ISLAMABAD: There is little evidence that China’s Belt and Road Initiative is ensnaring nations, including Pakistan, in foreign aid “debt traps,” a Pakistani think tank said in a report this week, in defense of a key policy platform of President Xi Jinping.
Xi has made the Belt and Road Initiative (BRI), as it is formally called, one of the cornerstones of his administration. But it has run into opposition in some countries over fears that opaque financing arrangements lead to unsustainable debt and that it is more about promoting Chinese influence than bringing development.
China has at times reacted angrily to such doubts, tending to characterize critics as harboring anti-Chinese prejudice and wishing to contain the country’s rise, while overlooking what Beijing says are genuine good intentions.
The Belt and Road scheme seeks to build a modern version of the Silk Road to link China with Asia, Europe and beyond through large-scale infrastructure projects.
A new report by Pakistani think tank Tabadlab titled ‘Belt & Road Initiative (BRI): Belted on a road to debt?’ identified eight countries at high risk of the potential impact of BRI pipeline projects and associated debt levels. These are Pakistan, Djibouti, The Maldives, Lao PDR, Montenegro, Mongolia, Tajikistan and Kyrgyz Republic. The report said these nations would face rising debt-to-GDP ratios in excess of 50 percent, which merits concern.
“While the sustainability of infrastructure financing is critical for regional economic stability, there is little evidence that China is forcing countries into such [debt] crises,” the Tabadlad report said.
“The financing agreements have largely been structured as bilateral transactions without the involvement of multilateral institutions and their corresponding economic assessment and monitoring frameworks,” the report said. “In short, a lot of the BRI project financing does not come with the conditionalities that World Bank, Asian Development Bank, African Development Bank, Inter-American Development Bank, and other multilateral financing sources come with.”
In the case of Pakistan the report said: “In addition to sovereign loans, financial instruments used for development of economic corridors [by China] also include concessional loans, commercial loans and equity investments. As an example, the China Pakistan Economic Corridor (CPEC), a flagship BRI investment, has USD 19 billion in investments to date of which over 60% is commercial lending and equity investments with no sovereign anchors.”
Last month, at the vast Belt and Road Forum in Beijing, China was keen to show that the initiative was even winning acceptance in Western nations, especially after Italy became the first G7 country to sign on last month. Britain’s finance minister, France’s foreign minister and Germany’s economy minister all made the trek to Beijing for the event, but reminded China of the need for high standards and transparency.
“The IMF has repeatedly and explicitly questioned opaque lending and demanded more transparency from countries and Beijing to bridge information asymmetry around Chinese debt,” the report said. “In the most recent case of Pakistan, details of debt arrangements with China were a major negotiation bottleneck. Making details of BRI projects more public would certainly help counter the debt-trap narrative.”
Citing China’s takeover of the Sri Lankan port of Hambantota as part of a debt servicing swap, the primary example of fears of asset seizure and control that can be potentially exercised by China over strategic infrastructure across continents, the report called it a rare and often misunderstood example.
“Despite being a creditor enjoying quite a strong position, negotiations have largely benefited borrowing countries with various treatments afforded to countries for restructuring or settling debt,” the report said. “Negotiations have often resulted in the extension of loans, the restructuring of terms and even wholesale re-financing. Interestingly, write-offs, both partial and full, have been the most common solution to debt problems in these negotiations.”
Using the Rhodium Group’s data and analysis, the Tabadlab report said 36% of debt servicing negotiations with China had resulted in write-offs worth approximately $6.5 billion and 7% of the debt arrangements having a value of $23.5 billion were refinanced, constituting 52% of total debt in 40 sample cases.
Little evidence China forcing countries, including Pakistan, into debt — report
Little evidence China forcing countries, including Pakistan, into debt — report
- Belt and Road Initiative to rebuild Silk Road met with widespread criticism it will saddle countries in unsustainable debt traps
- China sees critics as harboring anti-Chinese prejudice, wishing to contain the country’s rise
Pakistan condemns Israeli raid in West Bank, calls for ‘concrete plan’ for Gaza’s reconstruction
- Gunfire, explosions rocked the Jenin refugee camp on Wednesday as the Israeli military continued its large-scale raid
- The operation in the West Bank was launched just days after a ceasefire paused more than a year of Israel’s war in Gaza
ISLAMABAD: Pakistan on Thursday condemned a raid by the Israeli military that killed 10 Palestinians in the occupied West Bank, calling for a “concrete plan” to rebuild Gaza following a ceasefire between Israel and Hamas.
