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BELT ROAD INITIATIVE & CHINA PAKISTAN ECONOMIC CORRIDOR

Introduction
1. The prevailing global economic system calls for a greater multilateral cooperation/
partnerships and interdependence. Pakistan lies at the cross roads of South Asia, Central
Asia, Middle East, China and Indian Ocean Region (IOR) signifying its geo-strategic and
geo-economic importance as a regional hub. By virtue of its unique location, alliances in
the region substantially depend on orientation of Pakistan and this is evident in the geo
politics of regional powers like Russia and China.
2. The Belt Road Initiative (BRI) formerly known as ‘One Belt One Road’ (OBOR),
adopted by the Chinese government in 2013. It is essentially a revival of the ancient
Chinese Silk Route. The Silk Route Economic Belt represents the land route from the
Eastern coasts of China all the way to Europe. While the One Road represents the
maritime version which extends from the South Eastern Coast of China to Africa and the
Mediterranean1. The Chinese initiative is woven together to secure its strategic and
economic needs by creating a fabric of interconnected road-rail-sea transport corridors and
port facilities to tap new energy resources, enhance trade, build partnerships and explore
new markets.2 Its reach will go as far as 65 countries covering 64.2% of the world
population3.
3. CPEC is the first of BRI’s six envisaged corridors 4 and the flagship project
connecting the belt with the maritime Silk Road at Gwadar. For Pakistan, it is termed as a
‘Game Changer’ bringing significant economic and geo-strategic spin-offs. However, while
CPEC offers enormous opportunities at global, regional and domestic levels, there it faces
some serious challenges as well. The study will focus on six key questions:-
a. What is the Chinese concept/ perspective on CPEC?
b. What are the broad contours of CPEC and progress made so far?
c. What opportunities CPEC offers at global, regional and domestic levels?
d. What external and internal challenges are likely to inhibit progress?
1
The New Silk Road: Xi Jinping’s Grand Strategy for Eurasia by Theresa Fallon.

2
ibid.

3
Vision and Actions on Jointly Building Belt and Road, Issued by the National Development and Reform Commission (NRDC), Ministry
of Foreign Affairs, and Ministry of Commerce of the People’s Republic of China with State Council authorization -
http://english.cri.cn/index.htm
4
Asian Development Bank has outlined 6 distinct stages of corridor development.
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e. What is the role and contributions of Armed forces of Pakistan?

f. How to mitigate challenges and capitalize on opportunities afforded by CPEC
for its successful completion?

4. Aim. To present comprehensive analysis on BRI initiative and CPEC project by

highlighting the opportunities and challenges; role and contributions of armed forces with a
view to proffering viable way forward.

5. Sequence. The study will unfold in the following parts:-

a. Part I - BRI & CPEC - An Overview.
b. Part II - CPEC - Opportunities and Challenges.
c. Part III - Role and Contributions of Armed Forces.
d. Part IV - Analysis and Way Forward.

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PART- I
BRI & CPEC - AN OVERVIEW
“The vision of OBOR is to resurrect the ancient Silk Road as a modern transit, trade, and
economic corridor creating an economic zone extending over one third the circumference
of the earth. Establish and strengthen partnerships among the countries along the Belt and
Road by building high-speed railroads, roads and highways, energy transmission and
distributions networks, and fiber optic networks5”.
(Chinese President Xi Jinping 2013)
BRI
6. Moving into the 21st century, an era that is dominated by the success story of
Chinese rising economic power, it was but natural to revive the old Silk Road and Maritime
Silk Road concepts and repackage it in the form of ‘One Belt and One Road’, commonly
known as BRI. Launched in 2013, it is based on three drivers; energy, security and market.
Like the ‘silken strands on a loom’, these drivers would weave together to create a
fabric of interconnected transport corridors and port facilities to tap new energy
resources, enhance trade, improve security, and explore new markets. China wants to
make CPEC a joint and cooperative model for OBOR. China cannot go ahead without the
support and cooperation from Pakistan. It is a win-win situation for both countries.
Significant Chinese interests are:-
a. Economic Interests
(1) Augmenting trade connections with the world and access to the IOR
through Pakistan.
(2) Enhanced bilateral trade with Pakistan.
(3) Facilitate oil imports from major partners.
(4) Socio-economic development for a stable Western China.
(5) Creating business opportunities for Chinese entrepreneurs.
b. Security Interests.
(1) Addressing “Malaccan Dilemma”, creating an alternate route to South
China Sea and avoiding US/ Indian Navies in Indian Ocean.

