February 2018

A review of national, bilateral and regional dynamics

CONTENTS

EXECUTIVE SUMMARY

A NATIONAL PERSPECTIVE ON CPEC

B BILATERAL (PAK-CHINA) PERSPECTIVE

C REGIONAL / INTERNATIONAL DYNAMICS

D ANALYSIS

CPEC Monitor | February 2018

Executive Summary

Government remains optimist over CPEC, pitching it as a project having great potential in promoting regional and global trade. The two-day CPEC cultural caravan festival held in Islamabad helped promote an image of the mega project as a trade and sociocultural connector.

But internally, voices still are raised in small provinces and regions especially Balochistan and Gilgit Baltistan, as well as among local industrialists, about one or another aspect of CPEC transparency; the latter, for instance, questioned the rationale of granting tax exemption to a Chinese company or according second priority to local industry.

CPEC is now entering the phase where Special Economic Zones (SEZs) will be developed. Both sides are now calling for promptly laying them down.

To avoid long bureaucratic procedures for CPEC-related proceedings, China urged Pakistan for “one-window operation” similar to a free zone in Dubai, where all permissions can be obtained in a week.

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CPEC Monitor | February 2018

Yet another country showed interest in investing in CPEC. Before Egypt, several others did, but the investment has yet to come in concrete shape on ground. China wants to include Afghanistan, and has decided to form a regional forum including Pakistan, Afghanistan, and Tajikistan. Pakistan’s Prime Minister also proposed linking CPEC to SCO’s six approved routes.

On February 2, some unknown militants gunned down a Chinese national, working for a local shipping firm in a senior position, in what police described as a targeted attack; a passerby was also injured.1 Other than that there was no security issue observed this month on CEPC front. The federal government is planning to establish offices of Intelligence Bureau all over the country. Punjab government has also asked to conduct security audit of CPEC projects at divisional level. Meanwhile, Chief Justice of Pakistan called upon all chief justices of high courts to discuss dispute resolution mechanism for the CPEC.

A report emerged in February that China might be in contact with Baloch militants for CPEC security. But this story was denied by both China and Baloch separatists.

1 Dawn, February 6, 2018, https://www.dawn.com/news/1387501/chinese-man-shot-dead-in-karachi-attack

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CPEC Monitor | February 2018

A

NATIONAL PERSPECTIVE ON CPEC

1. Politico-economic The Source

StatementsExecutive Director of Center of Excellence (COE) for CPEC Dr. Shahid Rashid stated that the cost of CPEC can go “up to $100 billion by 2030 with the inclusion of more projects in CPEC.”

Mehtab Haider, The News, February 9, 2018

Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Regional Chairman and Vice President Chaudhry Arfan Yousaf said that CPEC has promoted the regional significance of Pakistan.

Parvez Jabri, Business Recorder, February 13, 2018

Sustainable Development Policy Institute (SDPI) Joint Executive Director Dr. Waqar Ahmed emphasized on economic reforms to reap the maximum benefit of CPEC.

Fawad Maqsood, Business Recorder, February 23, 2018;Farhan Zaheer, The Express Tribune, February 24, 2018

Action/VisitsPrime Minister’s Advisor on Finance, Miftah Ismail called on Punjab Chief Minister Shahbaz Sharif to discuss the economic development of Pakistan, emphasizing the worth of ongoing CPEC linked projects.

Parvez Jabri, Business Recorder, February 1, 2018

President Islamabad Chamber of Commerce and Industry (ICCI) Sheikh Amir urged the government to timely build the CPEC SEZs in federal capital to accelerate the economic

The Nation, February 6, 2018

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CPEC Monitor | February 2018

development of the state and region.Pakistan Steel Melter’s Association (PSMA) feared that Chinese company working under CPEC will cost national exchequer of around Rs 11 billion in revenue collection. It requested the Prime Minister to discard this tax exemption at the cost of local steel industry.

