International Perspectives on the Belt and Road Initiative

A Bottom-Up Approach

Sidh Sintusingha, Hao Wu, Wenqi Lin, Sun Sheng Han, Bo Qin, Sidh Sintusingha, Hao Wu, Wenqi Lin, Sun Sheng Han, Bo Qin

• Publisher: Routledge
• Year: 2021
• Print ISBN:
  9780367427320
• eBook ISBN:
  9781000381474
• Topic: Architecture
• Subtopic: Urban Planning & Landscaping

International Perspectives on the Belt and Road Initiative investigates the most significant global?scale international trade expansion and capital investment programme since the Second World War.

This book focusses on the multi-national perspectives of the Belt and Road Initiative (BRI) in order to interrogate the Chinese government's representation of it as a symbol of "peace, cooperation, development and mutual benefit." With specific focus on the interrelationship between geopolitics, infrastructure investments and urban regional development, the book reflects on 12 countries' experiences in depth, including those of Iran, Pakistan, Brazil, Thailand, Indonesia, Japan and Ethiopia, specificly to their economic development levels, political systems, power dynamics and socio-environmental issues. The book clarifies and contributes new knowledge on the nature of BRI concerning its relationship to globalism, neo-colonialism, the notion of developed vs developing countries and their institutions and macro-micro benefits and impacts. In doing so, the book offers a balanced account of the antagonistic geo-political narrative of socio-political conflict and the collaborative framework of real socio-economic flows and development.

The book will appeal to academics, researchers and policy-makers with an interest in the BRI and its impacts on politico-economic development and urban, regional and spatial systems in the Indo-Pacific and beyond.

Section II
International context, analysis and outcome

4 Urban development challenges under the China-Pakistan Economic Corridor (CPEC)

Muhammad Imran, Murad Ali and Muhammad Saleem Janjua

From a geo-political relationship to a geo-economic relationship

This chapter explores the policies and projects prepared and implemented in Pakistan under the Chinese Belt and Road Initiative (BRI), locally called the China-Pakistan Economic Corridor (CPEC). The chapter critically reviews the most influential urban development projects under the CPEC: Pakistan’s first ever metro train project in Lahore and the development of the new port city of Gwadar. The chapter identifies economic, financial, social, environmental and institutional sustainability of the CPEC from the local perspective.

Pakistan is undoubtedly the first country in the world to warmly welcome the BRI to transform existing geo-political relationships into geo-economic relationships with China. Pakistan and China have been enjoying warm bilateral ties for decades, despite the fact that the two countries have never been treaty allies (Small, 2015, p. 3). They have invested a lot of time and effort into building a relationship and the two sides have built up an unusual level of mutual trust. The two countries have a number of converging interests, including security apprehensions vis-à-vis a rising India, geographical nearness, Pakistan’s support for China’s seat in the UN, the role played by Islamabad in breaking the isolation of China in the 1960s and working as a bridge between China and the Muslim world, as well as supporting China’s stance on matters such as Taiwan, Tibet, Xinjiang and human rights abuses (Ali, 2017). However, China has supported Pakistan in the advancement of its military and nuclear warheads and the Kashmir issue, and in dealing with pressure from Western nations. It is fair to say that Pakistan and China have been enjoying geo-political ties for over six and a half decades that have been described as ‘time-tested,’ an ’all-weather friendship,’ ‘higher than the Himalayas and deeper than the Indian Ocean” and “sweeter than honey’ (Hameed, 2017).

