Former Pakistani diplomat Husain Haqqani has had a successful&nbsp;career serving as Pakistan's ambassador to&nbsp;the US during President Bush's administration. In his early years, he served both Nawaz Sharif and former PM Benazir Bhutto during the tumultuous period in the late 80s and early 90s.

Now an expert on South Asian affairs, he is also a prolific writer, part-time journalist and academic. Haqqani is currently in India. He spoke exclusively to WION on India-Pakistan relations, the Kartarpur corridor, China's Belt and Road Initiative with Pak and Imran Khan's 'Naya Pakistan'.

WION: How do you view the current relations between India and Pakistan?

Husain Haqqani: India and Pakistan relations are at a stalemate. India wants&nbsp;terrorism to be resolved, it also wants justice for the 2008 Mumbai terror attacks. Pakistan, on the other hand, wants to normalise relations without addressing any of these concerns.

Pakistan's definition of normalisation is not the same as India's definition of normalisation of relations. Ideally, India and Pakistan should have the kind of relations which the United States and Canada have, also like Franco-German relations.

WION: Then what kind of template do you see for India-Pakistan relations?

Husain Haqqani: India and Pakistan are neighbours and they will always be neighbours, until 1947, India and Pakistan had the same currency, the same communications network, the same railway network. It was the most integrated region in the world, now it is the least integrated.

The template for India and Pakistan should be in which we are two countries and we respect each other's sovereignty but we have open borders and a large amount of trade with each other and lot of travel basically not looking upon each other as enemies.

WION: On the question of terrorism, how can the stalemate be broken?

Husain Haqqani: Pakistan is hoping the terrorism issue will just fall by the wayside, everyone will forget about it and new things will start coming. India, of course, does not accept it. India wants those who were involved in the Mumbai attacks either punished or identified and there is some kind of acknowledgement that terrorism in India was supported by the Pakistan state and at least tolerated by the Pakistan state.

People like Hafiz Saeed and Masood Azhar whose involvement in terrorism has been acknowledged by the international community should not be allowed to roam freely in Pakistan.

WION: How do you view the Kartarpur corridor and its impact on India-Pak relations?

Husain Haqqani: All openings in the relations between India and Pakistan must be welcomed but the Kartarpur corridor is simply a very limited effort to facilitate the movement of pilgrims from Indian Punjab to Pakistani Punjab, it does not address any of the major issues between India and Pakistan.

WION: What do you make of trade relations between China and Pakistan and Belt and Road Initiative(BRI). Where do you think it is headed?

Husain Haqqani: BRI for Pakistan could have worked if it had also involved other countries in the region, though it has been talked about but it is not the case. The road initiative is now creating a corridor in which Pakistan is becoming more dependent on China than ever.

A huge amount of Chinese investment and lending will create a debt trap for Pakistan including several parts of like Baluchistan, Sindh, Gilgit-Baltistan. These are terrorities where people feel resentful since they feel Chinese investment will not provide any jobs to the locals and it will only facilitate the Pakistani state and China but nothing for the people.

WION: What are your thoughts on 100 days of PM Imran Khan's tenure?

Husain Haqqani: Imran Khan's government has been the most disappointing in recent Pakistani history. It is a civilian government which is more dependent on Pakistan military, the mantra in Pakistan is that the military and civilian government are on the same page but in reality&nbsp;the civilian government has accepted subservience to the military.&nbsp;

The government has not been able to address the economic issues and all we have is Imran Khan's status as a cricket celebrity that is supposed to make the people of Pakistan feel good. There are too many fronts which have been&nbsp;opened, Pakistan's isolation has not been broken and Pakistan's economy has not been fixed, all that has been done is more borrowing and more begging from other nations.

WION: And what about 'Naya(new) Pakistan' then?

Husain Haqqani: Naya Pakistan is nothing but purana(old) Pakistan led by a cricket celebrity who claims to bring a clean government but there&nbsp;are questions being asked now about how clean that government really is!

The real naya Pakistan would be at peace with itself and with its neighbours, also which respects the Sindhis, the Baloch, the Muhajirs, the residents of Gilgit-Baltistan. It would be a country where there are opportunities within and it does not completely depend either on the US or China and lives within its own resources and is not heavily militarised.

Former Pakistani diplomat Husain Haqqani has had a successful career serving as Pakistan's ambassador to the US during President Bush's administration. In his early years, he served both Nawaz Sharif and former PM Benazir Bhutto during the tumultuous period in the late 80s and early 90s.

Former Pakistani diplomat Husain Haqqani has had a successful career serving as Pakistan's ambassador to the US during President Bush's administration. In his early years, he served both Nawaz Sharif and former PM Benazir Bhutto during the tumultuous period in the late 80s and early 90s. Now an expert on South Asian affairs, he is also a prolific writer, part-time journalist and academic. Haqqani is currently in India. He spoke exclusively to WION on India-Pakistan relations, the Kartarpur corridor, China's Belt and Road Initiative with Pak and Imran Khan's 'Naya Pakistan'. WION: How do you view the current relations between India and Pakistan? Husain Haqqani: India and Pakistan relations are at a stalemate. India wants terrorism to be resolved, it also wants justice for the 2008 Mumbai terror attacks. Pakistan, on the other hand, wants to normalise relations without addressing any of these concerns. Pakistan's definition of normalisation is not the same as India's definition of normalisation of relations. Ideally, India and Pakistan should have the kind of relations which the United States and Canada have, also like Franco-German relations. WION: Then what kind of template do you see for India-Pakistan relations? Husain Haqqani: India and Pakistan are neighbours and they will always be neighbours, until 1947, India and Pakistan had the same currency, the same communications network, the same railway network. It was the most integrated region in the world, now it is the least integrated. The template for India and Pakistan should be in which we are two countries and we respect each other's sovereignty but we have open borders and a large amount of trade with each other and lot of travel basically not looking upon each other as enemies. WION: On the question of terrorism, how can the stalemate be broken? Husain Haqqani: Pakistan is hoping the terrorism issue will just fall by the wayside, everyone will forget about it and new things will start coming. India, of course, does not accept it. India wants those who were involved in the Mumbai attacks either punished or identified and there is some kind of acknowledgement that terrorism in India was supported by the Pakistan state and at least tolerated by the Pakistan state. People like Hafiz Saeed and Masood Azhar whose involvement in terrorism has been acknowledged by the international community should not be allowed to roam freely in Pakistan. WION: How do you view the Kartarpur corridor and its impact on India-Pak relations? Husain Haqqani: All openings in the relations between India and Pakistan must be welcomed but the Kartarpur corridor is simply a very limited effort to facilitate the movement of pilgrims from Indian Punjab to Pakistani Punjab, it does not address any of the major issues between India and Pakistan. WION: What do you make of trade relations between China and Pakistan and Belt and Road Initiative(BRI). Where do you think it is headed? Husain Haqqani: BRI for Pakistan could have worked if it had also involved other countries in the region, though it has been talked about but it is not the case. The road initiative is now creating a corridor in which Pakistan is becoming more dependent on China than ever. A huge amount of Chinese investment and lending will create a debt trap for Pakistan including several parts of like Baluchistan, Sindh, Gilgit-Baltistan. These are terrorities where people feel resentful since they feel Chinese investment will not provide any jobs to the locals and it will only facilitate the Pakistani state and China but nothing for the people. WION: What are your thoughts on 100 days of PM Imran Khan's tenure? Husain Haqqani: Imran Khan's government has been the most disappointing in recent Pakistani history. It is a civilian government which is more dependent on Pakistan military, the mantra in Pakistan is that the military and civilian government are on the same page but in reality the civilian government has accepted subservience to the military. The government has not been able to address the economic issues and all we have is Imran Khan's status as a cricket celebrity that is supposed to make the people of Pakistan feel good. There are too many fronts which have been opened, Pakistan's isolation has not been broken and Pakistan's economy has not been fixed, all that has been done is more borrowing and more begging from other nations. WION: And what about 'Naya(new) Pakistan' then? Husain Haqqani: Naya Pakistan is nothing but purana(old) Pakistan led by a cricket celebrity who claims to bring a clean government but there are questions being asked now about how clean that government really is! The real naya Pakistan would be at peace with itself and with its neighbours, also which respects the Sindhis, the Baloch, the Muhajirs, the residents of Gilgit-Baltistan. It would be a country where there are opportunities within and it does not completely depend either on the US or China and lives within its own resources and is not heavily militarised.

Imran Khan government most disappointing in Pakistan's recent history: Ex-diplomat Husain Haqqani to WION

Pakistan has said that the China-Pakistan Economic Corridor (CPEC) is a bilateral economic project and has no military dimensions.

Foreign Office spokesman Mohammad Faisal said this at the weekly media briefing here on Thursday when asked about a US media report that alleged that China has hatched a secret plan to build fighter jets and other military hardware in Pakistan as part of the $60 billion project.

The Islamabad datelined report in the New York Times said Pakistani Air Force and Chinese officials were putting the final touches to the secret proposal. China last week dismissed as untrue the report.

Responding to the report, Faisal said the CPEC is an economic project between Pakistan and China, the Dawn reported.&nbsp;

"The CPEC has helped Pakistan improve its economy, particularly energy and infrastructure sectors have improved under it. The CPEC is a bilateral economic project, which is not against any country,"&nbsp;he was quoted as saying by the daily.

The CPEC, which connects Gwadar Port in Balochistan with China's Xinjiang province, is the flagship project of Chinese President Xi Jinping's ambitious Belt and Road Initiative (BRI).

All-weather friends and close allies, China and Pakistan have been jointly building the J-17 Thunder, a single seater multi-role combat aircraft. Pakistan has been eyeing a number of new advanced Chinese jets including the stealth fighter.

