KARACHI: China is poised to take over operational control of a strategic deep-water Pakistani seaport that could serve as a vital economic hub for Beijing and perhaps a key military outpost, according to officials.
The construction of the port, in the former fishing village of Gwadar in troubled Baluchistan province, was largely funded by China at a cost of around $ 200 million. It has been a commercial failure since it opened in 2007, because Pakistan never completed the road network to link the port to the rest of the country.
Chinese control of the port would give it a foothold in one of the world's most strategic areas and could unsettle officials in Washington, who have been concerned about Beijing's expanding regional influence.
The port on the Arabian Sea occupies a strategic location between South Asia, Central Asia and the Middle East. It lies near the Strait of Hormuz, gateway for about 20 percent of the world's oil.
China's interest is driven by concerns about energy security as it seeks to fuel its booming economy. It wants a place to anchor pipelines to secure oil and gas supplies from the Gulf. Beijing also believes that helping develop Pakistan will boost economic activity in its far western province of Xinjiang and dampen a simmering, low-intensity rebellion there.
Some experts view Gwadar as the westernmost link in the "string of pearls," a line of ports from China to the Gulf that could facilitate expansion of the Chinese Navy in the Indian Ocean. That has sparked concern in both the US and India.
Pakistan's Cabinet agreed Wednesday to a proposal for a company owned by the Chinese government, China Overseas Port Holdings Limited, to purchase control of the port from Singapore's PSA International Pte Ltd., which won a bid in 2007 to operate the port for 40 years. The transaction has not yet occurred, a spokesman for Pakistan's Ministry of Ports and Shipping, Mohammed Raza, said yesterday.
Pakistan views China as one of its most important allies and a counterweight to the United States, which has given Islamabad billions of dollars in aid but is often viewed as a fickle taskmaster.
China is expected to pay $ 35 million for control of the port to PSA and two other groups that own an interest, said Aqeel Karim Dhedhi, one of the other shareholders. The third shareholder is the National Logistics Cell, which is controlled by the Pakistani army. The Chinese are waiting for a Pakistani court case challenging PSA's control of the port to be dismissed to complete the transaction, Dedhi said.
A senior Pakistani official said Beijing has agreed to spend hundreds of millions of dollars to finish a 900-km (550-mile) road that would link the port with Pakistan's north-south Indus Highway, facilitating overland transport from Gwadar to China. The Pakistani government was supposed to complete the road in 2012, but it is only 60 percent finished, said the official, speaking on condition of anonymity because he was not authorized to talk to reporters.
It will still be a tough drive, passing along the Karakorum Highway that winds through the rugged mountains of northern Pakistan and then into Xinjiang province via a border crossing point at an elevation of 4,693 meters (15,397 ft). The path is often blocked by snow in winter.
Even so, the route will cut the overland distance from China's western provinces to the sea in half, from about 4,000 km (2,500 miles) to China's east coast, to just 2,000 (1,250 miles) south to Gwadar.
Longer-term plans also call for road and rail links from Gwadar that would pass through strife-torn Afghanistan to energy-rich Central Asian states.
Asked about the port on Thursday, Chinese Foreign Ministry spokesman Hong Lei said, "As long as projects are conducive to China-Pakistan relations, the Chinese side will positively support them."
The port is operating at only about 15 percent capacity now, and machinery originally installed by China is rusting for lack of use, said a Pakistani port worker, speaking on condition of anonymity.
On a purely economic basis, the level of trade through the port should be zero because of its drawbacks, but the government is spending millions of dollars in subsidies to ship fertilizer through the facility. It would be cheaper to send the shipments through the coastal city of Karachi, 700 km (430 miles) to the east, the worker said.
Some government officials have claimed that violence in Baluchistan has prevented them from completing the road network. Baluch nationalists have waged a decades-long insurgency against the government, demanding greater autonomy and a larger share of the province's natural resources.
Gunmen shot to death two Pakistani air force personnel and a shopkeeper in a town near Gwadar on Tuesday, said local police official Izat Ali.
Other officials said the ruling Pakistan People's Party simply shifted priorities away from Baluchistan and spent the money building roads in its main areas of support in Sindh province.
"The solution to Gwadar is the Chinese, since they have shown the willingness to work in Pakistan under tough conditions," said shareholder Dhedhi.
