CPEC and Balochistan: Why the Heart of the Corridor Feels Neglected

A flagship project of China’s Belt and Road Initiative (BRI), the China-Pakistan Economic Corridor (CPEC) exemplifies the enduring friendship between the two countries. Balochistan, having borders with all the provinces of the country, separates Pakistan from Iran and Afghanistan and further connects it with the Central Asian countries (CARS) through Afghanistan and the Middle East. Gwadar, which is the heart of the CPEC, has a 604-kilometer distance from the Strait of Hormuz, by which 40 percent of the world’s oil trade is carried out. The CPEC, which is the pilot project of the grand BRI, has strategic importance for China, and it will also have long-lasting positive impacts on the economic development of Pakistan.

Despite being an integral part of the project, Balochistan, a marginalized province with the worst socioeconomic indicators, falls far short of the sustainable development goals. For instance, the poverty rate according to the ADB is 47 percent, with female education at 16 percent and male education at 32 percent. Despite being a key component of the CPEC, the province’s share in socioeconomic indicators falls short of what the people expect and deserve. A large part of the CPEC in Balochistan is unreasonable and low, but it shows federal government inequalities. This situation has resulted in a sort of alienation among the people of Balochistan and has consequently provided a base for emerging reservations among them. We urgently need to utilize the CPEC equitably.

Unfolding CPEC projects in Balochistan include infrastructure development, energy, the development of Gwadar port, fiber optics, agriculture, social security, and cultural exchange across the country. As far as Balochistan’s share of all projects is concerned, the scenario in this regard is gloomy, and Balochistan has not been given its due share, which it deserves.

Firstly, there are 21 energy projects worth 26.37 billion USD with a generation capacity of 13810 MW under the umbrella of the CPEC, of which only two are planned in Balochistan. These two projects include a 300 MW Coal-fired power plant in Gwadar and a 1320 MW Hubco power plant in Lasbella. Apart from power plants, CPEC will also focus on building grid stations and transmission lines. Of the 13 electricity grid stations for 500 KV transmission lines, none were allocated to Balochistan. The CPEC approved two 500 KV transmission lines, each 1,000 kilometers long and worth $4 billion. One line goes from Matiari district in southern Sindh to Punjab’s capital, Lahore, while another goes to the nearby industrial hub of Faisalabad. Not a single kilometer provides electricity to Balochistan. Simultaneously, the province is facing a severe power shortage, which has negatively impacted both its agriculture sector and business.

The CPEC also includes the construction of transportation and infrastructure projects, which are essential for regional connectivity. As per the official website of the Planning Commission of Pakistan, there are a total of 24 infrastructural projects that will be built under the CPEC. Only six of these projects have Balochistan as their proposed construction site. these projects are as below.

A. Mushkel_Panjgure road

B. Awaran_Khuzdar road M8

C. Noshki_Mushkel Road

D. Hoshab_Awaran road section M8

E. Zhob_Quetta N50

F. Khuzdar_Basima, N30

Ironically, the Quetta train project for mass transit, which was approved in the 6th joint cooperation committee’s (JCC) meeting, was excluded later on from the CPEC under the pretext of no feasibility. Apart from this, the provincial governments and politicians have been raising their voices against the neglect of Balochistan. A sad reality is that there is still no two-way highway in the province, which reflects the poor state of road infrastructure in the province. The railway sector is part of the infrastructure projects under the CPEC umbrella. Its projects will be constructed through the CPEC and in all these projects, only two projects will be constructed in Balochistan.

Many projects have included Gwadar, an integral part of CPEC. Owing to its prime strategic importance, experts observe that Gwadar, however, was always of strategic importance for competing nations in the region given its naturally deep warm-water port and geographic proximity to the Middle East. The projects in Gwadar under the CPEC include:

I. Development of the free zone and port,

II. Gwadar Eastbay Expressway,

III. Gwadar International Airport,

IV. Freshwater networks,

IV. Pak China friendship hospital,

V. 300 MW coal power plant,

VI. 1.2 MGD desalination plant,

VII. 5 MGD desalination plant,

IX. Construction of breakwater,

X. Dredging of berth areas and channels,

XI. Landing Jetty and Fishing boats,

XII. Gwadar smart environment sanitation XIII is a technical and vocational institution.

Another important feature of the CPEC is 820 KM of fiber optic lines, of which 18.20 KM will be laid down in Islamabad, 466.58 KM in Gilgit Baltistan, 287.65 KM in Khyber Pakhtunkhwa (KPK), and 47.56 KM in Punjab, respectively. Balochistan is not included in this project. Moreover, Fiber optics will help with numerous wavelength data services and would decrease poor connectivity services, crunchy bandwidth, and chunky speed problems in the transfer of data, which all prevail in Balochistan.

The special economic zone includes investing in industries such as dry fruits, agricultural marketing, small industries, fruit processing, pharmaceuticals, electric appliances, motorcycle assembling, ceramics, and other small industries. Establishing special economic zones is one of the main attributes of the CPEC that will help in industrial development. Of the 9 special economic Zones (SEZs) that will be settled through CPEC only one will be established in Balochistan in the city of Boston with an estimated area of 1000 acres. Special economic zones play a crucial role in creating employment opportunities and fostering industrial development. SEZs are crucial for the development of a province like Balochistan, which has an abundance of natural resources but struggles with unemployment, poverty, and a scarcity of industry. However, the situation surrounding the establishment of SEZs in Balochistan under the CPEC is not particularly promising.

