Current Affairs by Asmatullah Junejo, PSP: Wednesday, January 31, 2018

Current Affairs by
Asmatullah Junejo, PSP

Wednesday, January 31, 2018 1
Day 3
Sequence
 Energy Crisis in Pakistan
 Pak-China Economic Corridor
Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 3

Current Affairs Syllabus 2016
 I. Pakistan's Domestic Affairs (20 marks)
i. Political
ii. Economic
iii. Social
 II. Pakistan's External Affairs (40 marks)
i. Pakistan’s relations with its Neighbors (India, China,
Afghanistan)
ii. Pakistan’s relations with the Muslim World (Iran, Saudi
Arabia, Indonesia, Turkey)
iii. Pakistan’s relations with the United States
iv. Pakistan’s relations with Regional and International
Organizations (UN, SAARC, ECO, OIC, WTO, CW)
Current Affairs Syllabus 2016
 III. Global Issues (40 marks)
i. International Security
ii. International Political Economy
iii. Human Rights
iv. Environment: Global Warming, Kyoto Protocol, Copenhagen Accord
v. Population: world population trends, world population policies
vi. Terrorism and Counter Terrorism
vii. Global Energy Politics
viii. Nuclear Proliferation and Nuclear Security
ix. Nuclear Politics in South Asia
x. International Trade (Doha Development Round and Bali Package)
xi. Cooperation and Competition in Arabian Sea, Indian and Pacific
Oceans.
xii. Millennium Development Goals, Current Status,
xiii. Globalization
xiv. Middle East Crisis
xv. Kashmir Issue
xvi. Palestine Issue
PRESENTED BY:
Adnan Khan

Economic Corridors
 Economic corridors are integrated networks of
infrastructure within a geographical area designed to
stimulate economic development.
 Corridors may be developed within a country or

between countries.

History of Sino-Pak Relations
 Pakistan–China relations began in 1950
 Strategic alliance was formed in 1972 and economic co-

operation began in 1979
 China has invested $20 billion in various projects
 Mega infrastructural projects in Pakistan
 Gwadar Port, the Coastal-Highway linking Karachi with
Gwadar, Karakoram Highway, the Chashma nuclear power

plants, and a number of hydro-power projects.

Pak-China Economic Corridor
 The KKH was started in 1959 and was completed in 1979
(open to the public since 1986 )
 Length 1,300 km (Pakistan 887 km ) and China 413 km
 It connects China's Xinjiang region with Pakistan's Gilgit–
Baltistan and Khyber Pakhtunkhwa regions
 Major cities Hasanabdal, Abbottabad, Thakot, Chilas, Gilgit,
Aliabad, Sust, Khunjerab Pass, Kashgar
 The importance Karakoram Highway
 Chinese companies
 Tourism in Pakistan
 Transportations

 Objectives :
i. Chinese access to the Indian Ocean with the aim of widening its
geopolitical influence and military presence in the region
ii. Job opportunities and economic development in Baluchistan
iii. Increased Chinese investment
iv. Regional peace, prosperity and improvement in the life of poor
people of South Asia
v. Enhanced trade among Pakistan, China, Gulf States, Central Asia
and Africa
vi. Chinese interest to extend the Iran-Pakistan pipeline to its
western territory
vii. Expand trade with Afghanistan
viii. Expand trade with Russia by providing trade route till Gwadar
port
ix. Development of infrastructure along Pakistan

 Objectives :
x. Development of western China
xi. Influencing International Market
xii. Development of Western and Southern parts of Pakistan
xiii. Job opportunities
xiv. Take full advantage of preferential trade agreement(PTA)
and free trade agreement (FTA)

Chinese Proposed
Route
(Western route )

Game Changer
(New Route)

Game Changer
(New Route)

Comparison
Between New
and Old Route

Pakistan China Economic Corridor

Importance to China
 Easy Accessibility
 Middle East
 Afghanistan
 Export goods
 Defense
 Trade
 Middle East , Afghanistan , Central Asia
 Can benefit new emerging regional cooperation
 Save time, cost and freight charges

