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
Policeman killed in clashes with Imran Khan supporters leading protest march to Islamabad
- Punjab information minister says 70 people wounded in violence by Khan’s supporters, party says scores of its followers also hurt
- Protest ‘long march’ has coincided with visit of Belarus president, with government accusing PTI of trying to sabotage economic recovery
ISLAMABAD: Punjab Information Minister Azma Bukhari said on Monday one police constable had been killed and five were critically injured in violence by supporters of jailed former premier Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, which is leading a protest march to the federal capital of Islamabad.
Thousands of rallygoers reached the edges of Islamabad on Monday, after protest caravans set out from various parts of the country a day earlier to call for the release of political prisoners, including Khan, among other demands.
The protesters set out despite the government refusing to grant the PTI permission to enter Islamabad for a sit-in. Last week, the district administration also imposed a two-month ban on public gatherings in the capital, citing security challenges and inconvenience to the public. Earlier this year, parliament also passed a new law to regulate public assembly in Islamabad, which laid out, among other rules, that any party or group wanting to hold a protest would need permission from the administration and could only assemble at a designated venue and during set timings.
Authorities have closed all schools in Islamabad and the adjacent garrison city of Rawalpindi, while the Internet and WhatsApp messaging services have also slowed as the protest march continues. All routes connecting Islamabad and Rawalpindi have been completely shut for the last two days, as are highways and roads from other cities leading to the federal capital.
Addressing a press conference in Lahore, the provincial capital of Punjab, Bukhari said one policeman had been killed in clashes with PTI supporters.
“FC [Frointier Corps] soldier Samiullah sustained a gunshot wound to the leg in Sargodha. In Kati Pahari on the Attock Motorway, [police] Constable Wajid was shot in the neck and arm and is in critical condition,” the minister said, only giving the first names of officers.
“In Wah Cantt [in Rawalpindi district], the injured include Sub-Inspector Farooq and Sub-Inspector Zohaib, while Constable Mubashir has lost his life. Five people remain in critical condition.”
She added that 70 people had been wounded in clashes with the protesters just outside Islamabad, while there were reports of several other clashes elsewhere in the province.
Interior Minister Mohsin Naqvi said those responsible for the killing of the policeman would be brought to justice.
Khan’s party said scores of its workers were also hurt.
“TILL MY LAST BREATH”
The PTI march started on Sunday but could not reach Islamabad as shipping containers placed by the government on key points on major highways slowed the pace of the caravans. The PTI says its final destination is D-Chowk, a high-security area in the capital’s Red Zone that houses key government buildings and is a popular site for protests. Heavy contingents of police and other security forces have been stationed across Islamabad and at entry and exit points.
The largest PTI protest caravan began its journey from Peshawar, the provincial capital of the Khyber Pakhtunkhwa (KP) province where Khan’s party is in power. It is being led by KP Chief Minister Ali Amin Gandapur and Khan’s wife Bushra Khan, who was released on bail in October after nearly nine months in detention.
Khan has been in jail since August last year and faces a slew of charges he says are politically motivated.
On Monday evening, the PTI said in a text to reporters that the rally had “broken through one of the biggest barrages of containers and is at the gate of Islamabad.”
“Until Khan does not return to us, we will not end this march,” Bushra said to supporters from atop the protest caravan as the PTI edged closer to Islamabad. “I will stand there till my last breath, you people have to stand by me. I will keep standing even if nobody does because this does not concern just my husband but the country and its leader.”
Islamabad police confirmed over 400 arrests related to the protest in the past few days, saying the detainees were being held in different police stations. The PTI said over 3,500 of its leaders and supporters had been arrested in connection to the protests.
PTI leader Shaukat Yousafzai, who is part of the caravan, told Arab News over the phone the march would carry on until it reached D-Chowk.
“We will only return from D-Chowk when Imran Khan and other innocent party workers are released from Pakistani prisons,” he said.
The PTI also said key leaders Gohar Khan and Ali Mohammad Khan had been allowed to meet the PTI flounder at Adiala jail, but no details were shared about the focus or outcome of the discussions.
The PTI’s march has coincided with a visit to Islamabad by Belarusian President Aleksandr Lukashenko and a 68-member delegation to discuss investment deals. The government has accused the PTI of trying to sabotage the foreign visit in a bid to destabilize its economic recovery efforts.
