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“The CPEC will give an unprecedented boost to China and Pakistan's bilateral trade,” said Nasir Ali Shah Bukhari, the Chairman of KASB Group of Companies and the Senior Fellow of the Global Think Tank Network of the National University of Sciences & Technology, Pakistan, in an exclusive interview with the Asia Pacific Daily days before the Beijing Forum-Islamabad.
Cooperating with the NUST, the Beijing Forum is to establish its first flagship overseas chapter during May 24 to May 26 in Islamabad. Established in 2004, the Beijing Forum is an annual event aims to promote the study of humanities and social development as well as provide assistance in international academic exchange for encouraging social development in Asia, harmony between societies, and greater prosperity for all of mankind.
Nasir Ali Shah Bukhari told APD that industrial and agricultural productions would be generated inside Pakistan in 29 industrial parks and 21 processing zones all over the country during the first phase of the CPEC’s projects.
APD: This year's Beijing Forum-Islamabad is the first step of the Forum's strategy of "going out", while the year 2016 marks the 65th anniversary of the establishment of diplomatic relations between China and Pakistan. How do you evaluate the importance and value of holding such a forum in present and what outcomes do you expect for this forum? How will China and Pakistan develop their traditional friendship in the context of the contemporary economic and social cooperation?
Nasir Ali Shah Bukhari: It is a great honor for the National University of Science & Technology, Pakistan to host the first ever Beijing Forum out of China. It has major implications for success of CPEC. The theme of the forum this year is “China and Pakistan in the Community of Common Destiny of All Mankind”. It encourages fostering social development, harmony between civilization and greater prosperity for mankind.
China and Pakistan are twined through nature for millions of year as our source of life Indus River comes out of Lake Mansarovar in China. Thus nature has destined China and Pakistan to work for greater prosperity of mankind. In future, much of China’s sea-borne trade would go through Gwadar Port via land access into western China.
Confluence of Indus River. File Photo
Pakistan is entering into a new phase of economic development. China is a rising economic power and a neighbor of Pakistan. Pakistan could benefit from China’s US$ 11 trillion economy and world’s largest in Purchasing Power Parity (PPP). The current Chinese model is the result of its surplus wealth. The two countries enjoy cordial relations in all fields since the 1950s. An opportunity is just knocking at Pakistan’s door, where this is a game-changer and will reap benefits.
In the future, Pakistan will be fully loaded with industrial parks and processing zones. The backward and remote areas will receive a large chunk of these zones in the second phase. Pakistan exports in the current fiscal year are around US$ 17 billion. The CPEC would be an opportunity to increase Pakistan’s exports.
APD: Concerning China's Belt and Road Initiative, what are the opportunities and challenges do you suggest for both countries?
Nasir Ali Shah Bukhari: The CPEC has indirect strategic implications as new centers of economic cooperation would emerge for the region encompassing Africa, Middle East and Central Asia. The CPEC has direct bearings on the economy of Pakistan and China. Chinese Government has made CPEC part of its current Five-Years Plan and many early harvest projects will be completed by 2018-2020, which will give a new boost to CPEC projects to be undertaken in the second phase up to 2030.
The Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline was kicked-off in December and CASA-1000 in May. The Iran-Pakistan (IP) is underway. China has committed US$ 2.5 billion to Pakistan complete the IP project as sanctions were removed on Iran. All these three energy grids are powerful addition to energy projects under the CPEC as it gives a new energy shape to Pakistan as regional energy grid provider between Central Asia and South Asia. Afghanistan being a part and parcel of these agreements guarantees sustainability of these agreements. In this context, the CPEC has been achieving its desired results and moving fast.
Nasir Ali Shah bukhari, Chairman KASB Group of Companies and Senior Fellow of NUST GTTN
APD: How do you think the development of China-Pakistan Economic Corridor would benefit both countries, and what obstacles do you find for Chinese investors in Pakistan?
Nasir Ali Shah Bukhari: China-Pakistan Economic Corridor would benefit both countries. There are ambitious plans to set up Industrial zones. New universities will be built focusing on Chinese language and culture and the revival of the ancient Silk Road on modern lines. The universities will be part of the knowledge corridor.
Agriculture would be modernize specially on Chinese technology of agro-chemicals, pesticides, seeds, fertilisers, and research would be provided to farmers in Pakistan as disclosed at an expo held in Lahore recently. Chinese Agri-technology and cooperative farming would revolutionize Pakistani agricultural production on Chinese pattern.
This would be having positive impact on Pakistan’s trade with China, which is accumulates US$ 5 billion deficit at present. In spite of unique diplomatic and political friendship, Pakistan’s trade with China had remained in doldrums from 1950s to 2007.
When both countries signed trade agreement in 1963, bilateral trade stood only US 29 million. Bilateral had trade increased to US 400 million in 1980.At the time they inked Free Trade Agreement (FTA) in 2007, trade was recorded US$ 7.5 billion. It is doubled now. The FTA is now in the second phase, which will remove duties up to 90 percent.
However, there are still risks for implementation of this grand ambitious plan of CPEC. Pakistan must set up an independent implementation body to ensure its continuity even if there is a change of government in Pakistan.
Chinese business community is growing fast in all key cities in Pakistan. You can witness the growing number of Chinese community in the Malls and shopping places. They are truly welcomed and the love and friendship is evident by the people on the streets.
APD: Closely related to the Belt and Road Initiative, the CPEC is regarded as the link between China's maritime and overland Silk Road, with the port of Gwadar forming the crux of the CPEC project. With the increasing interests of Chinese investors, concerns on security and policy follow. What do you think on these issues?
Nasir Ali Shah Bukhari: China has over US$ 5 trillion sea-borne trade passes through the South China Sea where the Straits of Malacca is a choke point. In future, much of China’s sea-borne trade would go through Gwadar Port via land access into western China.
Chinese President Xi Jinping,left, shakes hands with Pakistani President Mamnoon Hussain in Islamabad, Pakistan, April 21, 2015. Photo: Xinhua
This introduces a new dimension in China’s global trade. Pakistan would become a Suez Canal for China’s trade in the Middle East, providing it an alternative access as a friendly state to address its future vulnerability in the South China Sea.
In return, the economy of Pakistan would be transform from US$ 237 billion to much larger economy. The World Bank’s latest report sees positive growth of Pakistan’s economy under the CPEC investment. President Xi Jinping considers Pakistan as an important partner of the Belt and Road Initiative.
Pakistan Army has guaranteed security for CPEC projects. A new division of Pak Army has been set with 28,000 strong men. This is indeed a major initiative by General Raheel Sharif, Chief of Army Staff. During his recent trip to China both sides have further committed to ensure safety and security of CPEC as a corner stone for its success.
Pakistan is sincerely committed to the CPEC and making adequate measures to implement CPEC’s projects.
(APD)