Dawn, February 8, 2018;The Express Tribune, February 8, 2018

Chief Minister Punjab Shahbaz Sharif visited the Chinese Consulate and discussed the pace of CPEC with Chinese Consul General Mr. Long Dingbin.

Imad-u-Din, Business Recorder, February 15, 2018

The engineering community in Peshawar has requested policy makers to create employment opportunities under the CPEC.

The Express Tribune, February 16, 2018

Report/AnalysisNational Judicial Policymaking Committee called a meeting of secretaries, heads of 12 federal ministries and other entities to discuss the possible disputes resolution mechanism regarding the execution of CPEC-linked projects in Pakistan.

Ansar Abbasi, The News, February 2, 2018;Ansar Abbasi, Jang, February 2, 2018

The government could not provide any logical explanation for the amount of tax exemption given to a Chinese company working on the Multan-Sukkur section of CPEC, according to a report. The issue triggered debate among senators against this exemption.

Shahbaz Rana, The Express Tribune, February 2, 2018

The Higher Education Commission (HEC) Pakistan has decided to promote the potential of institutions of higher education so they can support socio-economic transformation under the CPEC.

Gohar Ali Khan, Dawn, February 9, 2018

Governor Punjab, Malik Muhammad Rafique opined that government should address the “genuine concerns” of local industries and private sector on CPEC.

The Express Tribune, February 10, 2018;Saeed Ahmed, The News, February 10, 2018;The Frontier Post, February 11, 2018

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CPEC Monitor | February 2018

A report said that the federal government has decided to distribute CPEC revenue among provinces via 7th National Finance Commission (NFC) Award rather than creating a new NFC.

The Nation, February 11, 2018

To explore and discuss the business, trade opportunities under CPEC, the Rawalpindi Chamber of Commerce and Industry has decided to hold three-day All Pakistan Chambers Presidents Conference International on March 11-14 at Gwadar.

Dawn, February 14, 2018

Pakistan Tourism Development Corporation has decided to establish resort along the CPEC silk route to improve the tourism services.

The News, February 14, 2018

Commerce Minister Pervez Malik notified increased FDI in CPEC related energy and infrastructure projects.

Dawn, February 14, 2018

As per media report, the government of Pakistan has rejected Japanese interest to join CPEC due to Chinese resistance, and that Pakistan did not accept their cheap loan offer for infrastructure development, citing the already large credit it has borrowed.

Zafar Bhutta, The Express Tribune, February 18, 2018

A report said that under the CPEC, Pakistan’s imports of machinery and construction material increased last year.

Salman, Siddiqui, The Express Tribune, February 21, 2018

Economic and political expert hinted that after the completion of CPEC, Pakistan’s position will be vital in Asian and global trade.

The Express Tribune, February 27, 2018;Pakistan Observer, February 27, 2018

The Consul General of Switzerland in Karachi has termed CPEC an economic turning point in the region, saying CPEC will attract foreign investors to Pakistan.

The Nation, February 27, 2018

Senate Standing Committee on trade noticed that trade policies and CPEC are not linked together and it has destroyed the local industries in Pakistan.

Azhar Jatoi, 92, February 27, 2018

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CPEC Monitor | February 2018

2. Provincial/regional developments and concerns

The Source

StatementsGovernor Sindh Mohammad Zubair underlined in a conference that consent and cooperation of all investors, political parties are essential for the successful execution of CPEC.

The News, February 6, 2018

President Azad Jammu Kashmir (AJK) Sardar Masood Khan stated that occupied Kashmir’s willingness to be a part of CPEC can be realized into reality if it stops supporting India’s oppressive rule in Indian-occupied Jammu & Kashmir.

The Nation, February 12, 2018

AJK Minister for Sports and Culture Muhammad Saeed said CPEC would not only promote the socio-economic development of country but the whole region.

The Nation, February 13, 2018

Former minister Local Bodies Engineer Ismail said that local people of GB are not happy and have reservations about the absence of their due share in CPEC projects.