The Islamabad datelined report in the New York Times said Pakistani Air Force and Chinese officials were putting the final touches to the secret proposal.

Pakistan has said that the China-Pakistan Economic Corridor (CPEC) is a bilateral economic project and has no military dimensions. Foreign Office spokesman Mohammad Faisal said this at the weekly media briefing here on Thursday when asked about a US media report that alleged that China has hatched a secret plan to build fighter jets and other military hardware in Pakistan as part of the $60 billion project. The Islamabad datelined report in the New York Times said Pakistani Air Force and Chinese officials were putting the final touches to the secret proposal. China last week dismissed as untrue the report. Responding to the report, Faisal said the CPEC is an economic project between Pakistan and China, the Dawn reported. "The CPEC has helped Pakistan improve its economy, particularly energy and infrastructure sectors have improved under it. The CPEC is a bilateral economic project, which is not against any country," he was quoted as saying by the daily. The CPEC, which connects Gwadar Port in Balochistan with China's Xinjiang province, is the flagship project of Chinese President Xi Jinping's ambitious Belt and Road Initiative (BRI). All-weather friends and close allies, China and Pakistan have been jointly building the J-17 Thunder, a single seater multi-role combat aircraft. Pakistan has been eyeing a number of new advanced Chinese jets including the stealth fighter.

China-Pakistan Economic Corridor is bilateral economic project, has no military dimensions: Pakistan

An International Monetary Fund team arrived in Islamabad Wednesday for talks on a possible IMF bailout, even as Pakistan insisted it had solved its immediate balance of payments crisis.

Speaking shortly after Prime Minister Imran Khan returned from Beijing, Pakistan's finance minister said Tuesday that assurances from China -- combined with a pledge made by Saudi Arabia last month -- meant that Pakistan's immediate fiscal woes were "over".&nbsp;

"We had a gap of $12 billion and in that $12 billion, six billion came from Saudi Arabia and the rest came from China," Asad Umar told reporters, without specifying the nature of the Chinese assistance.

The finance secretary and the governor of the state bank will attend a meeting in Beijing on Friday to finalise the terms of the assistance, he added.

Pakistan secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a balance of payments lifeline during Khan's visit in October.

Despite the pledges, the ministry of finance said the Pakistan would still seek broader IMF support for the government's long term economic planning.

Since taking power in August, former cricketer Khan has been searching for ways to rally a struggling economy hit by inflation and shore up the country's dwindling foreign currency reserves.&nbsp;

As well as a highly-publicised austerity drive, including auctioning off government-owned luxury automobiles and buffaloes, the new prime minister has also made overtures to the IMF -- which has bailed Pakistan out repeatedly since the 1980s.

However, Islamabad received billions of dollars in Chinese loans to finance ambitious infrastructure projects, and the US -- one of the IMF's biggest donors -- has raised fears that Pakistan could use any bailout money to repay its debts to Beijing.

Islamabad -- which last received an IMF bailout in 2013 to the tune of $6.6 billion -- has refuted these claims.&nbsp; 
&nbsp;

An International Monetary Fund team arrived in Islamabad Wednesday for talks on a possible IMF bailout, even as Pakistan insisted it had solved its immediate balance of payments crisis.

An International Monetary Fund team arrived in Islamabad Wednesday for talks on a possible IMF bailout, even as Pakistan insisted it had solved its immediate balance of payments crisis. Speaking shortly after Prime Minister Imran Khan returned from Beijing, Pakistan's finance minister said Tuesday that assurances from China -- combined with a pledge made by Saudi Arabia last month -- meant that Pakistan's immediate fiscal woes were "over". "We had a gap of $12 billion and in that $12 billion, six billion came from Saudi Arabia and the rest came from China," Asad Umar told reporters, without specifying the nature of the Chinese assistance. The finance secretary and the governor of the state bank will attend a meeting in Beijing on Friday to finalise the terms of the assistance, he added. Pakistan secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a balance of payments lifeline during Khan's visit in October. Despite the pledges, the ministry of finance said the Pakistan would still seek broader IMF support for the government's long term economic planning. Since taking power in August, former cricketer Khan has been searching for ways to rally a struggling economy hit by inflation and shore up the country's dwindling foreign currency reserves. As well as a highly-publicised austerity drive, including auctioning off government-owned luxury automobiles and buffaloes, the new prime minister has also made overtures to the IMF -- which has bailed Pakistan out repeatedly since the 1980s. However, Islamabad received billions of dollars in Chinese loans to finance ambitious infrastructure projects, and the US -- one of the IMF's biggest donors -- has raised fears that Pakistan could use any bailout money to repay its debts to Beijing. Islamabad -- which last received an IMF bailout in 2013 to the tune of $6.6 billion -- has refuted these claims.

IMF team in Pakistan as China pledges economic aid

Ahead of Prime Minister Imran Khan's first visit to China, Pakistan Foreign Minister Shah Mahmood Qureshi on Wednesday said the relations between the two nations is a "model of state-to-state ties" and the CPEC projects have given an important socio-economic development dimension to their friendship.&nbsp;

Khan, accompanied by Qureshi, will lead a delegation from November 2-5 to China for talks with President Xi Jinping amid anxieties in Beijing over his government's approach to deal with the $ 60 billion China-Pakistan Economic Corridor (CPEC) following reports about Islamabad downsizing certain projects.&nbsp;

Khan's trip to Beijing comes ahead of a visit to Islamabad by International Monetary Fund officials on November 7 for formal discussions on a bailout package for the cash-strapped country.

Qureshi chaired a preparatory meeting for Khan's visit via video conference with the Ambassador of Pakistan in Beijing, Masood Khalid.&nbsp;

"The two countries are close friends, good neighbours and development partners. The bilateral relationship has withstood the test of times. Regardless of domestic or international changes, this close friendship has served as a model of state-to-state relations for other countries," he said.&nbsp;&nbsp; &nbsp;

Highlighting that Pakistan and China are "all-weather strategic cooperative partners", the foreign minister said the bilateral ties have been further strengthened, particularly in the economic field, by the launch of the CPEC.&nbsp;

Underscoring that the ambitious infrastructure project has added another important socio-economic development dimension to the bilateral relationship, Qureshi said, "The leadership of both countries has expressed strong desire and commitment to the successful implementation of the CPEC."

Beijing touts CPEC as the flagship infrastructure programme in its vast Belt and Road (BRI) Initiative. The CPEC connects China's Xinjiang province with Gwadar, a port city in Balochistan, through a rail, road and pipeline network.

India is opposed to the CPEC as it traverses through Pakistan-occupied Kashmir.&nbsp;

Qureshi said, "Pakistan considers the CPEC as an engine for growth; a catalyst for economic development, and a platform for socio-economic uplift of the people of Pakistan."

The IMF had said it would closely scrutinise the CPEC projects and the US is opposed to the use of IMF money to service the Chinese loans.

An assessment by the State Bank of Pakistan and the Finance Ministry showed that Pakistan needed $ 11.7 billion to service its external debt in the current fiscal year 2018-19.

The US has said the debts accrued on the CPEC projects were to blame for Pakistan's current economic crisis, a statement which was rejected by both Beijing and Islamabad.

On Monday, Chinese Foreign Ministry spokesman Lu Kang had told the media in Beijing that Khan's first visit will provide an opportunity for two countries to "open a new chapter of development of bilateral relations under the new circumstances".&nbsp;

Ahead of Prime Minister Imran Khan's first visit to China, Pakistan Foreign Minister Shah Mahmood Qureshi on Wednesday said the relations between the two nations is a "model of state-to-state ties" and the CPEC projects have given an important socio-economic development dimension to their friendship.

Ahead of Prime Minister Imran Khan's first visit to China, Pakistan Foreign Minister Shah Mahmood Qureshi on Wednesday said the relations between the two nations is a "model of state-to-state ties" and the CPEC projects have given an important socio-economic development dimension to their friendship. Khan, accompanied by Qureshi, will lead a delegation from November 2-5 to China for talks with President Xi Jinping amid anxieties in Beijing over his government's approach to deal with the $ 60 billion China-Pakistan Economic Corridor (CPEC) following reports about Islamabad downsizing certain projects. Khan's trip to Beijing comes ahead of a visit to Islamabad by International Monetary Fund officials on November 7 for formal discussions on a bailout package for the cash-strapped country. Qureshi chaired a preparatory meeting for Khan's visit via video conference with the Ambassador of Pakistan in Beijing, Masood Khalid. "The two countries are close friends, good neighbours and development partners. The bilateral relationship has withstood the test of times. Regardless of domestic or international changes, this close friendship has served as a model of state-to-state relations for other countries," he said. Highlighting that Pakistan and China are "all-weather strategic cooperative partners", the foreign minister said the bilateral ties have been further strengthened, particularly in the economic field, by the launch of the CPEC. Underscoring that the ambitious infrastructure project has added another important socio-economic development dimension to the bilateral relationship, Qureshi said, "The leadership of both countries has expressed strong desire and commitment to the successful implementation of the CPEC." Beijing touts CPEC as the flagship infrastructure programme in its vast Belt and Road (BRI) Initiative. The CPEC connects China's Xinjiang province with Gwadar, a port city in Balochistan, through a rail, road and pipeline network. India is opposed to the CPEC as it traverses through Pakistan-occupied Kashmir. Qureshi said, "Pakistan considers the CPEC as an engine for growth; a catalyst for economic development, and a platform for socio-economic uplift of the people of Pakistan." The IMF had said it would closely scrutinise the CPEC projects and the US is opposed to the use of IMF money to service the Chinese loans. An assessment by the State Bank of Pakistan and the Finance Ministry showed that Pakistan needed $ 11.7 billion to service its external debt in the current fiscal year 2018-19. The US has said the debts accrued on the CPEC projects were to blame for Pakistan's current economic crisis, a statement which was rejected by both Beijing and Islamabad. On Monday, Chinese Foreign Ministry spokesman Lu Kang had told the media in Beijing that Khan's first visit will provide an opportunity for two countries to "open a new chapter of development of bilateral relations under the new circumstances".

