KASHGHAR GAWADAR POWER CORRIDOR.

CONCEPT OF TRADE CORRIDORS

Trade has always been the primary pillar of remuneration ,since prehistoric times. Even whenthere was no monetary or fiscal system , exchange of goods and services through sea , camels,etc were prevalent ,150,000 years back.(Watson 2006 )

DEFINITION OF ECNOMIC CORRIDOR: It is being defined as ,the culture of tradeagreements and treaties ,status, delegated legislation , and customs that govern and guide tradingrelationships ,institutions and structures , or movement of products, services and information in ageographic vicinity among people in and across borders ,according to a matrix. 1

EXAMPLES

i. SILK ROUTE

It is from Africa to china is one of the oldest corridor , and is a living example of economicgrowth and prosperity .This corridor on one hand supported the socio-economic developmentof all geo strategically located countries . While on the other hand this route facilitatedexchange of intellect, philosophies, and infrastructure through continental connectionbetween Asia, Europe, Africa, and America. 2

ii. ECONOMIC CORRIDORS IN AFRICA

The corridors between East, West and South regions have proved to be economic engines foractivating trade ,commerce, employment opportunities and changing economic scenario oncontinental level .The left over areas of Africa , Asia and other areas also needs and otherpoor regions also need economic and trade corridors .

iii. CORRIDORS BETWEEN AMERICA AND CANADA

Both the countries realized its importance in 1990. Huge funds were allocated, properlegislation was adopted to facilitate the construction of trade corridor. Beacause of thesemeasures in the year 2006 , goods worth 626 billion dollars were traded between these twocountries. 3

Table 1: Major Trade Corridors on Each Continent

Corridor Region Characteristic Funding MechanismTrans-Kalahari Corridor Africa Economic Dev. Government, Private, World Bank, Aid

Novadutra Latin America/ South America

Econ. Dev, TradeIntegration

Government, Private

North/South Corridor Asia Trade Integration, Econ.Dev.

Public/Private Partnership

North/South Corridor Africa Trade Integration Public/Private Partnership-sub-regionalorganizations initiatives

East/West Corridor Asia Trade/EconomicIntegration

Public/Private

Source: Bernstein, W.J. A., Splendid Exchange: How Trade Shaped the World (New York: Atlantic Monthly Press, 2008)

1

D. Baker, Epstein, G., and Pollin, R. Globalization and Progressive Economic Policies (Cambridge: Cambridge University Press, 1989).2Bernstein, W.J. A., Splendid Exchange: How Trade Shaped the World (New York: Atlantic Monthly Press, 2008).

3Bernstein, W.J. A., Splendid Exchange: How Trade Shaped the World(New York: Atlantic Monthly Press, 2008)

FIGURE 1: Diagram of Global Themes in Trade Corridor Development

Source: Bernstein, W.J. A., Splendid Exchange: How Trade Shaped the World (New York:

Atlantic Monthly Press, 2008)

The central theme of all the corridors is to increase ecnomic activities in the region and begin

social development on massive scale benefitting all the segements of the society through public

private partener ship .Resultantly the whole society gets prosperous and peacefull .The people

get involved in jobs, buisnesses . They enjoy new trends and themes . Thus the whole society

thrive in peacefull co-existance.

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THE KASHGHAR GAWADAR POWER CORRIDOR (Figure 2,3,4)

China is a country who benefited its own people from the idea of ecnomic corridors .In late

1970s , china initiated various especial ecnomic zones in East of china. Through these projects

they tranfsformed its whole eastren region in all aspect of of development from technical to

technical expertise and then to managerial, social and ecnomic development .Resultantly

Shenzhen area in east china got very much developed. China thinks that WEST china felt

deprived ,that’s why seperatist movement in the form of muslim militants started .

Premier Li Keqiang was the first one from Chinese Side, who was the first who flooted the idea.

