Mission to China
By Zahid U Kramet

If there is one thing about President General (retired) Pervez Musharraf, it is that he is dogged. Despite facing flagrant opposition to his presidential credentials, Musharraf continues to assert himself as ‘the man’ to set matters straight for Pakistan.

This has worth.

His recent mission to China would indicate as much. Facing hurdles in the passage of smoother relations with the US and its Nato allies in Afghanistan of more recent time, Musharraf looked eastwards to salvage both his and Pakistan’s fallen image.

Pakistan’s relations with China are long-term. Not as long a term as with the US – the country’s principal benefactor from 1954 – but since 1963, when Pakistan’s Foreign Minister Zulfikar Ali Bhutto pressed for closer ties with Chairman Mao’s China.

Let down by the US during Pakistan’s 1965 war with India, Sino-Pakistan ties strengthened to the point of China becoming Pakistan’s main weapons supplier. China benefitted by gaining access through the Pakistan corridor to the oil-resplendent Middle East.

This ‘strategic partnership’ was fortified by Bhutto’s leftist leanings as Red China impacted on the developing world, while China’s territorial differences with India cemented the Sino-Pakistan bond to the point of their becoming ‘now and forever’ friends.

In 1969 the Karakoram Highway, China’s land passage to the Indian Ocean was begun, and this became a functioning reality linking China’s eastern Xinjiang province to Pakistan and connecting to the latter country’s Grand Trunk (GT) Road which leads to the seaport of Karachi.

But not for once did Pakistan consider breaking its equally strong bonds with the US.

Barely a week into his 1969 presidency, Richard Nixon moved to end communist China’s isolation, with his National Security Advisor, Henry Kissinger, laying the groundwork by way of backchannel diplomacy, courtesy Islamabad.

In July 1971, Kissinger visited Beijing to tie up loose ends and by February 1972 all was in place for President Nixon’s landmark China visit, which witnessed the signing of the historic Shanghai Communiqué acknowledging the ‘one China’ paradigm.

The accord enabled the US to temporarily shelve questions concerning the status of the Republic of China in Taiwan and led the US to establishing full diplomatic and trade relations with the Peoples Republic of China in 1979.

Pertinently, “the week that changed the world” was followed by the eruption of the Watergate scandal, which ended in the first ever resignation by a US president, and downplayed Pakistan’s important input in helping resolve the decades old US-China stand-off.

Still, Pakistan did not lose out.

Beginning with defence and diplomatic collaboration during their nearly half a century of association, China has invested in a number of diverse projects with the accumulated turnover reportedly having reached over $ 6 billion in 2005.

Similarly, the trade volume between the two counties meantime was expected to up from around $ 5 billion in 2006 to an expected $ 8 billion in 2008, albeit the balance was heavily tilted in China’s favour, with Pakistan’s trade deficit having soared to $ 2.6 billion in 2005.

But China did make due note of this and Zhang Ligun, a researcher with the China Institute of International Studies writing in the Beijing Review June 8, 2006, recommended “to deal with the trade imbalance, China should offer economic policy support to Pakistan”.

The author also appreciated Pakistan’s support on the matter of China becoming an observer of the South Asian Association for Regional Cooperation (SAARC), while welcoming Pakistan as an observer of the Shanghai Cooperation Organisation (SCO).

With energy the area of primary concern to both countries and Mr Ligun duly drew attention to the fact that the respective governments had signed a framework agreement on cooperation in this field as “a new highlight in the (China-Pakistan) economic and trade relationship”.

Inevitably, President Musharraf, during the course of his April 2008 visit, focused on “lobbying Beijing to build gas pipelines linking Pakistan with China” and restated the offer of Pakistan functioning as energy and trade corridor for the whole region from Gwadar.

Musharraf reportedly also said that “if the SCO can do something…it should come forward and cooperate towards the security of Afghanistan”. But he emphasised, “If the SCO can come along, then we would need to ensure there is no confrontation with Nato.”

This effectively spelled out Pakistan’s policy perspectives about which China showed no cause for concern, which came as no surprise for China has broadly adhered to the laudable principle of non-intervention with its neighbours, especially in the case of Pakistan.

No wonder then that President Musharraf and the delegation he headed showed no hesitation in suggesting that the nascent Iran-Pakistan-India (IPI) gas pipeline could be extended to China, even as he proposed a rail and fibre optic linkage along the same route between the two long-standing allies.

For its part, China had unhesitatingly signed a Free Trade Agreement (FTA) in 2006, which is expected to boost bilateral trade to $ 15 billion over five years and more Memorandums of Understanding (MoU) were signed during the Pakistan delegation’s April 2008 visits for oil and gas exploration.

In addition, China assured maximum support in financing ongoing infrastructural development programmes, with China Development Bank Governor expressing serious interest in backing the Bhasha-Diamer dam as well as the proposed oil, gas and rail links from Gwadar.