FROM: THE ASSOCIATED PRESS
China poised to control strategic Gwadar port
China poised to control strategic Gwadar port
EU needs to keep up dialogue with Israel, Dutch foreign minister says on Borrell proposal
- Disagreeing with the EU’s top diplomat who proposed to pause the dialogue with the country
European Union foreign policy chief Josep Borrell last week proposed that the bloc suspend its political dialogue with Israel, citing possible human rights violations in the war in Gaza, according to four diplomats and a letter seen by Reuters.
Pakistan’s top cleric says use of VPNs is against Islamic laws as the government seeks to ban them
- VPNs are legal in most countries, however they are outlawed or restricted in places where authorities control Internet access
- Million of Pakistanis have been unable to access the X social media platform since February 2023
Raghib Naeemi, the chairman of the Council of Islamic Ideology, which advises the government on religious issues, said that Shariah allows the government to prevent actions that lead to the “spread of evil.” He added that any platform used for posting content that is controversial, blasphemous, or against national integrity “should be stopped immediately.”
Million of Pakistanis have been unable to access the X social media platform since February 2023, when the government blocked it ahead of parliamentary elections, except via VPN — a service that hides online activity from anyone else on the Internet
Authorities say they are seeking to ban the use of VPNs to curb militancy. However, critics say the proposed ban is part of curbs on freedom of expression.
VPNs are legal in most countries, however they are outlawed or restricted in places where authorities control Internet access or carry out online surveillance and censorship.
Among users of VPNs in Pakistan are supporters of the country’s imprisoned former Prime Minister Imran Khan, who have called for a march on Islamabad on Sunday to pressure the government for his release.
Pakistan often suspends mobile phone service during rallies of Khan’s supporters. But Naeemi’s weekend declaration that the use of VPNs is against Shariah has stunned many.
Naeemi’s edict came after the Ministry of Interior wrote a letter to the Ministry of Information and Technology asking for the VPN ban on the grounds that the service is being used by insurgents to propagate their agenda.
It said that “VPNs are increasingly being exploited by terrorists to facilitate violent activities.” The ministry also wants to deny access to “pornographic” and blasphemous content.
Last week, authorities had also asked the Internet users to register VPNs with Pakistan’s media regulator, a move which will allow increased surveillance on the users of Internet.
Pakistan is currently battling militants who have stepped up attacks in recent months.
On Friday, a separatist Baloch Liberation Army group attacked troops in Kalat, a district in Balochistan province, triggering an intense shootout in which seven soldiers and six insurgents were killed, according to police and the military. The BLA claimed the attack in a statement.
Masked men break into UK’s Windsor Castle estate, The Sun reports
King Charles and his wife Camilla were not in the estate at the time of the incident but Prince William and his family were believed to be at Adelaide Cottage, part of the Windsor Castle estate, the Sun reported.
The men used a stolen truck to break through a security gate at night and then scaled a six-foot fence, the paper said.
Local police said officers were called to a report of a burglary on Crown Estate land in Windsor, west of London, just before midnight on Oct. 13.
“Offenders entered a farm building and made off with a black Isuzu pick-up and a red quad bike. They then made off toward the Old Windsor/Datchet area,” Thames Valley Police told the newspaper. “No arrests have been made at this stage and an investigation is ongoing.”
Windsor Castle previously faced a security scare in 2021 when authorities arrested a man with a crossbow in the grounds of the castle who said he had wanted to kill Queen Elizabeth.
Disgraced Singapore oil tycoon sentenced to nearly 18 years for fraud
- Lim Oon Kuin was convicted in May in a case that dented the city-state’s reputation as a top Asian oil trading hub
- His firm was among Asia’s biggest oil trading companies before its sudden and dramatic collapse in 2020
SINGAPORE: The founder of a failed Singapore oil trading company was sentenced Monday to nearly 18 years in jail for cheating banking giant HSBC out of millions of dollars in one of the country’s most serious cases of fraud.
Lim Oon Kuin, 82, better known as O.K. Lim, was convicted in May in a case that dented the city-state’s reputation as a top Asian oil trading hub.
His firm, Hin Leong Trading, was among Asia’s biggest oil trading companies before its sudden and dramatic collapse in 2020.
Sentencing him to 17 and a half years in jail, State Courts judge Toh Han Li said he agreed with the prosecution that the offenses had the potential to undermine confidence in Singapore’s oil trading industry.