5
Vision and Actions on Jointly Building Belt and Road, Issued by the National Development and Reform Commission (NRDC), Ministry
of Foreign Affairs, and Ministry of Commerce of the People’s Republic of China with State Council authorization -
http://english.cri.cn/index.htm
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(2) Protections of Chinese maritime interests and enhance influence in

IOR.
7. The sheer enormity of BRI venture has struck everyone’s interest across the globe.
It also comes at the dawn of changing global power dynamics, characterized by a rising
China and a resurgent Russia. United States faces the prospects of China overtaking it
as the world’s largest economy and appears worried to counter Chinese growing
influence, whereas, Japan and India are also wary of Chinese stellar performance.
Pakistan would also be a key beneficiary through China Pakistan Economic Corridor
(CPEC), an important component of BRI.

China Pakistan Economic Corridor

8. Gen. CPEC in its current form was proposed by Chinese Premier Li Keqiang
during his visit to Pakistan in May 2013, which aims at connecting Western China with
Gwadar.
9. CPEC Vision & Mission. To improve the lives of people of Pakistan and China by
building an economic corridor promoting bilateral connectivity, construction, explore
potential bilateral investment, economic and trade, logistics and people to people contact
for regional connectivity. It mostly includes:-
a. Integrated transport & information technology systems including Road, Rail,
Port, Air and data communication channels.
b. Energy cooperation.
c. Spatial layout, functional zones, industries and industrial parks.
d. Financial cooperation.
e. Tourism cooperation & people to people communication.
10. Significance. CPEC is important for the development of the region as a whole.
However, practically, CPEC is an attempt to augment growing Chinese strategic
compulsions i.e., most needed access to IOR, maintaining her economic growth,
overcoming the issues with respect to Malacca Strait and development of Western China.
Hence, strategically Pakistan is facilitating liberation of China; besides capitalizing the
opportunity for own economic turnaround. CPEC’s major potential areas of cooperation/
development include:-

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a. Regional connectivity
b. Energy Hub/ flows.
c. Diverse Investment opportunities.
d. Industrial cooperation.
e. Financial cooperation.
f. Enhance security and stability of the region.
11. Institutional Mechanism
a. Pakistan and China have established Joint Working Group (JWG) for all
plans which are recommended for approval to the Joint Coordination
Committee (JCC), co-chaired by minister Planning Development & Reform
(PDR) and Vice Chairman National Development & Reform Commission
(NDRC). It is further subdivided into sub groups:-
(1) Planning Joint Working Group.
(2) Energy Joint Working Group.
(3) Transport Infrastructure Joint Working Group.
(4) Gwadar Joint Working Group.
(5) Industrial Parks / Economic Zone Joint Working Group.
b. Pakistan’s Ministry of Planning, Development & Reform is the focal ministry
for this engagement.
12. Financial Model/ Layout

a. Initially the size of CPEC was US $ 46 billion which has now been raised to
over US $62 billion after including more projects under CPEC.

b. The Silk Road Fund Coop Ltd was established in China in December 2015 to
extend investment and financing support to CPEC projects and to promote
industrial cooperation with Pakistan.

c. Chinese government and banks, will loan funds to Chinese and Pakistani
companies worth who will invest in the projects as commercial ventures.

d. Loan has been worked out in three categories; concessional loan, interest-
free loan, and loan on market rates6.