In regard to defence the PPP report stated: “China expressed its full support for Pakistan’s efforts to preserve its sovereignty, independence, territorial integrity and expressed appreciation for Pakistan’s important role in promoting peace…and its contributions to counter terrorism”

All of which compelled the elated Pakistan Foreign Minister Shah Mehmood Qureshi, one of the two dignitaries accompanying President Musharraf on his China visit to comment, “China is a reliable and trustworthy friend and has proved (this in standing) by Pakistan over the years.”

Would that Pakistan’s friends in the West were as judicious in their analysis of this county’s testing situation.

— Courtesy: Spearhead Research

Breaking the jinx of Gwadar port
By Correspondent

Gwadar Port Project is beset by a ‘comedy’ of errors (or is it a “tragedy of errors”)? A press report says, “Gwadar Port finally made history by beginning its cargo handling from March 15, 2008.”

Once it is fully operational, and all its facilities and infra-structure in place(in complete working order after due testing and trial runs), Gwadar has the potential to be a much more lucrative port than Karachi or Port Qassim, for several reasons:

1) Its geographical and strategic location at the mouth of Strait of Hormuz, and as a deep water open sea port, an advantage not enjoyed by Dubai, Khark Island or Kish (in the Gulf) for instance. There may be competition with Chahbahar port in Iran, but certain political and economic constraints of Iran tend to negate the prospects of Chahbahar in comparison with Gwadar. As a gateway to the landlocked states in Central Asia, and China, Gwadar has no peer.

The advantages of Dubai as a free port, and a tax-free regime, can be overcome by declaring Gwadar also, as a free port for entrepot trade.

2) Climate: Though Gwadar is terribly hot during summer, it does not suffer from the “boiler-room” humidity of the ports in the Gulf, so comparatively, it is a more salubrious place for its inhabitants. Of course, Dubai is far more developed as a really cosmopolitan city and international trade centre, with a fairly long history of trade relations. It is more so because of oil, and the ostentatious display of immense wealth, which Pakistan will take years to emulate. Probably this factor can also work into Gwadar’s favour as a much cheaper place and a better locale for cost of doing business, as well as a much better educated and sophisticated human resource powerhouse.

3) It is true that Pakistan is no match for UAE or Iran or other Gulf States in terms of financial strength. However, the backing it receives from China, and the in-built advantage of direct access to nd from Central Asian States (and through them by overland routes to Russia and Europe on one hand, and Korea and Japan on the other), offers to Pakistan a unique opportunity to cash in on its fortunate geo-strategic locale. In years to come, particularly when Balochistan is fully developed and its natural resources harnessed to the optimum, there are good chances, in the not too distant future, to achieve a degree of prosperity rivalling the oil producers.

4) It is obvious that development of Gwadar as a thriving port, depends on adequate and modern infra-structure in its hinterland, and it is assumed that the authorities are alive to the dire necessity of immediate attention to this aspect.

5) The emerging new oil and gas centres around the Caspian seek outlets for their products and Gwadar offers a two-way outlet to markets East and West, North and South, unhampered by the conflicts in much of the region.

6) Initially some dissuasion is to be expected from the existing port facilities in the region, who would naturally be miffed at emergence of a strong contender, but that will gradually subside when they realise the potential of expanding their own business through these new facilities.

7) One big constraint is financing the project with all its paraphernalia and infra-structure, but the future revenue generation potential of the new port will soon recoup the initial outlay, and much more besides.

The boon to employment opportunities and social uplift it will bring about will solve the age-old problems faced by the so-far most neglected province of Pakistan, although it has the largest landmass among all the provinces. The fillip to industries, mining, agriculture, horticulture, animal husbandry, trade and commerce in Balochistan will have a domino-effect on other regions as well, all for the better.

9) The cumulative effect of all the above and other factors too numerous to mention will be the gateway for a prosperous and powerful Pakistan, God willing.

4,300 acres of land has been earmarked for NGIA
By Correspondent

KARACHI: The two new airports, New Islamabad International Airport (NIIA) and New Gwadar International Airport (NGIA) are to be handed over to Civil Aviation Authority (CAA) in December 2010 and November 2010, respectively.

Foundation of New Islamabad International Airport was laid down in April 2007 by President of Pakistan, which was held up for the last 16 years. Design concept and layout of NIIA have been finalised and construction tender have already been floated. NIIA is the first ever green field airport of the country, the first stage of ground work has already been completed and the work at terminal building will also be started soon and is expected to be completed with in 33 months, end of the year 2010.

4,300 acres of land has been earmarked for NGIA, which is in finalisation for handing over to CAA at a site located at ‘Gurandani’, 26 km east of Gwadar city. The Government of Pakistan released payment amounting to Rs 1.47 billion. The conceptual master plan of NGIA has already been developed where as topographic and soil test work has been awarded. The commencement of construction is expected by June 2008 with completion time of 30 months i.e. end of 2010.

Musharraf eyes China’s potential to join IPI
By Correspondent

BEIJING: President Pervez Musharraf Monday said the US$ 7 billion Iran-Pakistan-India (IPI) gas pipeline project could be transformed into an Iran-Pakistan-China (IPC) gas pipeline project to overcome the energy shortage of two countries and meet their growing industrial needs.