Soon after it, got support from President of China XIJINPING and President Asif ali zardari.

Now PM Nawaz Sharif is fully backing up the China – Pkistan corridor.

The short term goals of the project are named EARLY HARVEST, will take upto 5 years. In this

40 projects worth 14 billion dollars will be established in pakistan for generating ecnomic

avtivity and trade development .

The long term plan envisagates a multibillion dollar master plan with a time frame extending up

to the year 2030. It will connect Kashghar to Gawadar through the new and existing road net

works of Indus and Karakoram, and further connecting it across the border with central Asian

states..This will be the best cost and time efficient chain of supply for trade with in the

region.Upto 3 billion people of the region are expected to reap benefits from this connectivity. 4

6 Lane motorway, Railway track for 3000 KM, with links, Oil and Gas Pipe Lines, Fiberoptic

Cabel Projects, and inter linkages will be installed. Air port in Gawadar, Free Trade Zones, and

Industrial zones will be constructed. It will focus on ecnomic and trade linkages, Inreasing social

connections among the people , exchange of Political and, cultural, ideas, and exchange of

expertise between governments will be the goals achieved through this huge project .

4 Hassan Yasser Malik , “Strategic Importance of Gwadar Port”, journal of Political Studies , Vol 19 , p-61

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FIGURE 2:

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Chine imports oil worth US 314 $ billion Dollors per year. 60% of the oil is imported fromHermoz, Qatar. The distance between Harmoz and Shingai is 12900 km. the distance betweenShingai and Xinkiang is 4000 km. If china gets excess to Gawadar port then the total distance fromGawadar to Kashgar will be just 2500 km only. If china invests 100 billion dollors in the project, theimport of oil in one year will reimburse the amount. Currently china has announced investement of45 billion dollars.Out of this, 20 billion dollars are for motorway, 2.3 billion dollars are for railways.

FIGURE 3:

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FIGURE 4:

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THE OBJECTS OF CHINA ATTACHED WITH THE PROJECT

1. The government of china plans that through this project they will make Xinkiang into acentre of ecnomic hub . They will develope special ecnomic zones in Kasshghar and Horgusof xinkiang.It will be the main centre for processing of regional and international goods . Itwill be the logistic centre too. By connecting the region to Gawadar , the west china willbecome the bastion for economic growth and prosperity.In brief China has been pushing GOWEST, policy to take the ecnomic development to the restive Western china province ofXinkiong .

2. China wants to reach to the hot water of the arabian sea.

3. The issue of distance /cost effectiveness.

China imports 60% of oil from middle east through strait of Har muz .Its the second biggestconsumer of oil after the USA. By 2025 china will need 75% oil through the Indian ocaenand strait of Malacca. China will remain vulnerable in this rout because of assertive IndianNavy and 5th fleet of US.

Xinkiong province of China as can be seen in the above map can linked to the warm waters

of Arabian sea through this Corridor as the shortest possible distance for its energy as well as

trade. The distance between Gawadar and Xinkiong is only 2500 kilometers. While the

distance between Xinkiong and east China root is 4500 KM, Shingai of China is 14500 km

away from Hurmoz.

4. Regional Angle; This corridor can transform TAP into reality while IPI can easily become

IPC .Through connection of all ecnomic zones, this corridor can also benefift Afghanistan,

Uzbakistan,Tajikistan via afghanistan .According to estimates of Master plan , the corridor

has the potential to attract 25% of international and national supply chain by 2020.

Kazkistan, Turmenistan and Uzbakistan having more liquid cargo to export. For this

Mediterraniana SEA is 1800 KM long, while this corridor will be 1400 KM only.Caspian Sea

is supposed tohold the future energy needs of the world all the way from US, Europe and

Japan and it will account for more than 80% of the oil needs in future. However

what is more important is that the old cargo route will no longer be the central point of oil

tansportation and center of gravity for oil will move towards this corridor.

