Political watchers in Beijing say China's investment in Pakistan is not aimed at countering US and Indian influence, but more about boosting China’s economic interests.
Following Chinese President Xi Jinping’s recent visit, China has firmly established itself as Pakistan’s most important partner.
Political watchers in Beijing say the move is not aimed at countering US and Indian influence, but more about boosting China’s economic interests.
China is set to be a powerful factor in expanding Pakistan’s economy. A US$46 billion package was announced during Xi’s visit to Pakistan, and the sum is more than twice the amount of all foreign direct investment to Pakistan since 2008.
The money will go towards creating the strategic China-Pakistan Economic Corridor, including roads, railways and pipelines.
Some Western diplomats say China’s move is to counter US and Indian influence in the Asia-Pacific region. Others, however, argue that the Economic Corridor is an important pillar of China’s "One Belt, One Road" initiative, which has become a priority in Beijing’s foreign policy.
Among other things, the corridor will provide China with direct access to the Indian Ocean and beyond.
“I think the demand for major investments and financing in Asia in general, and South Asia in particular, is a real one, and I don’t think any other financial institutions, or international financial institutions, have enough capital to satisfy all the demands,” said Victor Gao, director of the China National Association of International Studies.
Another diplomat had stronger words to say. “Lots of foreign media are spinning stories about how China is building naval bases overseas and so on, but in reality, it’s just a commercial port,” said Zhang Chunxiang, a former Chinese ambassador to Pakistan.
“I’ve visited Gwadar Port five times. The location is very good. It’s a natural deep-water harbour, but for many years, many countries did not agree to build it.”
The Gwadar Port is the terminus of the China-Pakistan Economic Corridor which stretches to Kashgar in China’s north-western Xinjiang province. But between Gwadar and Kashgar, the corridor passes through areas that are within striking range of Pakistan's Taliban insurgents. Gwadar is also home to a decade old separatist insurgency.
Zhang, however, blamed foreign powers for the 2004 attack on Chinese engineers in Pakistan’s Baluchistan, where Gwadar Port is located in. Although he stopped short of pointing a finger at any one country, as a former ambassador, Zhang’s suspicions about other external powers at play, do carry some weight.
While most analysts agree that there are formidable security challenges facing Pakistan, some are counting on China’s huge investment to help improve the security situation there.
“International investments in Pakistan - and in that region at large - in order to promote employment, create more jobs and build up the infrastructure connections and investment in all kinds of economic activities, will serve as a deterrence to terrorism and extremism, and it’ll also help generate greater productivity in the region,” said Gao.
But for that to happen, analysts say the key is the timely execution of all the deals.
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