Inaugural session of Think Ahead with ACCA on CPEC – ACCA MNP Elections 2016-18

Salam,

Below is a picture from and video of the historic inaugural session of Think Ahead with ACCA (a TED Talk inspired program) on CPEC with me, resulting in ACCA becoming the pioneer accountancy body to launch such a program.

Mr. Hammad Azim (Head of Marketing, ACCA Pak) hosted the program. It was a phenomenal success generating over 27,000 views in just 2-3 days with extremely positive feed-backs. The technical content was highly appreciated and worked towards capacity building. The focus of this initiative was on expanding the footprint of and creating opportunities for ACCA fraternity.

CPEC

It is my vision and aim to build upon such historic successes for the betterment and professional development of ACCA fraternity.

This can only be possible with your vote and kind support in the ongoing MNP elections. For me, MNP is a platform to increase my positive contributions for ACCA fraternity, the profession and thereby our beloved Pakistan.

Please visit:           My Professional Profile, Achievements for ACCA & Manifesto  to consider me worthy of your valuable vote & kind support.

Thanks in anticipation.

Kind Regards,

Omer Zaheer Meer (ACCA MNP Candidate Sr. No: 23)

omerzaheermeer@hotmail.co.uk

 

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CPEC a Game Changer

The following article has been published in Daily Nation, dated 29th June 2015

(E-Paper (Print Edition)http://nation.com.pk/E-Paper/lahore/2015-06-29/page-9)

(Onlinehttp://nation.com.pk/business/29-Jun-2015/cpec-a-game-changer)

HNPI declares CPEC a Game Changer

Prof Dp

By: Omer Zaheer Meer

China Pakistan Economic Corridor (CPEC) is one of the most discussed topics in Pakistan of late. Several aspects of the proposed “super project” have been examined. It is rightly placed as a game changer for not just Pakistan or the region but one with the potential to change the global economic, military and strategic landscape. Before moving ahead on the topic let’s recall that CPEC is a series of projects worth $ 45.6 billion, aimed to connect Gwadar port in Pakistan strategically located on Arabian Sea just outside the Strait of Hormuz, with Northwestern China (Xinjiang) via Khunjrab (last town on the Pakistani side) along-with several development and uplift projects for transportation, energy and technical infrastructure in Pakistan. An extensive development and uplift of road and rail links is envisaged with energy pipelines decorating the “new silk road”.

In simple terms the plan is to provide the world with a new silk road for global trade, places so strategically that it makes it the most cost-effective and quickest route. The port fees, access charges and transportation revenues alone would be worth billions of $ for Pakistan. If proper policies are implemented, the industrial and business developments particularly along the routes can turn Pakistan into a global economic powerhouse.

It was against this backdrop that this writer was honored to be invited by the Mr. Absar Abdul Ali, director of the prestigious Hameed Nizami Press Institute (HNPI) as a keynote speaker to participate on a seminar on the subject. Mian Iftikhar, the head of the Engineers study forum worked extensively with his team to invite a bouquet of experts from various fields. The result was a brilliant seminar which thoroughly covered almost all the aspects relating to CPEC. Though all the speakers were learned and did justice to their subject, Engineer Iftikhar ul Haq and Mrs. Naheed Ghazanfar from UET covered areas largely neglected re CPEC. The latter explained the technical details of the construction and potential of tens of thousands of jobs resulting from the construction projects alone. Her experience of having already worked with Chinese on critical projects came in handy there. In addition to the above the following points were also discussed at the said event.

A common perception has developed amongst the masses of late that CPEC is all about the road network being built to link Gwadar with China. This is not true as one can see from the list of the projects envisioned under CPEC and shared on these pages before by this writer. While undoubtedly the road and rail links are of fundamental and strategic importance with long-term revenue generation potential and the ones which can be the catalyst for a geo-political shift in the region, they are not this project is all about. Infact most of the projects are related to technical and energy infrastructure projects. To put it in perspective, more than 70% of the proposed $ 45.6 billion investment is expected to be spent on these projects.

In addition to the benefits to Pakistan, the strategic benefits and significance of CPEC to China were also extensively discussed which includes the following:

Firstly China is heavily dependent upon the oil from Gulf. CPEC will reduce the transportation distance from 16,000 km to just 5,000 km for its oil imports of which 8-% is transported via ships while 60% comes directly from gulf, resulting in substantial economic savings, more business all around the year and neutralizing the threat of blockade by political rivals.