6
Professor Ahsan Iqbal, NDU 7 October 2016.
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e. Out of US $51 billion, 33.79 billion is for energy, 11.19 billion for
Infrastructure, 0.7 billion for Gawadar Port and fiber optics and an additional
loan of $ 5 billion to upgrade the main railway line from Karachi to Peshawar.
Major Projects and Their Progress
13. CPEC’s 4 phase development plan includes 51 x projects stretched over 15 years 7.
Phase 1 includes Early Harvest Projects, Phase 2 energy and infrastructure, Phase 3
Special Economic Zones and Phase 4 includes railways and additional socio-economic
cooperation8. Major infrastructure projects are:-

a. Road Infrastructure. There are three routes:-

(1) Western Route. Starts from Gwadar and via Quetta to Dera Ismail
Khan, Peshawar, and finally KKH.
(2) Central Route. Starts from Gwadar and via Basima, Khuzdar,
Jacobabad, DG Khan, to Islamabad, and KKH.
(3) Eastern Route. Starts from Gwadar, Basima, Khuzdar, Ratodero,
Sukkur, Multan, Faisalabad, Islamabad, Havelian and KKH.

b. Railways. Upgradation of main railway line between Karachi and

Peshawar besides construction of railway link between Gawadar and Sukkur
is planned.

c. Pipeline. The total length of the proposed oil and gas pipeline from
Gwadar Port to Xinjiang via Pakistan is 2500 km.

d. Gwadar Port. Since 2013, China Overseas Port Holding Company in

collaboration with Gwadar Port Authority is developing the Gwadar Port
which has no comparison in terms of depth and capacity.

e. Industrial Cooperation. 27 x sites are identified from Khunjerab to

Gwadar for establishment of SEZs which will be completed by 2025.

7
Ahsan Iqbal, as quoted in The Express Tribune of 14 October, 2015. http://tribune.com.pk/story/972553/govt-draws-flak-over- early-
harvest-projects/
8
Professor Ahsan Iqbal, NDU 7 October 2016.
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PART- II
CPEC - OPPORTUNITIES AND CHALLENGES
14. CPEC, being a part of BRI, offers immense opportunities to Pakistan and the
regional countries. However, its implementation also poses numerous challenges which
need to be tackled pragmatically to reap maximum benefits from this initiative. These are
analyzed in ensuing paragraphs: -
Global and Regional Perspective/ Stance
15. US. On one hand, USA is supportive of the BRI, while on the other views it as a
geopolitical response by China to its ‘pivot to Asia’ policy. US alliances with India and
major Far East countries are basically aimed at containment of China.
16. Russia and CARs. Russia is considering CPEC as a positive development and is
taking special interest in the project especially in the back drop of growing Indo -US
relations and its recent standoff with the west.
17. India. India has so far not responded positively to participate in BRI and feels that
Gwadar port would enable Pakistan to assert herself over the strategically vital energy
SLOCs.9 India has concerns regarding CPEC traversing through the territories of GB 10,
which she claims to be part of disputed J&K 11. A prosperous and strategically significant
Pakistan able to defy Indian hegemony is something India cannot digest.
18. Afghanistan. Afghanistan while acting as a proxy of India is trying to vent herself
out of land route dependency on Pakistan thereby seeking Chahbahar Port to be her
preferred choice. Moreover, NDS-RAW nexus and support to TTP leadership and Daesh
are likely to impasse the expansionary potential of CPEC.
19. Iran. Lately, Iran has shown increased willingness to participate in CPEC.
However, India-Iran-Afghanistan tri-lateral agreement, Indian development of Chahbahar
Port and arrest of Kalbashan Yadev do raise eyebrows of suspicion.
Opportunities for Pakistan
9
Being only 180 nautical miles from the exit of the Straits of Hormuz.
10
Chowdhry, Kalyan. 2015. Update-China and Pakistan Launch economic corridor plan worth $46 billion.
11
The Economic Times. 2016. ‘India expresses concern over China-Pakistan Economic Corridor’, 14
April, http://articles.economictimes.indiatimes.com/2014-04-14/news/49126118_1_foreignsecretary-sujatha-singh-india-expresses-concern-
bilateral-cooperation
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20. Strategic Economic Partnership. CPEC is in fact a historic decision of two