Pakistan, China relations a 'model of state-to-state ties': Qureshi

Pakistan's Prime Minister Imran Khan will visit China next week, authorities said Thursday, as the former cricketer mounts a desperate search for funds to prop up the nation's dire finances.

The confirmation of Khan’s first visit to China as premier comes days after Pakistan secured $6 billion dollars in funding from Saudi Arabia to help stave off a widening balance of payment crisis.

Khan said in a televised address Wednesday that he was working to nail down Saudi-style financing packages from two additional, unnamed countries to reduce the size of a potential loan from the International Monetary Fund.

The foreign affairs ministry said Khan would meet with Chinese President Xi Jinping and Premier Li Keqiang on the November 2-5 trip which will take in Beijing and the commercial hub of Shanghai.

"The visit will provide an opportunity for the two countries to review the entire spectrum of bilateral relations with special reference to CPEC," foreign ministry spokesman Muhammad Faisal told AFP, referring to the China-Pakistan Economic Corridor.

CPEC is a multi-billion-dollar infrastructure project aimed at building energy and transport links connecting the western Chinese region of Xinjiang with the Arabian Sea via Pakistan.

However, given Pakistan's deteriorating finances, in recent months there have been concerns that portions of the ambitious agreement may have to be scaled down.

Analysts said Khan will be pushing for financial assistance from Beijing during the visit.

"Pakistan would certainly like China to play its role in supporting our balance of payments and this is going to be one major subject of discussions," said economist Salman Shah.

"China has been providing financial support to Pakistan in difficult times and this will not be something new if they come forward this time also."

Since taking power in August, Khan has sought loans from "friendly" countries like Saudi Arabia, vowed to recover funds stolen by corrupt officials, and embarked on a series of populist austerity drives to raise cash.

Pakistan has gone to the IMF repeatedly since the late 1980s.

The last time was in 2013, when Islamabad got a $6.6 billion loan to tackle a similar crisis.

Pakistan's Prime Minister Imran Khan will visit China next week, authorities said Thursday, as the former cricketer mounts a desperate search for funds to prop up the nation's dire finances.

Pakistan's Prime Minister Imran Khan will visit China next week, authorities said Thursday, as the former cricketer mounts a desperate search for funds to prop up the nation's dire finances. The confirmation of Khan’s first visit to China as premier comes days after Pakistan secured $6 billion dollars in funding from Saudi Arabia to help stave off a widening balance of payment crisis. Khan said in a televised address Wednesday that he was working to nail down Saudi-style financing packages from two additional, unnamed countries to reduce the size of a potential loan from the International Monetary Fund. The foreign affairs ministry said Khan would meet with Chinese President Xi Jinping and Premier Li Keqiang on the November 2-5 trip which will take in Beijing and the commercial hub of Shanghai. "The visit will provide an opportunity for the two countries to review the entire spectrum of bilateral relations with special reference to CPEC," foreign ministry spokesman Muhammad Faisal told AFP, referring to the China-Pakistan Economic Corridor. CPEC is a multi-billion-dollar infrastructure project aimed at building energy and transport links connecting the western Chinese region of Xinjiang with the Arabian Sea via Pakistan. However, given Pakistan's deteriorating finances, in recent months there have been concerns that portions of the ambitious agreement may have to be scaled down. Analysts said Khan will be pushing for financial assistance from Beijing during the visit. "Pakistan would certainly like China to play its role in supporting our balance of payments and this is going to be one major subject of discussions," said economist Salman Shah. "China has been providing financial support to Pakistan in difficult times and this will not be something new if they come forward this time also." Since taking power in August, Khan has sought loans from "friendly" countries like Saudi Arabia, vowed to recover funds stolen by corrupt officials, and embarked on a series of populist austerity drives to raise cash. Pakistan has gone to the IMF repeatedly since the late 1980s. The last time was in 2013, when Islamabad got a $6.6 billion loan to tackle a similar crisis.

Pakistan PM to visit China, seeking funds as IMF bailout looms

Desperate for funding to fend off a financial crisis fuelled in part by mounting debt to China, Pakistan is playing a complicated game of poker that could hand Saudi Arabia a strategic victory in its bitter feud with Iran at the People’s Republic’s expense.

The Pakistani moves threaten a key leg of the $ 60 billion-plus Chinese investment in the China Pakistan Economic Corridor (CPEC), a crown jewel of Chinese President Xi Jinping’s Belt and Road initiative.

They also could jeopardize Chinese hopes to create a second overland route to Iran, a key node in China’s transportation links to Europe. Finally, they grant Saudi Arabia a prominent place in the Chinese-funded port of Gwadar that would significantly weaken Iran’s ability to compete with its Indian-backed seaport of Chabahar.

Taken together, the moves risk dragging not only Pakistan but also China into the all but open war between Saudi Arabia and Iran.

Pakistan’s first move became evident in early September with the government’s failure to authorise disbursements for road projects, already hit by delays in Chinese approvals, that are part of CPEC’s Western route, linking the province of Balochistan with the troubled region of Xinjiang in north-western China.

In doing so, Pakistan implicitly targeted a key Chinese driver for CPEC: the pacification of Xinjiang’s Turkic Muslim population through a combination of economic development enhanced by trade and economic activity flowing through CPEC as well as brutal repression and mass re-education.

The combination of Pakistani and Chinese delays “has virtually brought progress work on the Western route to a standstill,” a Western diplomat in the Pakistani capital of Islamabad said.

Pakistani Railways Minister Sheikh Rashid, in a further bid to bring Pakistani government expenditure under control that at current rates could force the country to seek a $US 12 billion bailout from the International Monetary Fund (IMF), has cut $2 billion dollars from the US$8.2 billion budget to upgrade and expand Pakistan’s railway network, a key pillar of CPEC. Mr. Rashid plans to slash a further two billion dollars.

“Pakistan is a poor country that cannot afford (the) huge burden of the loans…. CPEC is like the backbone for Pakistan, but our eyes and ears are open,” Mr. Rashid said.

The budget cuts came on the back of Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party projecting CPEC prior to the July 25 election that swept him to power to as a modern-day equivalent of the British East India Company, which dominated the Indian subcontinent in the 19th century.

PTI criticism included denouncing Chinese-funded mass transit projects in three cities in Punjab as a squandering of funds that could have better been invested in social spending. PTI activists suggested that the projects had involved corrupt practices.

Pakistan’s final move was to invite Saudi Arabia to build a refinery in Gwadar and invest in Balochistan mining. Chinese questioning of Pakistan’s move was evident when the Pakistani government backed off suggestions that Saudi Arabia would become part of CPEC.

Senior Saudi officials this week visited Islamabad and Gwadar to discuss the deal that would also involve deferred payments on Saudi oil supplies to Pakistan and create a strategic oil reserve close to Iran’s border.

"The incumbent government is bringing Saudi Arabia closer to Gwadar. In other words, the hardline Sunni-Wahhabi state would be closer than ever to the Iranian border. This is likely to infuriate Tehran," said Baloch politician and former Pakistani ports and shipping minister Mir Hasil Khan Bizenjo.

Pakistan’s game of poker amounts to a risky gamble that serves Pakistani and Saudi purposes, puts China whose prestige and treasure are on the line in a difficult spot, could perilously spark tension along the Pakistan-Iran border, and is likely to provoke Iranian counter moves. It also risks putting Pakistan, Saudi Arabia and Iran, who depend on China economically in different ways, in an awkward position.

The Saudi engagement promises up to US$10 billion in investments as well as balance of payments relief. It potentially could ease US concerns that a possible IMF bailout would help Pakistan service debt to China.

A refinery and strategic oil reserve in Gwadar would serve Saudi Arabia’s goal of preventing Chabahar, the Indian-backed Iranian port, from emerging as a powerful Arabian Sea hub at a time that the United States is imposing sanctions designed to choke off Iranian oil exports.

A Saudi think tank, the International Institute for Iranian Studies, previously known as the Arabian Gulf Centre for Iranian Studies (AGCIS) that is believed to be backed by Saudi Crown Prince Mohammed bin Salman, argued last year in a study that Chabahar posed “a direct threat to the Arab Gulf states” that called for “immediate countermeasures.”

Written by Mohammed Hassan Husseinbor, an Iranian political researcher of Baloch origin, the study warned that Chabahar would enable Iran to increase its oil market share in India at the expense of Saudi Arabia, raise foreign investment in the Islamic republic, increase government revenues, and allow Iran to project power in the Gulf and the Indian Ocean.

Mr Husseinbor suggested that Saudi support for a low-level Baloch insurgency in Iran could serve as a countermeasure. “Saudis could persuade Pakistan to soften its opposition to any potential Saudi support for the Iranian Baluch... The Arab-Baluch alliance is deeply rooted in the history of the Gulf region and their opposition to Persian domination,” Mr&nbsp;Husseinbor said.

Noting the vast expanses of Iran’s Sistan and Baluchistan Province, Mr. Husseinbor went on to say that “it would be a formidable challenge, if not impossible, for the Iranian government to protect such long distances and secure Chabahar in the face of widespread Baluch opposition, particularly if this opposition is supported by Iran’s regional adversaries and world powers.”

Saudi militants reported at the time the study was published that funds from the kingdom were flowing into anti-Shiite, anti-Iranian Sunni Muslim ultra-conservative madrassas or religious seminaries in Balochistan.