When asked by a student at Tsinghua University about the chances of China joining the gas pipeline project, President Musharraf said a feasibility report had already been prepared in this regard, and it makes the project viable.

“(But) why this can’t be IPC (Iran-Pakistan-China) pipeline?” the president said in terms of the possibility of the project.

He said the gas pipeline from Pakistan’s south to the Khunjerab Pass linking the two countries would be raised till it crosses the pass at 15,000 feet, thereafter more than half of the length would be in decent.

He said Pakistan also proposed building the fibre and rail link along Karakorum Highway for better connectivity, which would link Gwadar port with China.

A Chinese firm has already conducted the feasibility study and has submitted its report to President Hu Jintao.

President Musharraf said when completed, the project could claim to be ninth wonder of the world and would go a long way in further boosting trade and commerce ties between the two countries.

He said the feasibility of having a fibre cable connectivity between the two countries for enhanced data, voice and video traffic also came under discussion with his meeting with Chinese leadership.

He mentioned the two countries’ interests on the prospects of building an oil and gas pipeline along the KKH to meet the future energy needs of the two countries.

Gwadar airport to be given to CAA in 2010
By Correspondent

Lahore—Two new airports New Islamabad International Airport (NIIA) and New Gawadar International Airports (NGIA) are scheduled to be handed over to Civil Aviation Authority(CAA) in December 2010 and November 2010 respectively. According to sources here, Civil Aviation Authority is carrying out mega development projects for upgradation of airports across the country with huge sum of Rs 9 billion earmarked for annual Development Programe (ADP)for the fiscal year 2007-2008 against Rs 1.0 billion spent during the year 2006-2007. According to Civil Aviation Authority sources, CAA has already committed Rs. 5.1 billion by December 31, 2007 i.e. after six months against the ADP provision of 9 billion for complete financial year.

Foundation for the New Islamabad International Airport was laid in April 2007 by the president of Pakistan. Design concept and layout of NIIA have been finalized and construction tender have already been floated. As NIIA is the first ever green field airport of the country therefore the first stage of ground work has already been completed and the work at terminal building will be started soon and is expected to be completed within 33 months which has been reduced from 36 months i.e. by the end of the year 2010.

Forty three hundred acres of land has been earmarked for New Gawadar international Airport (NGIA) which is in finalization for handing over to CAA at a site located at “Gurandani”, 26 km east of Gawadar city and payment amounting to Rs. 1.47 billion stand released by the Government of Pakistan.

The conceptual master plan of NGIA has already been developed whereas topographic and soil test work has been awarded. Physical commencement is expected by June, 2008 with completion time of 30 months i.e. end of 2010. Work on other mega projects such as up-gradation of Multan and Peshawar airports is also in hand. Other development projects include expansion and renovation of passenger’s terminal and allied work at Quetta airport, expansion and renovation of terminal building at the Turbat airport and Chitral airport, interim expansion terminal building and lounges at the Skardu airport and later a new passenger’s terminal adjacent to the apron.
]]> http://dreamlandgwadar.wordpress.com/2008/04/19/gwadar-airport-to-be-given-to-caa-in-2010/feed/ 0 Guider http://dreamlandgwadar.wordpress.com/2008/04/19/another-pak-china-fta-on-trade-services-soon-musharraf/ http://dreamlandgwadar.wordpress.com/2008/04/19/another-pak-china-fta-on-trade-services-soon-musharraf/#comments Sat, 19 Apr 2008 10:04:45 +0000 Guider http://dreamlandgwadar.wordpress.com/?p=9 ]]> Source: app.com Date: 15-4-2008

