The China-Pakistan Economic Corridor may have appeared, as over-enthusiastic supporters tried to hype it, as China springing to the rescue of Pakistan. However, it should have become clear that China was putting money into the development of Pakistan as a sort of hinterland. This was all based on Gwadar being developed as a port where oil would be brought in from the Persian Gulf, refined, and then shipped onwards. For this, Pakistan’s north-south road network, rail network and pipeline network all had to be modernized. An important part of the plan was supposed to be a number of Special Economic Zones, essentially industrial estates, where Chinese and local firms would set up plants making goods for export. One of the presumptions was that there would be adequate power. Therefore China invested in power projects, so as to end the power shortages [plaguing the country.
So as to show what the concept was, the Rashakai Economic Zone was to be run by the RSEZ Development & Operations Company, a special-purpose Chinese form. The company has now written to the Power Secretary6 complaining that the failure to resolve power issues could jeopardize Chinese investment, which is essential for the success of the SEZ. As it is the first of nine planned to become operational by 2030, it is the proverbial feather in the wind, which will be watched closely by those Chinese firms planning to invest in Pakistan, and referenced by those which are not even contemplating such an investment, but might wish to consider the idea sometime in the future. The pity is that the issue is one of electricity. Like the problem in the country as a whole, where the distribution network has not kept pace with the additions in generative capacity, the SEZ has not got an assured electricity supply. This is apart from PESCO’s desire to charge the commercial tariff rather than the industrial. The industrial tariff has been the lowest, and the commercial the highest. This could render investments unviable, even if power supply could be assured.
The whole affair makes a distinct possibility that the PESCO officials are secretly wanting to be gladhanded. They appear to have taken on the RSEZXDOC, daring it to go up the chain of command. That it has done. It is now up to the government to intervene positively, and ensure that.