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5. Agglomeration or cluster theory

World wide extensive research on corridor proves that Kasghar Gawadar corridor fits intocategory of Cluster corridor.According to this theory ,clusters of interlinked buisness, orindustries foster competition in multiple ways.

Its presumed that three billion people will be benefited from this project.

5 “Pakistan-China Friendship bedrock for Economic Cooperation‖”, the Express Tribune, 6 July 2013.

6 Shabir Ahmad Khan and Zahid Ali Khan, “Pakistan-Kazakhstan Relations: Future Prospects”, PUTAJ Humanitiesand Social Sciences 19 (2012).

THE BENEFITS OF KASHGHAR GAWADAR PROJECT FOR PAKISTAN.

1. Paksitan is in a turmoil. Its almost in the state of political, economic and social isolation.

Terrorisom, energy crises, unemployment and various other tensions are prevelent in

pakistani society. This project will be a blesing in disguise. The initial investmnet of 14

billion dollor will imedietly boost it economy.

2. Being a cluster corridor, pakistan will get the meximum benefits. In cluster corridor there are

three ingridients. First ,it enhances the production of the companies, secondly ,brings in new

ideas and innovation in the field ,and finaly,gives birth to new range of buisness activities.

There is general consenses that cluster usher into immense ideas which are further facilitated

by informal exchange of ideas. Well-constructed clusters attrac more firms, and expand

business domain having added advantage in bringing in more innovative business ideas.

3. This corridor will be a source for generating income in services sector ,ie banking, travel,

electrical, shipyard, and real estate. This corridor will provide employement opportunities to

people from shades, labour, professionals,and skill opening from avenues. The corridor will

change the life style of the region and will inrease percapita income and GDP . 8

4. According to estimates 100 million dollars per anum can be generated from transit of oil and

gas through this route .

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5. As presumed that total number of people benifited from the project will be 3 billion. It means

that if the project is allowed on its natural route then every citizen of pakistan will be the

beneficiary.

6. The under developed areas like Fatah Jang, Mianwali, Khyber Pakhtunkhwa, FATA and

balochistan will get developed.

7. The untaped resources of FATA, Khyber Pakhtunkhwa and balochistan will be utilized. On

one hand it will change the fortune of the people while on the other the whole country will

get prosperous. The per capita income of pakistan will increase many fold. The growth rate

of pakistan will shoot vertically up. 7 Saleem Shahid, ―Review of economic corridor :Feasibility Report p-98 “Economic Zones to be built in Xinjiang by 2020”, China Daily, 6 November 2013, http://www.chinadaily.com.cn/china/2011-11/06/content_14044111.htm (accesses 10 April, 2014).James R. Holmes, “Gwadar and the String Of Pearls”, February 9 2013, http://thediplomat.com/2013/02/gwadar-and-the-string-of-pearls/comment-page-4/ (accessed 15 May 2014), 9.

THE MAP OF THE NATURAL KASHGHAR GAWADAR ROUTE AND THE ONEPROPOSED BY NAWAZ SHARIF.

FIGURE 5:

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THE DAMAGES VERSES BENEFITS OF THE NATURAL AND PROPOSED ROUTE

OF THE CORRIDOR

1) The route from shahrae karakuram ,to Burhan, Daud Khel, Mianwali, Banu, Dera Ismail

Khan, Zhob, Queta, and Gawadar is more than 900 KM shorter than the one proposed by

Nawaz sharif.

2) This route is nearest to Afghanistan , so Hasan Abdal Peshawar, landi kotal- Afghanistan

and central Asian connection is there.

Banu-Miransha-Afghanistan provides an other connecting link. Same can be stretched or

Bifurcated to Banu, Tal, Parachinar Afghanistan- central Asia.

Dera ismail khan ,south Waziristan-afghanistan.is another added route offered.

Chaman, Spin Boldak, Afghanistan is another linkage of this route.More than 10 such

connections with Afghanistan and hens Central Asia are possible in this rout.