Yousafzai rejected this criticism, saying his party had called the protest well before the Belarusian delegation’s arrival was announced.
“We have not blocked the roads,” he added. “The government has blocked the roads, creating a situation like this. The government should have held talks with the PTI instead of blocking the roads.”
KP government spokesperson Muhammad Ali Saif also said the PTI planned to hold a “protracted protest.”
“We are advancing according to our plan and are not in a hurry,” he said. “The government should prepare food supplies for the police for several days because we won’t stop until our demands are met.”
A report prepared by Pakistan’s ministry of finance and released on Sunday estimated economic losses of Rs190 billion ($684 million) per day due to political protests.
Wheel-jam strike paralyzes Balochistan highways amid protest over kidnapped schoolboy
- 11-year-old Muhammad Musawir Khan was kidnapped by armed men in Quetta on Nov. 15
- Government says law enforcement agencies are working for the kidnapped boy’s recovery
QUETTA: A wheel-jam strike paralyzed highways in Pakistan’s southwestern Balochistan province on Monday as protests over the kidnapping of an 11-year-old schoolboy entered their 11th consecutive day in Quetta.
Muhammad Musawir Khan, a third-grade student, was kidnapped from a school van by unknown armed men while on his way to school on November 15.
The family has not received any ransom call from the kidnappers in all these days since his abduction. They have also categorically said they will not pay a single penny to the kidnappers.
“Today, all national highways connecting Balochistan with the rest of the country are closed against the kidnapping of my son,” Raz Muhammad, the boy’s father, told Arab News. “We will continue our protest until he safely returns home.”
Muhammad urged Prime Minister Shahbaz Sharif and Army Chief General Asim Munir to consider Khan as their own child and play a role in his recovery.
Other family members echoed the sentiment, saying it was the state’s responsibility to ensure the boy’s recovery and improve the general environment of insecurity.
“We have been sitting here for the last 11 days to seek protection for all children like Muhammad Musawir Khan from these kidnappers,” Hajji Malang, the boy’s uncle, told Arab News. “Whoever kidnapped our child, we will not bargain with them for his release.”
The kidnapped boy belongs to a prominent tribal family involved in the gold trading business in Balochistan for decades. According to the family, he was abducted from Patel Bagh, a busy neighborhood in Quetta.
Political and religious parties, traders, transporters, lawyers and civil society members have all been visiting the protest camp to express solidarity with the family and demand the immediate and safe recovery of the boy.
Speaking to the media outside the provincial assembly, Chief Minister Mir Sarfraz Bugti said he thought of the kidnapped child like his own son.
“We are utilizing our full capacity and the government is making serious efforts to ensure his safe recovery,” he said.
Commissioner of Quetta Division Hamza Shafqaat shared the same update while speaking to Arab News.
“The government, along with all law enforcement agencies, is working diligently for the recovery of Muhammad Musawir Khan,” he said.
“We have shared our report on the progress in the recovery of the kidnapped boy to with the Balochistan High Court, chief minister and the provincial assembly, and they have all expressed satisfaction that the investigation is heading in the right direction,” he added.
However, Shafqaat declined to divulge details of the ongoing investigation.
Malik Muhammad Sadiq Kakar, senior member of Pashtoonkhwa Milli Awami Party, said that highways in Balochistan’s Quetta, Mastung, Khuzdar, Killa Abdullah, Chaman, Zhob, Killa Saifullah and Loralai districts were closed to protest the kidnapping of the child.
“We are sitting with the family of the kidnapped boy to express solidarity because we want peace in Balochistan,” he told Arab News.
Pakistan’s restive Balochistan province, which shares borders with Afghanistan and Iran, has been the site of a low-level insurgency by separatist militants for over two decades.
Other extremist factions, including Tehreek-e-Taliban Pakistan and Daesh’s Khorasan chapter, also have a presence in the region and frequently attack security forces and civilians.
Last week, Pakistan approved a “comprehensive military operation” in the province, targeting ethnic Baloch separatist groups attacking security forces and Chinese nationals working on the multibillion-dollar China-Pakistan Economic Corridor (CPEC).
