UAE seeking investment avenues in multibillion China-Pakistan Economic Corridor

UAE seeking investment avenues in multibillion China-Pakistan Economic Corridor
In this file photo, Chinese trucks stand on a pontoon during the opening of a trade project in Gwadar port, some 700 kms west of the Pakistani city of Karachi on Nov. 13, 2016. (AFP)
Updated 20 September 2019

UAE seeking investment avenues in multibillion China-Pakistan Economic Corridor

UAE seeking investment avenues in multibillion China-Pakistan Economic Corridor
  • Valued at well over $60 billion, CPEC is part of China’s ambitious Belt and Road Initiative
  • UAE plans to introduce small and medium enterprises to CPEC Special Economic Zones

ISLAMABAD: The United Arab Emirates has expressed its interest in exploring investment opportunities in the second and third phase projects of the China-Pakistan Economic Corridor (CPEC), Emirati officials announced on Tuesday, following talks with Chinese officials in Islamabad.
CPEC, which is valued at well over $60 billion is a part of China’s ambitious Belt and Road Initiative (BRI), with the two phases under discussion related to key infrastructure and development plans.
The UAE Embassy in Islamabad posted on its official Twitter account that its Deputy Head of Mission, Abdul Aziz Al Neyadi, had met the General Manager of China Road and Bridge Corporation (CRBC), Li Zhihuai, to discuss the ways of joint cooperation in the China-Pakistan Economic Corridor.
The CRBC and Chinese embassy officials did not respond to Arab News’ requests for comment.
Al Neyadi told Arab News that the meeting agenda with the representatives of China’s state-owned CRBC was held to explore “how UAE could participate and invest in the second and third phases of the China Pakistan Economic Corridor especially in the (projects associated with the) port, railways, and free zones.”
The UAE, he said, wanted to “encourage small and medium Emirati businesses to participate in these free zones,” to open new vistas for UAE enterprises which would bring foreign investment into CPEC, the linchpin of China’s BRI.
“UAE and China have common interests,” Al Neyadi said. Both are “ready to jointly work in a third country, as UAE and Chinese governments enjoy strong relations with Pakistan.”
In May this year, UAE Ambassador to Pakistan, Hamad Obaid Ibrahim Salem Al-Zaabi, said many companies in his country were keen to invest in the deep-sea port city of Gwadar, which is widely considered the crown jewel of the project.
An official statement quoting Al-Zaabi said, “Pakistan and UAE need to work together to further upgrade their ties aiming at developing a strategic partnership.”
Pakistan had last year emphasized the improvement of its railways, special economic zones and third-country participation during the eighth Joint Cooperation Committee meeting held in Beijing following the completion of the first phase.
The UAE is not the only Gulf state to see potential in CPEC. Saudi Arabia and Pakistan signed three major investment deals for China-Pakistan Economic Corridor (CPEC) projects in September 2018. Riyadh will also be investing in an Aramco oil refinery project that will be constructed in the southwestern province of Balochistan and house a petrochemical complex project at Gwadar’s deep-sea port.
Speaking with Yao Jing, Chinese Ambassador to Pakistan at the PM office on Tuesday, Prime Minister Imran Khan reiterated his resolve to complete ongoing projects under the CPEC which had contributed substantially to Pakistan’s development and prosperity, reported state-owned news agency, APP.

'No food left in the sea': Pakistani fishermen fearful as Chinese trawlers dock at Karachi port 

'No food left in the sea': Pakistani fishermen fearful as Chinese trawlers dock at Karachi port 
Updated 19 October 2020

'No food left in the sea': Pakistani fishermen fearful as Chinese trawlers dock at Karachi port 

'No food left in the sea': Pakistani fishermen fearful as Chinese trawlers dock at Karachi port 
  • Fisherfolk forum says government plan to allow Chinese to carry out deep-sea fishing in territorial waters could render millions jobless 
  • Federal government says bottom trawling will not be allowed under new fishing policy