Secondly CPEC will also give China unparalleled access to the untapped and raw energy rich markets of Central Asia and Afghanistan, These regions are collectively seen as the next big thing in energy and natural resources terms. China envisions utilizing this for securing its energy needs for the next century as well as placing itself as the world leader re energy security by having similar influence and control on the future energy sources as the one currently held by America over the gulf.

Thirdly CPEC will also allow economic benefits to flow to lesser developed and troubled regions of western China including Muslim-majority Xinjiang. Also the enhanced security ties with Pakistan and economic developments, China hopes to eliminate the unrest in Xinjiang.

Last but not the least CPEC will provide China an additional key port, an opening to the world from its western side and the capability to blockade the oil supplies to any future adversaries by having a key naval port at Gwadar. The current attempts to encircle and contain China would therefore become redundant.

Moreover while it must be appreciated that the controversy over the three land routes planned to link Gwadar to Xinjiang is old and settled now with the Government promising to complete the western route passing largely through the underdeveloped Balochistan and KPK first, it is also a lesson for the decision makers. There are outside efforts led by India to disrupt the CPEC, evident by the now well publicized news of a RAW division established with starting allocation of $ 3 billion for the sole purpose of disrupting CPEC. Chahbahar port of Iran and Dubai port of UAE are at risk to become redundant with huge economic costs to them once CPEC is fully operational.

This unfortunately aligns Iranian and Emirati interests with Indian. Moreover quite obviously, the strategic great game with aims of containing China translates into USA having its interests in seeing through it that CPEC does not become successful. With the vested interests of all these regional and global players at stake, it is advised that all local stakeholders be taken into confidence and CPEC branded as a national project instead of belonging to any one party. We must remember that no outside efforts to disrupt can be successful without genuine internal dissatisfaction.

The author is Director of the think-tank “Millat Thinkers’ Forum”. He is a leading economist, CFA Charterholder, experienced fellow Chartered Certified Accountant and anti-money laundering expert with international exposure who can be reached on Twitter and www.myMFB.com @OmerZaheerMeer or omerzaheermeer@hotmail.co.uk

Pakistan can’t afford turning CPEC into another KBD (Part II of II)

The following article has been published in Daily Nation, dated 25th May 2015

(E-Paper (Print Edition)http://nation.com.pk/E-Paper/lahore/2015-05-25/page-9)

(Onlinehttp://nation.com.pk/business/25-May-2015/pakistan-can-t-afford-turning-cpec-into-another-kbd-part-ii)

Pakistan can’t afford turning CPEC into another KBD (Part II)

By: Omer Zaheer Meer

Link to Part I (Published): https://omerzaheermeer.wordpress.com/2015/05/18/pakistan-cant-afford-turning-cpec-into-another-kalabagh-dam-part-i-or-ii/

PART II

CPEC is strategically very important for China as it imports 60% of its oil from the Gulf of which 80% is transported by ships travelling over 16,000 kilometers in approximately three months on average through Strait of Malacca to Eastern China. This existing route is not only longer but is ridden with regular attacks by pirates, bad weather and political rivals under American and Indian influence. So the strategic benefits to China can be categorized in four major areas:

  1. China is heavily dependent upon the oil from Gulf for its energy needs. China will reduce the transportation distance from 16,000 km to just 5,000 km resulting in huge economic savings and quicker business all around the year sans the threat of blockade by political rivals.
  2. China will gain access to the untapped markets of the energy rich Central Asian states and Afghanistan which are termed as the next big thing and “Gulf replacement” for coming century. With this early access, developed secure routes and trade ties China can not only secure its energy needs for the next century but place itself as the world leader re energy security by having taps on the future energy sources, a place currently held by the USA.
  3. China will be able to spread its economic development benefits to its lesser developed western areas including the troubled Muslim-majority region of Xinjiang. Furthermore with enhanced security co-operation with Pakistan and economic developmental gains, China hopes to curb its troubles in its underbelly.
  4. Last but not the least, CPEC will not only provide China with an opening to the world from its western side but also ensure that by having a potential naval presence at Gwadar, not only does it hold an additional sea-port but has the capability to blockade the oil supplies to any future adversaries. Any attempts to encircle China such as those currently pursued by USA would become futile in such a scenario.