COMSTECH, Pakistani conglomerate announce Internship program for OIC member countries
- International program hosted by Gourmet Industries, the largest food processing complex in Pakistan
- Selected candidates will receive accommodation, meals, and return economy-class air ticket to Pakistan
ISLAMABAD: The OIC Standing Committee on Scientific and Technological Cooperation (COMSTECH), in collaboration with Pakistan’s Gourmet Industries, has announced the COMSTECH-Gourmet Industrial Internship Program for its first batch in January 2025, state news agency APP reported on Monday.
Hosted by Gourmet Industries, the largest food processing complex in Pakistan, the program offers 10 internships lasting four weeks. Selected candidates will receive accommodation, meals, and return economy-class air ticket to participate in the program, which aims to promote innovation, research, and skill development across various industrial sectors, offering participants practical training and exposure to advanced technologies and industrial processes.
The program will focus on key areas in food industry operations including bakery, dairy, and beverages, plant utilities, recycling through innovative RPET methodologies, shrink-wrap production, sugar mill logistics, and media training in journalism and broadcasting. Participants will gain hands-on experience in supply chain management, production processes, and sustainability practices also.
“The internship is open to applicants from OIC member countries holding a BS/BSc or MS/MSc in relevant fields and under the age of 40,” the report said.
“The objective of the COMSTECH-Gourmet Industrial Internship Program is to foster innovation and research and development (R&D) across diverse industrial sectors, including food processing, engineering, plant operations, recycling, and so forth.”
The program will provide interns hands-on experience and exposure to cutting-edge technologies and methodologies, thereby enhancing their practical skills and theoretical knowledge.
“By engaging in real-world projects, interns will contribute to the advancement of industrial processes and the development of sustainable solutions, ultimately driving technological innovation and improving operational efficiencies in the fields of human nutrition and value addition,” APP added.
“This initiative underscores COMSTECH’s mission to empower youth in OIC nations and advance technological development for socio-economic progress.”
Applicants have to complete an application form and upload requested documents (CV, Research Proposal, etc.) at: (https://form.jotform.com/243101366016444) till Nov, 30. Applicants can contact [email protected] for further information.
Pakistan approves $625 million for infrastructure projects in Balochistan, Sindh, KP provinces
- Projects will improve connectivity in Balochistan, Khyber Pakhtunkhwa and Sindh
- Six of the approved projects are for the remote southwestern Balochistan region
ISLAMABAD: The Executive Committee of Pakistan’s National Economic Council has approved ten infrastructure projects costing Rs172.7 billion ($625.54), Radio Pakistan reported on Monday, with a majority of the schemes approved for the remote Balochistan province.
The ECNEC met in Islamabad on Monday with Deputy Prime Minister Ishaq Dar in the chair.
“The projects pertain to the infrastructure sector for improving connectivity in Balochistan, Khyber Pakhtunkhwa and Sindh. Six of the approved projects are in Balochistan,” Radio Pakistan said.
“World Bank funded project for developing solid waste infrastructure for Karachi costing 29.2 billion rupees was also approved.”
Balochistan, which comprises 44 percent of Pakistan’s total land mass, is its most backward by almost all economic and social indicators.
Rich in land and mineral wealth, most parts of the Balochistan province often lack even the rudiments of modern life. Home to Reko Diq, one of the world’s largest undeveloped copper and gold deposits, and the site of major Chinese investment projects, the province lacks employment opportunities and basic facilities like Internet, health and education.
Balochistan also has the lowest density of roads among the four provinces of Pakistan. Poor connectivity and access continue to be a major problem, which particularly affect the poor, who live mostly in the rural areas.
In Khyber Pakhtunkhwa, annual rainfall and temperature patterns have significantly increased and the lack of resilient infrastructure has escalated the impact of disasters on people and livelihoods. Flooding events since 2010 have substantially damaged the road network, hampering connectivity and escalating transportation costs.
Home to over 55 million people, Sindh is Pakistan’s second largest province and generates a third of national GDP. However, economic development is skewed in favor of the provincial capital Karachi, the country’s largest city and responsible for three-quarters of overall trade activity. Rural areas are poorly connected to the regional centers, and the road conditions of about half of the 2,830 km of provincial highways are substandard due to damage from heavy truck traffic and seasonal flooding.