The Express Tribune, February 19, 2017

Chairman Senate Raza Rabbani said that issue pertaining to a due share of GB in CPEC will be discussed in upcoming Senate session.

K2, February 21, 2018

Senator Mushahid Hussain underlined that national consent on CPEC has expanded and said that CPEC would be equally beneficial to all provinces.

Fawad Maqsood, Business Recorder, February 24, 2018

Action/Visits

Report/AnalysisThe Higher Education Commission (HEC) unit of CPEC is committed to the timely completion of “government university and educational city projects in Gwadar.”

The Express Tribune, February 2, 2018

Head of the World Baloch Women Forum (WBWF), Professor Naela Quadri has expressed

Business Standard, February 7, 2018

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CPEC Monitor | February 2018

distrust over CPEC, in a letter to the French Senator Pascal, as a French delegation visited Pakistan to understand if the CPEC is a project of regional connectivity or a Chinese agenda to expand its influence.Prime Minister Shahid Khaqan Abbasi stressed upon the development of GB under the CPEC.

Pakistan Observer, February 15, 2018;The Express Tribune, February 15, 2018;Jamil Nagri, Dawn, February 17, 2018

Rs1 billion has been earmarked for execution of ongoing development projects in Gwadar; an official said Gwadar development is prioritized due to CPEC in the region.

Saleem Shahid, Dawn, February 21, 2018

3. Socio-cultural The Source

StatementsMinister of State for Information, Broadcasting, National History and Literary Heritage Mariyam Aurangzeb stated that CPEC is not only an economic project but it will also promote socio-cultural development.

The Nation, February 4, 2018

During the CPEC cultural caravan festival, Chinese Ambassador said that successful execution of CPEC depended on enhanced people-to-people contact among both countries.

Jamal Shahid, Dawn, February 26, 2018;Afshan S.Khan, The News, February 26, 2018

Chairman Technical Education and Vocational Training Authority (TEVTA) Irfan Qaiser Sheikh stated that CPEC would create about 40,000 jobs of Chinese language interpreters.

Business Recorder, February 28, 2018

Action/VisitsMinister of State for Information Mariyam Aurangzeb on her visit to China suggested setting FM Radio with an access along the CPEC route in Pakistan.

Shehrish Wasif, The Express Tribune, February 6, 2018

To promote bilateral cultural relations, CPEC The Express Tribune,

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CPEC Monitor | February 2018

cultural caravan grand exhibition will be held at Pakistan National Council of the Arts (PNCA) from February 24.

February 10, 2018;China Pakistan Economic Corridor, February 25, 2018

Report/AnalysisChief Executive Aman Foundation Malik Ahmad said the foundation is keen to collaborate with China, by tending to expand its ambulatory services in CPEC projects areas.

The Express Tribune, February 14, 2018

Artists from Pakistan believed that after the launch of CPEC, bilateral cultural exchange is significant to develop cordial relations.

Liangyu, Xinhua, February 16, 2018

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CPEC Monitor | February 2018

4. Security The Source

StatementsChinese ambassador to Pakistan Yao Jing acknowledged the improved security situation in Pakistan, saying CPEC is not vulnerable to Baloch militant outfits anymore.

Dawn, February 3, 2018;Dunya, February 3, 2018

China’s ambassador to Pakistan, Yao Jing said the execution of CPEC will continue despite opposition.

Nawa-i-Waqt, February 10, 2018

Senator Mushahid Hussain underlined that it is India and its western supporters who have been encouraging misconceptions about CPEC.

Kalb-e-Ali, Dawn, February 19, 2018;Pak-China Institute, February 19, 2018

Security Incidents

Action/VisitsChina’s ambassador to Pakistan, Yao Jing visited Khyber Pakhtunkhwa (KP) and expressed satisfaction over the security of Chinese CPEC workers under the improved law and order in Pakistan. He further showed interest in the development of KP and FATA under the CPEC.