The benefits to Pakistan are numerous too. Some of the major ones are as below:

  • Uplift and development of badly needed transportation, technical and energy infrastructure.
  • Economic development through industrial and commercial zones setup along the CPEC.
  • Potential to earn billions of $ in transit fees, cargo handling and transportation charges.
  • Becoming economic connectivity hub for the entire region and beyond.
  • Security benefits of Gwadar port as outlined above.
  • With enhanced security ties with China and the economic developmental benefits, Pakistan also expects of stemming out the terror in lesser developed areas of Balochistan and KPK.

Considering all the significant benefits and strategic potential of the CPEC it was unfortunate that it became controversial. The controversy is two pronged. There are those who genuinely felt that the economic benefits of the CPEC were moved away from their provinces to Punjab, being the political constituency of the incumbent Government. However, there are also efforts led by India to disrupt the CPEC as is evident by the recently created desk at RAW with initial allocation of $ 3 billion for this purpose. Furthermore by signing accord to develop Chahbahar port with Iran, India has aligned Iranian interests with itself too. Moreover UAE’s interests also clash with Pakistan’s as the success of CPEC will render Dubai port an invalid. Furthermore, the strategic great game means that USA would rather not have it to see CPEC successful.

None of the external efforts would have been and can be successful without some genuine internal dissent though. Unfortunately the lack of transparency and undue secrecy around the CPEC allowed the propaganda as well as the genuine concerns to grow. Moreover the eastern route was the most talked about during the Chinese President’s visit to Pakistan, further raising concerns of depriving smaller provinces of their due. Absence of KPK, Sindh and Balochistan CM’s while CM Punjab was in attendance didn’t help the situation either. Therefore, KPK Assembly passed a resolution demanding the original route to be retained while Balochistan Assembly’s resolution demanded clarification on CPEC benefits to provinces from the federation. ANP then convened an “all parties’ conference” pressing the controversy and concerns forward.

Though late but some positive steps were taken. A meeting of the leaders of all parliamentary parties was convened to enlighten them on CPEC but the “Safora Goth” tragedy overshadowed the effort. However, the meeting didn’t address concerns with regard to greater transparency as little is revealed regarding the technical and financial parameters of the CPEC projects. The funding sources were also clouded in mystery but it now seems that most of the “investment” is in the form of soft loans with Chinese firms to execute several projects. Federal Minister for Planning and Development Mr. Ahsan Iqbal has claimed that all routes of CPEC are being worked at simultaneously and the western route will be the first one operational. Similarly he has claimed that Sindh and Baluchistan will be the biggest beneficiaries of power generation under CPEC with 36% and 26% shares respectively.

The government should use media to educate masses about the above claims as well as share why the alternate routes were developed. Was it to ensure connectivity across the country with developed areas, out of Chinese concerns for safety of passage in case of trouble on the route via Balochistan (as mentioned by some Chinese scholars in their write-ups in international media), to cater for the huge trade volume expected or some other reasons? Also more transparency such as clarifying that why the current PSDP contains allocations under CPEC only for the eastern route and not the others will help dispel the concerns and negative propaganda. CPEC is a game changer for Pakistan and the Government has the responsibility to ensure its successful completion. Pakistan cannot bear the potential loss and the dire consequences of CPEC turning into another “Kalabagh Dam”.

The author is Director of the think-tank “Millat Thinkers’ Forum”. He is a leading economist, CFA Charterholder, experienced fellow Chartered Certified Accountant and anti-money laundering expert with international exposure who can be reached on Twitter and www.myMFB.com @OmerZaheerMeer or omerzaheermeer@hotmail.co.uk

Pakistan can’t afford turning CPEC into another Kalabagh Dam (Part I of II)

The following article has been published in Daily Nation, dated 18th May 2015

(E-Paper (Print Edition)http://nation.com.pk/E-Paper/lahore/2015-05-18/page-9)

(Onlinehttp://nation.com.pk/business/18-May-2015/pakistan-can-t-afford-turning-cpec-into-another-kalabagh-dam)

China Pak Economic Corridor: way forward (Part I of II)