Gunfire and explosions rocked the Jenin refugee camp on Wednesday as the Israeli military continued its large-scale raid for a second day, the AFP news agency reported.
The operation, launched just days after a ceasefire paused more than a year of Israel’s war in Gaza, has killed at least 10 Palestinians, according to Palestinian health authorities.
Israeli officials have said the raid is part of a broader campaign against militants in the West Bank, citing thousands of attack attempts since the Gaza war erupted in October 2023.
“[We] unequivocally condemn the latest Israeli raid in the Jenin refugee camp of the West Bank, resulting in killing of ten Palestinians,” Shafqat Ali Khan, a spokesperson for Pakistan’s Foreign Office, said at a media briefing in Islamabad.
“Such actions potentially undermine the precarious ceasefire in Gaza and international community should take note of it.”
Israeli officials have said the raid is part of a broader campaign against militants in the West Bank. The operation has raised fears of a return of fighting and chaos to occupied Palestinian territories, undermining chances of peace in the region.
Khan said the ceasefire in Gaza was a “milestone” that was achieved through a patient and persistent mediatory role of Egypt, Qatar and the United States.
“We urge the international community to develop a concrete plan for reconstruction of Gaza in line with UNSC [United Nations Security Council] resolutions,” he told reporters.
“We call for accountability of Israeli crimes committed in this brutal war, describing it as an essential element in restoring international legitimacy.”
Israel launched the war on Gaza soon after the Oct. 7, 2023 attacks by Hamas on Israel, killing more than 47,000 Palestinians and laying waste to large swathes of the territory.
Pakistan does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state based on “internationally agreed parameters.”
The South Asian country has dispatched several relief consignments for Gaza, besides establishing the ‘Prime Minister’s Relief Fund’ that aims to collect public donations for the war-affected people.
Pakistan establishes ‘challenge fund’ for climate-resilient infrastructure
- The South Asian country has seen erratic changes in its weather patterns which have led to frequent heat waves, untimely rains, cyclones and droughts in recent years
- Pakistan has since launched various initiatives to build resilience against climate change, including the launch of a satellite this month to predict natural disasters
ISLAMABAD: Pakistan’s climate change ministry has established a “challenge fund” for climate-resilient infrastructure in the country, Pakistani state media reported on Wednesday.
A challenge fund is a competitive funding mechanism that allocates resources to projects that address social or environmental challenges. Designed to encourage innovation and collaboration, these funds can be used to support small businesses, public sector and, other organizations.
The “Challenge Fund for Climate Resilient Infrastructure” would be funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), and jointly implemented by GIZ Pakistan, a German organization working on sustainable development projects, and Adam Smith International (ASI) global advisory firm.
Pakistani officials say the initiative is designed to reinforce Pakistan’s adaptive capacity in the face of increasing climate challenges, the Radio Pakistan broadcaster reported.
“This initiative aims to bolster the country’s infrastructure resilience against the impacts of climate change and support the construction of sustainable and adaptive infrastructure across vulnerable regions,” Aisha Humera Moriani, secretary of the Pakistani climate change ministry, was quoted as saying.
Pakistan has seen erratic changes in its weather patterns which have led to frequent heat waves, untimely rains, cyclones and droughts in recent years. Scientists have blamed the events on human-driven climate change.
In 2022, devastating floods, blamed on human-driven climate change, killed more than 1,700 Pakistanis, affected another 33 million and caused the country over $30 billion in economic losses.
The South Asian country has since launched various initiatives to build resilience against climate change, including the launch of a satellite this month to help predict natural disasters and monitor resources.
Romina Khurshid Alam, Prime Minister Shehbaz Sharif’s coordinator on climate change, said the fund’s launch marked a “significant milestone” in the government’s ongoing efforts to strengthen Pakistan’s capacity to adapt to climate change.
“This innovative fund will empower provinces and local governments to develop and implement innovative infrastructure projects that are not only climate-resilient, but also contribute to sustainable development goals and the well-being of local communities,” she said.