Social sector development projects proposed through the CPEC are 27. These projects include poverty alleviation. Training, enhancing the NDMA, establishing a laboratory for agriculture, providing agricultural equipment, scholarships, and more programs related to social development, science, and technology—but the official website is silent over the share of Balochistan. It testifies to how badly Balochistan has been ignored in social development; the province is already lagging behind in every social indicator from the rest of the provinces.

By explaining the reservations of Balochistan, Since the initial stage of the CPEC the politicians of the province have been raising their voices for the CPEC. In 2015, the then Chief Minister of Balochistan, Dr. Abdul Malik Baloch, said that “He was not trusting or confiding in anyone with regard to the China-Pakistan Economic Corridor (CPEC).” In 2018, Chief Minister Jam Muhammad Kamal lamented that, out of 52 billion USD worth of projects, 29 billion are being completed in the country, while Balochistan has no share. A couple of months later he further said, “The share of Balochistan in the CPEC investment was 4 percent.” Moreover, in the upper house of the country, Senator Kulsoom Parveen, who belonged to the PLM (N) section of Balochistan, articulated, “What progress has Gwadar seen under the CPEC, so far?” “The people of Balochistan have not gained anything from the project. A leader of the Balochistan National Party (BNP), Sanaullah Baloch, argued the same reservations as the ex-chief minister, Dr. Abdul Malik, about the negligence of the projects.

On the other hand, the federal government denies the reservations of the politicians of Balochistan. For instance, the then and present minister for the planning commission of Pakistan, Mr. Ahsan Iqbal, has stated that different energy projects under the CPEC would help to overcome the energy crisis, as $35 billion will be spent in the energy sector. Of the 35 billion, Sindh will receive 11 billion, while Balochistan will receive 9 billion. His statement looks ambiguous because the claim that 9 billion USD are being spent on energy projects in Balochistan contradicts information available on the official CPEC website of the government of Pakistan. The fact is, there are only 2 energy projects in Balochistan: 1320 MW of Hubco power plant and 300 MW of Gwadar coal-fired power plant. Both of these projects are worth 2.455 billion USD, and the question arises: how can the claim to give Balochistan a share of 9 billion USD materialize? The statement is available on the official website of the government.

The people of Balochistan express concern that they are not receiving their fair share of royalties from the CPEC. The people of Balochistan are still unaware of their share of royalties and transit fees for the cargo that will pass through the province, which provides 62 percent of the land route to the corridor. These developments make the politicians and the people of the province fear losing their share in the royalty in the future too.

Policy recommendations for addressing the CPEC dilemma

Firstly, the CPEC’s socioeconomic development, specifically through investments in the mining and minerals, agriculture, and livestock sectors, has the potential to alleviate the suffering of the people and reduce the level of insecurity in the province. The development projects of the CPEC should prioritize Balochistan to combat poverty and unemployment in the province.

Secondly, the people of Balochistan exhibit a fear of losing their identities and the potential for demographic shifts. The study suggests that local reservations should be considered when leasing or otherwise providing Gwadar or other areas to non-Balochistanis.

Thirdly, there is a gigantic imbalance in the distribution of projects in CPEC. Punjab and Sindh receive the majority of the slanted projects. On one hand, the province received a smaller share than it deserved. While, at the same time, the approved Quetta Mass Transit project from the 6th JCC meeting was excluded. It is worth recalling that the Lahore orange line train was a high-priority CPEC project. The project also includes the Karachi Circular Railway as a feasible addition. Such imbalance and inequality result in no fruits of unity; rather, they pave the way for alienation. There should be equality in prospering projects.

Fourthly, so that CPEC investors and the Chinese government feel secure investing in Balochistan, militant groups’ reservations should be listened to according to the constitution and their legitimate demands fulfilled. We should initiate a dialogue process, as coercive measures will not yield any benefits.

Fifthly, it proposes that until and unless priority is given to hiring local laborers, the people will continue to feel alienated and uncertain. China has a tradition of bringing along its laborers in its investment projects. There is a dire need to end mistrust and provide the inhabitants of the province with jobs in all aspects, from technical to nontechnical, based on priority.

Sixthly, the Balochistan Coast, particularly the Gwadar Coast, is one of the few sources of income for fishermen in the city. The citizens of the seaport have been staging protests against illegal fishing. For promoting the fishing industry through the CPEC, there is a dire need for the formulation of laws by the federal and provincial governments to solve the issues of Fishermen and protect their businesses. By protecting their small fishing business and solving their reservation, the fishing industry through CPEC would have a safer atmosphere.

Finally, China is becoming a significant economic force, possessing extensive knowledge in areas such as infrastructure, energy, agriculture, livestock, small industries, mine and mineral extraction, and oil and gas exploration. Balochistan, which is home to billions of worth untapped resources, could be a game changer for both China and Pakistan, provided that giant investments are made in these sectors through the CPEC. Therefore, attracting Chinese expertise in investing in these sectors would be a positive step toward generating ample revenue through the CPEC in Balochistan.

The discussion leads to the conclusion that, despite all the risks and challenges, CPEC is of prime importance for Balochistan. It will also help in the revival of Pakistan’s economy and solve the issues of energy and infrastructure. At the same time, Balochistan, which is an integral part of the mega project, and Gwadar, its Jugular vein, have been immensely neglected in the projects of the CPEC and been deprived of their share, which they deserve. By providing a due share in projects and royalties and investing more in the province, the people of the province will not feel alienated. It is imperative to engage in introspection, adopt a bold mindset, adopt a comprehensive approach, and develop comprehensive strategies to foster peace, prosperity, and stability in Balochistan.