The China-Pakistan Economic Corridor (CPEC), which has become known as Pakistan leg of Beijing's new Silk Road, has attracted a number of Chinese entrepreneurs for the economic opportunities opening up in the region. Since many of them come unannounced and on tourist visa, they are increasingly becoming the headache for the Pakistani law enforcers.
These independent entrepreneurs know the risk involved in doing business in Pakistan and they appear to believe in the dictum - 'no risk, no gain.' Those who are not involved with the government projects try to experiment with many things. They try to work out which products they can sell in the Pakistani market and also what can they produce in Pakistan cheaply and sell locally and export around the world including China.
Media reports both in China and Pakistan provide interesting insights into these entrepreneurs' ingenuity. Basically they see opportunities in Pakistan because it is less developed than China, labour is cheap, ready demand exists for the goods they can produce and it provides better environment - though risky - for them to prosper. Besides, their connections within China and in the Central Asian region would offer them greater opportunity for business.
It should be mentioned that the CPEC projects - almost all are infrastructure-related - have literally jump started economic activities in Pakistan and is reflected in its gross domestic product (GDP) growth as mentioned by the World Bank's latest annual report. Pakistan's central bank, State Bank of Pakistan (SBP) in its third quarter report said that the country's economy remained at its upward growth trajectory and its GDP growth increased to a decade high of 5.3 per cent in FY2017.
The report also pointed out that the overall improvement in business sentiments along with supportive policies - historic low interest rates, high infrastructure spending and better law and order - has encouraged a number of firms to pursue expansion plans. China has also become the largest foreign investor with over $1.0 billion in FY2017.
GREATER OPPORTUNITY AND THE RISK FACTOR: Undertaking the CPEC pledging $57 billion mostly on infrastructure-related projects as part of its 'Belts and Road Initiative' (BRI), Beijing has taken a big risk getting involved with the hardened Pakistani Islamist fighters in the process. This risk has become more potent and serious following the killing of two Chinese nationals by the Islamist militants in the restive Baluchistan province earlier in June this year.
Thousands of Chinese workers are now streaming into Pakistan as new Belt and Road Initiative are taking shape through the CPEC. Beijing was well aware of the danger that these Pakistani Islamist fighters were linked up with the East Turkmenistan Islamic Movement (ETIM).
This is actually a militant group originated in China's Uigher province and Beijing accuses it of seeking a split off its Western region of Xinjian.
Incidentally, the development of CPEC is also linked to Belt and Road Initiative's (BRI) main trans-Eurasian land and rail route connection via Kazakhstan. Other railway networks that China had already developed linking Iran (and eventually to the Gulf region) would also link Pakistan by way of Afghanistan. While it appears a bit farfetched at this point of time, this is what the Chinese have in their long term planning. They know about the pitfalls and even danger they have to face, but this is a part of the whole BRI as they intend to link up Asia with Europe and Africa.
Pakistan has a very high stake problem to keep all the Chinese nationals safe in the country as China and its investment in Pakistan is reviving its economy. This has been clearly spelled out by Pakistan Prime Minister Shahid Khan Abbasi's special adviser Miftah Ismail. He told Reuters in Lahore recently: "Pakistan really needs foreign investment and we are not going to miss out on this because of some idiots with gun. We won't let them mess with the Chinese.
MEETING THE CHALLENGE UP FRONT: The safety problem concerns both Pakistani and the Chinese officials equally. For example, Wang Derek, deputy CEO of Infoshare, an Islamabad-based consultancy firm supporting the Chinese businessmen, said security was the top concern of the Chinese new comers. Referring to the Baluchistan incident, Wand said:"It's a big lesson for us."
Pakistan has also taken the threat very seriously. Armed police with automatic rifles round the clock guard the Chinese-staffed offices and Chinese-language schools more of which are opening up as demand is growing. Besides, security officials in plainclothes also employed as less visible layer of protection for them.
Chinese engineers and construction workers live in heavily guarded compound in the roads and power plant projects. But the unannounced Chinese entrepreneurs who live in different parts of the country and are not in touch with government officials pose greater challenge for the Pakistani law enforces. Mohammad Faisal Rana, the head of 8,000-strong Special Protection Unit (SPU) has no clue of the location and activities of these Chinese individuals and he is naturally worried. The SPU was established in 2014 by the Punjab provincial government soon after the formation of the CPEC was announced.
Reports quoting official sources say, about 71,000 Chinese visited Pakistan in 2016 and over 27,500 of them extended their visas. This represents 41 per cent increase over 2015 and suggests that more of them are staying longer. In Islamabad where Chinese presence was rare, now outnumber other foreigners and most interestingly, a Chinese-language newspaper has been launched recently, the country's first. This speaks volumes about China's strategic interest in Pakistan.
Apart from the restive state of Baluchistan, which is under strict vigilance of the central government, provincial governments of Sindh and Khybar Pakhtunkhwa are now reportedly accelerating to establish special protection unit like that of Punjab to ensure safety and security of the Chinese to help unhindered progress of CPEC projects in their respective regions.
SERVICES SECTOR BOOMING: The Chinese are not particularly fond of North Indian or Pakistani food and they would like to prefer the taste of their own delicacy instead. This has prompted some of the early arrivals to open up new Chinese restaurants in Pakistani urban areas to provide the choosy Chinese with the taste of their own delectable food.
Islamabad, which is normally the first port of call in Pakistan of all prospective businessmen, has lately witnessed the opening up of a number of Chinese restaurants and guest houses for them. Chinese telecommunication giant ZTE had asked a Chinese restaurant owner Ami Quin to open a guest house for a comfortable living of its employees.
Ami Quin, who has been in the Pakistani capital for some time, sensing good business opportunity, soon opened a spa and a second guest house for her increasing number of customers.
More Chinese restaurants, guest houses or reasonably priced hotels are coming up to cater for the rising number of newly arrived Chinese. Chinese food, as elsewhere in the world, is also popular with the Pakistanis, especially for 'authentic Chinese food' in the new establishments. The opportunity seeking Chinese are also teaming up with local partners, to start up new businesses, including restaurants and small manufacturing or assembling factories as test cases. As a result, the services sectors are now booming in the capital city as well as in other major urban areas.
Despite all these positive signs coming out on the economic front, a nagging anxiety is bedevilling the security agency bosses across the country about a possible danger lurking beneath the surface.