Importance to Pakistan
i. Strategic and Economically important
ii. Trade Route
iii. Development of Infrastructure
iv. Connecting all the Provence
v. Development of FATA, KP and Baluchistan
vi. Job opportunities
vii. Facilitate trade, have Economic Zones en-route and will allow
reaping of full benefits of development, economic and social
uplift
viii. Pakistan can avail great opportunities from China’s expertise in
various sectors like energy, Technology and Education sector
ix. Pakistan and China both collectively target the half of the
population of the world, it will provide great opportunity for
both countries to expend their market
Effects of Economic Corridor
 Positive effects on the following countries :
 Pakistan , China , Afghanistan , C. Asian Countries .
 By developing this route, Gawadar will beat:
i. India (Port Mumbai )
ii. Iran (Port Abbas, Chabahar)
iii. Oman (Preparing to construct a new port)
iv. U A E (value will decrease )
 Increase the economic collaboration between both
countries by connecting western China to Gwadar
 Regional stability in Asia as well as whole world
 Pakistan economy will Boost
Disadvantages
i. FTA leads to threat for local markets and local
manufacturers
ii. Disturbance of local industries
iii. Difficult to compete with China’s products
iv. Increased unemployment
v. Dependence on China

“Our friendship is “higher than the mountains,
deeper than the oceans, stronger than steel, dearer
than eyesight, sweeter than honey”.
Pakistan China Friendship

Economic Gateway Gwadar
 On 8 September 1958 Prince Aga Khan Karim purchased the Gwadar
enclave from Oman for $3 million, and gave it to Pakistan and it officially
became part of Pakistan.
 Gwadar Port is located at the mouth of the Persian Gulf.
 Gwadar is a planned free trade port.
 Gwadar Port is a strategic developed jointly by the both countries.
 National Highway Authority (NHA) began construction of the 653 km-
long Makran Coastal Highway linking Gwadar with Karachi.
 In 2004, Pakistan's NHA began construction of the 820-km long M8
motorway linking Gwadar with Ratodero in Sindh province Turbat,
Hoshab, Awaran and Khuzdar.
 In 2007 Civil Aviation Authority of Pakistan acquired 6,000 acres (17-24
km2) to construct a new greenfield airport, at an estimated cost of Rs
7.5 billion.

Gawadar Economic Zone
 GDA was established to promote industrial activities in mega
port city of Gwadar.
 China focused on the fast-track construction of roads, other
infrastructure and public buildings.
 In 2013, Gwadar Port operations were officially handed over
to China.
 To connect china with Gwadar through railway track has
already begun.

Development of Pak-China Corridor
 Gwadar-Khunjerab-Kashgar rail network.
 connecting the maximum number of population through a
network of highways and railways.
 Six-lane motorway to be built from Karachi to Lahore.
MoU’s signed with China.

Huge difference between Balance of payment
Trade deficit
Pakistan-China
trade increased by Trade Deficit
28.9% to a total of
US$ 12.4 billion in
2017.
3.14
China export to
Pakistan is $14.7
billion
Pakistan’s export 9.2
to china is $5.3
billion
Wednesday, January 31, 2018
Gwadar Port
Current Affairs by Asmatullah Junejo, PSP 37
Location
 Located at the entrance of the Persian Gulf and about 460
kms from Karachi .
 Gawadar is located on the western end of coast of
Balochistan and have 600 K m long coastline along the
Mekran coast of the Arabian Sea.
 In 1965, the government of Pakistan constituted a five
members committee headed by Rear admiral (Retd) Akbar
H. Khan.
 The committee identified eight possible sites that were
Gadani, Somiani, Ormara, KhorKalmat, Pasni, Hingol,
Gawadar, and Jiwani.

Benefits
 Besides the Geostrategic importance mentioned
earlier, some of the evident economic benefits of the
development of Gwadar Port are:
i. Capitalize on opportunities for trade with landlocked
Central Asian States and Afghanistan
ii. Promote trade and transport with Gulf States.
iii. Trans-shipment essentially of containerized cargo.
iv. Unlock the development potential of hinterland.

