Sino-Pak Strategic Alliance: A Committed Avatar

Majyd Aziz

“Pakistan and China have a relationship that is deeper than the ocean and higher than the Himalayas” is the favorite mantra of Pakistan’s leaders. Pakistan and China do have a very special relationship that has transcended many events and has weathered many a storm. There has been a generous outlook towards each other, in economic, political, cultural, and social fields. Pakistanis consider themselves much closer to the Chinese people then to any other nationality. China is regarded as a Big Brother, and Chinese delegations and dignitaries are received with open arms and with respect. At the same time, it is also worthwhile to mention that Chinese products, equipment and material are available aplenty in this country. 

China and Pakistan have, over the past many decades, embarked upon a strategic relationship that is all-encompassing and is a manifestation of the importance that Beijing accords to Islamabad.  The accent has been on diplomatic, military, and economic cooperation. Both the countries have realized that a congruous disposition is essential despite certain reservations that have cropped up in the last decade or so. The influx of Islamic radicalism in China has been a matter of consternation for China and there have been times when Pakistani leaders have had to hear strong worded disapprovals even on official state visits to Beijing.

Whenever there is a state visit by Presidents or Prime Ministers to each other’s countries, the ritual of signing of MOUs and agreements is an integral part of the official itinerary. This ritual is hyped up through the media and it is generally pronounced that this ritual is really the game changer that would further consolidate and strengthen the bilateral relationship. However, the process goes to pot and the euphoria is busted when there is no follow-up or when the MOUs or agreements are half-baked or not feasible. This has been the stumbling block in the solid foundation of a focused Sino-Pak industrial and infrastructure base.

There has been this highlighted propaganda by all and sundry that Gwadar Port and Thar Coal are the two saviors of Pakistan and that the full development of these projects would put Pakistan is the comity of developed nations. Actions have exposed the fact that it is easier said than done. Pakistani decision makers committed a cardinal sin when their obduracy and inflexibility negatively impacted on the total commitment of Shenhua Group, a state-owned mining and energy company in China that is the largest coal-producing company in the world. The after-effects of that monumental indecision put Pakistan’s Thar Coal project behind by more than a decade. Fortunately, better sense prevailed and China was requested to build and develop the Gwadar Port. On the military front, the JD-17 Thunder multirole combat aircraft is testimony to technical and sensitive collaboration between the two nations. Over 100 planes have been produced from this project that cost in excess of $500 million.

During the recent visit of Prime Minister Nawaz Sharif to China in July, it was announced with the usual fanfare that the two governments will focus on mega projects that would include establishing a Pakistan China Economic Corridor, an ambitious but visionary project costing over $ 18 billion for building a series of 200 km tunnels, that would bring about the fundamental changes that are imperative in future Sino-Pak trade regime. Eight cooperative agreements and MOUs were inked. Meanwhile, the first and foremost decision implemented was that the formal handing over of management and operation of Gwadar Port to China was agreed and implemented. This has reinforced the claims of those that are gung-ho about massive Chinese investment and financing of mega projects that have been planned and conceived. The prime emphasis is on energy as well as physical infrastructure projects that include the Gadani Power Park, where ten coal-based power plants with a combined capacity of over 6000 mw are planned. The Karachi underground train, the Karachi-Lahore segment of the Motorway network, the rehabilitation of the Karakoram Highway, and the desire to participate once again in Thar are some of the aspects of the new thinking.

The Pakistan-China Economic Corridor may turn out to be the sheet-anchor if properly, timely and determinedly financed and executed as this would open new vistas besides enhancing the influence of China in many ways. This should make Gwadar viable, this should enable a favorable logistics scenario for minerals from Balochistan as well as KPK and Afghanistan, and this should provide Pakistan with substantial revenue in transit fees and taxes. Moreover, the tunnels would substantially cut down travel time in transporting goods and products. An added charm would be the setting up of industries and businesses along the route of the Corridor. The rationale behind all this is the concept of Aid for Trade since this project would undoubtedly boost Pakistan’s economic base in many areas.

There is a large potential for more Chinese investment in other relevant sectors. China has her eyes on the mineral wealth of Afghanistan and has already entered into multitude of agreements to develop, finance, and extract the minerals there. At the same time, China has become a major buyer of Pakistani minerals and the demand is growing rapidly. Unfortunately, the government is paying more attention to textile and leather exports rather than minerals and other non-traditional items that have a formidable market in China and would also boost the export figures. It is imperative that these sectors be supported and promoted heavily in China.

The future bodes well for the success of the Sino-Pak strategic alliance. Bilateral trade, excluding under-invoicing, smuggling, and mis-declaration, has crossed the $ 13 billion mark and would surely cross $ 15 billion in 2014 as desired by the leadership of the two countries. The Free Trade Agreement is gradually becoming beneficial to all.  Meanwhile, Chinese cultural programs, language courses, and technology transfer have become common and acceptable. Ban Zong You Yi Wang Tsui (Long Live Pakistan-China Friendship.