US President Donald J&nbsp;Trump’s national security advisor, John Bolton, last year before assuming office, drafted at the request of Mr. Trump’s then strategic advisor, Steve Bannon, a plan that envisioned US support “for the democratic Iranian opposition,” including in Balochistan and Iran’s Sistan and Balochistan province.

All of this does not bode well for CPEC. China may be able to accommodate Pakistan by improving commercial terms for CPEC-related projects and Pakistani debt as well as easing Pakistani access to the Chinese market. China, however, is likely to find it far more difficult to prevent the Saudi-Iranian rivalry from spinning out of control in its backyard.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Desperate for funding to fend off a financial crisis fuelled in part by mounting debt to China, Pakistan is playing a complicated game of poker that could hand Saudi Arabia a strategic victory in its bitter feud with Iran at the People’s Republic’s expense.

Desperate for funding to fend off a financial crisis fuelled in part by mounting debt to China, Pakistan is playing a complicated game of poker that could hand Saudi Arabia a strategic victory in its bitter feud with Iran at the People’s Republic’s expense. The Pakistani moves threaten a key leg of the $ 60 billion-plus Chinese investment in the China Pakistan Economic Corridor (CPEC), a crown jewel of Chinese President Xi Jinping’s Belt and Road initiative. They also could jeopardize Chinese hopes to create a second overland route to Iran, a key node in China’s transportation links to Europe. Finally, they grant Saudi Arabia a prominent place in the Chinese-funded port of Gwadar that would significantly weaken Iran’s ability to compete with its Indian-backed seaport of Chabahar. Taken together, the moves risk dragging not only Pakistan but also China into the all but open war between Saudi Arabia and Iran. Pakistan’s first move became evident in early September with the government’s failure to authorise disbursements for road projects, already hit by delays in Chinese approvals, that are part of CPEC’s Western route, linking the province of Balochistan with the troubled region of Xinjiang in north-western China. In doing so, Pakistan implicitly targeted a key Chinese driver for CPEC: the pacification of Xinjiang’s Turkic Muslim population through a combination of economic development enhanced by trade and economic activity flowing through CPEC as well as brutal repression and mass re-education. The combination of Pakistani and Chinese delays “has virtually brought progress work on the Western route to a standstill,” a Western diplomat in the Pakistani capital of Islamabad said. Pakistani Railways Minister Sheikh Rashid, in a further bid to bring Pakistani government expenditure under control that at current rates could force the country to seek a $US 12 billion bailout from the International Monetary Fund (IMF), has cut $2 billion dollars from the US$8.2 billion budget to upgrade and expand Pakistan’s railway network, a key pillar of CPEC. Mr. Rashid plans to slash a further two billion dollars. “Pakistan is a poor country that cannot afford (the) huge burden of the loans…. CPEC is like the backbone for Pakistan, but our eyes and ears are open,” Mr. Rashid said. The budget cuts came on the back of Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party projecting CPEC prior to the July 25 election that swept him to power to as a modern-day equivalent of the British East India Company, which dominated the Indian subcontinent in the 19th century. PTI criticism included denouncing Chinese-funded mass transit projects in three cities in Punjab as a squandering of funds that could have better been invested in social spending. PTI activists suggested that the projects had involved corrupt practices. Pakistan’s final move was to invite Saudi Arabia to build a refinery in Gwadar and invest in Balochistan mining. Chinese questioning of Pakistan’s move was evident when the Pakistani government backed off suggestions that Saudi Arabia would become part of CPEC. Senior Saudi officials this week visited Islamabad and Gwadar to discuss the deal that would also involve deferred payments on Saudi oil supplies to Pakistan and create a strategic oil reserve close to Iran’s border. "The incumbent government is bringing Saudi Arabia closer to Gwadar. In other words, the hardline Sunni-Wahhabi state would be closer than ever to the Iranian border. This is likely to infuriate Tehran," said Baloch politician and former Pakistani ports and shipping minister Mir Hasil Khan Bizenjo. Pakistan’s game of poker amounts to a risky gamble that serves Pakistani and Saudi purposes, puts China whose prestige and treasure are on the line in a difficult spot, could perilously spark tension along the Pakistan-Iran border, and is likely to provoke Iranian counter moves. It also risks putting Pakistan, Saudi Arabia and Iran, who depend on China economically in different ways, in an awkward position. The Saudi engagement promises up to US$10 billion in investments as well as balance of payments relief. It potentially could ease US concerns that a possible IMF bailout would help Pakistan service debt to China. A refinery and strategic oil reserve in Gwadar would serve Saudi Arabia’s goal of preventing Chabahar, the Indian-backed Iranian port, from emerging as a powerful Arabian Sea hub at a time that the United States is imposing sanctions designed to choke off Iranian oil exports. A Saudi think tank, the International Institute for Iranian Studies, previously known as the Arabian Gulf Centre for Iranian Studies (AGCIS) that is believed to be backed by Saudi Crown Prince Mohammed bin Salman, argued last year in a study that Chabahar posed “a direct threat to the Arab Gulf states” that called for “immediate countermeasures.” Written by Mohammed Hassan Husseinbor, an Iranian political researcher of Baloch origin, the study warned that Chabahar would enable Iran to increase its oil market share in India at the expense of Saudi Arabia, raise foreign investment in the Islamic republic, increase government revenues, and allow Iran to project power in the Gulf and the Indian Ocean. Mr Husseinbor suggested that Saudi support for a low-level Baloch insurgency in Iran could serve as a countermeasure. “Saudis could persuade Pakistan to soften its opposition to any potential Saudi support for the Iranian Baluch... The Arab-Baluch alliance is deeply rooted in the history of the Gulf region and their opposition to Persian domination,” Mr Husseinbor said. Noting the vast expanses of Iran’s Sistan and Baluchistan Province, Mr. Husseinbor went on to say that “it would be a formidable challenge, if not impossible, for the Iranian government to protect such long distances and secure Chabahar in the face of widespread Baluch opposition, particularly if this opposition is supported by Iran’s regional adversaries and world powers.” Saudi militants reported at the time the study was published that funds from the kingdom were flowing into anti-Shiite, anti-Iranian Sunni Muslim ultra-conservative madrassas or religious seminaries in Balochistan. US President Donald J Trump’s national security advisor, John Bolton, last year before assuming office, drafted at the request of Mr. Trump’s then strategic advisor, Steve Bannon, a plan that envisioned US support “for the democratic Iranian opposition,” including in Balochistan and Iran’s Sistan and Balochistan province. All of this does not bode well for CPEC. China may be able to accommodate Pakistan by improving commercial terms for CPEC-related projects and Pakistani debt as well as easing Pakistani access to the Chinese market. China, however, is likely to find it far more difficult to prevent the Saudi-Iranian rivalry from spinning out of control in its backyard. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Pakistani poker: Playing Saudi Arabia against China

In a U-turn, Pakistan has announced that its close ally Saudi Arabia would not join the $ 50 billion China-Pakistan Economic Corridor, days after Islamabad said Riyadh will be the third "strategic partner" of China's flagship project, the Belt and Road Initiative.

The CPEC is the flagship project of the multi-billion dollar Belt and Road Initiative (BRI), a pet project of President Xi Jinping aimed at enhancing China's influence around the world through China-funded infrastructure projects.

Minister for Planning and Development Khusro Bakhtiar told media on Tuesday that the cash-rich kingdom's proposed investments would fall under a separate bilateral arrangement, Dawn news reported.

"Saudi Arabia is not to become a collateral strategic partner in the CPEC. This impression is not true," he said.

A third country can participate in the China-Pakistan Economic Corridor (CPEC) by taking part in the business and investment ventures arising out of the project, Bakhtiar said.

"The framework between China and Pakistan is bilateral and Saudi Arabia is not entering that framework as a third-party investor, rather the base of the CPEC will be broadened and its pace will be expedited," he said.

Last month, Information Minister Fawad Chaudhry said that Saudi Arabia is the third "strategic partner" of the CPEC, soon after Prime Minister Imran Khan returned from his first foreign trip to the kingdom.

Interestingly Chaudhry was sitting with Bakhtiar when he issued clarification that Saudi Arabia participation in the CPEC was not as third partner in the project.

Bakhtiar further said that there was no decision to bring a third country, like Saudi Arabia, under the framework of the CPEC.

He was responding to questions about the possibility of Saudi Arabia becoming part of the Joint Working Groups or Joint Coordination Committee on the CPEC.

Bakhtiar said there could be many offshoots of the CPEC where third countries could be involved in trilateral arrangement for infrastructure development, like China-

Pakistan-Japan, China-Pakistan-Saudi Arabia or China-Pakistan-Germany.

The minister dodged questions when asked how the cost of Main Railway Line (ML-I) had been reduced by $ 2 billion from $ 8.2 billion to $ 6.2 billion as claimed by Railways Minister Shaikh Rasheed Ahmed.

"I have noticed this today that Sheikh Rasheed is making some efforts (to reduce the cost) but not to my knowledge. Nothing has come in front of me to suggest that the cost has come down," he said.

Bakhtiar said the CPEC portfolio currently stands at about $ 50 billion, of which about $ 6 billion was a government-to-government loan and remaining in Independent Power Producers mode mostly in the energy sector. About $ 29 billion worth of projects were currently in progress.

He said the CPEC had far bigger potential than $ 50 billion and would keep expanding with time as new projects come up but the previous government treated and played it like a T-20 match instead of a five-day test series and focused mostly on projects which could be completed during its tenure.

Currently, a Saudi delegation is in Pakistan for initial assessment to capitalise on the Pakistani offer.

India has opposed the CPEC project and protested to China as it is being laid through Pakistan-occupied Kashmir.&nbsp;

In a U-turn, Pakistan has announced that its close ally Saudi Arabia would not join the $ 50 billion China-Pakistan Economic Corridor, days after Islamabad said Riyadh will be the third "strategic partner" of China's flagship project, the Belt and Road Initiative.

