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CPEC's future in doubt over critical monetary, security and capacity issues

ANI  |  Washington D C [United States] 

Differences are reportedly developing between and over which of these two countries will eventually stand to benefit strategically from the USD 60 billion China-Economic Corridor (CPEC) project in the long run.

An article published by The has suggested that existing critical monetary, security, and capacity issues could hamper the CPEC's future, as both and are repeatedly and consistently flagging their concerns, doubts and frustrations about project-related lacunae.

From the Pakistani side, there is a very anxious concern that the tough monetary and security conditions that is seeking to impose on it, could leave the country in a worrisome and profound pit of debt.

According to the article, "there is a deepening urgency in to say "No" to Beijing's habit of finding its want with all deals that certainly undermine Pakistan's interests."

Pakistan's decision to withdraw the USD 14-billion from the ambit citing Beijing's strict monetary conditions as being against its national interests is an example of this.

Umair Jamal, the of the article, warns, "Practically, Islamabad's emerging economic model is becoming dependent on ..

Over the last few years, (has) approached economic collapse on several occasions with offering life-saving support to the country's . If continues to push with its aggressive monetary conditions, it's likely that in the coming years, may cancel more projects which do not bode well for the overall commercial viability of the project (CPEC)."

He quotes observers as warning that Beijing's strict monetary conditions and lack of transparency in projects funded by it; have landed the future of Pakistan's whole in a tight spot.

From China's point of view, Jamal says there are economic and security concerns.

Economically, is unlikely to make any trade or monetary concessions to that involve losing financial benefits in such deals such as the It has been aggressive in pushing into accepting conditions that offer it more leverage than the latter.

From the issue of security, is worried about the presence of several jihadist groups in Pakistan, and is pushing into take action to prevent them being a direct threat to its regional economic plans and financial investments in

has indirectly told that it may have to review its very vocal support for the latter on security issues at the global level and financially arm twist if fails to neutralise this surging and violent jihadist influence.

During the recently held BRICS summit, China, in an unprecedented shift from its previous policy of taking up strategic dialogues with behind closed doors, agreed with the rest of the member states in issuing a joint statement, stating that a number of militant groups allegedly based in remain a "regional security concern."

would also not want to annoy India, as both have high value bilateral economic and strategic commitments with each other.

The article, quoting experts like Michael Kugelman, deputy director of the program at the Woodrow Wilson Center, and Seth Oldmixon, a of Liberty South Asia, suggests that "and will work out arrangements that ensure a critical mass of projects to be carried out in their entirety, as there's too much at stake for both countries for it to be any other way.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, January 13 2018. 10:07 IST
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