Benefits
v. Diversion of influx of human resources from up country to
Gwadar instead of Karachi.
vi. Economic uplift of the province of Balochistan.
vii. Establishment of shipping related industries.
viii. Oil storage, refinery and petrochemicals
ix. Export Processing and Industrial Zones
x. Reduce congestion & dependency on existing Ports Complex
at Karachi/PQA.
xi. Will become a Regional Hub for major trade and commercial
activities.
xii. Serve as an alternate port to handle Pakistani trade in case of
blockade of existing ports.
xiii. To help the PN.
Construction & Operations
 Contract made with Port of Singapore Authority
(PSA) for Management of the Port in March 2007
 Under the Contract Terms PSA was to invest
US$550m over 5 year period for expansion of Port
 In Jan 2013, the PSA pulled out of the contract.
 In Feb 2013- The ‘management and operation’ of
Gwadar port was handed over to China Overseas
Port Holding Company (COPHC).

Importance of Gawadar
 Geo-strategic Location
 Situated near Persian Gulf, at the mouth of the
strategically important ‘Strait of Hormuz’:
i. 35% of world oil (17 million barrels per day)
passes.
ii. 14 tankers per day passed out of the Persian Gulf
through this Strait
iii. Destinations of Oil are North America, Europe,
Africa, South, Central and Far-East Asia
 Located outside the Persian Gulf so not affected by
the events of this volatile region.

Geo-Strategic Position of Gwadar

Importance & Benefits
i. Strategic & Military point of view
ii. Enormous Economic gains for Pakistan
iii. Economic and social uplift of Baluchistan
iv. The Chinese Interest

• Strategic & Military Importance
i. Close proximity of Karachi Port and Bin Qasim
Port to India
 Gwadar - 450 km west of Karachi
ii. Pakistan’s enhanced importance in the region

iii. Monitor Sea Lines of Communication (SLOC)
iv. Keep an eye on US fifth navy fleet

• Economic Benefits
i. Need of second port city – Karachi and PQ not able to
handle increased trade volume
ii. Share in international transshipment cargo
iii. Free zone to promote international trade – Export
reprocessing industries.
iv. Foreign investment in Special Economic Zones
(SEZ’s)- special incentives by Govt.
v. Critical hub for transit goods to and from Pakistan,
Central Asia and points to the North/West China

• Benefits for Baluchistan
i. Trigger Socio-economic development in Baluchistan
through promotion of trade & industry in adjoining
areas of Gwadar
ii. Alleviate sense of deprivation of the people of
Baluchistan
iii. Export of rich mineral resources of Baluchistan
iv. Promotion of fish & allied industry leading to improved
employment and income generation
v. Overall Gwadar deep sea port is expected to create 2
million jobs with major share for Baluchistan

• The Chinese Interests
i. Shorter Oil supply route (60% of
its Oil passes through Persian
Gulf)
ii. A pipeline from Gwadar could
funnel crude imports to Eastern
China through Xingjian.

The Chinese Interests
• Reducing the risk of choking oil supplies
Oil Trade Choke Points

Wednesday, January 31,
2018 Current Affairs by Asmatullah Junejo, PSP 51
The Chinese Interests
 “Go West” policy of the Chinese Government
 Check on Sea Lines of Communication
 Chinese naval presence to challenge Indian & US
domination in Indian Ocean

The International Issues & Challenges
i. Competition with Regional Ports like Dubai, Salalah
(Oman), Chahbahar (Iran)
ii. Indian domination
iii. The Sino-Indian rivalry for domination
iv. Indian perceived involvement in Baluchistan
insurgency
v. US displeasure
i. Chinese presence near Indian ocean, and challenges to
Indian domination
ii. Iran-Pakistan Gas pipeline & Gwadar Oil Refinery

The Internal Issues & Challenges
 The insecurity in Baluchistan, and Baloch insurgency:
i. Killing of Chinese engineers
ii. Attacks on security forces
iii. Target killing of settlers/laborers of other provinces
iv. Attacks on gas & electrical installations
v. Element of foreign support & funding

The Internal Issues of Baluchistan
Economic Role of
Insurgency Sectarianism
Deprivation Agencies/FC
Natural Missing Forced Hazara

Resources persons Disappearances
exploitation
Killings
Bullet riddled
Apprehensions bodies Independent
regarding of political Lashkar-e-
oversight Jhangvi
Gwadar Port
Exiled
leadership
Fear of Promotion Indifference
change in of criminal of Security
Demography Foreign Hand proxies apparatus
……………
Port
West Bay East Bay

Gwadar City
Wednesday, January 31,

2018 Current Affairs by Asmatullah Junejo, PSP 57
Conclusion
 Gwadar Port enjoys an important position in the world trade
map, and holds strategic, military and economic potential
 The awarding of contract to China would leverage Pakistan’s
position.
 The people of Baluchistan would equally benefit with this
project.
 Challenging domestic and international impediments exist
for achieving this potential.