The amount involved “stood at the top-tier of cheating cases” in the city-state, a global financial hub, he said.
The judge shaved off a year due to Lim’s age but did not give any sentencing discount on account of his health, saying the Singapore Prison Service has adequate medical facilities.
Lim, however, remained free on bail after his lawyers said they would file an appeal before the High Court.
State prosecutors had sought a 20-year jail term, saying “this is one of the most serious cases of trade financing fraud that has ever been prosecuted in Singapore.”
The defense had argued for seven years imprisonment, playing down the harm caused by Lim’s offenses and citing his age and poor health.
The businessman faced a total of 130 criminal charges involving hundreds of millions of dollars, but prosecutors tried and convicted him on just three – two of cheating HSBC, and a third of encouraging a Hin Leong executive to forge documents.
Prosecutors said he tricked HSBC into disbursing nearly $112 million by telling the bank that his firm had entered into oil sales contracts with two companies.
The transactions were, in fact, “complete fabrications, concocted on the accused’s directions,” prosecutors said, adding that his actions “tarnished Singapore’s hard-earned reputation as Asia’s leading oil trading hub.”
Lim built Hin Leong from a single delivery truck shortly before Singapore became independent in 1965.
It grew into a major supplier of fuel used by ships, and its rise in some ways mirrored Singapore’s growth from a gritty port to an affluent financial hub.
The firm played a key role in helping the city-state become the world’s top ship refueling port, observers say, and it expanded into ship chartering and management with a subsidiary that has a fleet of more than 150 vessels.
But it came crashing down in 2020 when the coronavirus pandemic plunged oil markets into unprecedented turmoil, exposing Hin Leong’s financial troubles, and Lim sought court protection from creditors.
In a bombshell affidavit seen by AFP in 2020, Lim revealed the oil trader had “in truth... not been making profits in the last few years” – despite having officially reported a healthy balance sheet in 2019.
He admitted that the firm he founded after emigrating from China had hidden $800 million in losses over the years, while it also owed almost $4 billion to banks.
Lim took responsibility for ordering the company not to report the losses and confessed it had sold off inventories that were supposed to backstop loans.
Climate talks in Azerbaijan head into their second week, coinciding with G20 in Rio
- Talks in Baku are focused on getting more climate cash for developing countries to transition away from fossil fuels
- Several experts put the sum needed at around $1 trillion
BAKU: United Nations talks on getting money to curb and adapt to climate change resumed Monday with tempered hope that negotiators and ministers can work through disagreements and hammer out a deal after slow progress last week.
That hope comes from the arrival of the climate and environment ministers from around the world this week in Baku, Azerbaijan, for the COP29 talks. They’ll give their teams instructions on ways forward.
“We are in a difficult place,” said Melanie Robinson, economics and finance program director of global climate at the World Resources Institute. “The discussion has not yet moved to the political level — when it does I think ministers will do what they can to make a deal.”
Talks in Baku are focused on getting more climate cash for developing countries to transition away from fossil fuels, adapt to climate change and pay for damages caused by extreme weather. But countries are far apart on how much money that will require. Several experts put the sum needed at around $1 trillion.
“One trillion is going to look like a bargain five, 10 years from now,” said Rachel Cleetus from the Union of Concerned Scientists, citing a multitude of costly recent extreme weather events from flooding in Spain to hurricanes Helene and Milton in the United States. “We’re going to wonder why we didn’t take that and run with it.”
Meanwhile, the world’s biggest decision makers are halfway around the world as another major summit convenes. Brazil is hosting the Group of 20 summit, which runs Nov. 18-19, bringing together many of the world’s largest economies. Climate change — among other major topics like rising global tensions and poverty — will be on the agenda.
Harjeet Singh, global engagement director for the Fossil Fuel Non-Proliferation Treaty Initiative, said G20 nations “cannot turn their backs on the reality of their historical emissions and the responsibility that comes with it.”
“They must commit to trillions in public finance,” he said.
In a written statement on Friday, United Nations Climate Change’s executive secretary Simon Stiell said “the global climate crisis should be order of business Number One” at the G20 meetings.
Stiell noted that progress on stopping more warming should happen both in and out of climate talks, calling the G20’s role “mission-critical.”
