Debunking myths on CPEC

THE EXPRESS TRIBUNE > By Ahsan Iqbal Published: May 25, 2017

Recently, quite a few stories have appeared on the China-Pakistan Economic Corridor (CPEC) in both local and international publications. A lot of traction was gained by the cynics of CPEC by reporting factually incorrect information. Consequently, myth spurring on CPEC is on the rise. I am going to take this opportunity to debunk these myths by stating the facts.

A pointless controversy was created on the Long Term Plan (LTP) by a recent article featured in a local English-language newspaper. The report published as ‘LTP’ in that article was an initial draft by the China Development Bank (CDB) and not a part of the agreed LTP. That article basically cherry-picked information from different sources to present a distorted picture of the LTP. The fact is that the government of Pakistan has prepared its own plan after multiple stages of consultation with provinces, federal ministries and their respective technical groups. The LTP has been prepared to develop Pakistan in line with the seven pillars of Vision 2025 which are predicated on the notion of inclusive and sustainable development. The main pillars of LTP are connectivity, energy, industries and industrial parks, agricultural development and poverty alleviation, tourism, cooperation in areas concerning people’s livelihood and financial cooperation. It was shared with the Chinese authorities following approval by the cabinet.

The Chinese side has given its approval in principle, however, its formal approval is expected by the end of this month, as our Chinese counterparts were occupied by the Belt Road Forum. As soon as we get the official approval from the Chinese side, we will put the LTP on the CPEC website.

 One of the biggest myths propagated on CPEC is that Pakistan might become a colony/province of China. Any historian would tell you that colonialism and imperialism are legacies of countries of the global north. China has never invaded any country nor harbored any imperial designs. Cynics point out towards rising trade deficit with China as a reason to show concern on CPEC. The reality is that China’s competitiveness in exports is universal and not idiosyncratic to Pakistan. Pakistan’s current trade deficit with China is $6.2 billion. In comparison, India’s trade deficit with China stands at $47 billion. The US trade deficit with China is $347 billion. Based on these trade deficit numbers, is it appropriate to infer that the US or India are becoming colonies/provinces of China? Certainly not. Similarly, it is ludicrous to make such claims about the Pakistan-China relationship. Both countries respect the sovereignty of each other and CPEC is based on the shared vision of both countries: Vision 2025 and OBOR.

At present, only a few thousand Chinese nationals are living in Pakistan and making a positive contribution towards our economy, the majority of them fall into the category of temporary labor migrants who will return back upon completion of the projects. In contrast, around 8 million Chinese are living in Malaysia, 400,000 in France; 600,000 in Japan; 900,000 in Canada and over 2.5 million are living in the US. Therefore, to say that Chinese are overtaking Pakistani society is nothing but a farce. Chinese nationals working in Pakistan are our national guests as they are helping us to build a developed Pakistan.

Another myth spread on CPEC is that China is dictating terms to Pakistan and the federal government is not consulting the provinces. The reality is quite the opposite. China and Pakistan work jointly in making an overall planning for a unified development of CPEC projects. In this regard, the Long Term Plan, Transport Monographic Study and respective MoUs guide the policy for CPEC.

All provinces have been consulted and invited to all meetings within Pakistan and abroad for their recommendations and review of CPEC projects. Earlier this month, the chief ministers of all four provinces under the leadership of PM Sharif attended OBOR Summit in China. On 29th December 2016, all CMs participated in the 6th JCC meeting which was held in Beijing. For institutional arrangement and development of CPEC, the National Development and Reform Commission (NDRC) of China along with the Planning, Development & Reform Ministry of Pakistan have constituted subsidiary working groups of the Joint Cooperation Committee (JCC) on planning, transport infrastructure, energy, Gwadar, and industry cooperation.

Since the signing of the MoU in July 2013, six meetings of the JCC have been held. The highest officials of every provincial government are represented in JCC meetings. It is impossible to hide or misrepresent any information on CPEC from provinces. Information on ongoing and agreed CPEC projects is available on the official website of CPEC. Moreover, the planning ministry is always available to address any queries regarding CPEC. All the Chinese companies involved in CPEC projects are nominated by their government. Therefore, there is no question of favoritism on the part of the government of Pakistan.

Another myth propagated around is that Pakistan is not going to gain any economic benefits from CPEC and it is tantamount to the 2006 Free Trade Agreement (FTA) with China. First of all, let me explain that an FTA works out on the basis of demand and supply of market forces. China enjoys a competitive edge in exports vis-à-vis all other economies of the world, including Pakistan, whereas CPEC is qualitatively different from an FTA. It provides the necessary stimulus to kickstart the processes of industrialization in Pakistan. Without sufficient electricity and adequate infrastructure, it is not possible to carry out industrialization.