In a U-turn, Pakistan has announced that its close ally Saudi Arabia would not join the $ 50 billion China-Pakistan Economic Corridor, days after Islamabad said Riyadh will be the third "strategic partner" of China's flagship project, the Belt and Road Initiative. The CPEC is the flagship project of the multi-billion dollar Belt and Road Initiative (BRI), a pet project of President Xi Jinping aimed at enhancing China's influence around the world through China-funded infrastructure projects. Minister for Planning and Development Khusro Bakhtiar told media on Tuesday that the cash-rich kingdom's proposed investments would fall under a separate bilateral arrangement, Dawn news reported. "Saudi Arabia is not to become a collateral strategic partner in the CPEC. This impression is not true," he said. A third country can participate in the China-Pakistan Economic Corridor (CPEC) by taking part in the business and investment ventures arising out of the project, Bakhtiar said. "The framework between China and Pakistan is bilateral and Saudi Arabia is not entering that framework as a third-party investor, rather the base of the CPEC will be broadened and its pace will be expedited," he said. Last month, Information Minister Fawad Chaudhry said that Saudi Arabia is the third "strategic partner" of the CPEC, soon after Prime Minister Imran Khan returned from his first foreign trip to the kingdom. Interestingly Chaudhry was sitting with Bakhtiar when he issued clarification that Saudi Arabia participation in the CPEC was not as third partner in the project. Bakhtiar further said that there was no decision to bring a third country, like Saudi Arabia, under the framework of the CPEC. He was responding to questions about the possibility of Saudi Arabia becoming part of the Joint Working Groups or Joint Coordination Committee on the CPEC. Bakhtiar said there could be many offshoots of the CPEC where third countries could be involved in trilateral arrangement for infrastructure development, like China- Pakistan-Japan, China-Pakistan-Saudi Arabia or China-Pakistan-Germany. The minister dodged questions when asked how the cost of Main Railway Line (ML-I) had been reduced by $ 2 billion from $ 8.2 billion to $ 6.2 billion as claimed by Railways Minister Shaikh Rasheed Ahmed. "I have noticed this today that Sheikh Rasheed is making some efforts (to reduce the cost) but not to my knowledge. Nothing has come in front of me to suggest that the cost has come down," he said. Bakhtiar said the CPEC portfolio currently stands at about $ 50 billion, of which about $ 6 billion was a government-to-government loan and remaining in Independent Power Producers mode mostly in the energy sector. About $ 29 billion worth of projects were currently in progress. He said the CPEC had far bigger potential than $ 50 billion and would keep expanding with time as new projects come up but the previous government treated and played it like a T-20 match instead of a five-day test series and focused mostly on projects which could be completed during its tenure. Currently, a Saudi delegation is in Pakistan for initial assessment to capitalise on the Pakistani offer. India has opposed the CPEC project and protested to China as it is being laid through Pakistan-occupied Kashmir.

In U-turn, Pakistan says Saudi Arabia will not be part of CPEC

China is engaging in "cheque book diplomacy", <a href="http://www.wionews.com/south-asia/china-pakistan-having-security-economic-issues-in-cpec-project-132289">meaning Beijing is advancing loans</a> to countries that are unable to repay loans, researchers at Harvard University have said.

As a result of huge debt piling up, countries are ending up handing over land, ports and even airports to Chinese firms on long-term lease which finally end up serving China's ever-expanding strategic and military ambitions, Harvard researchers have said in a report.

The study has identified at least <a href="http://www.wionews.com/south-asia/36-glacial-lakes-in-gilgit-baltistan-declared-dangerous-due-to-china-pakistan-economic-corridor-34599">16 countries all over the world that owe China</a> large sums of money including Cambodia, Papua New Guinea, Malaysia and several others.

Significantly, India's neighbours Pakistan and Sri Lanka top the list. Beijing is committed to investing $62 billion in infrastructure project in Pakistan under the&nbsp;China–Pakistan Economic Corridor(CPEC) project. &nbsp;It has handed over the Gwadar port to China and also ceded land for a naval base nearby

The question on the minds of most Pakistan experts is how will Islamabad pay back China all the money, along with interest. Pakistan already owes China $19 billion for loans taken on various accounts including day-to-day spending. It has already handed over the Gwadar port to China.

Sri Lanka owes China $8 billion for loans forwarded by Beijing for various infrastructure projects. Like Pakistan, it has already handed over the Hambantota port on a 99-year long lease and Chinese ships have already started docking there during voyages from bases in the South China Sea.

In the far east, China invested $7 billion in Cambodia last December alone and with loans taken over the last two decades Cambodia is indebted to China to the tune of 60 per cent.

The dependence has seen Cambodia scrap the Angkor sentinel military exercise with the US and ties with Taiwan, Harvard researchers revealed.

Also, China has ensured Loas debt burden to rack up to 65 per cent which has resulted in vast tracts of agricultural land being taken over by Chinese migrants, the study said.&nbsp;China is also funding a new $6.7 billion railway line and it is&nbsp;not clear what China will demand if the Loas government is unable to repay the debt.

Elsewhere in Papua New Guinea near Australia, the government may have to surrender control over some of its reserves of oil, gold, copper and coffee, the study found. China is already a majority-owner in nickel mine and is funding construction of roads, ports and high-speed Intenet in the country.&nbsp;

This has meant Papua New Guinea's debt to China has risen from less than $ 3 million in five years to over $20 million today.

Malaysia which was earlier a staunch critic of China has toned down its rhetoric of China's muscle-flexing in the South China Sea after Beijing invested more than $2 billion in the country's state development fund. On the other hand, Philippines saw its banana exports being hit after it criticised China over its intervention in the South China Sea.

As part of the renewed push towards 'debt book diplomacy', Vanuatu located in the south pacific ocean, owes China half of its debts with reports suggesting Beijing may get a naval base there, the study said.

Several experts fear China is dumping unviable projects deliberately to push long-term strategic objectives, if India is concerned about Chinese investments in Sri Lanka and recently in Nepal, Australia is concerned about China's activities in its neighbourhood.

For the US, its strategic hold over the Marshalls islands and Palau in the Pacific could end as China muscles its way through &nbsp;"cheque book diplomacy".

China is also funding a new $6.7 billion railway line and it's not clear what China will demand if the Laos government is unable to repay the debt.

China is engaging in "cheque book diplomacy", meaning Beijing is advancing loans to countries that are unable to repay loans, researchers at Harvard University have said. As a result of huge debt piling up, countries are ending up handing over land, ports and even airports to Chinese firms on long-term lease which finally end up serving China's ever-expanding strategic and military ambitions, Harvard researchers have said in a report. The study has identified at least 16 countries all over the world that owe China large sums of money including Cambodia, Papua New Guinea, Malaysia and several others. Significantly, India's neighbours Pakistan and Sri Lanka top the list. Beijing is committed to investing $62 billion in infrastructure project in Pakistan under the China–Pakistan Economic Corridor(CPEC) project. It has handed over the Gwadar port to China and also ceded land for a naval base nearby The question on the minds of most Pakistan experts is how will Islamabad pay back China all the money, along with interest. Pakistan already owes China $19 billion for loans taken on various accounts including day-to-day spending. It has already handed over the Gwadar port to China. Sri Lanka owes China $8 billion for loans forwarded by Beijing for various infrastructure projects. Like Pakistan, it has already handed over the Hambantota port on a 99-year long lease and Chinese ships have already started docking there during voyages from bases in the South China Sea. In the far east, China invested $7 billion in Cambodia last December alone and with loans taken over the last two decades Cambodia is indebted to China to the tune of 60 per cent. The dependence has seen Cambodia scrap the Angkor sentinel military exercise with the US and ties with Taiwan, Harvard researchers revealed. Also, China has ensured Loas debt burden to rack up to 65 per cent which has resulted in vast tracts of agricultural land being taken over by Chinese migrants, the study said. China is also funding a new $6.7 billion railway line and it is not clear what China will demand if the Loas government is unable to repay the debt. Elsewhere in Papua New Guinea near Australia, the government may have to surrender control over some of its reserves of oil, gold, copper and coffee, the study found. China is already a majority-owner in nickel mine and is funding construction of roads, ports and high-speed Intenet in the country. This has meant Papua New Guinea's debt to China has risen from less than $ 3 million in five years to over $20 million today. Malaysia which was earlier a staunch critic of China has toned down its rhetoric of China's muscle-flexing in the South China Sea after Beijing invested more than $2 billion in the country's state development fund. On the other hand, Philippines saw its banana exports being hit after it criticised China over its intervention in the South China Sea. As part of the renewed push towards 'debt book diplomacy', Vanuatu located in the south pacific ocean, owes China half of its debts with reports suggesting Beijing may get a naval base there, the study said. Several experts fear China is dumping unviable projects deliberately to push long-term strategic objectives, if India is concerned about Chinese investments in Sri Lanka and recently in Nepal, Australia is concerned about China's activities in its neighbourhood. For the US, its strategic hold over the Marshalls islands and Palau in the Pacific could end as China muscles its way through "cheque book diplomacy".

China's 'cheque book diplomacy' leading Pak, Sri Lanka & others to give away land, ports: Harvard study

According&nbsp;to fresh reports, Pakistan Senate&#39;s motion to declare Chinese as an official language was misreported.