Another Pak-China FTA on trade, services soon: Musharraf By Correspondent

URUMQI: President Pervez Musharraf Tuesday said Pakistan and China are close to signing another Free Trade Agreement on trade and services that will further boost the economic and commercial ties between the two countries. Addressing the China Xinjiang-Pakistan Economic Forum here at the capital of autonomous region, the President urged more closer cooperation between Pakistan and China in commerce, trade, investment and joint investments between the two countries’ private sectors. The President informed the business leaders that there was immense scope for investment in energy sector especially coal powered, solar and hydro electricity. He said Pakistan and China are also discussing setting up of more nuclear power generation plants to help meet the requirements of fast expanding industrial and domestic sector. The President said the governments can only provide an enabling environment, while it was up to the private enterprises to play their role in boosting economic ties. President Musharraf wooed Chinese entrepreneurs to inject more investments in Pakistan and said they stand to benefit more as the ties between the two countries continue to grow stronger over the time. He said Pakistan has proposed an integrated border management regime and Transit Trade agreement. The President said keeping in view close friendly ties between the two countries, special investment zones will be created in Pakistan for the Chinese entrepreneurs. He said there was a vast scope for investment in agriculture, agro-based industry and livestock breeding in Pakistan. He said Pakistan and China can also cooperate in textile sector with the Chinese companies relocating to have swifter and cheaper access to new markets in Africa and Europe. The President invited Bank of China to enter Pakistani banking scene so as to facilitate the business communities of the two countries and said several foreign banks were already operating in Pakistan. He said trade between the two countries rose to US 6.8 billion dollars and the two were vying it to reach 15 billion US dollars by 2011. “This will be difficult to achieve unless we take steps to further facilitate trade between the two countries,” the President said and added that can only happen when necessary banking facilities are already there. The President mentioned the several ongoing projects in Pakistan like the KKH upgradation, Neelum Jhelum hydel project, and others that have been awarded to Chinese construction companies. He said the Gwadar Port and Coastal highway have been constructed with Chinese support and several investment companies are now operating in Pakistan. President Musharraf pointed at the growing demand for electricity in Pakistan and said the two countries that are already working together in nuclear and hydel sectors can expand cooperation in alternative sources of energy. Apart from these, he said Pakistan offers opportunities in communications, Information Technology and many other areas. He said increased trade will create jobs, generate economic activity and bring prosperity to the people of both the countries. He mentioned the opportunities available in the Pakistani market for Chinese entrepreneurs. He said Pakistan’s population of 160 million was good enough for lucrative business. He said the economy was in upsurge with a seven percent average growth, while the GDP and per capita income have also doubled. The President mentioned Pakistan’s strategic location that provided an efficient route between various regions and to the rest of the world. He said the Xinjiang province could vastly benefit from its proximity to Pakistan. He said the two countries have already embarked on a plan to upgrade the Karakoram Highway, that already is a symbol of friendship between the two counties, for allowing all types of heavy traffic. This would have an additional linkage through a rail link that can connect Pakistan Railways with China Rail. “We can even have fiber optic link and oil and gas pipeline along the same route that will further bring the two countries closer,” the President said. “Tremendous opportunities will accrue leading to tremendous benefits for the entire region,” President Musharraf said. The President said the communication links can also provide easy access to the Gwadar port. President Musharraf dwelt at length about the business opportunities available in Pakistan and how the two business communities can benefit from the various incentives available for the foreign investors. He said Pakistan provides conducive business environment through several rules and regulations already put in place. The President recalled his talks with President Hu Jintao and Premier Wen Jiabao and how these will help in further strengthening the close relationship the two countries enjoy. Governor of the Xinjiang Nur Bakari and Vice Governor Masood Qureshi and members of Pakistani delegation attended the function. Pakistan’s ambassador to China Salman Bashir said it was President’s first visit to this part of the country and reflects the significance Pakistan attaches to having closer ties with a region that borders it. He said the two countries enjoy strong ties that will continue to grow over the years.

]]> http://dreamlandgwadar.wordpress.com/2008/04/19/another-pak-china-fta-on-trade-services-soon-musharraf/feed/ 0 Guider http://dreamlandgwadar.wordpress.com/2008/04/19/pakistan-gwadar-port-becomes-operational/ http://dreamlandgwadar.wordpress.com/2008/04/19/pakistan-gwadar-port-becomes-operational/#comments Sat, 19 Apr 2008 10:03:02 +0000 Guider http://dreamlandgwadar.wordpress.com/?p=8 ]]> Source: pakistantimes.net Date: 15-4-2008

Pakistan Gwadar Port becomes Operational By Correspondent

GWADAR: The deep-sea Gwadar Port will go operational today when a ship carrying 52000 tonnes of wheat will be anchored here n few minutes. All arrangements are in place to offload the wheat to be transported across the country for domestic use. Following decades of perseverance, Gawadar Port finally making history by began its cargo handling from today. Experts said that besides Pakistan, China, Afghanistan, Central Asian countries—Tajikistan, Kazakhstan, Azerbaijan, Uzbekistan, Turkmenistan and other Russian states would also be using this port, which would be fetching Pakistan huge revenue in terms of foreign exchange. Gawadar Port would be deeper than all other ports in the Persian Gulf, Arabian Sea, Indian Sea, Bengal Gulf and others located in this sea belt and huge cargo ships up to 0.25 million tons could anchor here. One phase of the port has already been competed, which included three berths and one ramp 600 meter long capable of accommodating several ships at a time. In the other phase, 10 more berths would be constructed. Besides, the construction on the road links with the Central Asia was underway—892 kilometers long motorway would be connecting Gawadar with Turbat, Awaran, Khuzdar and Naudero, which would also help paving the way of road communication with China. A network of roads was being laid to connect Gawadar with Iran and Afghanistan. Experts said that Gawadar city in future would turn into an international hub of industrial and commercial activity, which would not only play a key role in the economic development of Balochistan, but also entire Pakistan.●

]]> http://dreamlandgwadar.wordpress.com/2008/04/19/pakistan-gwadar-port-becomes-operational/feed/ 0 Guider http://dreamlandgwadar.wordpress.com/2008/04/19/pakistani-businessmen-can-export-polish-products-to-afghanistan-central-asian-states/ http://dreamlandgwadar.wordpress.com/2008/04/19/pakistani-businessmen-can-export-polish-products-to-afghanistan-central-asian-states/#comments Sat, 19 Apr 2008 10:01:13 +0000 Guider http://dreamlandgwadar.wordpress.com/?p=7 ]]> Source: tradingmarkets.com Date: 14-4-2008