CPEC brings $35 billion investments in energy projects. Alongside coal, clean and renewable energy projects are part of the CPEC energy portfolio. The existing energy policy was made before the CPEC MoU was signed between China and Pakistan. Prior to CPEC, nobody was interested in making investments in our energy sector. At that crucial time, China took a lead and demonstrated to the world that Pakistan is a reliable and secure destination for foreign investments. Energy investments under CPEC will remove a major bottleneck that is in the way of realizing high economic growth. It will reinforce the main grid structure, power transmission, distribution network, and improve power supply. Currently, 14 energy projects are in the implementation stage. Through CPEC projects, 10,000MW of electricity will be added to the national grid. Only 16,000MW was added to the national grid from 1947 to 2013. Moreover, energy projects under CPEC are not funded by Chinese loans instead they are undertaken in the IPP mode regulated as per NEPRA tariffs. The average cost of these projects is lower than the current cost of production of energy.

Under CPEC, new road and rail networks are to be built in all four provinces to enhance and improve connectivity within Pakistan. In addition to economic benefits of connectivity, social and regional cohesion will increase within Pakistan and in the region. Once energy and infrastructure bottlenecks are addressed, it is estimated that GDP will at least increase by more than 2 percent from its current trend.

Similarly, one of the important components of the CPEC framework is industrial cooperation. Nine industrial zones were included in it with equal representation of all provinces. The cost of production is steadily increasing for many industries in China due to increase in wages. It is estimated that 85 million jobs will be relocated and countries in the Far East, Asia and Africa are competing for these jobs. Pakistan wants to secure a big share of the relocation of these industries and jobs. Once relocated, this will create a huge demand for labor in Pakistan and enormous employment opportunities will be available for Pakistanis.

In the current projects of CPEC, two-thirds of the workforce is Pakistani and only a critical mass of labor force comes from China. This is a great opportunity for the Pakistani workforce to learn and update their skills from their Chinese counterparts. Already a boom in steel, cement and construction industries has created multiplier effects in the overall economy.

Economic benefits of CPEC are net positive for Pakistan. CPEC is a golden opportunity for Pakistan to undo the mistakes of the past and we, as a nation, cannot afford to be complacent about it.

Published in The Express Tribune, May 25th, 2017.

Economic Survey: Literacy rate in Pakistan slips by 2%

Speakers note Pakistan ranks near top of the table on illiteracy.

Literacy rate in the country saw an annual drop of 2.0 per cent to 58 per cent during fiscal year 2015-16 — a level last seen in FY2013-14 when the current PML-N government came into power, official figures released on Thursday revealed.

The situation has turned out to be an embarrassment for the federal government as it skipped mentioning figures of FY15 in the Pakistan Economic Survey 2016-17 which were better than the year FY14, just to avoid criticism. This scribe found the missing figures from previous year’s records.

The decline in literacy rate has been witnessed in Sindh, Balochistan and Punjab while it remained stagnant in Khyber-Pakhtunkhwa (K-P).

 

The drop is also being termed as a setback for the Ministry of Federal Education and Professional Trainings which had been painting a rosy picture of the education sector.

The literacy rate in Balochistan has fallen to 41 per cent in FY16 as compared to 44 per cent in FY15. Sindh has witnessed a whopping fall of 5.0 per cent to 55 per cent in FY16 as against 60 per cent the previous fiscal. The rate in K-P has remained stagnant at 53 per cent since FY14 while Punjab witnessed a 1.0 per cent decline in the rate as compared to the rate the last fiscal.

Interestingly, the total number of enrolments at the national level during FY16 stood at 46.2 million as compared to 43.9 million during FY15, reflecting an increase of 5.0 per cent.

Urban-rural divide

The urban-rural gulf is still wide in terms of literacy rate – standing at 74 per cent in urban areas and 49 per cent in rural areas, pointing to the widening gap between rural and urban education systems. Moreover, the overall literacy rate among the male and female populations is 81 per cent and 68 per cent respectively. A similar trend is glaring in all provinces.

Govt redefines literacy for count

In Punjab, the total literacy rate is 54 per cent among female population and 59 per cent among male population. In rural areas, the count is 44 per cent for females and 66 per cent for males. And in urban area, it is 73 per cent for females and 82 per cent for males.

Balochistan has 24 per cent female and 56 per cent male literacy rate. The figure is 15 per cent for females and 48 per cent for males in rural areas while in urban, it is 44 per cent and 76 percent for females and males respectively.

K-P’s literacy count is 36 per cent in case of females and 72 per cent in case of males. In rural areas, percentage for females is 33 and males 70. While in urban areas, it is 52 per cent and 77 per cent for females and males respectively.