The official motion &quot;recommends&quot; Chinese language courses for Pakistan&#39;s CPEC human resource in the wake of &quot;growing collaboration&quot;&nbsp;between the two countries.&nbsp;

&quot;This House recommends that in view of the growing collaboration between Pakistan and China under the CPEC, courses of the Official Chinese Language should be launched for all current and prospective Pakistani CPEC human resource in order to overcome any costly communication barriers,&quot; reads the official motion.&nbsp;

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet" data-lang="en">
Chinese has not been made official language of Pakistan. It was misleading report by a few media outlets. Here is the actual resolution tabled in Senate <a href="https://t.co/SzwZ6nQWqe">pic.twitter.com/SzwZ6nQWqe</a>
&mdash; Adeel Raja (@adeelraja) <a href="https://twitter.com/adeelraja/status/965872070272913408?ref_src=twsrc%5Etfw">February 20, 2018</a></blockquote>
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China has invested heavily in the CPEC project linking Pakistan&#39;s Gwadar port with China&#39;s western Xinjiang region.&nbsp;

Last year, China and Pakistan had laid the framework for the One Belt, One Road(OBOR) initiative&nbsp;also known as the &quot;Silk Road Economic Belt&quot;&nbsp;and had signed several agreements worth over $50 billion which included developing the Gwadar port and airport in Balochistan province, upgrading the main railway track between Karachi and Peshawar in order to further trade.

The two countries have also signed an MoU for the establishment of a dry port in Havelian.

Last year, China had hosted a high-profile event in Beijing called the &nbsp;Belt and Road Forum (BRF) which was attended by 29 heads of state and governments including ousted Pakistan Prime Minister &nbsp;Nawaz Sharif, Lankan PM Ranil Wickremasinghe, besides official delegations from other South Asian countries.

India skipped the event with no Indian delegation sent for the opening ceremony addressed by Chinese President, Xi Jinping. India feels the OBOR project infringes upon its sovereignty and territorial integrity.

In late last year, <a href="http://www.wionews.com/south-asia/chinas-multi-billion-cpec-project-under-threat-in-pakistan-32466">Pakistan&#39;s minister for planning </a>and development Ahsan Iqbal had said government was examining a proposal to replace the US dollar with the Chinese yuan for trade between China and Pakistan after reports emerged that China had &quot;temporarily&quot; stopped funding of some projects in Pakistan under the China-Pakistan Economic Corridor (CPEC) over &quot;corruption&quot; issues.

The official motion 'recommends' Chinese language courses for Pakistan's CPEC human resource

According to fresh reports, Pakistan Senate's motion to declare Chinese as an official language was misreported. The official motion "recommends" Chinese language courses for Pakistan's CPEC human resource in the wake of "growing collaboration" between the two countries. "This House recommends that in view of the growing collaboration between Pakistan and China under the CPEC, courses of the Official Chinese Language should be launched for all current and prospective Pakistani CPEC human resource in order to overcome any costly communication barriers," reads the official motion. Chinese has not been made official language of Pakistan. It was misleading report by a few media outlets. Here is the actual resolution tabled in Senate pic.twitter.com/SzwZ6nQWqe — Adeel Raja (@adeelraja) February 20, 2018 × China has invested heavily in the CPEC project linking Pakistan's Gwadar port with China's western Xinjiang region. Last year, China and Pakistan had laid the framework for the One Belt, One Road(OBOR) initiative also known as the "Silk Road Economic Belt" and had signed several agreements worth over $50 billion which included developing the Gwadar port and airport in Balochistan province, upgrading the main railway track between Karachi and Peshawar in order to further trade. The two countries have also signed an MoU for the establishment of a dry port in Havelian. Last year, China had hosted a high-profile event in Beijing called the Belt and Road Forum (BRF) which was attended by 29 heads of state and governments including ousted Pakistan Prime Minister Nawaz Sharif, Lankan PM Ranil Wickremasinghe, besides official delegations from other South Asian countries. India skipped the event with no Indian delegation sent for the opening ceremony addressed by Chinese President, Xi Jinping. India feels the OBOR project infringes upon its sovereignty and territorial integrity. In late last year, Pakistan's minister for planning and development Ahsan Iqbal had said government was examining a proposal to replace the US dollar with the Chinese yuan for trade between China and Pakistan after reports emerged that China had "temporarily" stopped funding of some projects in Pakistan under the China-Pakistan Economic Corridor (CPEC) over "corruption" issues.

Pakistan Senate's motion 'misreported'; 'recommends' Chinese language courses for human resource

Pakistan&#39;s Gwadar post, an important destination in the China-Pakistan Economic Corridor (CPEC) has become the hub of activity as the first shipment of seafood arrived in Urumqi, Northwest China&#39;s Xinjiang Uyghur Autonomous Region.

The CPEC project, a flagship project of China&#39;s Belt and Road (B&amp;R) initiative has seen Gwadar&#39;s stocks rise among Chinese companies who have invested heavily in the port city.

&quot;The 1,150 kilograms of seafood represents the first time that Urumqi&#39;s airport was allowed to handle fresh goods from Pakistan,&quot; China&#39;s state-run Global Times said, adding that seafood and fruit can become &quot;bright spots&quot; in Pakistan&#39;s exports to China.

&Uuml;r&uuml;mqi which is the capital of the Xinjiang Uyghur Autonomous Region in northwestern China has emerged as an important link in the CPEC chain.

The Gwadar port in Pakistan&#39;s restive Balochistan province has been developed under CPEC linking western China through Pakistan with the Middle East, Africa and Europe.

Most seafood and fruit from overseas arrive at Urumqi through ports in other provinces. This is the first time Urumqi airport has been allowed to handle fresh goods from Pakistan, China&#39;s Xinhua noted.

Urumqi airport has 41 international routes to 21 countries, mainly in central, west Asia and Russia.&nbsp;

Xinjiang is a key area for opening up to the west and a &quot;core area&quot; on the Silk Road Economic Belt, Xinhua observed.

Meanwhile, India is keeping a close watch as China expands its naval force in Gwadar port, Chinese navy ships are expected to dock at the facility in the near future.

Last year, China has handed over two ships to the Pakistan Navy to safeguard the strategic Gwadar port and trade routes under the $46 billion CPEC project.

The Gwadar port in Pakistan's restive Balochistan province has been developed under CPEC linking western China through Pakistan with the Middle East, Africa and Europe.

Pakistan's Gwadar post, an important destination in the China-Pakistan Economic Corridor (CPEC) has become the hub of activity as the first shipment of seafood arrived in Urumqi, Northwest China's Xinjiang Uyghur Autonomous Region. The CPEC project, a flagship project of China's Belt and Road (B&R) initiative has seen Gwadar's stocks rise among Chinese companies who have invested heavily in the port city. "The 1,150 kilograms of seafood represents the first time that Urumqi's airport was allowed to handle fresh goods from Pakistan," China's state-run Global Times said, adding that seafood and fruit can become "bright spots" in Pakistan's exports to China. Ürümqi which is the capital of the Xinjiang Uyghur Autonomous Region in northwestern China has emerged as an important link in the CPEC chain. The Gwadar port in Pakistan's restive Balochistan province has been developed under CPEC linking western China through Pakistan with the Middle East, Africa and Europe. Most seafood and fruit from overseas arrive at Urumqi through ports in other provinces. This is the first time Urumqi airport has been allowed to handle fresh goods from Pakistan, China's Xinhua noted. Urumqi airport has 41 international routes to 21 countries, mainly in central, west Asia and Russia. Xinjiang is a key area for opening up to the west and a "core area" on the Silk Road Economic Belt, Xinhua observed. Meanwhile, India is keeping a close watch as China expands its naval force in Gwadar port, Chinese navy ships are expected to dock at the facility in the near future. Last year, China has handed over two ships to the Pakistan Navy to safeguard the strategic Gwadar port and trade routes under the $46 billion CPEC project.

Pak-China CPEC link: Gwadar port, Urumqi emerge as major trade centres

China is in talks with Afghan officials <a href="http://www.wionews.com/south-asia/cpec-clout-now-yuan-may-replace-us-dollar-in-pakistan-china-trade-27146">for a possible military base along the Wakhan Corridor</a>, a narrow strip of land in northeastern Afghanistan between China and Pakistan, newswire AFP quoted Afghan officials as saying.

The strategically located Wakhan corridor, a historical trade route since time in memorial is being eyed by Chinese authorities to counter militants who might sneak into Chinese territory.

The Wakhan corridor borders China&#39;s restive <a href="http://www.wionews.com/south-asia/china-temporarily-stops-funding-of-some-cpec-projects-pak-authorities-stunned-25922">Xinjiang province which has seen a surge of jehadist-based </a>terrorism in recent years. A Pakistan newspaper reported recently that China&#39;s defence minister Chang Wanquan who recently visited the area wanted to build an &quot;iron wall&quot; in the autonomous region.

China has beefed up border control along Xinjiang to counter jihadists returning from Syria, China&#39;s state-run Global Times reported recently.

China fears militants from Kabul and Pakistan could infiltrate into Xinjiang to carry out attacks.

Afghan and Chinese officials discussed the plan in December in Beijing, but details are still being clarified, Afghan defence ministry deputy spokesman Mohammad Radmanesh said.

&quot;We are going to build it (the base) but the Chinese government has committed to help the division financially, provide equipment and train the Afghan soldiers,&quot; he told AFP recently.

China&#39;s renewed push comes amid President Xi&#39;s ambition to build the One Belt, One Road(OBOR) to further trade with Asia and Europe. China has already poured billions of dollars into the project which seeks to link Pakistan, Afghanistan, Nepal with Europe - an initiative which is resisted by India as the controversial route travels through several disputed areas in Kashmir.

China is keen to include Afghanistan into the China-Pakistan Economic Corridor (CPEC) in an attempt to secure its security and economic interests.

Chinese president Xi hosted British PM Theresa May in Beijing this week with China intent on pushing the OBOR deal however the British PM sought to distance herself from the project which is fraught with economic and security complications.

Members of the Kyrgyz ethnic minority in Wakhan told AFP in October they had been seeing Chinese and Afghan military patrols for months.