The News, February 2, 2018;The Nation, February 3, 2018

Punjab government has ordered the civil administration and divisional police chiefs to conduct the security audit of CPEC and non-CPEC projects, asking them to submit their reports; some divisional chiefs have not submitted their report yet.

Mohammad Asghar, Dawn, February 10, 2018;Daily Express, February 10, 2018

Commander V Corps Lt-Gen Shahid Baig visited Thar coal power project Block II and underlined Pakistan army will ensure the security of CPEC projects in Sindh.

Dawn, February 10, 2018

In order to promote transparency and awareness among people about CPEC, the federal government has decided to set research centers in public universities that will enable students to conduct research on seven areas of CPEC Long-

Azhar Jatoi, Roznama 92, February 13, 2018

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CPEC Monitor | February 2018

Term Plan.

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CPEC Monitor | February 2018

Report/AnalysisThe Interior Ministry has informed the Gilgit-Baltistan’s home department about Indians plans to sabotage CPEC, instructed to ensure strict security measures to avert any harm to CPEC.

Jamil Nagri, Dawn, February 5, 2018;Times of India, February 5, 2018

Despite the explicit clarification of Balochistan government about bidder’s criteria, the provincial bureaucracy has provoked a fight among Chinese bidders halting the execution of safe city project in Quetta.

Khaleeq Kiani, Dawn, February 5, 2018

A group of around 40 geologists is set to survey the Makran Trench in Balochistan in order to assess the possibility of an earthquake, a threat to the implementation of CPEC-linked projects in region.

Times of India, February 10, 2018;Hindustan Times, February 10, 2018;Business Standard, February 11, 2018

To ensure the security of CPEC routes, the federal government has decided to establish the Intelligence Bureau offices. The decision will be implemented next fiscal year costing 47 crores.

Haseeb Hanif, Daily Express, February 16, 2018

During a meeting with all chief justices of high courts, the Chief Justice of Pakistan (CJP) Mian Saqib Nisar told them investment under CPEC may trigger civil and criminal disputes on Pakistan and therefore discussed the dispute resolution mechanism. One member in the meeting suggested a forum like International Financial Corporation (IFC) Dubai be constituted to take care of the foreign direct investment.

Hasnat Malik, The Express Tribune, February 18, 2018

To ensure the security of CPEC projects, it was reported by an international paper, that China is involved in direct contact with militants in south-western part of Balochistan.

Farhan Bokhari, Financial Times, February 19, 2018;Dawn, February 20, 2018;Mohammad Idress, Daily Pakistan, February 20, 2018;Shailaja Neelakantan, Times of India,

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CPEC Monitor | February 2018

February 20, 2018;Economic Times, February 20, 2018;Nawa-i-Waqt, February 21, 2018;

Voice of America (VoA) has denied the reports of talks between China and Baloch militants for the security of CPEC. Also, one official of the Baloch Republican Army denied any such contact. Chinese Foreign Ministry spokesman stated, “I have never heard the report mentioned by you,” when asked about reported Chinese dialogue with Baloch militants.

The Express Tribune, February 21, 2018;Ayesha Tanzeem, Voice of America, February 22, 2018;The Hindu, February 22, 2018

Chief Minister Khyber Pakhtunkhwa Pervez Khattak expected the support of international community in removing misunderstandings and misperceptions against CPEC.

Parvez Jabri, Business Recorder, February 22, 2018

MNA from PPP allegedly reported that Chinese criminals who were imprisoned in China arrived in Pakistan to work on CPEC linked projects, while Interior Ministry discarded the claim of Chinese prisoners working in Pakistan.

Dawn, February 27, 2018

5. Progress on CPEC-linked projects The Source

StatementsPresident Azad Jammu and Kashmir (AJK) Sardar Muhammad Masood informed about the speedy execution of four CPEC projects in the region. These included Mirpur industrial zone, Karto-Kohala hydropower projects, and Mansehra-Mirpur Expressway.