Pakistan, Saudi Arabia resolve to further strengthen economic ties
- Finance Minister Mohammad Aurangzeb briefed his Saudi counterpart on Pakistan’s economic reforms on World Economic Forum sidelines
- Both Pakistan and Saudi Arabia are close regional partners and allies, and signed 34 agreements worth $2.8 billion in Oct. last year
ISLAMABAD: Pakistan Finance Minister Muhammad Aurangzeb held a meeting with his Saudi counterpart Mohammed bin Abdullah Al-Jadaan in Davos, wherein the two figures agreed to further strengthen economic ties between the two countries, Pakistani state media reported on Thursday.
The meeting took place on the sidelines of the World Economic Forum (WEF) summit which is being held on Jan. 20-24 under the theme, ‘Collaboration for the Intelligent Age’.
Aurangzeb briefed his Saudi counterpart on structural reforms, fiscal discipline and regulatory improvements that had contributed to improved investment climate in Pakistan, the Radio Pakistan broadcaster reported.
“Both the sides reaffirmed their commitment to further strengthening the economic and financial ties between the two countries for shared prosperity,” the report read.
Pakistan and Saudi Arabia are close regional partners and economic allies, and both countries signed 34 agreements worth $2.8 billion in October last year. The Kingdom is home to over 2.7 million Pakistani expatriates, serving as the top destination for remittances for the cash-strapped South Asian country.
On Tuesday, Aurangzeb also met Saudi National Bank Chairman Saeed bin Mohammed Al-Ghamdi in Davos and discussed with him banking sector partnerships between the two countries, Pakistan’s finance ministry said.
“The two leaders discussed potential financial cooperation between Pakistan and Saudi Arabia, particularly focusing on strengthening partnerships in the banking sector,” the finance ministry said in a statement.
The Saudi Export-Import Bank and Pakistan’s Bank Alfalah have also signed a $15 million financing agreement on the WEF sidelines, strengthening access to Pakistani markets and boosting trade and economic ties.
Pakistan joins global shipping line connecting it directly to Europe amid efforts to boost trade
- The INX weekly shipping service will begin its operations from Karachi on February 5
- The service will streamline logistics, enhance connectivity and drive economic growth
ISLAMABAD: South Korean shipping company, HMM, on Wednesday launched the India North Europe Express (INX) weekly shipping service in Pakistan, providing the South Asian country direct access to Europe.
The service, launched in collaboration with Ocean Network Express (ONE) container liner and Pakistan’s United Marine Agencies (UMA), will ensure timely and efficient delivery of Pakistani goods to the destined European ports and beyond, according to HMM.
The development comes amid Pakistan’s efforts to boost trade and seek international partnerships to expand its maritime activities, according to Pakistani officials. The initiative will streamline logistics, enhance connectivity, and drive economic growth in the region.
“Our country has abundance of marine, fisheries, mineral and energy resources that can generate additional revenues,” said Vice Admiral Faisal Abbasi, Pakistan Navy commander in Karachi, noting that Pakistan was located at the crossroads of three geographical locations: the gateway to Central Asia, Southwest Asia and the Arabian Gulf.
He said the sea lines of communication (SLOCs) allow nations to stretch beyond their land borders, facilitating access to and exchange of raw materials and trade goods.
“Today, as much as 75 percent of international trade takes place over water and same is expected to continue growing in foreseeable future,” Vice Admiral Abbasi added.
The service, which was launched at a ceremony in the port city of Karachi, will begin operations on Feb. 5. It will directly link western India to northern Europe, according to HMM. The maiden voyage will begin from Karachi under the port rotation: Karachi–Hazira–Mundra–Nhava Sheva–Colombo–London Gateway–Rotterdam–Hamburg–Antwerp–Karachi.
“The INX service promises a robust, direct maritime connection from Western India to Northern Europe, turning around in just 11 weeks with a fleet of 6,000 TEU container ships,” said Sohail Shams, CEO of the United Marine Agencies (UMA), the HMM agent in Pakistan.
“This development not only diversifies maritime service portfolio in the region but also amplifies opportunities for regional trade and global transshipment through this strategic hub.”
He said UMA is dedicated to providing outstanding shipping services and plays a crucial role in strengthening Pakistan’s maritime trade through its representation of leading global shipping lines and handling of cargo to destinations worldwide.
“This service signifies more than just a route, it represents progress, innovation, and the shared commitment of our global partners to simplify and enhance international trade,” Sohail said. “This strategic network underscores the significance of Karachi as a vital trade hub and gateway to global markets.”