3) The areas in this route are full of minerals, and other un tapped resources. If this route is

not being adopted than,these resources will remain un tapped , or if tapped it will not

benefit the actual owners of the resources. The exploitation by big brother will take a new

shape and create dangerous tensions between apart of Punjab, FATA, Khyber

Pakhtunkhwa and Balochistan verses Punjab. These tensions can have ugly turns.

4) If the route is changed then the dream of connecting this corridor to resources reach

Afghanistan and central Asia will remain a falls cry. The concept of cluster corridor will

simply vanish.

5) The cost of long travel upto 900 KM in each trip will mount into trillion of dollars.

6) The propose rout of Nawaz sharif is technically not correct. From November till January

the current motor way is FOG affected area. When this motorway will be extended to

Karachi, it will be the worst affected area in monsoon because of floods. So 4 to 6

months per year, the traffic on this route will be questionable. In sharp contrast the route

through Mianwali, Khyber Pakhtunkhwa and Baluchistan is all time season friendly.

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7) To assess the issue of the route of corridor, it is pertinent to know the various systems of

communications i.e Railway Highways, Motorways and Airways of Pakistan.

A. HIGHWAYS

i. Inter Governmental Agreement on Asian Highway Network

2005

How the provinces of khybar pakhtukhwa, FATA, and

Baluchistan are dicriminated

Pakistan along with 26 Asian countries had signed the Inter Governmental Agreement on

Asian Highway Network (AHN) proposed /formulated by UN ESCAP in an Inter-Ministerial

meeting held at Shanghai, People's Republic of China in April, 2004. The main Agreement

has been deposited with Secretary General, United Nations. The main objectives of the

Agreement on AHN are:

To promote and develop international road transport in Asia and with neighboring

regions.

To strengthen relations and promote trade and tourism among members of UN ESCAP.

For the implementation / operationalization of the agreement, Governments of at least eight

(8) states need to ratify it. Government of Pakistan (Federal Cabinet) has ratified this

Agreement on 21st July, 2005. This instrument of ratification, duly signed by the President of

Pakistan has been provided to UN ESCAP on 18th October, 2005. The routes designated as

Asian Highways passing through Pakistan are:

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AH-1: Torkham—Peshawar—Rawalpindi—Lahore—Waga Border (India)

(520 Km) , No work on Torkham-Peshawar high way has been done.

AH-2: Lahore—Sahiwal—Multan—Rohri—Sukkur—(Quetta)Sariab-

Lakpass —Nokundi—Taftan (Iran) (1763 Km)

AH4: Karachi—Hyderabad—Rohri—Lahore—Rawalpindi—Hasanabdal

— Abbottabad—Khunkab (China) (1391 Km) Again the portion

falling in Pakhtunkhwa province is un touched.

AH-7: Karachi—Kalat—Quetta—Chaman(Afghanistan)(816 Km)

AH-51: Quetta—D.I. Khan—Peshawar (862 Km) . No work on this started

yet.

Most of these above mentioned segments of Asian Highway Network falling in the

territory of Pakistan have already been improved as per the Asian Highway

Standards and the work on the remaining stretches is in hand on priority basis

through National Highway Authority. The improvement/Up-gradation of these

stretches is included in Annual development plan.

