Interview with Sardar Shoukat Popalzai – President, Balochistan Economic Forum
[box type=”shadow” align=”” class=”” width=””]Profile:
Sardar Shoukat Popalzai, President of the Balochistan Economic Forum, comes from the traditional Popalzai tribe, gained his academic degree in International Relations with major in Diplomacy and Anti-Terrorism with advance Degree level Hotel Management Certification.
He has been leading many Ministerial, Governmental and private business delegations to various countries and is also a member of several important advisory committees of prestigious government organizations and business representative bodies. Over the years, he has made presentations at numerous important conferences and high-level corporate briefings. He is recipient of awards from USA, Great Britain, France, the People’s Republic of China and Federal Republic of Germany, currently he is also the Chairman of Pakistan Security Services and Systems Association (PSSSA).
The Balochistan Economic Forum has been designed to familiarize the national & international economic community with opportunities for Trade and Investment in the province of Balochistan. Since its inception, the Balochistan Economic Forum has played an important role in attracting foreign investment in the province of Balochistan and it continues to be the main powerhouse behind integrating foreign investment and has completed 25 years of its meritorious services this year.[/box]
PAGE: How would you comment on CPEC as a game changer?
Sardar Shoukat Popalzai: A Massive $62 billion investment project underway in Pakistan — the China Pakistan Economic Corridor (CPEC) is seen as a game changer for the country’s economy. It is a flagship project under China’s ambitious Belt and Road Initiative (BRI), which is designed to run through Asia, Europe and Africa connecting over 60 countries.
The CPEC is a collection of a wide variety of infrastructure projects throughout the country which were initiated as far back as 2013. While an investment of $47 billion was planned when CPEC was conceived, the figure has gone up over the years as more projects were added along the way, taking the total to $62 billion at last count.
The CPEC aims to rapidly upgrade country’s infrastructure to strengthen its economy by the construction of modern transportation networks, several energy projects, and special economic zones. A vast network of highways and railways are to be built under the CPEC plan, which will span the length and breadth of the country of over 220 million, ranked as the fifth most populous in the world.
The country hopes that the CPEC project will help in the creation of over 2.3 million jobs between 2015 and 2030, which is the end date of the project, and add 2 to 2.5 percentage points to its annual economic growth rate.
CPEC, a flagship project of BRI, is a transformational project. Envisaging an investment of $62 billion financed by China, it entails greater connectivity and trade linkages between Pakistan and China through a network of road, rail, fiber optic cable, energy pipelines and power generation projects. It aims at bringing prosperity to the region.
PAGE: Your perspective about the infrastructure development through the investment from China:
Sardar Shoukat Popalzai: Under CPEC, Pakistan’s infrastructure and transport network is also being modernised. Various sections of Karakoram Highway-II and Peshawar to Karachi motorway have been upgraded and opened to traffic. Pakistan is working with the Chinese authorities on the upgrading of the Main Line-I railway track from Karachi to Peshawar which is 1,687 km long.
A new fiber optic cable under CPEC has been operationalized from Khunjerab to Islamabad, the national capital city. In the next phase, it will be laid from Islamabad to Karachi – the country’s commercial hub – and then Gwadar, which is being developed as Pakistan’s second major port, as part of a Digital Highway Plan. While, over the past seven years, CPEC energy projects have directly created 26,795 jobs and boosted local power industry significantly. On the other hand, CPEC’s infrastructure projects have created almost 50,000 jobs. This testifies to the fact that CPEC’s contribution to Pakistan’s economic development has been real and substantial. In five to 10 years CPEC will substantially raise the GDP, improve and modernise the infrastructure, and help Pakistan optimally realise its true potential. CPEC is currently in its second phase with focus on industrialisation, socio-economic development, agriculture and technological advancement.
The Gwadar port is being developed as an energy, trade and logistical hub. Gwadar can reduce logistical costs substantially and can give access to Central Asia, Afghanistan, and the West of China apart from serving as the regional hub of trade and commercial activity. The establishment of Gwadar Free Zone has presented Gwadar as a tax haven for investors and has already attracted multiple investors. The businesses under the Free Zone will enjoy tax benefits for 20 years.
PAGE: How beneficial would CPEC be for Pakistan in terms of trade with the rest of the world?
Sardar Shoukat Popalzai: With the improvement in infrastructure under CPEC investment, internal and external trade will increase. After the completion of Gwadar port, Pakistan will be a trade hub for the whole region. Along with the CPEC’s investment inflows, the Vision 2025 aims at increasing exports to $150 billion and exports to GDP ratio to 16–19%. Vision 2030 aims at increasing trade to GDP ratio from thirty per cent to sixty per cent in 2030. This can only be possible after FDI inflows in the form of CPEC into Pakistan. So, if the trade to GDP ratio is doubled in 2030 to its level in 2013, then the annual growth rate will be 5.88% and 4.94% under advance and moderate scenarios respectively.
PAGE: Would Pakistan be able to overcome its energy deficiency through CPEC projects?
Sardar Shoukat Popalzai: The power plants built under the CPEC hold immense importance for the country as they have largely solved the serious electricity shortage in Pakistan, bringing advanced technology and creating job opportunities.
The CPEC’s power plants are giving Pakistan electricity at the cheapest prices and when the cheapest energy will be transmitted through the HVDC line, it will save a substantial amount of electricity from getting wasted, and will eventually give cheaper electricity to the end-consumers.
Pakistan is able to meet this demand because of the BRI which is injecting enough electricity into the country’s national grid, enabling it to meet the demand of both domestic and industrial consumers.
The CPEC projects are adding and will add more electricity in our system after the completion of the on-going projects, and will help us generate more revenues by flourishing our industry, besides improving the lifestyle of our public.