Conclusion
 No trade or economic benefit without
restoration of peace in Baluchistan specially in
areas adjoining Gwadar.
 Strong political will, vision and proactive
diplomacy needed to overcome the challenges.
 Infrastructure is basic ingredient for attracting
and facilitating trade.

Recommendations
 Top priority to Development of Infrastructure:
i. 2nd phase of port development to accommodate
Containerized cargo and mother vessels
ii. Rail and road network for connecting Gwadar with rest of the
country (through Khuzdar - Rato dero route to Punjab)
highway as well as to Karakoram highway, and with Quetta
iii. 120 KV Transmission line from Iran
iv. Resolution of water issue through Desalination plants
 Early relocation of the affectees of Gwadar port by-pass
 Early allotment of land for establishment for EPZs and
SEZs.

Recommendations
 For a commercially viable International Port shipping
companies be given incentives such as low port charges,
efficient through put, Transshipment facilities etc.
 Amicable resolution of grievances of local population
 Constitutional guarantees to safeguard the interest of

native population
 Strengthen the provincial government of Baluchistan to
tackle the law and order situation
 Address concerns of India & US regarding Chinese
involvement through proactive diplomacy

Recommendation
 Pakistan should create stability in its territory for
implementation on that plan
 To make positive balance of trade Pakistan should increase
exports of:
i. Agriculture products
ii. Textile products
iii. Leather
 Restriction on that commodities which is harmful for our
industries
 To make a frame work to use Domestic currency for trade
(barter system)
 Develop auto industries rather than focusing on import
parts.
Recommendation
 Make efforts to diversify market in China
 Security issues, law and order system are main obstacles in the
way of Pak-china economic corridor
 Pakistan should develop the training centers and Chinese

language centers in order to make effective communications

Latest Version

Class Discussion
would infringe the sovereignty
of Pakistan in future.
Agree Disagree

Thank
You
Please contact for Queries
Asmatullah Junejo (PSP)
Senior Superintendent of Police, Rawalpindi
0300-7064608
asmatullahjunejo@hotmail.com

Current Affairs by Asmatullah Junejo, PSP: Wednesday, January 31, 2018

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Current Affairs by

Asmatullah Junejo, PSP

 Pak-China Economic Corridor

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 3

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 7

 Corridors may be developed within a country or

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 8

 Strategic alliance was formed in 1972 and economic co-

 China has invested $20 billion in various projects

 Mega infrastructural projects in Pakistan

 Gwadar Port, the Coastal-Highway linking Karachi with

Gwadar, Karakoram Highway, the Chashma nuclear power

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 9

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 10

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 11

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 12

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 14

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 16

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 18

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 19

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 20

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 23

ii. Disturbance of local industries

iii. Difficult to compete with China’s products

iv. Increased unemployment

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 28

deeper than the oceans, stronger than steel, dearer

than eyesight, sweeter than honey”.

Pakistan China Friendship

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 31

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 32

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 33

Pakistan’s export 9.2

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 38

ii. Promote trade and transport with Gulf States.

iii. Trans-shipment essentially of containerized cargo.

iv. Unlock the development potential of hinterland.

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 41

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 43

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 44

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 45

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ii. Pakistan’s enhanced importance in the region

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 47

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 48

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Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 50

Oil Trade Choke Points

 Check on Sea Lines of Communication

 Chinese naval presence to challenge Indian & US

domination in Indian Ocean

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 52

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 53

i. Killing of Chinese engineers

ii. Attacks on security forces

iii. Target killing of settlers/laborers of other provinces

iv. Attacks on gas & electrical installations

v. Element of foreign support & funding

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 54

Natural Missing Forced Hazara

West Bay East Bay

Wednesday, January 31, 2018 Current Affairs by Asmatullah Junejo, PSP 56

Wednesday, January 31,