independent Sovereign States for "Strategic Economic Partnership and Cooperation".
21. Multilateral Cooperation/ Partnership. Pakistan, due to its unique geo
strategic location propelled by CPEC, has the potential to further connect the economies of
the Eurasian Union, Iran, SAARC and China. Consequently, Pakistan transforming into a
hub of trade and commerce and making the country the focal point for convergence of
civilizations in the 21st Century.
22. Gwadar Port. The center piece of the corridor is the development of Gwadar
as deep sea commercial port. Operationalization of Gwadar port would not only help to
reduce the load off Karachi and Port Qasim ports but would also provide flexibility and
balance to our maritime border in case of hostilities besides attracting foreign investments.
23. Communication Infrastructure. Construction of roads, rail and port
infrastructure will facilitate domestic connectivity and reduce transportation time by linking
the production base with domestic and foreign market thus increasing trade opportunities.
24. Industrial Growth. Partnering with China offers numerous opportunities for
Pakistan provided we take long term prudent policy decisions. Like in a natural cycle of
industrial development, the Chinese manufacturing sector has already started limiting itself
to high tech manufacturing. While outsourcing medium and low tech manufacturing
activities to countries like Pakistan and Bangladesh. These will provide additional benefits
like FDIs, technology transfer, development of skilled workforce and job opportunities.
25. Foreign Investment. With improved energy situation and enhanced economic
activity, foreign investors would be attracted resulting in jobs for youth, vocational skill
development and improvement in Human Resource.
26. Tangible Economic Benefits for Pakistan Economy. CPEC will open door
to immense economic opportunities for Pakistan. Maj dividends are enumerated as:-

a. Over $33 billion worth of energy projects will be constructed by private

consortia to help alleviate Pakistan’s chronic energy shortages which
regularly amount to over 4500MW.

b. As part of infrastructure projects worth approx $11billion and 1,100 km long

motorway will be constructed between the cities of Karachi and Lahore.

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c. KKH between Rawalpindi and the Chinese border will be overhauled.

d. Karachi - Peshawar main railway line will also be upgraded.

e. A network of pipeline to transport liquefied natural gas and oil will also be laid
including a $2.5 billion pipeline between Gwadar and Nawabshah to
transport gas from Iran.
31. National Integration. With increasing transparency in equitable distribution of
projects with mutual consensus among all provinces, CPEC offers a ray of hope for
national unity by promoting connectivity and economic inter dependence.
Opportunities for Regional Countries
32. Upon successful completion, CPEC offers many opportunities for other countries to
iclude:-
a. EU, East Africa. China and EU, being one of the largest trading partners of
each other, are going to benefit tremendously from CPEC as it would
significantly reduce the physical distances and cost of commerce between
China EU and East Africa.
b. Russia/ CARs. CPEC will provide shortest access to Russia and energy
rich CARs to warm waters of Indian Ocean.
c. Iranian integration into CPEC will help in creating regional stability and will
assist Iran to benefit from gas exports to China.
d. India. Through CPEC India can enhance its trade and connectivity with
Afghanistan, CARs and Russia.
e. Afghanistan. CPEC can offer tremendous trade and commerce
opportunities owing to abundant oil, gas and other resources in the country.
Domestic Challenges
33. Although CPEC is being termed as a ‘game changer’ for Pakistan but presently
faces a variety of challenges that seek to undermine its beneficial impact for all involve.
Serious consideration needs to be given to address all internal challenges at priority.
34. Governance/ Corruption Issues.

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a. Good governance and management are critical factors for early and optimum
realization of CPEC. Regrettably, in Pakistan governance has always remained
weak and coupled with rampant corruption, it poses a serious challenge.
b. The information vacuum on overall terms and conditions of CPEC, including
Fiscal Management, Sovereign Guaranties and Loans’ types and payback
conditions, raises doubts on transparency. Moreover, the question about
varying and high interest rates and reason behind hastily concluded
contracts without undertaking correct bidding procedures on energy projects
requires an explanation by the government.
c. Legal/ Weak Contractual Implications . Strict adherence to rules of
business based on wholesome feasibility studies for all CPEC projects before
awarding contracts must be ensured by the Government.
35. Political Issues/ Grievances
a. Perception of giving high priority to Punjab in allocation of resources/ projects
or choice of routes, neglecting GB and KPK areas, sense of deprivation
among locals of Balochistan from CPEC benefits etcetera are some of
common reservations raised by smaller provinces.