By: Omer Zaheer Meer

PART I

The biggest gift of nature to Pakistan besides all kinds of terrains and weather as well as hardworking young manpower is its strategic location. In this context the strategic significance of Gwadar adds to this dimension of Pakistan’s international importance. Gwadar is a strategically located area on the shores of the Arabian Sea just outside the Strait of Hormuz. It is situated near key shipping routes of global oil transportation with the surrounding areas having two-thirds of global oil reserves. Furthermore it is the closest warm-water port to landlocked Central Asian region and Afghanistan, both rich in untapped natural resources and economically undeveloped with huge potential. As if that was not enough, from a military standpoint, Gwadar is located at the eastern bay of the key passing which if blocked by a strong naval force, can cut off the oil supplies to any adversary with dire repercussions as any military expert will testify.

Before moving ahead on the core matter of China Pakistan Economic Corridor (CEC), let us briefly visit the history of Gwadar. Pakistan identified Gwadar as a site for its future port in 1954 when it was still under the rule of Oman. Government of Pakistan successfully negotiated with the Sultanate of Oman and purchased the enclave in the fall of 1958, ending a 200 year Omani rule of the small undeveloped fishing town. It wasn’t until 1977 that Gwadar was made a part of Balochistan by the Federal Government of Pakistan. Currently it has a population of approximately 85,000 people as per most studies.

Now moving onto CPEC, it is a mega project worth $ 45.6 billion, to connect Gwadar port with Northwestern China (Xinjiang) via Khunjrab (the last connecting point on the Pakistani side) along with development and uplift of transportation, energy and technical infrastructure in Pakistan. A network of road and rail links besides energy pipelines are envisaged.

There are three land routes planned to link Gwadar to Xinjiang in addition to a long-term “route adjustment link”. The three main routes are outlined below:

  1. The “original”, shortest and most popularized route passes through Quetta, Zhob, D.I.Khan and Peshawar. It is termed as the “western route” and is just over 2400 km long.
  2. The second route passes through Ratodero, Sukkuar and the Indus Highway.
  3. The third route which has stirred up the controversy actually passes through Sukkur and Karachi in Sindh and then via Lahore and Peshawar to connect with Khunjrab. This is termed as the “eastern route”.

All the routes are envisioned to be interconnected with industrial and commercial zones along the routes at key sites.

CPEC updatedFurthermore other major projects that are part of the CPEC are as below:

  •  320-kilometre-long Sukkur-Multan motorway
  • 120-kilometre-long Thakot to Hawalian road
  • upgradation of Karakoram Highway
  • 19-kilometre-long Gwadar port East Bay Expressway Project
  • development of Gwadar itself
  • building Gwadar airport
  • upgradation of Karachi – Peshawar “Main (Railway) Line”
  • commission of armed division (Economic Corridor Support Force) for security of CPEC
  • Havelian Dry Port
  • Orange Line Metro (Lahore)
  • Port Qasim 2x660MW Coal-fired Power Plant
  • 720MW Karot Hydropower Project
  • Zonergy 9×100 MW solar project (Quaid e Azam Solar Park) in Punjab
  • Jhimpir wind Power project
  • Thar Block II 2x330MW Coal Fired Power project
  • Hubco Coal-fired Power Plant Project
  • Gwadar-Nawabshah LNG Terminal and Pipeline Project
  • China-Pakistan joint cotton bio-tech laboratory
  • Cross-border fibre optic data communication system project, a digital terrestrial multimedia broadcast pilot project at Murree
  • Development of Private Hydro Power Projects, e.t.c.

As can be seen from the above non-exhaustive list, a lot of the projects are related to developing energy and technical infrastructure in Pakistan in addition to the transportation infrastructure projects. Infact more than 70% of the $ 45.6 billion is expected to be spent on these projects. However it is the transportation infrastructure that caught most attention due to its long term strategic significance, revenue generation and potential to be the game changer for the region.

to be continued next Monday  ……

The author is Director of the think-tank “Millat Thinkers’ Forum”. He is a leading economist, CFA Charterholder, experienced fellow Chartered Certified Accountant and anti-money laundering expert with international exposure who can be reached on Twitter and www.myMFB.com @OmerZaheerMeer or omerzaheermeer@hotmail.co.uk