Its 10 years down the road , when we look at the above agreement , non of the

highway ,falling in Pakhtunkhwa and Baluchistan are constructed. The Asian

standard ,will be seen when it gets constructed.Why its so ?? The answer is that

these provinces are not the priority of National Highway Authority.

ii. List of National Highways [edit]

National HighwaysSign Course Length Existing Status Lanes Completion

Karachi – Torkham 1819 km 1819 kmvia Hyderabad, Multan, Lahore, Gujranwala, Gujrat, Islamabad, Rawalpindi, Peshawar

6 1952

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Karachi – Gwadar (Makran Coastal Highway)

653 km 653 km via Ormara, Pasni 2 2003

Mansehra – Chilas 240 km 240 km via Naran 2

Karachi – Chaman (RCD Highway)

813 km 813 km via Bela, Khuzdar, Kalat, Quetta 2

Basima – Khuzdar 110 km 110 km 2

Hasan Abdal – Khunjerab Pass

806 km 806 kmvia Abbottabad, Thakot, Gilgit becoming China National Highway 314

4

Quetta – Taftan 610 km 610 kmvia Naukundi becoming Road 84 in Iran

2

Nowshera – Chitral 309 km 309 km via Dir 2

Kuchlak – Dera Ismail Khan

531 km 531 km via Zhob 2

Karachi – Peshawar 1264 km 1264 kmvia Kotri, Shikarpur, Dera Ghazi Khan, Kohat

4 (6)

Sibi – Sukkur 385 km 385 kmvia Shikarpur, Jacobabad, Jaffarabad, Nasirabad

2

Qila Saifullah – Multan 447 km 447 km via Loralai, Dera Ghazi Khan 2

Islamabad – Kohala 90 km 90 km via Murree 4

Islamabad – Kohat 146 km 146 km via Fateh Jang 2

Hushab – Surab 487 km 487 km via Panjgur, Nag, Baseema 2

Khwazakhela – Besham

64 km 64 km via Alpuri 2

Chakdara – Kalam 135 km 135 km via Mingora, Madyan, Bahrain 2

Larkana – Lakhi 61 km 61 km via Naudero 2

Gharo – Keti Bunder 90 km 90 km 2

Hyderabad – Khokhrapar

220 km 220 km via Mirpur Khas, Umerkot 2

Taxila – Haripur 44 km 44 km via Khanpur 2

Larkana - Moenjo Daro 28 km 28 km 2

Larkana - Nasirabad 34 km 34 km via Rasheed Wagan 2

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Sakrand - Nawabshah 35 km 35 km 2

Larkana - Shahdadkot 50 km 50 km via Kamber 2

Ratodero - Naudero 18 km 18 km 2

In total 9509 km 9509 km

The list by itself is the proof infront. The portion falling in priority areas ie, Punjab

and part of Sindh are either constructed, are in the stage of completion. On the other hand

the highways in non priority areas , Pakhtunkhwa, and Baluchistan are mostly not started

yet, or their completion period is prolonged ,upto 2023.

In total 9509 km 7b. i. List of motorways[edit]

Motorways

Name & Sign

Course Length LanesCompletion Year

Status

Peshawar –Islamabad

155 km 6 2007 Operational

Islamabad -Lahore 367 km 6 1997 Operational

Pindi Bhattian –Faisalabad

54 km 4 2003 Operational

Faisalabad –Khanewal

233 km 4 2015 Under Construction

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Lahore –Karachi 1,160 km 6 2018 Planned

Dadu – Hub –Liyari 350 km 4 2017 Planned

Ratodero –Gwadar 892 km 4 2018Partially Operational/Under Construction

Hyderabad –Karachi

136 km 6 2017 Planned

M-9 – N-25(KarachiNorthern Bypass)

57 km 4 2009 Operational

N/A = Not Available

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in our

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ii.

All the motorways are infact the motorways of Punjab and priority portion of Sindh. The share of

khybar Pakhtunkhwa is just 88 KM out of 2744 KM. since the priority arias were interested to

have access to Gawadar Port so the NHA did it. M8 (Rathodero to Gawadar) and costal highway

depicted in the above figure are the proves in front.

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7. C THE SYSTEM OF RAILWAYS IN PAKISTAN FIGURE 6:

This map proves that the railway line in british era, no more exists in KhyberPakhtunkhwa, FATA and Balochistan. Currently only Peshawar and Quetta are connected to therailway line. A narrow strips of railway line from Quetta to Taftan is also a compulsion for thepolicy makers sitting in Islamabad. Hence the railway system of Pakistan by all possible means isthe system of Punjab and part of Sindh.