Pakistani businessmen can export Polish products to Afghanistan, Central Asian states By Correspondent

(Asia Pulse Data Source via COMTEX) — – Poland will have around 1600 troops in Afghanistan by the mid of this year in view of the importance of Afghanistan for regional security and to support the Afghan National Army and provide security to working on reconstruction projects. This was stated by Ireneusz Makles, the Consul General of Poland in Karachi while delivering a lecture to the senior faculty of the University of Balochistan here Thursday. He said this is part of the Polands active participation in stabilization and peace missions to help eliminate at an early stage the security threats on a global scale. Polish troops in the operations of NATO in Afghanistan are also boosting Afghanistans police and legal systems so that they will be in a position to maintain stability themselves and supporting the disarmament, demobilization and reintegration into society of insurgents and Taliban fighters. Our goal is clear i.e. to support the elected Afghan government in rebuilding the shattered country and bring peace and prosperity to its citizens after decades of war, he added. Vice Chancellor Agha Ahmed Gul and Pro Vice Chancellor Dr. S. A. Kiyani, Deans of different faculties and Heads of all teaching departments were also present on the occasion. Makles said that Poland plans to withdraw its remaining 900 soldiers from Iraq by the end of this year and the decision has been accepted by the Pentagon. However, he said that Poland clearly wants to compensate for this draw down by bolstering its engagement in Afghanistan. Currently there are 1200 Polish troops in Afghanistan and their number would soon rise to 1600, he added. About Iran nuclear crisis, he told that Poland is a part of the international coalition that came together to address concerns about Irans nuclear programme and it recognizes the importance of the deployment of soft power to address these concerns. We support a balanced package of further sanctions and incentives including reaffirming Iran are right to nuclear energy for peaceful use in conformity with the Non Proliferation Treaty and improving Irans access to the international economy. Poland had no objection to the use of nuclear technology by any nation if they do it with the proper safeguards and under IAEA supervision and we support the efforts to settle the crisis connected with Irans nuclear programme, he opined and mentioned that in the line with the foreign policy, Polish politicians, the President and the Government of the Republic of Poland have expressed on many occasions their concern over the developments in Iran and support the relevant actions being taken by the European Union. About Police-Pak ties, Mr. Ireneusz Makles said that Pakistan is a very important partner for Poland in South East Asia as both the countries have deep-rooted relations. Poland is in favour of upgrading cooperation and the partnership between the European Union and Pakistan and it is welcome news that high-level Economic and Trade Dialog would be launched this year. He threw light on the historical background of the Polish-Pak relations that he said dates back to 1948 when the first official Polish delegation paid a visit to Pakistan and signed the first trade agreement. Despite lack of diplomatic relations, the first Polish trade mission was established in Karachi a year later that become the Polish Embassy and every since very friendly relations have existed and in 1969 the Pakistan Embassy was set up in Warsaw. He described the parliamentary elections on 18th February this year as free, fair and in safe environment paying tributes to the Pakistanis terming them great patriots and lovers of their Fatherland. He hoped that the elected representatives would work for political stability, promotion of democracy and the development of the country as politically stable elected government will boost trade activities in the country attracting the foreign investment in different sectors. Referring to the strategic importance of Pakistan, the Polish Consul General said that Pakistan is becoming a leading, regional hub with a specific role as a trade and energy corridor for China and Central Asian countries. Through the strategically located Gwadar Port, Pakistani businessmen can export Polish products to Afghanistan, Central Asian states like Tajikistan, Kyrgyzstan, Turkmenistan, Uzbekistan and the eastern region of Iran, he said adding that most of goods from these countries could be cheaper if exported by sea to Poland and other East and Central European and Baltic countries. Thanks to Gwadar Port, there will be tremendous increase in trade which will benefit all states, he remarked. Poland wishes to expand ties with Pakistan in trade and economy, to cooperate in the fields of gas and oil, energy, infrastructure, maritime, engineering and agro-food sectors as well as development of small and medium enterprises, he mentioned and said that Poland can supply electric equipment including diesel generators, railway equipment, agriculture machinery and spare parts, heavy vehicles and marine and diesel engines. About the trade between the two countries, he informed that the trade figures for the last three year between Poland and Pakistan show an upward trend. In 2006, the turnover in trade was 111 million dollars. Poland exported goods for 32.2 million dollars and Pakistan for $78.8 million and the balance of trade is in favour of Pakistan for $46.6 million. Similarly, he said, in 2007 turnover in trade was $127.5 million as Poland exported goods for $24.3 million and Pakistan for $103.2 million bringing the balance of trade again in favour of Pakistan for 78.9 million US$. In January 2008, the turnover in trade was $13.70 million including Poland exported goods worth $2.5 million and Pakistan goods worth $11.2 million thus bringing the balance of trade once again in favour of Pakistan for $ 8.7 million. The biggest sectors in Pakistan exports were textiles, chemical fibre, leather, sports, vegetable products, plastics, toys, marble, onyx, medical and veterinary instruments while Poland exported to Pakistan machines, chemicals, cast iron and steel, wood pulp and cardboard, fertilizer, newsprint, machinery engines, rolling bearings, oil seeds and milk powder. Ireneusz Makles further said that six Polish trade delegations will visit Pakistan in 2008 including Mission of Polish Chamber of Commerce while Poland will support Pakistan in next months on issue of market access to European Union as it wants cordial relations with new government in Pakistan. At the conclusion, he assured that Poland will materialize the idea of the Vice Chancellor Agha Ahmed Gul of signing agreement between Balochistan University with Polish University. Such agreement will serve very well for science, education of friendly people of Balochistan and Pakistan and Poland, he hoped. Earlier Vice Chancellor introduced His Excellency to the faculty members and expressed the hope that his visit to University of Balochistan Quetta would be fruitful as he invited Polish students to study in UoB to have first-hand information and access to the rich cultural heritage of Balochistan and share their cultural heritage with those of Balochistan University. A question-answer session was also held on the occasion in which the Polish envoy assured that he would convey higher authorities of his government to convince European Union to simplify and ease the procedures of some banned chemical export in limited quantity to the University of Balochistan purely for scientific research purposes. He also agreed with the point of a UoB Professor for exchange of student teachers delegations for clarifying the perception about West and Islam through lectures, interaction and interviews on media in Poland. Mr. Ireneusz Makles said that the main purpose of his visit was to develop the economic relations with Pakistan and particularly Balochistan and assured to resolve the issue of ban on some items such as seafood, fruits and vegetable from Balochistan putting the item in the agenda of trade delegations visits for removal of this obstacle. The Pro Vice Chancellor Prof. Dr. SA Kiyani on behalf of the University of Balochistan and the faculty thanked the Polish Consul General for delivering such an informative lecture.

