ALI HUSSAIN &

NAVEED BUTT

ISLAMABAD: The government’s initiatives on foreign policy front are being described as successful in terms of not only foreign ministers’ visits from a number of important countries since the Pakistan Tehrik-e-Insaf (PTI) came to power but also in terms of the recent two-pronged civilian (Saudi Arabia and UAE) and military (China) diplomatic initiative.

Prime Minister Imran Khan’s offer to the Saudis as a partner in China-Pakistan Economic Corridor (CPEC) is the first to a third country and China and Pakistan have already appointed two focal persons to determine the modalities of investment by a third country.

In a recent tweet, PTI central deputy secretary general Usman Dar claimed that Pakistan struck a $10 billion deal with Saudi Arabia during Prime Minister Imran Khan’s visit to the Kingdom on September 18, including developing an oil city in Gwadar.

According to Information Minister Fawad Chaudhry, Saudi Arabia would be joining CPEC as the third ‘Strategic Partner,’ and Saudi’s participation in the mega projects would ensure massive investment in Pakistan by the Kingdom.

He said that a high-level Saudi delegation, comprising ministers for finance, energy and chief executive officers of Saudi businesses would visit Pakistan in the first week of October. He expressed hope that “big deals” would then be announced.

In response to a tweet by Ahsan Iqbal, former minister for Planning, Development and Reforms in PML-N government, Fawad Chaudhry clarified that China had been taken into confidence. He said expansion of CPEC is in interest of China and Pakistan.

As a close ally of the US, Saudi’s interest in investing in CPEC may set the stage for enhancing China-Saudi partnership and bring about some changes in the region’s geopolitics especially given the Trump administration’s increasing conflict with China on trade matters and the more recent sanctioning of Chinese military for procuring Russian weapons.

“After the proposed oil city in Gwadar, other GCC countries may evince interest in investing in Gwadar port and use the facility for their own interest,” Sartaj Aziz, former adviser to ex-premier Nawaz Sharif on Foreign Affairs, who later remained deputy chairman Planning Commission in PML-N government, said.

Talking to Business Recorder, he termed it a “welcome development,” saying China wants other countries to join CPEC and “it was mutually agreed between Pakistan and China to invite other countries in the multi-billion dollars projects.”

Aziz, however, dismissed as ‘baseless’ the speculation that this may be considered a move by Saudi Arabia towards China and away from the US. “This is just baseless speculation to say that Saudi Arabia is set to join the Chinese bloc. Saudi Arabia has an economic interest and it is going to invest in CPEC and nothing else,” he said, adding that the Kingdom is a major ally of the US and investing in CPEC would not upset their relationship.

To a question, Aziz said that during the PML-N government, Pakistan and China had proposed establishing an ‘industrial zone’ in Gwadar with one-third share of Pakistan and China each while the remaining share was to be offered to any third country/countries if interested in investing.

“Although, there were no talk of Saudi Arabia’s participation in CPEC during PML-N government, yet the announcement to establish the oil city appears to be on the pattern we had agreed with the Chinese,” Aziz said.

Senior analyst Lt Gen Talat Masood (retd) said that Pakistan is providing space to Saudi Arabia for investment under CPEC whereas Saudi Kingdom is investing for its own vested economic interests.

“I don’t think there will be any shift on the part of Saudi Arabia towards China and away from the US through investment in CPEC,” veteran Masood said, adding that it is a fact that Saudi Arabia is a close ally of the US, but at the same time the Kingdom enjoys close relations with Pakistan as well.

He further said military to military relations between Pakistan and Saudi Arabia are very close and the investment is aimed at further strengthening military and economic ties between the two countries.

In January this year, Director General, Gwadar Development Authority (GDA), Dr Sajjad H Baloch, told Islamabad based journalists who visited Gwadar Port that Pakistan has decided to set up a mega oil city at Gwadar on 80,000 acres at an initial cost of Rs10 billion under the umbrella of CPEC.

Baloch had said that the proposed oil city would be used for transportation of imported oil through Gwadar Port to China. He said oil would be imported from the Gulf, and stored at the proposed oil city. He said a refinery, petrochemical industries, and storage would be established in the proposed oil city.