Pakistan Tehreek-e-Insaf says won’t call off protest until Imran Khan released from prison
- Khan’s party is leading a “long march” to Islamabad to call for release of Khan and other political prisoners
- Protest has coincided with visit by Belarus president, with government accusing PTI of trying to sabotage economic recovery
PESHAWAR/ISLAMABAD: A march by thousands of supporters to demand the release of jailed former Prime Minister Imran Khan reached the edges of the Pakistani federal capital of Islamabad on Monday, with his wife Bushara Khan saying the demonstration would not be called off until the ex-premier was released from prison.
The Pakistan Tehreek-e-Insaf (PTI) party is leading a “long march” to the Pakistani capital from cities around the country to call for the release of political prisoners, including Khan, among other demands. The protesters plan to camp at D-Chowk, a high-security area in the capital’s Red Zone that houses key government buildings and is a popular site for protests, but the government has sealed all entry and exit points to the city with shipping containers and heavy contingents of police and other security forces have been stationed across Islamabad.
Khan has been in jail since August last year and faces a slew of charges he says are politically motivated.
“Until Khan does not return to us, we will not end this march,” Bushra said to supporters as the PTI edged closer to Islamabad. “I will stand there till my last breath, you people have to stand by me. I will keep standing even if nobody does because this does not concern just my husband but the country and its leader.”
The largest PTI protest caravan began its journey from Peshawar, led by Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Gandapur and accompanied by Bushra, who was released on bail in October after nearly nine months in detention. KP is ruled by Khan’s party, which is in opposition in the national parliament, and Gandapur is a key PTI leader and a close aide of Khan’s.
The PTI march started on Sunday but could not reach Islamabad as shipping containers placed by the government on key points on major highways slowed the pace of the caravans.
“We wouldn’t let them storm the capital,” provincial Information Minister Uzma Bukhari told a news conference, adding that several police officials were injured in clashes and rioting at some places in the province.
Ahead of Khan’s protest, the government had imposed a two-month ban on public gatherings in the capital, citing security challenges and inconvenience to the public. Earlier this year, parliament also passed a new law to regulate public assembly in Islamabad, which said, among other rules, that any party or group wanting to hold a protest can only do so at a venue designated by the administration and during set timings.
Authorities have closed all schools in Islamabad and the adjacent garrison city of Rawalpindi, while the Internet and WhatsApp messaging services also slowed.
ARRESTS AND CLASHES
On Monday afternoon, the caravan crossed barriers at Ghazi Barotha and the Hazara toll plaza before entering Punjab’s Attock district. Clashes between protesters and police were reported as the march reached the Kati Pahari area, with PTI workers struggling to clear the motorway under tear gas shelling.
Islamabad police confirmed over 400 arrests related to the protest in the past few days, saying the detainees were being held in different police stations. The PTI said over 3,500 of its leaders and supporters had been arrested in connection to the protests.
“So far, no major clashes have been reported today within Islamabad’s jurisdiction,” Jawad Taqi, the police spokesperson, told Arab News. “Police remain vigilant and prepared to uphold law and order in the capital.”
Another police official in the nearby city of Rawalpindi also reported a “calmer situation,” following minor clashes on Saturday near the peripheries of the federal capital.
“Several individuals have been arrested, but the exact number will be confirmed later,” Sajjad Ali, Punjab Police spokesperson in Rawalpindi, said. “Some police officials were injured yesterday, and further details will be shared soon.”
PTI leader Shaukat Yousafzai, who is part of the caravan, told Arab News over the phone the march would carry on until it reached D-Chowk.
“We will only return from D-Chowk when Imran Khan and other innocent party workers are released from Pakistani prisons,” he said.
The PTI’s march has coincided with a visit to Islamabad by Belarusian President Aleksandr Lukashenko and a 68-member delegation to discuss investment deals. The government has accused the PTI of trying to sabotage the foreign visit in a bid to destabilize its economic recovery efforts.
Yousafzai rejected this criticism, saying his party had called the protest well before the Belarusian delegation’s arrival was announced.
“We have not blocked the roads,” he added. “The government has blocked the roads, creating a situation like this. The government should have held talks with the PTI instead of blocking the roads.”
KP government spokesperson Muhammad Ali Saif also said the PTI planned to hold a “protracted protest.”
“We are advancing according to our plan and are not in a hurry,” he said. “The government should prepare food supplies for the police for several days because we won’t stop until our demands are met.”
A report prepared by Pakistan’s Ministry of Finance estimated economic losses of Rs190 billion ($684 million) per day due to political protests.
