Corridor Calculus

Corridor Calculus : China Pakistan Economic Corridor & China's Comprador Investment Model in Pakistan
By 1996, there was once again a change of government in Pakistan, with
Nawaz Sharif becoming Prime Minister for a second time. But more
significant was the capture of Kabul by the Taliban, who were reported to
have agreed to provide rail, road and pipeline access through Afghanistan to
Central Asia, raising hopes once again in Pakistan to become the gateway to
Central Asia. Even though Gwadar acquired new urgency, in the timehonoured
tradition of Pakistani politics, the Nawaz Sharif government
cancelled a $280 million contract that the PPP had signed with a Turkish
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company and invited new bids in 1997. Once again there was a whiff of
scandal when the government of Pakistan signed an agreement with a
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bankrupt American company to develop port facilities in Gwadar. It was
another year before yet another agreement was signed, this time with the
China Harbour Engineering Corporation for Rs 3.5 billion for building the
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first phase of the Gwadar deep sea port. Two weeks later, on October 12,
1999, Nawaz Sharif was deposed in a military coup. The new 'Chief
Executive' Gen Pervez Musharraf promised to give priority to the Gwadar
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port project. But a massive financial crunch which confronted the military
ruler, partly because of the parlous state of finances which he inherited and
which were exacerbated by the sanctions that kicked in because of the
military coup, had its impact on the port project which remained stalled.
Enter the Chinese
In May 2001, the Chinese resurrected the Gwadar port project. During his
visit to Pakistan, Chinese Premier Zhu Rongji announced Chinese support
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for the Gwadar deep sea port and coastal highway projects. A couple of
months later the Chinese signed an agreement to provide $200 million for
the construction of the Gwadar port — the balance $50 million was to be
arranged by Pakistan. The port would comprise three berths and would take
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'Fresh bids invited for Gwadar port project', News 10/09/1997, see POT Pakistan Series Vol. XXV No. 216 pp 2199-2200
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'Gwadar port contract awarded to a bankrupt US company', Frontier Post 09/09/1998, see POT Pakistan Series Vol. XXVI No.
239 pp 3108
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'Accord for building Gwadar port signed', The News International 18/09/1999, see POT Pakistan Series Vol. XXVII No. 252 pp
3626-27
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'Musharraf assures rightful share to Balochistan', The News International 01/12/1999, see POT Pakistan Series Vol. XXVII No.
323 pp 4887
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'Coup brought stability to Pakistan, says Zhu', The News International 13/05/2001, see POT Pakistan Series Vol. XXIX No. 129
pp 2173-74
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