The Nation, February 14, 2018;The News on Sunday, February 14, 2018

Minister for Planning, Development, and Reforms, Ahsan Iqbal underlined that increased power supply under CPEC has contributed to reducing load shedding in Pakistan from “18 hours a day in 2013 to zero today.”

The News, February 18, 2018

Minister for Planning, Development, and Reforms Ahsan Iqbal informed Senate that CPEC would

Mohammad Irfan, Daily Pakistan,

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CPEC Monitor | February 2018

include energy projects of 17,045 megawatts while projects of 11,110 megawatts are included in the “active list.”

February 21, 2018;Pakistan Observer, February 21, 2018

Action/VisitsChinese ambassador to Pakistan Yao Jing ensured the timely and quality completion of CPEC and non-CPEC projects.

Pakistan Observer, February 2, 2018

During a special meeting of the National Judicial Committee (NJC), Chief Justice Pakistan Mian Saqib NIsar instructed the chief justices of high courts to “advise civil courts not to pass stay orders to ex-party related to CPEC projects.”

Sardar Sikandar, The Express Tribune, February 3, 2018

A Chinese delegation tends to visit Pakistan next month to ensure the prompt establishment of SEZs and review the progress projects under the CPEC.

Board of Investment, February 11, 2018;Fawad Yousafzai, The Nation, February 15, 2018

Foreign Minister Khawaja Muhammad Asif underlined that Gwadar port and other CPEC related projects would accelerate the employment opportunities for people at large.

Imad-u-Din, Business Recorder, February 19, 2018

In order to attract investment under the CPEC, Balochistan government approved Bostan Industrial Estate s an economic zone. Meanwhile, Balochistan Chief Minister Abdul Quddus Bizenjo lamented the delayed implementation of CPEC in the region and requested the concerned authorities to expedite the pace of development work.

Mohammad Zafar, The Express Tribune, February 21, 2018

National Electric Power Regulatory Authority (NEPRA) has allotted a 25-year special purpose transmission license to Pak Matiari-Lahore Transmission Company Ltd (PMLTCPL) to manufacture Matiari-Lahore Transmission line under the CPEC.

Khaleeq Kiani, Dawn, February 22, 2018

Chief of his own faction of Jamiat-Ulema-e-Islam Maulana Fazl-u-Rehman visited the western route of CPEC and discussed various prospects of its development with the project director of

Dawn, February 26, 2018;The News, February 26, 2018;

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CPEC Monitor | February 2018

National Highway Authority (NHA). He further objected to the provincial government for setting up an industrial zone in Nowshera than Dera Ismail Khan (DIK).

The Express Tribune, February 26, 2018

To expedite the implementation of SEZs under CPEC, the Council of Common Interests (CCI) has asked provinces to submit their lucrative proposals related to the establishment of SEZs.

The News, February 26, 2018

The National Assembly Standing Committee on Planning, Development and Reform has decided to establish Centre of Excellence for CPEC, Pakistan Institute of Development Economics (PIDE), Islamabad,

Business Recorder, February 28, 2018

Report/AnalysisIn the 26th meeting of Parliamentary Committee on CPEC, China urged Pakistan for “one-window operation like Jebel Ali free zone in Dubai, where all permissions related to starting any new project can be obtained in one-week time”, to avoid long bureaucratic procedures for timely completion of all CPEC related proceedings.

Atif Khan, The Nation, February 3, 2018

The Asian Development Bank report said that greenhouse gas emission of CPEC power generation projects would cause climate change and environmental degradation.

Amin Ahmed, Dawn, February 4, 2018

A report said that execution of ML-1 project under CPEC is likely to be delayed due to erroneous cost estimates and difference of opinion about the financing modalities of the project among Ministry of Finance and Pakistan Railway.

Shahbaz Rana, The Express Tribune, February 7, 2018

It is reported that CPEC has created direct and indirect jobs for local nationals. Around 80% of Pakistanis are hired for CPEC whereas only Port Qasim power project has created employment opportunities for 5,000 Pakistanis.

