Tuesday, January 1, 2019

China, Pakistan and the new Great Game

From the Asia Times, December 20:

CPEC involves road and rail projects, dams and a pipeline from Gwadar to Xinjiang, but it is very long-term endeavor as a visit to the country revealed 

http://static.atimes.com/uploads/2018/12/Baltit-Fort-overlooking-Hunza-valley-960x576.jpeg
 The glorious view of the Hunza Valley and snow-capped mountains from the top of Baltit Fort. Photo: Asia Times
On top of the graceful Baltit Fort, overlooking the Hunza Valley’s Shangri-La-style splendor, it’s impossible not to feel dizzy at the view: an overwhelming collision of millennia of geology and centuries of history.

We are at the heart of Gilgit-Baltistan, in Pakistan’s Northern Areas, or – as legend rules, the Roof of the World. This is an area about 70,000 square kilometers (27,000 square miles) crammed with spectacular mountain ranges and amidst them, secluded pristine valleys and the largest glaciers outside of the Polar region.

The location feels like vertigo. To the north, beyond the Batura Glacier, is the tiny northeast arm of Afghanistan, the legendary Wakhan corridor. A crest of the Hindu Kush separates Wakhan from the regional capital Gilgit. Xinjiang starts on Wakhan’s uppermost tip. Via the upgraded Karakoram highway, it’s only 240 km from Gilgit to the Khunjerab Pass, 4,934 meters high on the official China-Pakistan border.

What used to be called the Russian Pamir, now in Tajikistan, can be seen with naked eyes from one of the peaks of the Karakoram. To the east, past Skardu and an arduous trek that may last almost a month, lies K2, the second highest peak in the world, among a mighty group north of the Batura Glacier (also known as Baltoro), which is 63km long.

To the south lies Azad (“Free”) Kashmir and slightly to the southeast what locals define as Indian-occupied Kashmir. The former King of Kashmir agreed to be part of India after Partition in 1947 but troops were airlifted to the northern state and after a year of fighting, India went to the UN. A temporary ceasefire line was established in 1948 and runs down from the Karakoram towards the Nanga Parbat – the killer mountain, dividing Kashmir into two virtually sealed halves.

Massive mountain ranges
Driving across the Karakoram Highway (see part 2 of this report) we were face to face with three massive mountain ranges running in different directions. The Karakoram roughly starts where the Hindu Kush ends and then sweeps eastward – a watershed between Central Asian drainage and streams flowing into the Indian Ocean.
original Silk Road, parallel to K’koram hwy
 The ancient Silk Road is seen above the Karakoram Highway. Photo: Asia Times
The Himalayas start in Gilgit and then run southeast through a cluster of high peaks, including the Nanga Parbat, directly on the Islamabad-Gilgit air route (flights by turboprop only take off if weather around the Nanga Parbat allows).
The Karakoram and the Himalayas are like an extension of each other, while the Hindu Kush starts in southern Afghanistan and ties up with the Karakoram north of the Hunza Valley. Within a radius of roughly 150 km from Gilgit and Skardu, there are no less than 90 peaks towering over 8,000m.
Strategically, this is one of the top spots on the planet, a protagonist of the original Great Game between imperial Britain and Russia. So it’s more than appropriate that here is exactly where a protagonist of the New Great Game, the China-Pakistan Economic Corridor (CPEC), the flagship project of the New Silk Roads, or Belt and Road Initiative (BRI), actually starts, linking western China’s Xinjiang to the Northern Areas across the Khunjerab Pass.

Karakoram politics
CPEC is the supreme jewel in the Belt and Road crown, the largest foreign development or investment program in modern China’s history, loaded with way more funds than years of US military aid to Islamabad.

And we are indeed in Ancient Silk Road territory. Looking at the millenary trail parallel to the Karakoram, lovingly restored by the Aga Khan Development Foundation, it’s easy to picture the great Chinese traveler Hiuen Tsang traversing these heights in the 7th Century, and naming them Polo-le. The Tang dynasty called it Great Polu. When Marco Polo trekked in the 14th Century, he called it Bolor.

Early last month, I was privileged to drive on the upgraded Karakoram Highway along CPEC all the way from Gilgit to the Khunjerab, and back, with multiple incursions to valleys such as lush, pine-forested Naltar, Shimshal (manufacturers of sublime yak wool shawls), Kutwal and receding glaciers, such as Hopper and Bualtar.

The Karakoram Highway was originally conceived in the 1970s as an ambitious political-strategic project able to influence the geopolitical balance in the subcontinent, by expanding Islamabad’s reach into previously inaccessible frontiers.

Now it’s at the heart of a trade and energy corridor from the China-Pak border all the way south to Gwadar, the port in Balochistan in the Arabian Sea a stone’s throw from the Persian Gulf. Gwadar looks likely to be a crucial springboard to China becoming a naval power – active from the Indian Ocean to the Persian Gulf and on to the Mediterranean, while CPEC, slowly but surely, aims to change the social and economic structure of Pakistan.

Previous Pakistani prime minister Nawaz Sharif, the controversial “Lion of the Punjab”, was an avid CPEC supporter after he won the 2013 elections. At the time current Prime Minister Imran Khan’s Tehreek-e-Insaf (PTI) party, winner of elections held in July, had already polled second nationwide and rose to power in the strategic Khyber-Pakhtunkhwa province – straddling the area between Islamabad and the tribal belt.

Sharif, in June 2013, when he was about to enter negotiations with the Chinese, was lauding what would become CPEC as an infrastructure scheme that “will change the fate of Pakistan”. So far that has translated mostly into new hydroelectric dams, coal-fired power stations, and civil-nuclear power. The China National Nuclear Corporation is building two 1,100 MW reactors near Karachi for nearly $10 billion, 65% financed by Chinese loans. This is the first time that the Chinese nuclear industry has built something of this scale outside of their country.

More than a dozen CPEC projects involve power generation – Pakistan is no longer woefully energy-deprived. These projects may not be as sexy as high-speed rail and pipelines, which could arrive much later; after all CPEC in its planned entirety runs to 2030.

Of course, monumental business decisions will have to be addressed; the staggering cost – and state of the art engineering – involved in building a railway parallel to the Karakoram; and the fact that oil pumped via a pipeline from Gwadar to Xinjiang might cost five times more than via the usual sea lanes all the way to Shanghai.
A map shows the route of the China-Pakistan Economic Corridor. Photo: Wikimedia Commons/ Wanishahrukh
A map shows the route of the China-Pakistan Economic Corridor. Photo: Wikimedia Commons/ Wanishahrukh
What Imran wants
Imran Khan is way more cautious than Sharif, who had a “China cell” inside his office and commanded the Pakistani Army to set up a 10,000-strong security force to protect China’s CPEC investments.

But Khan knows well about the firepower behind CPEC: the Silk Road Fund, the Asian Infrastructure Investment Bank (AIIB), CITIC, Bank of China, EXIM, China Development Bank. The Chinese Academy of Social Sciences (CASS) projects that BRI could mobilize as much as $6 trillion in the next few years. What Khan wants is to negotiate better terms for Pakistan....MORE
Part II, December 22:

On the road in the Karakoram
The greatest geological and geopolitical road trip on earth symbolizes the mighty ambitions of the CPEC project