There has been some confusion regarding the total economic benefits to Pakistan as a result of the Wen visit. The “Global Times” of China estimated the total value of the various agreements signed as about US $ 10 billion, but the Pakistani media, briefed by Pakistani officials, has given the figure as US $ 35 billion. After going through the welter of confusing reports from Pakistan on the economic benefits to Pakistan, one can assess as follows:
- Immediately after the floods, China had pledged US $ 250 million as grants as flood relief. Wen has pledged another US $ 400 million as low-interest loans for the reconstruction of the flood-ravaged infrastructure.
The “Global Times” of China estimated the total value of the various agreements signed as about US $ 10 billion, but the Pakistani media, briefed by Pakistani officials, has given the figure as US $ 35 billion.
- Among the infrastructure reconstruction projects to be given priority is the repair, upgradation and recommissioning of the Karakoram Highway from Xinjiang. The National Highway Authority (NHA) of Pakistan and the China Road and Bridge Corporation (CRBC) signed an agreement for the reconstruction/rehabilitation of a portion of the Karakoram Highway (KKH) which had been damaged at a cost of $275 million. NHA Chairman Altaf Ahmed Chaudhry and CRBC President Wen Gang signed the agreement on behalf of their respective organisations. While talking to reporters, Chaudhry said that heavy landsliding at Attaabad on the Karakoram Highway had blocked the flow of the River Hunza, which resulted in the formation of a lake at the site. The lake submerged a 25 kilometre-long section of KKH, resulting in suspension of traffic and all other activities in the area. The CRBC was already engaged in widening and rehabilitation of the Raikot-Khunjerab section of the KKH. Following a survey, the CRBC has said that a section of the road could be reclaimed by bringing down the water level in the lake by 30 metres. A new alignment will have to be made for the rest of the portion. Chaudhry said that a 17-kilometer-long road will be constructed on a new alignment while a 7 kilometre-long section will be rehabilitated. The project will be completed in two years. He said the project includes construction of two tunnels having a length of 4,485 metres and 1,225 metres. He added that seven large and two bridges and 70 culverts will also be built. ( From the “Daily Times” of Lahore)
- According to a list of Chinese-aided projects handed out to journalists by Pakistani officials, the biggest deal to receive Chinese assistance would be worth $6.5 billion to develop wind and solar power. There was no specific reference to the Chinese assistance for the construction of three more nuclear power stations. The Chinese proposal in this regard is still to be approved by the Nuclear Suppliers’ Group. Despite this, the Chinese suppliers of the new power stations are going ahead with their preparatory work such as preparation of designs.
- Pakistani officials told their media that Pakistan and China have agreed in principle to constitute a consortium for seeking a soft loan from international institutions for laying a railway line between the two countries through the Khunjerab Pass. It is not clear why China is not providing the funds for this as it has done in the case of the railway lines being constructed by it in Myanmar. China had strongly opposed in the Asian Development Bank a proposal for a soft loan for some Indian hydel power stations in Arunachal Pradesh. India should strongly oppose any proposal for financial assistance to the proposed railway line from any international or regional institution.
- There was no reference during Wen’s visit to the Pakistani proposal for the construction of oil/gas pipelines from the Chinese-constructed Gwadar port to Xinjiang. The Chinese continue to be hesitant to make fresh commitments in Balochistan due to the security problems in the area.
The relatives of 350 Pakistani nationals languishing in jails in China held a demonstration in Peshawar on December 18 to demand the release of their relatives by the Chinese authorities. They have been arrested and jailed by the Chinese authorities for illegally entering Xinjiang and for indulging in narcotics smuggling. Many of those arrested for narcotics smuggling have been sentenced to death by Chinese courts.
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