By Aamir Latif
KARACHI, Pakistan
Much fanfare surrounded China's $46 billion investment into Pakistan this week but some Pakistani economists are warning the projects could still face security and political barriers, and may have unintended negative economic consequences.
A total of 51 agreements were sealed by the two allies during Chinese President Xi Jinping's two-day visit to Pakistan, increasing their cooperation on energy, security and infrastructure issues.
Much of the Chinese investment was focused on the Pakistan-China Economic Corridor which would connect China to Pakistan's southwestern Gawadar port through a network of roads, railways and pipelines to transport cargo, oil and gas.
This will provide the shortest route to Chinese cargo destined for the Middle East, Central Asia and Africa.
While the investment is expected to benefit both Pakistan and China, some economists are concerned that there will be barriers to the project's execution.
"All the contracts of the economic corridor and other projects are supposed to be given to Chinese companies only, no matter whether another lower bidder is available. Pakistan has to choose the lowest bidder from among the Chinese companies," Muzzamil Aslam, a Karachi-based economist told The Anadolu Agency.
He added that this could cause some legal complications as government contracts are required to be awarded through open tenders and on the basis of compatibility.
"The entire bidding process can be legally challenged," he said.
Another issue, according to former government economic advisor Kaiser Bengali, is a lack of clarity on the terms and nature of the investment.
“We still do not know what is the specific portion of loan, grant and Chinese companies share investment in these 46 billion dollars,” Bengali told The Anadolu Agency.
“Legal, infrastructural and logistical terms and reference for any project are very essential but unfortunately they are not clear in this case,” he said.
He added that government ministers have been giving conflicting information about what route the proposed economic corridor will take.
"This corridor is equally important for all of Pakistan’s four provinces. But confusion over the official route of the project, which is still unclear, is creating unrest among the provinces. Therefore, the government should place an official map of the planned route before the parliament,” he said.
One of the most serious barriers to the completion of the 2,000-kilometer corridor is Pakistan's significant problems with security.
In the past Chinese workers have been attacked, killed and kidnapped in southwestern and northwestern Pakistan, including in the area of the port in Gawadar, by Baluch separatists and Taliban militants.
The separatists, buoyed by local political opposition to Chinese investment in the mineral-rich Baluchistan province, claim Islamabad is stealing their resources with the help of China.
Sensing the security concerns, the Pakistani army has created a 10,000 strong force to provide protection to hundreds of Chinese workers, technicians and experts to be associated with the economic corridor projects.
“A special force is being raised for the Pakistan-China economic projects," army spokesman Major General Asim Saleem Bajwa said in a tweet on Tuesday.
The new force, formed on the special request of the Chinese president, will comprise nine army battalions and six wings of the paramilitary forces.