Parvez Jabri, Business Recorder, February 8, 2018

Project Director (PD) of CPEC, Hassan Daud Butt expressed his satisfaction over the pace of CPEC

The Nation, February 9, 2018

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linked project, informed that the launch Karachi Circular Railway and ML-1 will not be delayed.A report said that the 1st batch of about 1,150 kilograms of seafood has been delivered from Pakistan to Urumqi, northwest China's Xinjiang.

Hu Wijia, Global Times, February 12, 2018

As per media report, an official of National Highway Authority (NHA) said the western route of CPEC and other 11 mega projects of CPEC will be completed by the end of 2018.

Sehrish Wasif, The Express Tribune, February 12, 2018

A report has mentioned that according to scientists from both countries, development of Gwadar would be vulnerable to geographical calamity.

Business Standard, February 16, 2018

A media report declared that the status of China Overseas Ports Holding Company Pakistan (COPHC-Pakistan), working on Gwadar under CPEC, is not clear to the Securities and Exchange Commission of Pakistan (SECP).

Business Recorder, February 19, 2018

It is reported that Gwadar will be commercially operational by the next month.

Nawa-i-Waqt, February 20, 2018

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CPEC Monitor | February 2018

B

BILATERAL (PAK-CHINA) PERSPECTIVE

1. Bilateral relations Source

StatementsChinese Ambassador to Pakistan Yao Jing said that Gwadar port is being smoothly developed under BRI, and that both sides are committed to the development of Gwadar that will not only bring benefit to the people of Balochistan, but to the entire region.

The News, February 3, 2018

Chinese Ambassador Yao Jing underlined that Chinese companies working under CPEC would contact Executive Director National Vocational & Technical Training Commission (NAVTTC) for the employment of skilled youth in CPEC related projects.

The News, February 15, 2018

Action/VisitsIn order to promote bilateral relations and trust of parliamentarians on CPEC linked developments, members of the Pak-China Parliamentary Friendship Group in Senate and the Chinese Ambassador to Pakistan Yao Jing have

Pakistan Today, February 23, 2018;China Pakistan Economic Corridor, February 23, 2018;Parvez Jabri, Business

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decided to increase bilateral parliamentary exchange.

Recorder, February 23, 2018;Pakistan Observer, February 24, 2018

C

REGIONAL / INTERNATIONAL DYNAMICS

2. On CPEC and Geo-economic Connectivity

The Source

StatementsAmbassador of Egypt to Pakistan, Ahmed Fadel Yakub expressed interest in promoting bilateral trade relations, stating that “CPEC would have positive implications for Egypt as it would lead to easy movement in Suez Canal.”

Daily Times, February 2, 2018

Chinese Ambassador to Pakistan Yao Jing said that CPEC would be extended to Afghanistan.

Business Recorder, February 2, 2018

Vice President of China Communication Construction Company (CCCC), Sun Ziyu said that CPEC would accelerate socio-economic development of Pakistan and the whole region.

Pakistan Observer, February 12, 2018

Chairman of Board of Investment (BOI) Naeem Zamindar declared that the SEZs under CPEC are open for investors across Pakistan, asking Turkish companies to invest in these SEZs.

The News, February 14, 2018

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Action/VisitsOn a visit of secretary general of the Shanghai Cooperation Organization (SCO) to Pakistan, Prime Minister Shahid Khaqan Abbasi proposed to link CPEC with SCO’s six approved routes. Deputy Chairman of Planning Commission, Sartaj Aziz underlined that CPEC is linked to the SCO’s 6 routes through the nodal point of Kashgar.

Global Times, February 2, 2018;Xinhua, February 2, 2018;The Nation, February 7, 2018

Report/AnalysisAn economist at the University of Oxford believed that trust between nation and state is essential for collective sacrifice to achieve future prosperity, and CPEC is the epitome of sacrifices for future prosperity.