Matter of literacy: Out-of-school children census from 2017

In Sindh, 44 per cent females and 67 per cent males are literate. In rural areas, it becomes 19 per cent in case of female population and 51 per cent in case of male population. In urban areas, it is 65 per cent and 80 per cent for female and male population respectively.

Public sector expenditure on education as percentage of the gross domestic product (GDP) is increasing at a snail’s pace with an estimation at 2.3 per cent during the FY16 as compared to 2.2 per cent in FY15.

Educationists and national campaigners have been pressing the government to allocate 4.0 per cent of GDP to the education sector. The figure was 2.1 per cent in 2013-14.

Nation celebrates Eidul Azha today

By Web DeskPublished: September 25, 2015
Devotees offer Eidul Azha prayers outside a mosque in Karachi on September 25, 2015. PHOTO: AFP
Congregational prayers were held across the country, while security arrangement were beefed up.
Pakistan celebrated Eidul Azha with religious fervour and zeal on Friday.

Congregational prayers were held across the country to mark the religious festival, along with sermons highlighting the significance of the event and the philosophy behind sacrifice.

Security arrangements were beefed up across the country during the occasion, and measures were put in place by federal and provincial governments to ensure no disruptions were created during the day, Radio Pakistan reported.


Children seen at Badshahi Mosque in Lahore on September 24, 2015 as Eidul Azha congregational prayers end. PHOTO: MALIK SHAFIQ/EXPRESS

Meanwhile, civic authorities of different cities and towns made special arrangements for the disposal of carcasses and other solid waste material during the three days.

Read: President, PM lay stress on spirit of sacrifice

Both Prime Minster Nawaz Sharif and President Mamnoon Hussain urged Pakistanis to remember the soldiers who have sacrificed their today for the nation’s tomorrow.

In his Eid message issued on Thursday, President Hussain said that by laying down their lives for the country, our soldiers had been immortalised in history. “We should also remember the invaluable sacrifices of our brothers and sisters who are suffering because of the fight against terrorism.”

Earlier, while addressing the media, the premier extended his heartiest Eid wishes to the nation. In his message, he emphasised the need of national unity in the face of challenges faced by Pakistan.

Imran sets Nov 20 deadline on drones

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THE NATION, ISLAMABAD, 05th NOVEMBER 2013:- The National Assembly on the first day of its 6th session, on Monday, witnessed unity between treasury and opposition benches as government clearly expressed its resolve to continue its efforts for dialogue with the Taliban.
Pakistan Tehreek-e-Insaaf (PTI) chief Imran Khan softened somewhat his stance on blocking the Nato supplies giving the PML-N federal government an opportunity to act. But he warned that his party’s Khyber Pakhtunkhwa government will block the supplies on its own, if the central government failed in resolving the drone strikes issue.
They would assess government’s action on this matter as well as the progress in peace process, Imran said in his speech, after the interior minister’s clear indication to keep the dialogue process alive. “(But) if drone strikes continued then we will block Nato supplies after November 20 and go to the UN Security Council,” he added.
The session of the House, started after a delayed of over two hours, on first day suspending all other agenda items and reserved it for debate over emerging situation in the aftermath of Pakistani Taliban chief Hakimullah Mehsud’s killing.
PTI chief said it was a ‘defining moment’ for Pakistan so all the political parties should express unity to face this challenge. “Our nation wants peace… There is need for adopting a united stance,” he said, adding that they have been condemning strikes for nine years but mere “condemnation will never bring any change”. He said he was ready to reconcile with everyone including Jamiat Ulema-i-Islam-Fazl (JUI-F) chief Fazlur Rehman for the good of the nation.
Imran asked those in favour of military operation that what they would do if that option failed to bear fruit. Imran paid a tribute to interior minister for his effort for peace dialogue. However, he expressed his displeasure asking why Prime Minister Nawaz Sharif in his recent visit did not press the US for stopping drone strikes. “It should have been top priority of his visit agenda,” he said.
PTI chief raised a volley of questions about the timing of killing of Hakimullah Mehsud. He said it destroyed chances for peace, adding, “Whatever the interior minister did now, it would be extremely difficult for any new TTP chief to come back to the table.” He asked what guarantee the government have that the Americans won’t hit the peace process again.
Earlier, Interior Minister Chaudhry Nisar Ali Khan in his policy statement said that the government wants to keep the dialogue process alive. He informed that a three-member Ulema delegation was ready to go for talks with Taliban but US attack sabotaged it.
PML-N government, he said, would continue its efforts for peace in the same manner in consultations with all parties. Lauding the political parties support, he said there was a need for greater unity on the national stance on drone strikes as this was the best way to resolve this matter.
About restarting the talks process, he said, “This would only be possible after the militant outfit chooses a new chief… Situation is more gruesome than the point from where we had initiated peace efforts in September this year. But, we need to have consensus and proceed as success of dialogue will be success of all stakeholders.”