Yang Jungmo, a top HMM official for Southwest Asia, also addressed attendees at Wednesday’s launch, highlighting the significance of the INX service for global trade and emphasizing the company’s commitment to offering reliable and efficient shipping solutions.
Earlier this month, Dubai-based logistics giant DP World, in collaboration with Pakistan’s National Logistics Corporation, launched a feeder service to transport shipping containers from Dubai to Karachi, Pakistani state media reported. Pakistani officials and DP World have also finalized terms for a freight corridor project from Karachi Port to the Pipri Marshalling yard in southern Pakistan.
Pakistan is currently on a tricky path to economic recovery since avoiding a default in June 2023. The South Asian country last year secured a new $7 billion loan from the International Monetary Fund (IMF) and has been actively pursuing trade and investment opportunities to put the economy back on track.
In southern Pakistan, septuagenarian artist fights to keep century-old ‘Matka Dance’ alive
- Traditional “Matka Dance” involves dancing while balancing earthen pot, attached to a pole, above one’s head
- Performing arts expert urges provincial government to support traditional dance, warns it may become extinct
KARACHI: Sain Dad, 73, expertly balances a round earthen pot, also known as a “matka” in the local language, four feet high above his head attached to a metal rod. Dad dances to the beat of the drums, using his hands not once to steady the rod as he performs a century-old art only a handful of people in southern Pakistan can perform.
The “Matka Dance” is a traditional folk dance performed in Pakistan’s southern Sindh province which involves expertly balancing an earthen pot above your head. The trick is to not use your hands as you dance while balancing the rod atop your head.
While the exact origin of the matka dance remains unknown, Dad traces its lineage back to Saleh Muhammad Shah, one of Sindh’s earliest known practitioners. Over a century ago, Dad says Shah pioneered the technique of lifting the earthen pitcher using a bamboo stick.
The skill was passed down through generations, until Mehrab Dad, Sain Dad’s father, ultimately taught his son the dance when he was 13 years old. It has been 60 years since then and Dad continues to keep the legacy alive.
“You cannot hold it and then have to control your neck,” Dad told Arab News, demonstrating how to execute the dance. “It is practice. It takes almost ten years to learn this.”
In six decades, Dad has graced various stages across 18 countries, even performing before the late Princess Diana during his tour of the United Kingdom in 1995.
While he is proud of the craft, it is a dying one and Dad lives an impoverished life in Khuda Bux Goth, a Karachi suburb, in a shanty house that only has a mat for a roof.
Apart from him, Dad says only his two sons and two students can perform the matka dance in Sindh.
Sheema Kermani, a renowned classical dancer and performing arts expert, said the matka dance is a “dance of joy and celebration” that was traditionally performed before nomadic communities left one area for another.
“All these folk dancings are rooted in people’s lives, in their work, in the kind of labor that they do,” Kermani explained.
She lamented the lack of government support for the craft, saying that the art form would die unless it received support from authorities.
“You see these people who are still practicing, they are the ones, they need to be supported,” Kermani told Arab News. “This is our heritage. This is the beauty of this culture.”
‘WEALTH OF RESPECT’
Muhammad Saleem Solangi, deputy director of culture in Sindh government, says his department actively promotes traditional artists by sending them overseas to perform at international festivals.
“I personally had our legendary artist, Sain Dad sahib, recommended for the Presidential Award in Islamabad,” Solangi told Arab News, adding that artists receive “substantial remuneration” for their performances at festivals.
“The department, within its limited resources, also provides him with an annual stipend,” he said. “In times of illness or financial crisis, they continue to support him, and they also look after his children.”
Dad’s 30-year-old son Muhammad Iqbal is a skilled drummer who accompanies his father and brothers to their performances. He says they typically perform three to four times a month, and during peak seasons, even six. Their earnings range up to Rs 30,000 [$107.66] per performance, which they divide among themselves.
“Whenever there is an exhibition or a wedding program, or a mehndi event, we perform in these programs,” Iqbal said.
But earnings hardly matter for Dad, who says the respect he enjoys from performing means the world to him.
“We may not have wealth in terms of money, but the wealth of respect is immense,” he said.
While the art form may be a dying one, Dad is already teaching his 15-year-old grandson how to balance a water bottle on his head.
And so far, Mehtab Ali is determined to master the matka dance.
“Just like my grandfather and uncle lift the pitcher, I will also, God willing, be able to lift it in four months,” Ali said.