The Express Tribune, February 2, 2018

To strike a balance in bilateral trade, China agreed to revise China-Pakistan Free Trade Agreement (CPFTA) under which Pakistani exporters will enjoy same tariff concessions as ASEAN countries. This revised CPFTA is likely to be signed in March 2018.

Arsalan Altaf, The Express Tribune, February 10, 2018;Nawa-i-Waqt, February 10, 2018

Commander Southern Command, Lieutenant General Asim Saleem Bajwa stressed upon the geo-economic significance of CPEC, saying that CPEC would promote regional connectivity by serving as a gateway to Afghanistan and Central Asian states.

The Nation, February 16, 2018

To deal with Pakistan’s concern of becoming economically dependent on China under the CPEC, China has motivated Pakistan to use multiple sources of foreign investment.

Yu Ning, Global Times, February 21, 2018;The Nation, February 23, 2018

China has decided to set a CPEC regional forum including GB,

Shabbir Hussain, Daily Express, February 25, 2018

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Afghanistan, and Tajikistan along the border.An official of the foreign ministry of China said that China is not wary of US-India-Japan and Australia regional plans being considered against CPEC. However, China doesn’t oppose plans pertaining to the socio-economic development.

Nawa-i-Waqt, February 24, 2018

3. Regional Dynamics and CPEC Security

The Source

StatementsIranian Ambassador to Pakistan Mehdi Honardoost underlined that “Indian involvement in Chahbahar Port would not be allowed to be used against Pakistan.”

The Express Tribune, February 23, 2018

Action/VisitsReport/AnalysisReferring to the Indian spy Kulbhushan Yadhav who confessed that there is Indian spy network trying to sabotage CPEC, Minister for Interior Ahsan Iqbal hinted at Indian involvement in killing Chinese national (not a CPEC worker) in Karachi so as to jeopardize Pak-China ties.

Times of India, February 8, 2018;Business Standard, February 8, 2018;The News, February 9, 2018

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D ANALYSISPolitical Development

CPEC continues to elicit optimism on the part of government. There are even reports that it will boost Pakistan’s global trade credentials.

Inside the country, Balochistan and GB continue to be in the news – for what’s in for them. Reports this month were mostly from GB, either for exclusion or security concerns. Apparently, they are not much in the decision-making on the CPEC. As if addressing those concerns, top officials have assured speedy work on projects in GB.

Issues of fair deal continue to crop up. Whether or not the Chinese companies are exempted from tax, continues to be debated, without satisfying those inquiring. The revision of Pakistan-China free trade agreement is seen as a step in the right direction; as per details, the new agreement will apply same tariffs on Pakistani goods meant for ASEAN countries as Chinese in Pakistan.

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Project Implementation and New InitiativesCPEC is reported to be completed with fast pace. But some signature projects like ML-1 and KCR might not see completion within the stipulated time period. Reason is internal bureaucratic wrangling between Railway Ministry and others. There is no further update on the KCR.

Regional contextYet another country, Egypt, has showed interested in joining in CPEC. But while many countries are showing interest, their real involvement in the project is yet to hit ground.

Meanwhile, China has asked Pakistan to use multiple sources of foreign investment and not necessarily be wary of other regional economic plans. At the same time, at least as per one report, Pakistan refused to give space to the Japanese, owning in part to China’s reluctance.

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Pakistan sees India as the key saboteur on CPEC. It is not clear if the means to that end have taken development of Chahbahar port in Iran into account. At least Iran does not think it is so. Its ambassador in Pakistan ensured that Indian involvement there will not be used against Pakistan.

CPEC securityNot a single incident of security of CPEC projects or workers noted this month. China too has expressed satisfaction over improved security. Some new decisions also show that CPEC security is on the top of different stakeholders. Of distinction has been the discussion led by the Chief Justice of Pakistan over possible dispute resolution mechanism under CPEC project.

(Note: This report is compiled by the Senior Research Analyst Safdar Sial and Research Associate Anam Fatima, at Pak Institute for Peace Studies (PIPS), Islamabad.)

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