In the context of this long-lasting geo-political relationship, Pakistan warmly embraced the BRI. During President Xi’s historic visit to Islamabad on 21–20 April 2015, the two countries signed 51 Memorandums of Understanding related to the CPEC (Figure 4.1). China agreed to invest over USD46 billion (now raised to USD60 billion) in various sectors. Pakistan urgently needed external investments, as the country had suffered huge human and financial costs incurred by the protracted and deadly ‘War on Terror’ at the domestic front. The relentless conflict started since 9/11 has cost the country over USD126 billion, as it has affected the country’s exports, prevented inflows of foreign direct investment (FDI), led to additional security spending, affected the tourism industry, damaged physical infrastructure and resulted in the displacement of thousands of people from conflict-affected areas (Government of Pakistan, 2018). In addition to the huge economic costs, the prolonged conflict has resulted in the loss of over 63,000 lives in Pakistan, including the lives of more than 7,000 security personnel (Ali, 2019a). Although the USA has also provided more than USD30 billion in economic and military aid to Pakistan in the last two decades, it is overshadowed by the staggering financial and human losses that Pakistan incurred after it agreed to play the role of a frontline US ally in this war.

Figure 4.1 The China-Pakistan Economic Corridor (CPEC). Note the proximity to Kabul, capital of Afghanistan, and Chabahar, Gwadar’s competition in Iran. (Map credit: Iris Fong)

Furthermore, because of mutual suspicions and a lack of trust pertaining to the ongoing Afghan War and unabated US demands that Pakistan must do more in the ‘War on Terror,’ US-Pakistan bilateral ties have deteriorated considerably, particularly after the killing of Osama bin Laden in Pakistan in May 2011 and the subsequent reduction and suspension of US security assistance to Pakistan (Ali, 2019a). In these circumstances, Pakistan not only needed economic assistance to revive its economy but also needed political support in the international forums to not become isolated after its alliance with the USA had run its course. It was in this context that Pakistan eagerly welcomed the CPEC in the hope of resolving some of the key barriers hindering its economic development, such as energy deficiencies, poor transport infrastructure and low industrial capacity.

Pakistan is a geo-politically and geographically crucial part of China’s BRI master plan. Small (2016, p. 69) argued that the CPEC is considered the flagship project of the BRI because it conforms with various objectives of China including “the outsourcing of industrial capacity, the search for growth drivers in the Chinese interior, the push to build up new markets for Chinese exports, efforts to stabilize China’s western periphery” vital to addressing the threat of Islamic extremism and the plans to explore alternative and viable transportation routes linking China with the Indian Ocean and beyond. Thus, through this corridor, China aims to utilise Pakistan’s advantageous geographical location effectively to achieve its geo-economic and strategic objectives in the region (Ali, 2019b). Therefore, a one-country corridor in the form of the CPEC in a geographically important country has significant geo-strategic, economic and security benefits for both China and Pakistan.

The CPEC: an overview of selected urban development projects

The CPEC is a collection of numerous projects aimed at building inter-city and intra-city transport infrastructure and power plants (energy projects), and developing the port city of Gwadar and Special Economic Zones (SEZs) during 2015–30. Details of some of these projects are as follows.

Under the CPEC, more than 3,000 km of road construction and upgrades are being planned to strengthen inter-city connectivity in Pakistan. The CPEC Eastern route, the Peshawar-Karachi Motorway, is a 1,700-km high-speed, limited access motorway that will connect Karachi and Peshawar through Islamabad, Lahore, Multan, Sukkur and Hyderabad. The 296-km stretch between Sukkur and Hyderabad is the last missing link, which will be completed in 2024. It is expected that this motorway will be extended from Peshawar to Kabul (265 km) to assist Afghanistan to join the BRI. The CPEC Western Route, the Islamabad-Gwadar Highway, is a 1,900-km high-quality highway that will connect Islamabad and Gwadar through Quetta. Different sections of this route are under construction. Moreover, the Karakoram Highway between Islamabad and the Chinese border will be completely reconstructed and overhauled under the CPEC. The primary aim of this investment is to establish high-speed road connectivity between Kashghar (Xinjiang Province) and the ports of Karachi and Gwadar to enhance trade.

