The status of BRI projects in Pakistan
Download the report: Link Pakistan’s involvement in the Belt and Road Initiative (BRI) dates back to 2013 when it became one of the earliest countries to join the ambitious project. Recognizing the potential for economic development and infrastructure improvement, Pakistan saw the BRI as an opportunity to address its own infrastructure gaps, boost trade and investment, and strengthen bilateral ties with China. Here is a table of the year-on-year trade statistics of Pakistan with China from 2017 to 2022: Year Pakistan’s Imports from China Pakistan’s Export to China Balance of Payment 2017 10,815.3 USD Million 3,463.6 USD Million -7,351.7 USD Million 2018 13,733.4 USD Million 4,407 USD Million -9,326.4 USD Million 2019 16,095.1 USD Million 4,997.2 USD Million -11,107.9 USD Million 2020 16,688.3 USD Million 5,563.5 USD Million -11,124.8 USD Million 2021 22,589.1 USD Million 6,663 USD Million -15,926.1 USD Million 2022 25,198.7 USD Million 4,143.2 USD Million -21,055.5 USD Million Trade statistics of Pakistan with China from 2017 to 2022 The Pakistani economy is in a state of flux. The country is facing several challenges, including high inflation, a widening trade deficit, and a slowing economy. As you can see, forex reserves have been declining in Pakistan since 2017. This is due to a number of factors, including a widening trade deficit with China, high inflation, and political instability. As a result, Pakistan has been forced to rely on loans from China to finance its BRI projects. Total debt from China to Pakistan has been increasing since 2017. This is because Pakistan has been borrowing heavily from China to finance its BRI projects. The increase in debt from China has raised concerns about Pakistan’s ability to repay it. The Belt and Road Initiative (BRI) and it’s part China-Pakistan Economic Corridor (CPEC) are two major projects that are having a significant impact on Pakistan economy. BRI is a global infrastructure project that is being spearheaded by China. CPEC is a part of BRI and is a $62 billion project that is aimed at connecting China’s Xinjiang province to the Arabian Sea through Pakistan. CPEC has been a major source of investment for Pakistan. However, it has also led to several problems. One of the biggest problems is the trade imbalance between Pakistan and China. Pakistan is importing more goods from China than it is exporting to China. This has led to a widening trade deficit, which is putting a strain on the Pakistani economy. Another problem with CPEC is that it has led to a rise in debt. Pakistan has borrowed heavily from China to finance CPEC projects. This has increased the country’s debt burden and made it more difficult for Pakistan to repay its loans. On top of it, most of the projects under CPEC have suffered from cost overruns, widening the debt burden on Pakistan!! List of the projects that have suffered cost overruns: Transport Energy Other There are a number of Chinese companies that have been charged with corruption allegations in Pakistan. Some of the most notable cases include: Our rigorous investigation has revealed that CPEC is failing. The Pakistani government has acknowledged that it is having difficulty paying back the loans it took out to fund the project. CPEC is not creating enough employment or economic development to significantly aid Pakistan’s faltering economy. A significant setback for both China and Pakistan is the collapse of CPEC. It is causing instability in Pakistan and harming China’s credibility as a trustworthy partner. Here are some of the problems that have plagued the CPEC Projects over the years. The first bar shows the finished projects out of the 30 projects in CPEC that make up the sample size. Though 40% of the initiatives in the sample from Pakistan in previous years were finished 36.47% of the projects were of poor quality and suffered from major flaws. A staggering 93.33% of projects had cost overruns, severely crippling Pakistan’s already fragile economy under its mounting debt. Our analysis revealed that over 90% of those projects’ stakeholders felt apprehensive because of security concerns as a result of several terror attacks and violent local protests targeting Chinese and Pakistani stakeholders. Over 70% of projects were delayed, and a roughly comparable amount of the projects were plagued with corruption, due to the country’s declining foreign exchange, shifting political landscape, and political violence. Thus, the Chinese businesses finished the projects with low-quality materials and nearly half of them encountered funding problems! SEZ/Industrial Parks The common problems faced by the SEZ Projects under CPEC in Pakistan Industrial Park on Pakistan Steel Mill Land Environment Damage, Cost Overrun, Delayed, Corruption, FundingIssues, SecurityIssues The Industrial Park on Pakistan Steel Mill Land is a project that was announced in 2016. The project is being developed by the China Machinery Engineering Corporation (CMEC) and is expected to cost $1.5 billion. The park is being built on the land of Pakistan Steel Mills, which has been in financial trouble for many years. The project has been facing a number of issues. One of the main issues is the environmental impact of the project. The park is being built on land that is polluted with heavy metals. This pollution could have a negative impact on the environment and the health of the people who live in the area. Another issue with the project is the lack of transparency. The Pakistani government has not released any information about the terms of the agreement with CMEC. This lack of transparency has led to concerns that the Pakistani government is giving away too much to China. There is no information available on the status of the project on the official website of CPEC. Here is a screenshot of the same. Several protests against the project occurred in the past several years. Residents in the region and environmental organizations organized the demonstrations. The project has to cease, according to the demonstrators. Up until now, the Pakistani government has refused to halt the project. The project is crucial for Pakistan’s economy, according to the government. However, the administration has also…