The above map proves that there is no rail linkage between the 2 provinces of KhyberPahkhtunkhwa and Balochistan. It’s the due right of these to provincial capitals Quetta andPeshawar, to be inter connected through railway line.

The figure proves that if some one wants to go from Peshawar to Quetta or vice versa, thenHe/She will have to cross the whole of Punjab and sindh and then will be able to reach to theother contiguously lying capital..

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7. D THE ULTIMATE BENEFICIARIES OF THE SYSTEM OF RAILWAYS INPAKISTAN (self explainatory thatPunjab and Part of Sindh are the onlybenefieciaries).FIGURE 7:

Pakistan is a counTTtry where developmental projects have always been distributed unevenly.

Air ports, Motor ways, RAILWAYS, irrigation system and distribution of

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7. E THE SYSTEM OF AIR PORTS IN PAKISTAN (Again the Main beneficiary is Punjab)FIGURE 8:

7. If the natural route is retained there is still win win situation for Punjab. Punjab is already

having Motorway, Railway, Airways .. They are already linked to this natural route through

Burhan. The industrial cites of Punjab, Faisalabad, Shaikupura, Gujrat, Gujranwala and

Lahore already having motorway and railways linkage. In this natural route Punjab is already

part of this cluster corridor. On the other hand if the route is changed the resource reach

FATA, Khyber Pakhtunkhwa and Balochistan.will never ever dream of becoming prosperous

areas. Their economy will never improve, they will remain poor.

8. Khyber Pakhtunkhwa and Baluchistan have no motorway, railway, irrigation system and all

most no industry. These are the areas which deserve Kashghar – Gawadar corridor the most.

Pakistani Prime Minister Nawaz Sharif must learn from time tasted friend China. China is

launching this gigantic project to develop the under developed west China ie Xinkiong

.China wants to develop west part to remove their sense of deprivation. Nawaz Sharif is

willfully planinig to further deprive the undeveloped areas, Mianwali, Khyber Pakhtunkhwa,

Fata and Baluchistan from their due rights.

Shifting of the shortest, most feasible, economical, and central route for 6 lane motorway, oil

and gas pipeline, fast rail track , Fiberoptic cable, free trade zoons and industrial zones,

towards Punjab means, that, the other two provinces and FATA, will enter in stone age in

this millennium, and will remain so forever.They can only become peons, drivers, guards,

seminaries, or .terrorists

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RECOMMENDATIONS

1. Need for broad based alliance on one point and that is that the natural, the shortest and

the most beneficiary route for the corridor has already been materialized. It needs further

organizational strengthening..

2. To struggle, pray that the prime Minister Nawaz Sharif should start thinking as the Prime

Minister of Pakistan rather than Punjab.

3. High speed train rout from Peshawar to Zhob, Quetta ,Gawadar is the right of these

ignored areas. The route of Kashghar Gawadar corridor does not mean motorway. It

means motorway, train way, oil and gas pipe line, free trade zones and industrial zones

and fiberoptic cable. All these should go through the natural rout. Punjab and Sindh are

already party of it because of motorways and railways net work. More over Lahore

Karachi Motor Way (M5) and then Karachi Gawadar coastal way is their direct link. The

second direct liknk is Dera Ghazi Khan Natho Dero Gawadar (M8). What else they want.

4. Figure 1: proves that corridors have direct linkage with prosperity and peace of the region

concerned. Is there any doubt that FATA, Khyber Pakhtunkhwa are the worst affected

area in the war on terror. The situation of law and order in balochistan is also known to

everyone. If the corridor is allowed on its natural route then these areas will become

peace full. The question is that why the policy makers of Islamabad do not consider this

factor. Do they want these areas to be in continuous state of war??????

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