China-Pakistan Economic Corridor (CPEC) Phase-II is gearing up to accelerate socio-economic development in the country. New concepts of third party, enterprises and country’s involvement and up-grade vision are creating new economic propositions. Even the new economic model pertaining to Public-Private Partnership in CPEC is gaining momentum. However, ongoing political instability may derail the pace and progress of CPEC in the country.
Undoubtedly, CPEC Phase-I shepherded in an era of development and pulled Pakistan out of the abyss. It has developed a network of roads along with energy generation projects. CPEC Phase-II is vital to put an end to the economic downslide and turn around profitable production. However, ongoing political manoeuvrings and populist orientations of various political parties and main stakeholders are gearing the country towards economic depression, social disintegration, and administrative meltdown, which would not be good for the further expansion and utility of CPEC Phase-II.
The genie of alleged electoral rigging has become a hot topic and enemies of socio-economic prosperity are striving hard to destroy everything to achieve and secure the lion’s share in the national politics. The endless tussle between political dynasties and popular emerging political realities are making ground limiting the scope of any national consensus on CPEC and socio-economic prosperity in the country.
According to latest figures, under the CPEC 36 projects with a cumulative value of 24 billion dollars have been successfully completed. Meanwhile, 22 projects with a total investment of five billion dollars are currently under construction. Negotiations are underway for 26 projects, totalling US$ 27 billion under the CPEC framework. Furthermore, 27 other projects dedicated to the social and economic development of Balochistan are actively under implementation.
The CPEC phase-II is much broader in scope and focuses on relocation of industries, agriculture sector modernisation, cooperation in science and technology, job creation and socio-economic wellbeing of people. Nevertheless, widening political differences and gaps among the different main stakeholders have lessened the scope of any economic relief for the general masses.
Energy projects that have achieved completion include 1,320-megawatt coal-fired power plants in Sahiwal, Port Qasim, Karachi and Hub (Balochistan), 660MW Engro Thar coal power project and 1,000MW Quaid-e-Azam Solar Park in Bahawalpur (400MW project has been completed while 600MW project is under implementation). Moreover, some smaller wind and solar energy projects have begun operations as well. The 878km-long Matiari-Lahore 660kV HVDC transmission line has also been completed, which has the capacity to transmit 4,000MW of electricity.
Interestingly, China called for maintaining political unity and social stability in Pakistan. Mao Ning, spokeswoman for the Foreign Ministry, stated that as a close and friendly neighbour, China fully respects the choice made by the Pakistani people. Beijing “sincerely hopes that all relevant parties in Pakistan will work together to maintain political unity and social stability after the elections and jointly create a future for national development,” said Mao.
Unfortunately, no single political party was able to gain the required numbers to form a federal government on its own after elections were held in Pakistan on Feb. 8. Most of the seats in the 264-seat National Assembly were won by independent candidates linked to former Prime Minister Imran Khan, the founder of the Pakistan Tehreek-e-Insaf (PTI) party which is barred from participating in the polls.
The Pakistan Muslim League Nawaz (PML-N) of former Prime Minister Nawaz Sharif won 75, followed by the Pakistan People’s Party of Bilawal Bhutto-Zardari which won 54.
The smaller Muttahida Qaumi Movement – Pakistan (MQM-P) party won 17 seats. MQM-P and the parties of Sharif and Zardari are in talks to form a coalition government, while Khan’s PTI has announced to form an alliance with the Sunni Ittehad Council to gain the reserved seats in Parliament where its 95 candidates won as independents. PTI has alleged mass rigging to steal public mandate as the party’s data claims that its candidates won at least 177 seats through direct elections. Both the Election Commission of Pakistan and the government have denied any wrongdoing.
A party requires 134 seats, without adding reserved seats, to form the government on its own at the federal level. The formation of a new government in Pakistan remains stalled as the two major parties, PML-N and PPP, continue their marathon negotiation sessions. Despite a recent five-hour meeting, no final decision has been reached, highlighting the complex political landscape and challenges in securing a majority coalition.
It appears that both sides are seeking to maximize their gains and address internal concerns; however, the process has proven lengthy and intricate. The PPP has floated 26 conditions to Muslim League Nawaz comprising all constitutional slots, presidency, speaker of National Assembly, Chairmanship of Senate, provincial governors and even appointment of head of police in all the provinces making it hard for the parties to move forward.
Besides infrastructure development, the socio-economic growth prong of the CPEC is of pivotal nature which has not only helped in betterment of Pakistani public but has also been a driving force to bring the people from both countries closer. There have been several MOUs between the Pakistani educational institutions and their Chinese counterparts which have enabled the students from Pakistani side to seek advanced and modern education through Chinese cooperation.
The establishment of factories and industries in the Rashakai Economic Zone and the creation of special economic zones at Rashakai, Dhabeji, Allama Iqbal Industrial City in Faisalabad, and Bostan in Pishin aim to attract domestic and international investors to the country.
In summary, it seems that every political party desperately desires to stop any further decline of its political capital. The 16 month PDM government did not deliver any relief to general masses and resultantly badly suffered in general elections 2024.
It is suggested that a broader political consensus is the need of the hour. Otherwise, routine blame-games and growing political inflexibility may derail the system. Ultimately, Pakistan could be trapped in seeking approval for the next IMF bailout package, leading to an unbearable storm of price hikes, high inflationary trends, and increased utility bills for the common people.
Moreover, the US$24 billion payment of debts during 2024 would deal devastating blows to national economic growth. Thus, rising above so-called political capitals, family dynasties’ preferences and the pursuit of personal popularity should take precedence over any other considerations. Mercy on common people and recognizing CPEC Phase-II as the ultimate engine of economic growth in the country are imperative. The euphoria of TikTok and X will achieve nothing but further destroy spirits of creativity, connectivity, productivity and participation. Therefore, Chinese wisdom and the predominating role of SIFC should prevail.
