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Pakistan and China Open CPEC to Third-Party Stakeholders

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Pakistan’s Ambassador to China, Moinul Haque, announced that third-party stakeholders are being invited to join the China-Pakistan Economic Corridor (CPEC) projects. This was conveyed during his recent interview with China’s state broadcaster, CCTV.

The Pakistani envoy said, “Our two countries have agreed to invite third parties to participate in this project. We are also working to extend it to Afghanistan.”

Mr. Haque underscored CPEC’s pivotal role in Pakistan’s economic landscape, highlighting its new projects’ contribution of nearly 8,000 megawatts of energy to the nation’s grid. He stated that this has been instrumental in addressing the needs of everyday consumers and industries.

However, the announcement comes against the backdrop of a recent report by Nikkei Asia, which highlighted China’s apparent reluctance to endorse new Pakistani project proposals under the Belt and Road Initiative.

Pakistan’s proposed projects covered areas such as energy, climate change, electricity transmission, and tourism. However, Beijing reportedly declined these proposals. Notably, Beijing rejected Islamabad’s request for a transmission line connecting Gwadar to Karachi and insisted on retaining a coal-fired power plant in Gwadar, against Islamabad’s wishes.

The backdrop to these economic deliberations is China’s increasing security concerns in the Balochistan region. The Baloch Liberation Army (BLA), an armed “pro-independence” group, has orchestrated several targeted attacks against Chinese interests. A notable recent attack in August saw a convoy of Chinese engineers in Gwadar targeted by the Baloch Liberation Army’s Majeed Brigade, resulting in significant casualties, including Chinese nationals.

Following this attack, the BLA issued a warning to China, setting a 90-day deadline for its withdrawal from Balochistan. In a subsequent video message, the BLA leader, Bashir Zeb Baloch, pressed global powers, with an emphasis on China, to reconsider their investment decisions in the region.

In light of these developments, Beijing’s shift in strategy, from turning down new projects to now welcoming third-party stakeholders into CPEC, appears significant. It suggests China’s growing unease over CPEC’s long-term prospects, especially considering the unrest in Balochistan. Such a decision might aim to mitigate direct exposure, spreading potential risks across more stakeholders. It’s a clear indication of the multifaceted challenges China grapples with in the region.

SourceTBP

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