402 GET fellowships at CPSP convocation

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THE NATION, LAHORE, 05th NOVEMBER 2013:- A total of 402 candidates were awarded fellowships in 47th convocation of College of Physicians and Surgeons Pakistan.  National Assembly Speaker  Sardar Ayyaz Sadiq was the chief guest of the convocation.
According to a press release, the Speaker commended the CPSP for playing pivotal role by providing higher medical education in the country and said our specialists are the identification of Pakistan in the world. He admired the services rendered by the personnel related to medical profession during the epidemic of Dengue on the basis of his personal experience.
He said that a fellow of CPSP passes through different stages of tough structured training. “The numbers of doctors are far less than need of the country thus fellows of CPSP are at par with the best doctors of the world,” he said.
He congratulated the President, College Council and fellows of CPSP on attaining international recognition and repute. Prof Zafar Ullah Chaudhry, President, CPSP, in the welcome address threw light on the performance of CPSP which is providing specialists doctors in all disciplines of medical profession in the country. “College of awarding fellowship on sixty nine disciplines of medicine and surgery. More than 20,000 specialists of CPSP are serving the ailing humanity across the country. More than 17,000 trainee doctors are working under supervision of more than 2500 supervisors. CPSP is the only institution which is monitoring electronically its 17000 trainees through e-log system.
Keeping in view the international standard of CPSP, the European Business Assembly has nominated CPSP for the best award of Europe in higher medical education. The nomination of CPSP for this award is an honour for the country and its people,” he said.
On this occasion he congratulated four hundred new fellows and advised to spend their energy on the wellbeing of ailing humanity. Dr Swera Mansoor was awarded Gold Medal on her performance. The convocation was attended by all council members including Vice President, Prof Rizwan Azami, Prof Khalid Masood Gondal, DGIR, Prof Rizwana Chaudhry, Prof Muhammad Shoaib Shafi, Maj Gen Professor Salman Ali, heads of civil and military institution Maj Gen Waqar Ahmad, Maj Gen and other senior doctors.

Pakistan attractive for investors: Japan

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THE NATION, LAHORE, 05th NOVEMBER 2013:- Japanese Ambassador to Pakistan Hiroshi Inomata on Monday stressed the need for more collaboration between Pakistan and Japan to create concrete and tangible results as far as economy is concerned.
The Ambassador was talking to LCCI President Engineer Sohail Lashari during a visit to the Lahore Chamber of Commerce and Industry on Monday. The Ambassador said that Pakistan’s strategic location makes it an attractive market for the potential foreign investors. He said that he would be doing what is possible to highlight the potential of Pakistan in the eyes of Japanese investors.
The Ambassador also invited to arrange a delegation to Japan to have first hand knowledge about available opportunities there. Hiroshi Inomata also discussed bilateral economic relations with particular reference to cooperation in different sectors. He said that the Japanese government and the private sector were ready to extend every possible help to Pakistan for the revival of economic activities. He said that Japan was quite strong as far as the technical education was concerned and Pakistan should avail this opportunity to overcome the shortage of skilled labor.
He said that the Lahore Chamber of Commerce and Industry should further strengthen its liaison with chambers of commerce in Japan that have much bigger membership as compared to Pakistan.
The Ambassador said that an exchange of trade related information between the two countries could also jack up the volume of two-way trade that does not match the true potential of the two countries. Speaking on the occasion, the LCCI President Engineer Sohail Lashari said that Pakistan has strong economic and commercial ties with Japan but these relations need to be capitalized to attain greater share in Japanese market. For closing the gap in trade balance, a lot of efforts are desired to be made and the best possible way is to identify the areas where the two sides can cooperate with each other.
He said that non-availability of trade-related data is one of the impediments in the way of expansion of trade between two countries. The LCCI President said that frequent exchange of sector-specific delegations could help the representatives of private sectors explore the opportunities of trade and investment in Pakistan.
Throwing light on the prospects of investment in the energy sector, he said that it is the most lucrative sector as coal is abundant in Pakistan, sun is available for most part of the day in the southern areas and there is a wind corridor in the coastal areas of the country which makes it perfect for the Japanese investors to explore this untapped field of investment.
Major exports of Pakistan to Japan consist of cotton yarn, petroleum oils, woven cotton fabric, vegetables, electro-medical apparatus, leather, leather garments, carpets and sports goods etc. The main imports from Japan are cars, vessels & other floating structures, products of iron, trucks, parts & accessories of motor vehicles, textile machinery and etc.