Chinese firms face headwinds in Pakistan, adopt 'go slow' policy

NEW DELHI: What's going wrong with Chinese projects and investments in Pakistan? Almost everything, it seems.

Despite the top leadership from both countries getting involved to keep things on track, it all appears to be going in a downward spiral. Questions are also being raised about the future of the multi-billion dollar China-Pakistan Economic Corridor (CPEC), touted as a "game changer" for the country's economy. And, China is not happy about it.

Beijing's ambassador to Islamabad, in a recent meeting with a top aide of Pakistan prime minister, has admitted to Chinese companies in Pakistan adopting a "go-slow" policy.

China's frustrations growing?

The ambassador cited “unhelpful behaviour" of the country's power regulator towards Chinese companies, delay in payments to the independent power plants and rising exchange rate for the slowing down, reported Karachi-based Business Recorder (BR).

Ambassador Nong Rong also appeared miffed about the Pakistani response to various Chinese initiatives.

Recalling that President Xi has offered to deploy Chinese experts in Pakistan to help establish SEZs, he underlined that it was high time that Pakistan follow up on the outcome of that decision. He also suggested the establishment of a dedicated SEZ Authority for devising appropriate laws, policies and issue licenses to investors in a timely fashion.



China facing popular backlash in Pakistan?

Chinese influence in Pakistan- especially in governance and polity- is beyond question. Successive regimes in Islamabad have bent over backwards to accommodate China, often allowing core policies to be tweaked to favour Beijing's interests, it has been alleged.

Despite Islamabad and Beijing tom-tomming about being "all-weather allies," the sentiment hardly has a reflection on the ground in Pakistan. Chinese projects have met with popular resentment, specially in the Balochistan province. Chinese personnel engaged in these projects have also been targets of covert attacks.


No wonder then, Syed Tariq Fatemi, the PM's aide, and ambassador Nong also discussed security of Chinese nationals engaged in various projects in Pakistan, during their meeting. He assured of foolproof security arrangements for the Chinese nationals in the country.

Fatemi also brought up delays in completion of several China-backed power projects in Pakistan, some of them part of the CPEC.

Did it elicit any assurance from the Chinese ambassador? The report is silent on that.