True, the Balochistan province government in Pakistan has expressed worries about the CPEC, claiming that their portion of CPEC investment is quite low. However, the recent provision of $1 billion for social development in Balochistan by Pakistan's planning, development, and reform minister has allayed those fears.
To address Balochistan's problems, Pakistan's finance minister stated that industrialization would be accelerated in the province in order to alleviate poverty and improve the local people's living standards.
Gwadar has the potential to strengthen the economy of Balochistan.
Balochistan, with a population of over 12 million people, is a critical component of the CPEC since it is home to the Gwadar port. The province covers 347,190 square kilometres, or nearly 44% of Pakistan's total land area. It may be a dusty and arid location, but it is Pakistan's richest province in terms of natural resources. Despite this, more than 53% of Balochistan's population lives in poverty, and the province has a low literacy rate of around 29% and an unemployment rate of nearly 33%.Despite its natural resources, Balochistan lacks both trained and unskilled labour, as well as the capital needed to develop an industrial foundation and accomplish the much-desired economic breakthrough that would lift the poor out of poverty and improve their living conditions.
So, what steps should be taken to turn Balochistan's fortunes around?
To begin with, the CPEC has the potential to transform the situation due to China's determination to invest in Balochistan, particularly in the Gwadar port, road connection projects, and industrial zones. Within a few years, the CPEC's projects would permit significant economic activities, resulting in the creation of jobs and the expansion of businesses, all of which would improve the local people's living conditions.
Central Asia and the Persian Gulf are both accessible from here.
Gwadar, on Pakistan's southwestern coast, is located on an isthmus in the Arabian Sea. As a result, it serves as a gateway to both the Persian Gulf and Central Asian countries, eventually connecting 64 Asian and European countries. It's no surprise that it's been dubbed the "standalone cornerstone" of the CPEC and China's Belt and Road Initiative.
Gwadar has all the characteristics to become a regional commerce and transportation hub, as well as an international seaport, due to its ideal geographical location, economic and geostrategic importance. The projected planning and development period for Gwadar is from 2017 to 2050, with the short-term plan running from 2017 to 2025, the medium-term plan running from 2026 to 2035, and the long-term plan running from 2036 to 2050.Gwadar port, according to the Pakistani government's plans, will benefit from the "blue economy" by investing more than $824 million in 12 projects. Saudi Arabia has also committed to invest additional $6-10 billion in the CPEC's proposed Gwadar Oil City project and petrochemical chain.
Some roads have already been constructed, while others are in the planning stages. China has also promised to build a 1,320-megawatt coal-fired power plant in Gwadar for $1.9 billion by 2020, and has proposed a 300-megawatt coal-fired facility.
Possibility of becoming a world tourism destination
Balochistan has an undeveloped seacoast that has the potential to become a global tourism destination, attracting large amounts of foreign direct investment. Balochistan's natural riches remain largely undeveloped due to a lack of cash, while "rat-hole" mining is wasting some exposed mineral deposits.
According to preliminary geological surveys, the region may contain rare earth, precious and semi-precious metals, industrial minerals, and a variety of stones, including onyx, which could provide a substantial foundation for the establishment of processing and manufacturing plants to produce export-quality value-added products. Despite some local grievances, the construction of the Gwadar port and infrastructure facilities such as road networks would stimulate the local economy and hence enhance people's living standards not only in Balochistan but throughout Pakistan. It is critical to underline that all CPEC parties agree on the construction of the Gwadar port.
However, it is inevitable for some people to question the need for a massive economic initiative like the CPEC, either owing to naivety or a lack of knowledge of the outcomes.
External opposition to CPEC and BRI exists.
External influences are misinforming certain people about the CPEC and the Belt and Road Initiative, encouraging them to believe the projects would not benefit them because they do not want the Gwadar project to be completed. However, such false narratives have been stifled by the governments of Pakistan and China, as well as media outlets, civil society, think tanks, and academics. The Pakistani government is also eager to level the playing field for local businesses by enacting appropriate tax reforms to help the region thrive. Nonetheless, rapid government engagement would go a long way toward assuaging local business anxieties. In addition, timely reforms in various sectors, together with the acceleration of CPEC projects, will allay local firms' concerns and attract more international investment.
The Chinese government said it was committed to expediting work on Gwadar international airport and establishing vocational and technical training after the 8th Joint Cooperation Committee of the CPEC met in Beijing on December 20, when the Pakistani planning, development, and reform minister announced the allocation of a $1 billion development fund for Balochistan.
Many countries are interested in investing in Gwadar.
After five years, the CPEC has given Pakistan such economic leverage that Saudi Arabia and the United Arab Emirates are keen to invest in Gwadar and other parts of Pakistan. Malaysia, Turkey, Russia, as well as Central Asian and European countries, are all interested in investing in the CPEC.
People in Balochistan, on the other hand, should be aware that economic projects take time to yield fruit, thus patience and unity are required. They should also be aware that the CPEC, which includes the Gwadar project, has the potential to transform Balochistan into a Pakistani economic success story. It's also worth noting that the Pakistani and Chinese governments must work together to counter the harmful propaganda of some external groups who are using Balochistan's "depravity" to cause some locals to doubt the CPEC's benefits. The Pakistani government should also plan a mass media campaign to educate the public on the CPEC's long-term benefits and the importance of a peaceful and prosperous Balochistan, without which the CPEC's "all-inclusive" slogan will lose its meaning.
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