36. Exploitable Fault Lines. Besides political aspects, Balochistan’s ethno-

sectarian fault lines are quite fragile, making them easily exploitable in particular by our
adversary.
37. Security. Terrorist network sanctuaries in Afghanistan with porous border vis-a-
vis nature of work under CPEC provide ample opportunities to all such inimical forces to
attempt sabotaging the projects.
38. Socio-Economic Aspects and Capacity Issues
a. In the HRD index of 2020 Pakistan ranks 152 which is alarming 12. With the
huge investment pouring in, at the moment capacity building of human
resource in all fields including State Institution’s is wanting.
b. Involvement of local stake holders in planning and development of projects in
their respective areas under CPEC is essential for ensuring long term
viability of the projects, which seems missing at the moment.
12
Professor Ihsan Iqbal, NDU 7 Oct 2016.
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c. Given the already lopsided nature of our Pak – China bilateral trade, our
industrial and construction sector so far lack the requisite capacity to survive
in the post-CPEC competitive market cum environment 13. Our industry may
be overrun by influx cheaper Chinese products.
d. Business interests of local communities will have to be adequately guarded
when exposed to massive Chinese presence in the country.
39. Apprehensions of Pakistan’s Business Community 14. No efforts have ostensibly
been taken by the Government for alleviating apprehensions of Pakistan’s already hard
pressed and scanty business community with regards to CPEC on aspects like: -
a. Assessment of negative impact over domestic industry by the Chinese
investment in industrial sector in Pakistan’s SEZs wherein they are offered
multiple incentives like tax free holidays etc.
b. Measures required for protection of local industry against influx of cheap
Chinese goods in local market which might render domestic production/
industries uncompetitive.

13
Various engineering and technical trades as well as managerial and administrative skills would be required, necessitating planning on urgent basis
for manpower training.
14
“Pain in the Heartland” Article in Dawn 3 Jan 2017
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PART - III

ROLE AND CONTRIBUTIONS OF ARMED FORCES

Relevance of Armed Forces - Pak China Relations
40. Pakistan Armed Forces are one of the most important pillars of state whose
credibility has been established both internally and externally. Chinese investment of
51 billion USD was somehow contingent upon Pakistan Army’s guarantee of security for
the CPEC project as evident from ex-Chief of Army Staff, General Raheel Sharif’s
statement “I assure you that the security of CPEC is our national undertaking and we
will not leave any stone unturned to ensure its timely completion and uninterrupted
success”.
Role and Contribution of Armed Forces
41. Role of Armed Forces. Considering the number of CPEC projects and vastness
of the area over which these are being planned, role of Armed Forces can be crystallized
as under:-
a. Provision of security to CPEC project as a whole.
b. Security of Chinese nationals working at CPEC projects.
c. Ensure the implementation of various projects in its domain i.e. road/ rail and
communication infrastructure developed through FWO, NLC and SCO.
d. Security of maritime routes by Pakistan Navy.
e. Integration of all intelligence tentacles to provide required intelligence.
f. Implementation and support for National Action Plan having direct and in-
direct bearing on the success of CPEC projects.
42. Contributions of Armed Forces. Keeping above mentioned roles in view,
Armed Forces are playing an important lead role in making CPEC a reality through
contributions which we will discuss in the further slides:

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a. Perception Management/ National & Political Consensus . Army

had been in the driving seat in bringing national consensus and removal of all
hurdles at provincial levels on CPEC routes/ projects. Effective media
campaign reinforced by various seminars on the benefits of CPEC project by
the Army has also helped in perception management.
b. Maritime Security.
(1) Raising of Naval Task Force – 88 (TF-88). It has recently been
raised for maritime security of Gwadar port and protection of
associated sea lanes against both conventional and non-traditional
threats.
(2) Employment of Marines. A marine battalion is being employed for
ensuring security of the port and the Chinese personnel.
(3) Surveillance and Monitoring. A network of radars, electro-optic
sensors and pickets are being setup to ensure continuous surveillance
and monitoring.
c. Challenges Confronted by Armed Forces
(1) Security. Security will remain the biggest challenge for the Armed
Forces. At present, there are close to 20,000 Chinese working on
different projects across the country. Their number is expected to
grow as the implementation progresses. This would require integration
of effort of institutions like Police, Frontier Corps, Levies and local
stake holders.
(2) Inter Agencies Coordination and Harmonization . Presently,
no separate mechanism exists to regulate the efforts of various
agencies/ stake holders, which results in duplication of effort and
overtaxing of meager resources.

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PART - IV
ANALYSIS AND WAY FORWARD
Important Conclusions
50. Having analyzed the contours of CPEC, it is pertinent to draw some important
conclusions, which are:-
a. BRI is imperative for China to safeguard its strategic, economic and security
interests; while completion of CPEC is vital for the success of BRI.
b. By giving access to Indian Ocean Region, Pakistan is in fact liberating China
with far reaching strategic implications for the two countries, the region and
beyond.
c. Pragmatic foreign policy and proactive diplomacy is essential to deal with
competing strategic interests and challenges posed to the development of
CPEC.
d. CPEC will propel Pakistan in becoming an important transit state in the
world. Thereby making the country the focal point for convergence of
civilizations in the 21st Century.
e. On completion of CPEC, if Pakistan is to get even 10 % of the Chinese world
trade passing through the Corridor, it would mean a trade/ transport volume
of approximately $ 500 billion to $1 trillion 15. GDP is expected to increase
1.5% from 2016-20 and another 2.5% from 2020-25 16. Annual trade which is
expected to rise 40% by 2030 17 and 7,00,000 jobs are envisaged to be
created.
f. Most of the short to medium term external challenges to CPEC emanate from
Indian opposition and use of proxies through Afghanistan.
g. Pakistan’s existing governance issues, political landscape, fragile ethno-
sectarian fault-lines, slow socio-economic progress, capacity issues, blurred
perception management and environmental factors have the potentials to
retard progress of the project.

15
Pakistan Energy Year Book 2013, Hydrocarbon Development Institute of Pakistan, Ministry of Petroleum and Natural Resources,
Government of Pakistan.
16
British economist, Jims O Neil, has predicted the emerging of Pakistan as the 18th global economy with US$ 3.3 trillion GDP by 2050.
17
Board of Investment, Prime Minister’s Office, Government of Pakistan.
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h. Gilgit-Baltistan is strategically located at the entry point of CPEC. In view of

the legal ambiguity over the undefined status of Gilgit-Baltistan and
foreseeable difficulties for the execution of China Pakistan Economic
Corridor that can be created by our enemies, inertia on this vital issue is no
longer a choice for Government of Pakistan.
i. Strategic maritime cooperation18 in the fields of shipbuilding industry, ports
and shipping, exploration of resources in EEZ and the fishing industry are
already on the cards as long term projects19.
j. Investment on development of youth merits immediate focus by the
government.
k. For the success of CPEC, GoP needs to:-
(1) Ensure timelines, quality, transparency and security of our share of
responsibilities within the CPEC framework.
(2) Safeguarding local stake holders and participation in all tiers of CPEC
projects.
(3) Development of human resource required to handle and work on
CPEC projects.
(4) A well thought out financial model to finalize legal/ contractual
obligations.
Way Forward
51. The way forward will be covered under four domains of ‘policy framework’ in the
ensuing paragraphs.
52. Diplomatic Domain. The Government of Pakistan (GoP) must adopt a
proactive diplomatic stance and reach out to regional and global countries for seeking
greater and enduring economic partnership.
a. China. CPEC will make Pakistan the most reliable, cost-effective and
fastest trade route for China; however, following merits focus:-
(1) Comprehensive security and intelligence coordination mechanism to
ensure the corridor’s security.
18
Shipyard, National University of Maritime Sciences, Offshore exploration joint venture and ferry services Khi-Gwadar and Khi-Iran/
GCC are on the table as futuristic avenues.
CPEC Fact Book 2016, p.24-25
19

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(2) Timely and uninterrupted completion of all CPEC projects.