KARACHI: A pressure group that represents Pakistani fishermen has said a government plan to allow Chinese companies to carry out deep-sea fishing in the country’s territorial waters could threaten the survival of at least three million people who depend on the sea for livelihood.
Last month, 12 Chinese deep-sea trawlers docked at the port of Karachi, unleashing fear among local fishermen who say commercial fishing vessels and bottom-trawling would deplete fish stocks in the exclusive federal sea zones off the Sindh and Balochistan provinces. 
Bottom trawling - dragging nets across the sea floor to scoop up fish - stirs up the sediment lying on the seabed, displaces or harms some marine species, causes pollutants to mix into plankton and move into the food chain and creates harmful algae blooms or oxygen-deficient dead zones.
The coastal line of Sindh and Balochistan is 1,050 km long, Mohammad Ali Shah, Chairman Pakistan Fisherfolk Forum, told Arab News last week, saying around three million fishermen relied on the sea to survive. 
A new fishing policy is expected but yet to be revealed by the government, he said. 
“The deep-sea trawler policy has not yet been approved but before that they [China] have brought these trawlers,” Shah said, calling the arrival of the Chinese vessels at Karachi port last month ‘illegal.’ 

In this undated photo, fishing vessels of Fujian Fishery Company move from the Gwadar port towards Karachi, Pakistan (Photo courtesy: Fishermen Cooperatives Society)

In 2018, the government enacted a deep-sea fishing licensing policy that both fishermen's representative bodies and provincial government bodies opposed, calling it a constitutional violation and an encroachment on the livelihoods of fishermen in the coastal provinces.
Fears about foreign fishing companies eating up local communities are not new.
For years, fishermen in the southwestern city of Gwadar in Balochistan province - a flagship of the $60 billion China-Pakistan Economic Corridor - have protested against foreign trawlers. 
Tensions first began to mount when the Fisheries Department disclosed its plan to issue licenses to various foreign fishing vessels to operate in an exclusive economic zone in 2016.
But last week, the federal minister for maritime affairs, Ali Haider Zaidi, told Arab News the country’s new deep-sea fishing policy would not allow Chinese trawlers to engage in unregulated deep-sea fishing. Bottom trawling, he said, would be banned under the new policy.
“Importing boats is not illegal,” he said. “How you use them has to be regulated.”
Pakistan divides its sea into three zones, where zone-3 (from 20 to 200 nautical miles) is controlled by the federal government. Up to 12 nautical miles (zone-1) is the domain of the provinces Sindh and Balochistan and between 12 to 20 nautical miles the sea is declared a buffer zone. 

Fishermen remove fish from a net at the Clifton beach in Pakistan's port city of Karachi on Oct. 6, 2020. (AFP/File)

Local fishermen are not allowed to fish in zone-3 and foreign fishing vessels are not permitted to fish in the other two zones under the existing policy.
The Fishermen's Cooperative Society (FCS), which issued the permit to the Chinese trawlers, said the Chinese fishing vessels would not use the destructive bottom trawling method and instead help ‘upgrade’ Pakistan’s fishing industry and export.
Official figures put the annual value of Pakistan’s fish exports at roughly $450 million.
“Bringing Chinese trawlers for deep sea fishing is in line with the government’s deep-sea fishing policy and aimed at upgrading and modernizing fishing, besides providing job opportunities to local fishermen,” Abdul Berr, Chairman of the Fishermen's Cooperative Society, told Arab News.
“Around 3,500 fishermen will get employment opportunities with the arrival of the world’s latest fishing boats and modern small boats,” Berr said. 
He added: “First, 70 percent of the staff at trawlers and processing facilities will be local. There will be no fishing in provincial territorial waters. The trawlers will bring all their catch to Karachi where it will be processed in factories and then exported.”
Small local fishermen would receive modern fiber boats on ‘easy instalments,’ Berr said, a step towards replacing their obsolete boats.
But Sindh’s minister for livestock and fisheries, Abdul Bari Pitafi, said the mega fishing ships would wipe out sea-life, even if they were only operating in the federal government’s zone-3.
“We will...also oppose its [trawlers’] operations in zone-3 because they will just wipe out sea-life including the fish’s seed,” Pitafi told Arab News.
In 2016, a survey carried out by the Food and Agriculture Organisation revealed that more than 72 percent of the fish stock in Pakistan’s coastal areas had already declined.
“One trawler does a catch that is equal to a catch by 100 of our fishing boats,” Younus Khaskheli, a fisherman, said. “And their fishing net is the most dangerous one, because it hunts thousands of tons of fish.” 
Tens of thousands of fishing boats are registered in Pakistan, he said, with fishermen from Sindh, Balochistan, Punjab, Khyber Pakhtunkhwa and even Bangladesh fishing in these waters.
“Our sea stock will end; the country will lose the income of billions and our fishermen will become jobless,” Khaskheli said. “There won’t be any food left in the sea.”