]]> http://dreamlandgwadar.wordpress.com/2008/04/19/pakistani-businessmen-can-export-polish-products-to-afghanistan-central-asian-states/feed/ 0 Guider http://dreamlandgwadar.wordpress.com/2008/04/19/gwadar-port-history-making-milestones/ http://dreamlandgwadar.wordpress.com/2008/04/19/gwadar-port-history-making-milestones/#comments Sat, 19 Apr 2008 09:58:51 +0000 Guider http://dreamlandgwadar.wordpress.com/?p=6 ]]> Source: dawn.com Date: 14-4-2008

Gwadar port: history-making milestones By Zia H. Rizvi

“Gwadar Port finally making history by beginning its cargo handling from March 15, 2008,” says a newspaper report. And the port is certainly making history. This is perhaps the first port in the annals of the history of port development which could not receive the first commercial ship specifically chartered to use the port on its inauguration. Somebody just forgot to check the draft of the ship against the depth available at the port. The ship had to be partially unloaded at the anchorage to MV Hyderabad, engaged from PNSC, before the ship was able to enter the port. According to Singapore’s Business Times of March 27, David Yang of PSA, (the operator of the port), declared the arrival of this ship, Pos Glory, as “a significant milestone in the port’s successful start-up.” The operator had been handed over the $298 million port on January 23, 2007. It handled one commercial ship in 14 months of its operation: a real milestone indeed. This is not the first time Gwadar has made history and/or has established milestones. Pakistan’s dream of having a deep water port at Gwadar is nearly as old as its existence. It started with the recommendation of Worth Condrick who was deputed by the US for survey of the Balochistan coast in 1954. Realising importance of Gwadar, Pakistan paid £3 million (some say half that sum) in September 1958 to buy back the enclave from the Sultanate of Oman ending over 200 years of Omani control. Since then the history of the decision making process for its development has been that of studying, planning, shelving, restudying, re-planning and waiting and hoping for some outside aid agency to finance the project. This process has taken half a century before the dream has finally become a reality, though, not fully yet to achieve the avowed objectives. Leaving aside the distant past, even the last two decades are full of events in the life story of Gwadar that make interesting history. * 1988-1992: A mini-port was built at a cost Rs1,623 million including the foreign exchange component of Belgian franks of 1,427 million, equivalent to Rs749 million, arranged by the contractor. No ship worth the name ever called at the port. * 1992: Karachi Port Trust initiated the project for development of a deep water port at Gwadar at a cost of $200 million with KPT funding 60 per cent of the cost. The rest of the money was to have been raised externally. The port was to be constructed within two years. * 1993: Gifford & Partners & Technecon of Southampton, UK, in association with Techno-Consult carried out a study to develop the port. * 1993-1994: The transport plan of the 8th Five Year Plan of Pakistan included the development of the port as an essential element of its aims and objectives. * 1994 (November): A policy package for development of the port was floated to attract private/foreign investors on a BOT basis. This had a poor response. * 1995: The federal government approved the construction of the port in December 1995 but the project could not get started because of shortage of funds. * 1997: The government of Prime Minister Nawaz Sharif appointed a task force with Captain Haleem Siddiqui as chairman to address ports and shipping issues. The task force identified Gwadar as one of the focus area of development. However, the project remained a non-starter due to the post-Chagai economic sanctions. * May 1999: China offered to jumpstart construction of the port by offering financial and technical assistance. This, however, could not materialise because of some unknown reasons. * May 2001: President General Pervez Musharraf personally took up the matter with Chinese PM Zhu Rongji during his visit to Beijing. The latter agreed to help Pakistan in implementing the project. * October 2001: Chinese engineers prepared master plan for the port. The groundbreaking ceremony of the construction work was to take place by the end of 2001. It was delayed because of US led air strikes on Afghanistan in retaliation of the September 11 attack in the US. Speculation was, however, rife that the Chinese pulled out of the project because of the expected use of the area around Gwadar by the US as a logistics corridor into Afghanistan. * March 11, 2002: A delegation led by Communications Secretary Iftikhar Rashid arrived in Beijing to sign the agreement to re-start the work. Finally on March 22, 2002, the groundbreaking ceremony of the project was performed by the President of Pakistan, General Pervez Musharraf, and PRC Vice-Premier Wu Bang Guo. The port was to be completed by March 2005. The Gwadar story then became the perfect classical example of a myriad of events developing into the following well-known four stages of a mismanaged project: (a) euphuism of start-up, (b) realisation of ground realities, (c) identification of scapegoats and, (d) correction of the course. Start-up: The government started the drum beat by spreading the news that with the day and night efforts of the Chinese, the project would go into operation much earlier than expected. Finance Minister Shaukat Aziz said in May 2003 that the work at the port was proceeding ahead of schedule of March 2005. In a briefing to newsmen on June 6, 2004, Gwadar Development Authority, Director General Mir Ahmad Baksh Lehri advanced the date of completing the project to January, 2005. The concerned officials were even more hopeful during a meeting on August 20, 2004 that was attended by Prime Minister Chaudhry Shujaat Husain, Finance Minister Shaukat Aziz and the seven-member Chinese delegation led by Charge d’Affairs Song Deheng: “The first phase of the port would become functional by December 25, 2004.” The euphuism of the project then slowly started disappearing. Numbers of press reports on the progress of the project started diminishing. Authorities started realising that