China is considered to be one of
the most aggressive investor around the globe. Few years back China government
supported many domestic companies to buy oil fields to ensure energy
requirements keeps happening uninterruptedly.
Many Chinese Technology companies
invested in startups to mint out gain when such companies go for an IPO.
China domestic business went
through the stagnation post heavy investment in transportation, Real Estates,
Manufacturing, Ports and forced government to look at other market to keep
running their domestic companies factories. Any disruption in that may lead
to chaotic financial and labour market collapse.
In view of that, Pakistan and
China agreed to develop Trade corridor through Pakistan Occupied Kashmir with
tentative investment of staggering $46 Bn investment. China sees this as an
opportunity to mint out vast mineral available in Baluch area of Pakistan.
Unfortunately, Pakistan is undergoing
turbulent time at domestic level. Many area such as PoK, Singh, Baluch areas are facing unrest on daily
basis. The unrest in the area where
development sites are there forced Pakistani government to provide security
cover to Chinese worker.
For 5000 Chinese worker, Pakistan
allocated 15k security resources. I can imagine the need of security guard when
corridor is ready for trade. The security cost will be very high and that too
in an area where terrorist movements are very common.
Today, the unwarranted elements
are listening to Pakistan government but they should learn from their
experience in the past when government released the daughter of dreaded
terrorist to get the release of ex General son.
In my point of view, both the
country will incur heavy security cost which will make the trade route financially. At the same time any terrorist attack will lead to a situation
where most of the companies will leave the corridor.
Agreed points.
ReplyDeleteAgreed points.
ReplyDelete