(3) Establish forums for interface of business community of both
countries.
(4) Increase people-to-people contact, cultural exchange and tourism.
b. Russia and CARs. Sino-Russian relations and recent Russian inclination
towards Pakistan represents a convergence of interests implying the need to
build on this strategic axis efforts for inclusion of Russia.
c. Middle East, Gulf Cooperation Council and Turkey. KSA20, Kuwait,
Qatar, Turkey and some other countries of Gulf Cooperation Council states
who have shown increased interest in CPEC should be kept engaged.
Additionally, regional ports forming a cluster can further augment connectivity
and trade.
d. Iran. Indian designs for offsetting can be neutralised to a great extent by
including Iran in CPEC. Chabahar-Gwadar sister ports be seen as an
opportunity to be integrated with CPEC.
e. Pak – Afghan Relations . Pakistan must remain committed to support the
peace process in Afghanistan. China and Pakistan should convince the
Afghan government against colluding with India on CPEC, in fact highlight
the great benefits it could offer.
f. The Indian Factor. A firm stance to deal with our bullying neighbour in the
East is recommended. Without compromising on core issues, Pakistan
should continue seeking resolution of existing conflicts with India without
showing signs of desperation.
54. Socio - Political Domain
a. Strict accountability, transparency, eradication of corruption and merit will
lead to improved rule of law and good governance.
b. Address all provincial concerns as political harmony and national cohesion
are vital to success.
c. National consensus be built addressing all misperceptions and ambiguities,
especially of the public of Balochistan and Gilgit Baltistan.

20
KSA is the biggest oil supplier to China and the world’s largest oil producer.
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d. Perception and information operations must revolve around narratives and

themes which dispel controversy and give widespread publicity to CPEC.
55. Socio-Economic Domain
a. Transparent financing and contracting procedures alongwith accountability
measures should be made public.
b. HRD to include education reforms, more think tanks, skill development
programs in vocational centers and sharing of experiences with the Chinese
is the need of the hour.
c. Pakistan must give the highest priority to capacity building in technology,
infrastructure, Research and development in all other fields so as to reap full
benefits of the project.
d. To avert false propaganda, inclusive and participatory involvement by locals
be encouraged.
e. Pakistani companies should be co-partners and not sub-contractors; this will
maximize indigenization and employment generation.
f. In addition, to boost local industry maximum contribution from private sector
be encouraged.
g. With Chinese companies and thousands of Chinese workers already in
Pakistan, cultural sensitivities must not be ignored.
56. Security Domain
a. Continue with the NAP for creating a secure enabling environment to
facilitate the progress of projects.
b. Accord pririority to capacity building of all agencies involved in the security
apparatus21.
c. Pursue early approval of ‘Terms of Reference’ with Ministry of Interior.
d. Harmonization of Security and Intelligence organizations involved.

21
Discussion at HQ SSD
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Conclusion
57. CPEC will provide Beijing a direct gateway to the rest of the world. Its completion
will also open doors for much needed economic prosperity for Pakistan. Pakistan’s resolve
to overcome all challenges and ensure timely completion of the project is a testimony of
her commitment. CPEC comes to us after a decade and a half of a grueling war on terror
that has cost over 59,000 human lives and immense economic losses. We therefore owe
its success to all those innocent men, women and children who fell in this war against
terror. Our leadership now owes it to the nation to forge a new future for our next
generation. Armed Forces of Pakistan also have a significant role towards critically
important national undertaking for which we must reflect our resolve.

“I have no doubt about the bright future that awaits Pakistan when its vast
resources of men and material are fully mobilized. The road may be somewhat uphill
at present but with courage and determination we mean to build up and construct a
strong and prosperous Pakistan”
(Quaid-e-Azam Muhammad Ali Jinnah)

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