there were many a slip between the cup and the lip. Ground realities: As the date for the hopeful completion of the project (December 2004) was nearing, officials dropped the hint for the first time on September 15, 2004, that all was not going on well with the project. It started having shares of big and problems. The wishes began to be translated into realities. Most probably authorities forgot that for the port to be functional, it required suitable equipment for handling cargo; and boats and tugs for handling ships. It also required deepening of the navigation channel to a more suitable depth for respectable size of ships to enter the port. Officials were then instructed by higher authorities to procure equipment and boats required for the port “from the Chinese without any further delay”. The deepening of the port’s navigation channel to 14.7 million was also instructed to be carried out. A specialist firm or a person was considered necessary for smooth execution and port operation. The cost was revised to $298 million from the original cost of $248 million. The project completion date was revised to September 2005. The surprising thing, however, was that even the Chinese Assistant Minister of Commerce Chen Jian did not know of this position. Talking to the then Ports and Shipping Federal Minister Babar Khan Ghauri on October 21, 2004, he assured the Pakistan authorities that the Port would be ready for operation by December 18, 2004. There were, however, definite indications by now that the project would not be completed before December 2005, nine months behind the schedule and 12 months behind the hopeful schedule. Scapegoats: Apparently the news of delays trickled down to the prime minister and the president. A policy board was formed to ensure development of the Port and the City as an integrated industrial and commercial hub. The president agreed to be the patron-in-chief of the proposed board with the Prime Minister as its head, assisted by a powerful coordination and implementation committee. Rear Admiral (Retd) Sarfaraz Khan (TIM), Chairman of the Port Authority silently left from the scene and without much fun fare Mr Akbar Ali Pasani, a local Gwadarite was appointed in his place. However, it was not until April 28, 2006 that the real culprit responsible for the delay was declared. Speaking as chief guest at a meeting of Gwadar Builders Association in Taxila, Federal Minister for Labour, Manpower and Overseas Pakistanis said that, “Gwadar project could not be completed due to sabotage and terrorist acts. Another explanation given earlier by a minister, who did not want to be identified, for the delay in the Port’s inauguration in March 2005 was “due to recent floods and rains that damaged some parts of the coastal highway linking Karachi with Gwadar”. Correction: Naturally, the correction process started in earnest though at a crawling pace. China provided additional funds for immediate dredging of the channel and purchase of additional cargo handling equipment and floating craft. Apparently, President General Pervez Musharraf was very upset over the slow progress. Chairing a high level meeting called to review progress on Gwadar development project at Army House in Rawalpindi on June 10, 2005, the president directed the concerned authorities to simultaneous complete the port and all related infrastructure facilities before June 2006. Confirming the above new completion schedule date, the then Minister Ports and Shipping Babar Ghouri told the Senate on June 17, 2005 that the development work of the Gwadar port project would be completed by June 2006 and the inauguration would be held in a befitting manner after its completion. It was also realised that the most important thing for operation of the port when completed will be the appointment of a suitable port operator. The GPA in an advertisement published in the print media on June 12/13, 2005 invited EoI and RFPs. The appointment of the required port operator made yet another history on its own. It took more than one and a half year for this process to be completed. This happened only after a new tender committee was appointed. Thanks to this committee and its head, Farooq Rahmatullah that within a week of the submission of the bids on December 4, 2006, the winning bidder was declared on December 10, 2006. Following the recommendation of the tender committee, Prime Minister Shaukat Aziz finally approved, on January 23, 2007, the appointment of PSA for operation of the port. Conclusion: To sum up, the port with its 36 month construction schedule beginning March 22, 2002, has taken the first commercial ship after 72 months, even that after partially unloading at the anchorage: A ‘history making’ event indeed and a ‘significant milestone,’ as the PSA declares. Leaving aside the loss of revenues of $300 million investment due to delay of some three years in the operation of the port, the question now is: who will pay for the demurrage charges of the ship waiting at the anchorage, charter cost of second vessel MV Hyderabad and cost of partial unloading of cargo at the anchorage from one ship to another? The simple answer most probably will be: who else but the poor tax payer! However, it is no use crying over spilt milk. Under the present system of multi-level control of such projects in which every one worth position in the government has a finger in the pie, you cannot make any one individual or, even any one organisation accountable for such errors and omissions. In this system, you give power of decision-making to some authority by one hand and take it back by the other to be exercised by so many. This is then what happens: when every thing goes smoothly, every one takes the credit; but when things go sour, you cannot find any one responsible. Nevertheless, it is not too late to learn from the past mistakes. Let us wish the port management under the new leadership of Rear Admiral M Ehsan Saeed Godspeed in making up the deficiencies faced by the port to achieve the avowed objectives. Hopefully, the fate of the second phase of the port is not hanging in the air for long lest it keeps up with its name Gwadar which in the local language means “The Gate of Air”. The author is a retired port, harbour and shipping consultant in Canada (Email: zrizvi@sympatico.ca)