&quot;The Chinese army first came here last summer and they were accompanied by the Afghan army,&quot; said Abdul Rashid, a Kyrgyz chief, adding that he had seen vehicles flying Chinese flags.

 
&nbsp;

China fears militants from Kabul and Pakistan could infiltrate into Xinjiang to carry out attacks

China is in talks with Afghan officials for a possible military base along the Wakhan Corridor, a narrow strip of land in northeastern Afghanistan between China and Pakistan, newswire AFP quoted Afghan officials as saying. The strategically located Wakhan corridor, a historical trade route since time in memorial is being eyed by Chinese authorities to counter militants who might sneak into Chinese territory. The Wakhan corridor borders China's restive Xinjiang province which has seen a surge of jehadist-based terrorism in recent years. A Pakistan newspaper reported recently that China's defence minister Chang Wanquan who recently visited the area wanted to build an "iron wall" in the autonomous region. China has beefed up border control along Xinjiang to counter jihadists returning from Syria, China's state-run Global Times reported recently. China fears militants from Kabul and Pakistan could infiltrate into Xinjiang to carry out attacks. Afghan and Chinese officials discussed the plan in December in Beijing, but details are still being clarified, Afghan defence ministry deputy spokesman Mohammad Radmanesh said. "We are going to build it (the base) but the Chinese government has committed to help the division financially, provide equipment and train the Afghan soldiers," he told AFP recently. China's renewed push comes amid President Xi's ambition to build the One Belt, One Road(OBOR) to further trade with Asia and Europe. China has already poured billions of dollars into the project which seeks to link Pakistan, Afghanistan, Nepal with Europe - an initiative which is resisted by India as the controversial route travels through several disputed areas in Kashmir. China is keen to include Afghanistan into the China-Pakistan Economic Corridor (CPEC) in an attempt to secure its security and economic interests. Chinese president Xi hosted British PM Theresa May in Beijing this week with China intent on pushing the OBOR deal however the British PM sought to distance herself from the project which is fraught with economic and security complications. Members of the Kyrgyz ethnic minority in Wakhan told AFP in October they had been seeing Chinese and Afghan military patrols for months. "The Chinese army first came here last summer and they were accompanied by the Afghan army," said Abdul Rashid, a Kyrgyz chief, adding that he had seen vehicles flying Chinese flags.

China eyeing military base in Afghanistan to counter terror threat: Report

China has &quot;temporarily&quot; <a href="http://www.wionews.com/india-news/eye-on-obor-after-beidou-satellite-launch-china-aims-to-build-own-global-positioning-system-23603">stopped funding of some projects</a> in Pakistan under the China-Pakistan Economic Corridor (CPEC), Pakistan&#39;s daily newspaper Dawn&nbsp;reported on&nbsp;Tuesday.

The projects worth <a href="http://www.wionews.com/world/all-countries-should-respect-each-others-sovereignty-chinas-xi-at-obor-15564">Rs 1 lakh crore has been stopped by China</a> till a further decision is made by Chinese authorities regarding &#39;new guidelines&#39;, the Dawn report said.

The projects include &nbsp;210-km Dera Ismail Khan-Zhob road, the Khuzdar-Basima road and the remaining portion of the 136-km&nbsp;Karakarom Highway which is worth Rs 8.5bn

Last month Pakistan had turned down China&#39;s offer of assistance on the Diamer-Bhasha dam after Beijing placed strict conditions including ownership of the project.

China tried to push the Diamer-Bhasha dam under the China-Pakistan Economic Corridor (CPEC) framework but it was rejected by Pakistan&#39;s&nbsp;Water and Power Development Authority.

China and Pakistan have signed six pacts to boost cooperation on the $50 billion China-Pakistan Economic Corridor, including one on&nbsp;building an airport at the strategic Gwadar port city. &nbsp;

Dawn said Chinese authorities are disturbed with increasing news reports being published in Pakistan &quot;regarding corruption in CPEC projects.&quot;&nbsp;

The report also added that Pakistan authorities were &quot;stunned&quot; when they heard about China&#39;s decision to temporarily stop the project.

Although Pakistan authorities hope the Joint Working Group (JWG) meeting on will finally get things going again but the &quot;new guidelines&quot;&nbsp;issue has Pakistan on tenterhooks.

In October, unidentified men suspected to be separatist rebels in Baluchistan hurled grenades at a labourers&#39; hostel in Pakistan&#39;s Gwadar port&nbsp;which is a key link for China&#39;s &quot;One Belt and One Road&quot; project.

However, no organization&nbsp;claimed responsibility for the attack.

China and Pakistan have signed six pacts to boost cooperation on the USD 50 billion China-Pakistan Economic Corridor, including one on building an airport at the strategic Gwadar port city.

President Xi has made the One Belt, One Road(OBOR) the centrepiece of his foreign policy which is expected to boost China&#39;s economy and put China at the forefront&nbsp;of global trade.

The projects worth Rs 1 lakh crore has been stopped by China till a further decision is made by Chinese authorities regarding 'new guidelines'

China has "temporarily" stopped funding of some projects in Pakistan under the China-Pakistan Economic Corridor (CPEC), Pakistan's daily newspaper Dawn reported on Tuesday. The projects worth Rs 1 lakh crore has been stopped by China till a further decision is made by Chinese authorities regarding 'new guidelines', the Dawn report said. The projects include 210-km Dera Ismail Khan-Zhob road, the Khuzdar-Basima road and the remaining portion of the 136-km Karakarom Highway which is worth Rs 8.5bn Last month Pakistan had turned down China's offer of assistance on the Diamer-Bhasha dam after Beijing placed strict conditions including ownership of the project. China tried to push the Diamer-Bhasha dam under the China-Pakistan Economic Corridor (CPEC) framework but it was rejected by Pakistan's Water and Power Development Authority. China and Pakistan have signed six pacts to boost cooperation on the $50 billion China-Pakistan Economic Corridor, including one on building an airport at the strategic Gwadar port city. Dawn said Chinese authorities are disturbed with increasing news reports being published in Pakistan "regarding corruption in CPEC projects." The report also added that Pakistan authorities were "stunned" when they heard about China's decision to temporarily stop the project. Although Pakistan authorities hope the Joint Working Group (JWG) meeting on will finally get things going again but the "new guidelines" issue has Pakistan on tenterhooks. In October, unidentified men suspected to be separatist rebels in Baluchistan hurled grenades at a labourers' hostel in Pakistan's Gwadar port which is a key link for China's "One Belt and One Road" project. However, no organization claimed responsibility for the attack. China and Pakistan have signed six pacts to boost cooperation on the USD 50 billion China-Pakistan Economic Corridor, including one on building an airport at the strategic Gwadar port city. President Xi has made the One Belt, One Road(OBOR) the centrepiece of his foreign policy which is expected to boost China's economy and put China at the forefront of global trade.

China temporarily stops funding some CPEC projects, Pak authorities 'stunned'

China has &quot;temporarily&quot; stopped funding of some projects in Pakistan under the China-Pakistan Economic Corridor (CPEC), Pakistan&#39;s daily newspaper Dawn&nbsp;reported on&nbsp;Tuesday.

The projects worth Rs 1 lakh crore has been stopped by China till a further decision is made by Chinese authorities regarding &#39;new guidelines&#39;, the Dawn report said.

The projects include &nbsp;210-km Dera Ismail Khan-Zhob road, the Khuzdar-Basima road and the remaining portion of the 136-km&nbsp;Karakarom Highway which is worth Rs 8.5bn

Last month Pakistan had turned down China&#39;s offer of assistance on the Diamer-Bhasha dam after Beijing placed strict conditions including ownership of the project.

China tried to push the Diamer-Bhasha dam under the China-Pakistan Economic Corridor (CPEC) framework but it was rejected by Pakistan&#39;s&nbsp;Water and Power Development Authority.

China and Pakistan have signed six pacts to boost cooperation on the $50 billion China-Pakistan Economic Corridor, including one on&nbsp;building an airport at the strategic Gwadar port city. &nbsp;

Dawn said Chinese authorities are disturbed with increasing news reports being published in Pakistan &quot;regarding corruption in CPEC projects.&quot;&nbsp;The report also added that Pakistan authorities were &quot;stunned&quot; when they heard about China&#39;s decision to temporarily stop the project.

Although Pakistan authorities hope the Joint Working Group (JWG) meeting on will finally get things going again but the &quot;new guidelines&quot;&nbsp;issue has Pakistan on tenterhooks.

In October, unidentified men suspected to be separatist rebels in Baluchistan hurled grenades at a labourers&#39; hostel in Pakistan&#39;s Gwadar port&nbsp;which is a key link for China&#39;s &quot;One Belt and One Road&quot; project. However, no organization has claimed responsibility for the attack.

China and Pakistan have signed six pacts to boost cooperation on the USD 50 billion China-Pakistan Economic Corridor, including one on building an airport at the strategic Gwadar port city.

President Xi has made the One Belt, One Road(OBOR) the centrepiece of his foreign policy which is expected to boost China&#39;s economy and put China at the forefront&nbsp;of global trade.