Karachi is the largest city of Pakistan, with a population of 20 million. The Karachi Circular Railway (KCR) was introduced in 1964 to provide a mass transit system in the city. However, the KCR was shut down in 1990s as a result of financial losses, and poor infrastructure and services. Under the CPEC, 43.2 km of the KCR will be revived to make it a part of the mass transit system in the city. A feasibility study of the KCR was completed in March 2017, though other phases of the project have been delayed. In contrast to Karachi, Lahore, the second-largest city in Pakistan, planned and built Pakistan’s first ever metro train, the Orange Line, under the CPEC. Currently, 27 km of the Orange Line are under construction, and the line is expected to be completed in 2021. The details of this project will be described later.

The port city of Gwadar and nine SEZs and industrial cities are planned across the country under the CPEC. The reason for the establishment of a port city and the SEZs is to boost exports, provide a substitute route for imports, capitalise on technological transformation and promote trade. The SEZs will be governed by an update to the Special Economic Zones Act (Amendment) 2016. It is expected that Chinese companies will move their industries to the SEZs and operate the port in Gwadar.

This chapter primarily focusses on urban development projects under the CPEC. The selection of two case studies – Lahore Metro Train and Gwadar (a new port city) for detailed investigation – is based on their cutting-edge roles in the CPEC portfolio, their advanced stage of implementation and great political interest. Both case studies have the ability to show the complexity of urban development projects in Pakistan, and, therefore, insightful knowledge of these cases will be helpful for projects that are in the planning stages.

Lahore’s metro train (the Orange Line)

Under the CPEC, the Punjab provincial government initiated Pakistan’s first metro train (the Orange Line) project in Lahore. The Orange Line was first proposed in the Lahore Rapid Mass Transit System study in 2007 which was completed with Asian Development Bank funding. The study recommended strategic corridors (the Green, Orange, Blue and Purple Lines) to develop a rapid transit network in Lahore. In 2013, the top priority Green Line was built as a Bus Rapid Transit route, while the feasibility of the Orange Line was completed by MVA Asia Ltd and NESPAK. The Punjab Mass Transit Authority was established for future planning, construction and operation of a mass transit system. The CPEC provides the opportunity to the Punjab Mass Transit Authority and Lahore Development Authority (LDA) to get funding for the 27-km ready-to-be-built Orange Line.

The total cost of the project is estimated at over PKR163 billion, 100% financed by a soft loan from China’s Exim Bank under the CPEC. The Prime Minister of China, Li Keqiang, called this project a gift of the Chinese government and people to Pakistan. The funding for the Orange Line was conditional on using Chinese enterprises and Chinese equipment during the implementation of the project. Consequently, a China-based contractor, CR-NORINCO, received the main contract for the design and construction work, China’s CRRC Zhuzhou Locomotive got the contract for providing trains, and a joint venture of China Railway and NORINCO received a contract for operating the train services for the first five years of its operation. Later, CR-NORINCO involved local Pakistani construction companies for civil works.

The 27-km-long Orange Line comprises 25.3 km of elevated track and 1.7 km of underground sections. It was estimated that the cost of Orange Line (USD60 million per km) would be quite similar to train projects in Indian cities (Mumbai, Pune and Jaipur) and well below a metro train project in Jakarta.

The Chief Minister of Punjab claimed that the Lahore Orange Line was the first of its kind in the country and would revolutionise the transport sector by bringing new culture, modern transport facilities and affordable mobility in Pakistan. He called the project the common man’s ride, which would provide safe, swift and pollution-free transport in Lahore. He aimed to complete this project with high-quality engineering works and rapid speed, and transform it into a masterpiece of architecture.

The Orange Line project has been opposed by political and civil society actors, who have voiced concerns about the dislocation of people, which might result in greater homelessness and poverty. Questions have also been raised about the transparency of land acquisition and compensa...

Table of contents

• Cover
• Half Title
• Series Page
• Title Page
• Copyright Page
• Table of Contents
• List of boxes
• List of figures
• List of tables
• List of contributors
• Preface
• Section I Background
• Section II International context, analysis and outcome
• Section III Comparative perspectives: a bottom-up approach
• Index