]]> http://dreamlandgwadar.wordpress.com/2008/04/19/gwadar-port-history-making-milestones/feed/ 0 Guider http://dreamlandgwadar.wordpress.com/2008/04/19/gwadar-port-has-potential-to-become-major-shipping-hub-for-region-report/ http://dreamlandgwadar.wordpress.com/2008/04/19/gwadar-port-has-potential-to-become-major-shipping-hub-for-region-report/#comments Sat, 19 Apr 2008 09:55:41 +0000 Guider http://dreamlandgwadar.wordpress.com/?p=5 ]]> Source: vizhinjam-conscious.blogspot.com Date: 4-4-2008

Gwadar Port has potential to become major shipping hub for region: report

WASHINGTON: Pakistan’s newly opened Gwadar deep seaport has the potential to become a major shipping hub for regional countries and local fishermen have noticed a rise in their fortunes, according to an American newspaper report. “The deepwater port has the potential to become a major shipping hub for Central Asia and China, particularly for the oil that China is sucking up to fuel its explosive growth,” a report in the Los Angeles Times notes. Gwadar sits close to the entrance to the Persian Gulf and the Middle East. “Backers of the project entertain visions of Gwadar as a new, more convenient gateway for trade from Chinese and Central Asian markets to points west.” The Times report also observes that a property boom has hit Gwadar town in southwest Pakistan because of the newly inaugurated port on the Arabian Sea. Commenting on the importance of the port as facilitating regional trade and energy supplies, the report says Gwadar would provide a more secure corridor for China’s fuel and energy supplies. From Gwadar, imports could travel overland up through Pakistan and into China. For China, closer access to the sea from its landlocked western territories, where a massive development campaign is underway, can save thousands of miles and days of travel for goods that would otherwise have to exit the country from the east on a much more circuitous route, it adds. The idea of building a port at Gwadar has floated around in Pakistan for decades and President Pervez Musharraf made a major push to get it done. He inaugurated the port, constructed with Chinese assistance, last month. Trade out of China’s own restive western region of Xinjiang would also be easier and faster, the report says. The distance from Kashgar, on the edge of Xinjiang, to Gwadar is 1,250 miles, versus twice that distance to reach Shanghai. The report, which also contemplates strategic importance of the port and local development prospects, says even some local fishermen have noticed a rise in their fortunes. “When we used to catch fish, there were no takers – we used to throw away half our catch,” 55-year-old Mohammed Ibrahim said as he rolled up his nets. Recently arrived wholesalers now buy up Ibrahim’s haul and send it off to Karachi. He has made enough money to buy a second boat. And he’s not worried about people moving to Gwadar and joining in the business. “People are coming—-but the sea is so big we don’t have a problem with that

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