Chinese Vice Premier He Lifeng, in charge of economic and financial affairs, arrived late on Sunday in the Pakistani capital to mark the 10th anniversary of a mega economic plan, the cornerstone of the “New Silk Roads”.
CPEC: Ten years after its launch, mixed results between China and Pakistan
Since its launch in 2013, the China-Pakistan Economic Corridor (CPEC) has injected tens of billions of dollars into colossal transport, energy and other infrastructure projects between the two countries, which share 596 km of borders. But the project also had to contend with Pakistan’s difficulties in meeting its financial obligations and attacks on Chinese targets.
“Ten years after its launch, CPEC’s results are mixed,” says Azeem Khalid, a professor at COMSATS University in Islamabad.
“The main objective of linking China to the Arabian Sea is still relatively far from being achieved for China. Pakistan, on the other hand, has made significant progress towards its short-term objectives”, continues the analyst.
In recent years, Beijing has been one of Islamabad’s most reliable foreign partners, willingly providing financial assistance to bail out its coffers. Earlier this week, Beijing granted Pakistan a two-year extension on a $2.4 billion loan, giving this debt-ridden country a welcome respite from its balance of payments crisis.
According to an IMF report, China and its commercial banks hold around 30% of Pakistan’s total external debt. The economic corridor provides China with an attractive gateway to the Indian Ocean, but the safety of its workers remains a major concern.
Security in question: CPEC’s challenges in Pakistan following the attacks
On Sunday, at least 44 people were killed and several dozen wounded in a suicide bombing in the northwest of the country at a rally of a radical Islamic party. Baloch separatists have claimed responsibility for several attacks on CPEC projects, and thousands of Pakistani security agents are deployed to counter threats to Chinese interests. In April 2021, five people were killed in an attack claimed by the Pakistani Taliban on a luxury hotel housing the Chinese ambassador in Quetta.
A few months later, 12 people, including nine Chinese workers, were killed by an explosion on board a bus carrying personnel to a dam. Islamabad blamed the explosion on a “gas leak”, but Beijing said it was a bomb attack.
“Security is the main obstacle to achieving China’s objectives. This is the main reason why CPEC has not yet reached its full potential”, said Azeem Khalid.
In the run-up to the visit, banners with photos of Lifeng and flags of both countries were unfurled in the Pakistani capital, which was placed on high alert.
