In a major setback for Pakistan amid its efforts to improve ties with the West, China has not agreed to further expand cooperation in areas of energy, water management, and climate change under the China-Pakistan Economic Corridor (CPEC).
At a bilateral meeting held to review progress of CPEC China has decided to drop cooperation in the areas of cross-border tourism in Giglit-Baltistan (G-B), Khyber-Pakhtunkhwa (K-P) and PoK and cooperation for promotion of coastal tourism, ET has learnt.
China also did not agree to Pakistan’s proposal for inclusion of Water Resources Management and Climate Change and Urban Infrastructure Development in the CPEC framework. The proposal for setting up a new joint working group on water resources management and climate change was also rejected by China, ET has further learnt.
While the meeting was held in 2022 details of the meeting have only emerged now. While China opposed Pakistani proposals Islamabad has agreed to a new imported coal-fired power plant in Gwadar, according to persons who did not wish to be identified.
Pakistan has given significant concessions to China on the issue of setting up the 300MW Gwadar Power Plant.
Islamabad wanted to either shelve the 300MW project or change its location to Thar to use the local coal. But China did not agree with Pakistan about the Gwadar plant. Pakistan had also wanted the conversion of the imported fuel-based Gwadar plant to Thar coal to address energy security and liquidity issues to which China did not agree, ET has learnt.
But China did not agree to a proposal for the inclusion of a 500kv transmission line to Gwadar to link the seaport city with the national grid in the CPEC framework.
CPEC funded by China is the jewel crown of the Belt and Road Initiative but has achieved slow progress over the years. India has launched protests in the past as the CPEC passes through PoK.