China has "temporarily" stopped funding of some projects in Pakistan under the China-Pakistan Economic Corridor (CPEC), Pakistan's daily newspaper Dawn reported on Tuesday. The projects worth Rs 1 lakh crore has been stopped by China till a further decision is made by Chinese authorities regarding 'new guidelines', the Dawn report said. The projects include 210-km Dera Ismail Khan-Zhob road, the Khuzdar-Basima road and the remaining portion of the 136-km Karakarom Highway which is worth Rs 8.5bn Last month Pakistan had turned down China's offer of assistance on the Diamer-Bhasha dam after Beijing placed strict conditions including ownership of the project. China tried to push the Diamer-Bhasha dam under the China-Pakistan Economic Corridor (CPEC) framework but it was rejected by Pakistan's Water and Power Development Authority. China and Pakistan have signed six pacts to boost cooperation on the $50 billion China-Pakistan Economic Corridor, including one on building an airport at the strategic Gwadar port city. Dawn said Chinese authorities are disturbed with increasing news reports being published in Pakistan "regarding corruption in CPEC projects." The report also added that Pakistan authorities were "stunned" when they heard about China's decision to temporarily stop the project. Although Pakistan authorities hope the Joint Working Group (JWG) meeting on will finally get things going again but the "new guidelines" issue has Pakistan on tenterhooks. In October, unidentified men suspected to be separatist rebels in Baluchistan hurled grenades at a labourers' hostel in Pakistan's Gwadar port which is a key link for China's "One Belt and One Road" project. However, no organization has claimed responsibility for the attack. China and Pakistan have signed six pacts to boost cooperation on the USD 50 billion China-Pakistan Economic Corridor, including one on building an airport at the strategic Gwadar port city. President Xi has made the One Belt, One Road(OBOR) the centrepiece of his foreign policy which is expected to boost China's economy and put China at the forefront of global trade.

China temporarily stops funding of some CPEC projects, Pak authorities 'stunned'

Pakistan&#39;s Interior Minister Ahsan Iqbal has reportedly<a href="http://www.wionews.com/south-asia/china-pakistan-ink-6-pacts-ahead-of-obor-summit-xi-says-ties-priority-15550"> told the United States that China&ndash;Pakistan Economic</a> Corridor(CPEC) shouldn&#39;t be looked as &quot;a security strategy&quot; but as an economic tool to bring peace and stability in South Asia, a report said.

In an indirect reference to India, <a href="http://www.wionews.com/south-asia/india-skips-chinas-obor-summit-over-sovereignty-concerns-15556">Pakistan urged the United States to judge</a> the country on its own merit, &quot;instead of tagging it to other states and issues in the region&quot;, the Dawn reported.

China and Pakistan have signed six pacts to boost cooperation on the $50 billion CPEC, including one on building an airport at the strategic Gwadar port city.

&quot;CPEC is not a conspiracy against anyone. It is not a security plan. It&rsquo;s a plan for economic prosperity, which is bringing investment in the energy, infrastructure and other key sectors,&rdquo; the Dawn quoted Pakistan&#39;s Interior minister as saying.

Speaking at the Johns Hopkins School of Advanced International Studies in Washington, Ahsan Iqbal said: &quot;The US should not look at CPEC from the Indian perspective, but as a source for peace, stability and prosperity in the region.&quot;&nbsp;

&quot;CPEC can bring the much-needed stability to a region that has suffered from war for the last several decades,&rdquo; he added.

&quot;Pakistan is also a sovereign nation. We have our own dignity and want others to respect that,&rdquo; he said.&nbsp;

&ldquo;If the US looks at the region from India&rsquo;s perspective, it will harm the region and US interests too. So, it&rsquo;s necessary that the US should view the situation from an independent perspective, not from someone else&rsquo;s point of view,&rdquo; the minister said.

In May, Pakistan&#39;s former Prime Minister Sharif had attended a presentation made by China&#39;s National Energy Administration (NEA) on the construction of Bhasha Dam, a project which he said is of critical importance for the future of Pakistan.

Pakistani media reported that Chinese companies had &quot;conducted survey and studies&quot; on the North Indus Cascade project.

The report said China&#39;s interest in providing $50 billion to fund the project could generate 40,000 MW hydro electricity.&nbsp;

China and Pakistan have signed six pacts to boost cooperation on the $50 billion CPEC,

Pakistan's Interior Minister Ahsan Iqbal has reportedly told the United States that China–Pakistan Economic Corridor(CPEC) shouldn't be looked as "a security strategy" but as an economic tool to bring peace and stability in South Asia, a report said. In an indirect reference to India, Pakistan urged the United States to judge the country on its own merit, "instead of tagging it to other states and issues in the region", the Dawn reported. China and Pakistan have signed six pacts to boost cooperation on the $50 billion CPEC, including one on building an airport at the strategic Gwadar port city. "CPEC is not a conspiracy against anyone. It is not a security plan. It’s a plan for economic prosperity, which is bringing investment in the energy, infrastructure and other key sectors,” the Dawn quoted Pakistan's Interior minister as saying. Speaking at the Johns Hopkins School of Advanced International Studies in Washington, Ahsan Iqbal said: "The US should not look at CPEC from the Indian perspective, but as a source for peace, stability and prosperity in the region." "CPEC can bring the much-needed stability to a region that has suffered from war for the last several decades,” he added. "Pakistan is also a sovereign nation. We have our own dignity and want others to respect that,” he said. “If the US looks at the region from India’s perspective, it will harm the region and US interests too. So, it’s necessary that the US should view the situation from an independent perspective, not from someone else’s point of view,” the minister said. In May, Pakistan's former Prime Minister Sharif had attended a presentation made by China's National Energy Administration (NEA) on the construction of Bhasha Dam, a project which he said is of critical importance for the future of Pakistan. Pakistani media reported that Chinese companies had "conducted survey and studies" on the North Indus Cascade project. The report said China's interest in providing $50 billion to fund the project could generate 40,000 MW hydro electricity.

US should not look at CPEC from Indian perspective: Pak minister Iqbal to Trump administration

A Pentagon report released on Tuesday has singled out Pakistan as a possible location for a future Chinese military base, as it forecast that Beijing would likely build more bases overseas after establishing a facility in the African nation of Djibouti.

The prediction came in a 97-page annual report to Congress that saw advances throughout the Chinese military in 2016, funded by robust defense spending that the Pentagon estimated exceeded $180 billion.

That is higher than China&#39;s official defense budget figure of 140.4 billion. Chinese leaders, the US&nbsp;report said, appeared committed to defense spending hikes for the &quot;foreseeable future,&quot; even as economic growth slows.

The report repeatedly cited China&#39;s construction of its first overseas naval base in Djibouti, which is already home to a key US&nbsp;military base and is strategically located at the southern entrance to the Red Sea on the route to the Suez Canal.

&quot;China most likely will seek to establish additional military bases in countries with which it has a longstanding friendly relationship and similar strategic interests, such as Pakistan,&quot; the report said.

Djibouti&#39;s position on the northwestern edge of the Indian Ocean has fueled worries in India that it would become another of China&#39;s &#39;string of pearls&#39; of military alliances and assets ringing India, including Bangladesh, Myanmar and Sri Lanka.

The report did not address India&#39;s potential reaction to a Chinese base in Pakistan.

But Pakistan, the US&nbsp;report noted, was already the primary market in the Asian-Pacific region for Chinese arms exports. That region accounted for $9 billion of the more than $20 billion in Chinese arms exports from 2011 to 2015.

Last year, China signed an agreement with Pakistan for the sale of eight submarines.&nbsp;The Pentagon report flagged Chinese military advances, including in space and at sea.

It cited China&#39;s 2016 launch of the first experimental quantum communications satellite, acknowledging that it represented a &quot;notable advance in cryptography research.&quot;

As in past years, the Pentagon renewed its concerns about cyber spying, saying US&nbsp;government-owned computers were again targeted by China-based intrusions through 2016.

&quot;These and past intrusions focused on accessing networks and extracting information,&quot; the report said.

&quot;China uses its cyber capabilities to support intelligence collection against US&nbsp;diplomatic, economic, and defense industrial base sectors.&quot;

In a section discussing China&#39;s Navy, the report predicted that China&#39;s first domestically designed and produced aircraft carrier would likely reach initial operating capability in 2020.

(Reuters)

The US?report notes Pakistan is already the primary market in the Asian-Pacific region for Chinese arms exports

A Pentagon report released on Tuesday has singled out Pakistan as a possible location for a future Chinese military base, as it forecast that Beijing would likely build more bases overseas after establishing a facility in the African nation of Djibouti. The prediction came in a 97-page annual report to Congress that saw advances throughout the Chinese military in 2016, funded by robust defense spending that the Pentagon estimated exceeded $180 billion. That is higher than China's official defense budget figure of 140.4 billion. Chinese leaders, the US report said, appeared committed to defense spending hikes for the "foreseeable future," even as economic growth slows. The report repeatedly cited China's construction of its first overseas naval base in Djibouti, which is already home to a key US military base and is strategically located at the southern entrance to the Red Sea on the route to the Suez Canal. "China most likely will seek to establish additional military bases in countries with which it has a longstanding friendly relationship and similar strategic interests, such as Pakistan," the report said. Djibouti's position on the northwestern edge of the Indian Ocean has fueled worries in India that it would become another of China's 'string of pearls' of military alliances and assets ringing India, including Bangladesh, Myanmar and Sri Lanka. The report did not address India's potential reaction to a Chinese base in Pakistan. But Pakistan, the US report noted, was already the primary market in the Asian-Pacific region for Chinese arms exports. That region accounted for $9 billion of the more than $20 billion in Chinese arms exports from 2011 to 2015. Last year, China signed an agreement with Pakistan for the sale of eight submarines. The Pentagon report flagged Chinese military advances, including in space and at sea. It cited China's 2016 launch of the first experimental quantum communications satellite, acknowledging that it represented a "notable advance in cryptography research." As in past years, the Pentagon renewed its concerns about cyber spying, saying US government-owned computers were again targeted by China-based intrusions through 2016. "These and past intrusions focused on accessing networks and extracting information," the report said. "China uses its cyber capabilities to support intelligence collection against US diplomatic, economic, and defense industrial base sectors." In a section discussing China's Navy, the report predicted that China's first domestically designed and produced aircraft carrier would likely reach initial operating capability in 2020. (Reuters)

China likely to build more overseas military bases: Pentagon report

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