
Still, the primary role of the temporary deployment of Chinese navy personnel and warships on these bases has been to offer training to Pakistani navy officers and improve interoperability on Pakistan’s warships of Chinese origin. To date, the Chinese navy hasn’t established a consistent naval presence on Pakistani bases.

Pakistan would be wise to avoid granting the Chinese navy access to its bases for contingency operations, as this could one day translate into regional military actions or coercive diplomacy.
Instead, Islamabad seems to be leveraging the possibility of such port calls to secure support from the US. For example, the US has approved a US$450 million F-16 sustainment sale and supported an International Monetary Fund loan package.

There are two scenarios in which Pakistan might allow permanent Chinese navy deployments at its bases.
One, Washington’s support for Islamabad diminishes and punitive actions against Pakistan increase, coupled with amplified backing for India’s defence capabilities and potential military campaigns against Pakistan. In other words, unless Pakistan anticipates an irreversible breakdown in its strategic relationship with the US, it would be reluctant to permit a permanent Chinese naval presence.
Two, if China supersedes the US in economic, military and diplomatic dominance, and Pakistan secures guarantees from Beijing, then Pakistan’s expectation of US benefits or penalties may diminish, enabling more latitude in its decisions.
Riaz Khokhar is a research analyst on geopolitics and security of the Indo-Pacific region and a former Asia studies visiting fellow at East-West Center in Washington