CPEC and Pakistan’s New Strategic Balancing Act
The sponsored media campaign against the China-Pakistan Economic Corridor (CPEC) in Pakistan has resurfaced, indicating delays and derailment, causing a huge loss to economic growth, infrastructure development, trans-regional connectivity, industrial productivity and hybrid agriculture.
Moreover, the 14th JCC outcome has further accelerated negative sentiments about CPEC among various chambers of commerce, blaming the poor performance of the Planning Commission and its ministry for wasting time on self-projection while ignoring the basics of project management.
The drastic shift in regional socio-economic, geopolitical and global geostrategic trends is affecting the pace and productivity of CPEC. Pakistan’s new balancing act, looking towards the West, gives a confusing impression in Beijing. However, Pakistan’s evolving diplomacy has serious irritants causing an invisible trust deficit, disharmony and displeasure among various capitals, directly affecting CPEC. Now, so-called pseudo-intellectuals in the country are exploring the idea of building Pak-US and Pak-Saudi corridors instead of promoting CPEC Phase 2.0. This is alarming, indicating a possible policy shift in Islamabad, which must be rectified for the early implementation of CPEC Phase 2.0.
Despite Pakistan’s new diplomatic endeavors, there are serious socio-economic and geopolitical limitations. Merely walking swiftly towards Washington, Brussels and Riyadh will achieve nothing but further complexities with our time-tested friends. Thus, a balanced foreign policy, economic maneuvering, social affiliation and political alignment through military-civil equilibrium and better understanding should be the need of the hour.
The China-Bangladesh-Pakistan trilateral dialogue has increased the strategic importance of CPEC in the days to come. However, the China-Afghanistan-Pakistan trilateral cooperation has come under strain because of recent massive attacks from Kabul supporting the TTP and other terrorist groups working against Pakistan’s sovereignty and territorial integrity. Speculations about re-handing the Bagram Air Base to the United States have also become a point of contention among stakeholders in South Asia, Southeast Asia and Central Asia, negatively impacting trans-regional connectivity through the Pakistan-Afghanistan-Uzbekistan railway project.
Moreover, reports from the Financial Times and other international media regarding Pakistan’s alleged offer to the United States to build a new deep-sea port at Pasni—just over a hundred kilometers from the China-funded Gwadar Deep Sea Port—have become a hot topic among diplomats and strategists in Islamabad and Beijing. The silence of our Foreign Office and other state organs should not derail CPEC Phase 2.0. Hence, a clear statement and clarification are urgently needed to remove all misperceptions and misunderstandings.
It has become a matter of concern for our Chinese partners, who have invested heavily in CPEC and its key component, the Gwadar Port—the jewel of Balochistan. Chinese investment, projects and technical assistance have transformed Gwadar, brightening prospects for a greater blue economy, maritime security and trans-regional naval connectivity with Central Asia, the Middle East and Africa. This growing ambiguity must be removed immediately. Furthermore, the expanded Pak-US cooperation in “Metals & Minerals” has raised serious doubts about the further development of Gwadar and CPEC Phase 2.0. There are fears that any prospective Pasni Port venture could give Washington a commercial foothold in a region where China has made substantial investments. Many prominent regional experts and strategists have expressed concerns that Washington’s renewed diplomatic engagement with Pakistan may derail Islamabad from Beijing.
Despite assurances from policymakers that the emerging Pak-US and Pak-Saudi economic cooperation is not anti-China or anti-CPEC but rather an effort to diversify Pakistan’s foreign policy and economic options, certain developments have the potential to create cracks in otherwise smooth ties with Beijing. Pakistan’s defence forces’ new military diplomacy has become a strategic value addition to the country’s socio-economic stability, sustainability and export diversification. The personality of Field Marshal Syed Asim Munir has become a magnetic force in building a prosperous nation, successfully mitigating internal and external risks while boosting Pakistan’s global standing.
The restoration of peace and stability in the Middle East has strengthened Pakistan’s status and improved prospects in worker remittances, employment, bilateral economic ties and investments. However, it may lead Pakistan towards the sensitive issue of recognizing Israel, which must be handled carefully to avoid unrest from religious parties within the country. The success of Operation Bunyan-un-Marsoos has drastically changed the geopolitical landscape of our region, extending global geostrategic outreach. China’s invisible hand remains one of the key elements of our national defence capabilities and deterrence.
Recently, the Pak-Saudi Defence Pact and the possibility of other regional defence arrangements have given the impression of a NATO-style accord in the region. However, Iran and even China have expressed serious reservations that must be addressed. Pakistan’s foreign policy currently seeks friendly ties with China while simultaneously increasing cooperation with the United States and the Russian Federation—creating a complex equation that demands clarification.
The recent detailed press briefing by ISPR has exposed the existing politician-criminal nexus protecting terrorists in Khyber Pakhtunkhwa and Balochistan, producing serious doubts in Beijing regarding the safety and security of Chinese nationals and CPEC projects. The lack of interest in Pakistan, decreased Chinese FDI and delays in implementing CPEC Phase 2.0 clearly indicate a policy shift in Beijing. China’s massive investments in Central Asia—especially in rail, road and infrastructure development—reflect a new phase in its regional connectivity priorities.
Nevertheless, Pakistan possesses numerous socio-economic, geopolitical and geostrategic advantages that cannot be ignored. Therefore, refurbishing intelligence information sharing, implementing long-pending joint security mechanisms, aerial drone surveillance, improved border management, joint anti-terrorism dialogue and forming a “corridor of knowledge” would be major steps toward regaining diminishing bilateral confidence. Serious deliberations on joint policing should also be discussed. In this regard, the Fujian Police Academy’s integrated experience and training facilities would be a valuable addition to modernizing Pakistan’s police forces.
There is an urgent need to dispel the growing concern that Pakistan is warming its ties with the United States at the expense of its strategic partnership with its time-tested friend, China. The Pak-US mineral venture has serious flaws, while the Chinese government’s recent restrictions on exporting rare-earth extraction technologies to the US, along with Donald Trump’s statement of imposing an additional 100 percent tariff on Chinese commodities, highlight the widening gulf between the two superpowers. Hence, Pakistan’s policymakers must tread carefully toward Washington to avoid sending the wrong signal to Beijing.
Last but not least, the issues of Pasni and rare-earth elements have become burning topics between Islamabad and Beijing. Furthermore, progress on CPEC has lost momentum due to unresolved payment issues with Chinese energy projects, concerns over the safety of Chinese nationals and alleged foreign pressure. Therefore, a grand Islamabad-Beijing Dialogue is urgently needed to revive trust, coordination and cooperation for a shared prosperous future.
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