Netherlands based think-tank European Foundation for South Asian Studies has made a dire prediction for Pakistan’s growing dependency on Beijing. According to a report released by EFSAS, Pakistan’s growing alienation on the global stage due to its support of terror groups coupled with the souring of relations with United States means that Islamabad is increasingly becoming dependent on Beijing for its day-to-day survival.

The report looks at Pakistan’s exposure to Chinese financial institutions as well as the penetration of Chinese companies in different industrial sectors like infrastructure and defence. The report states, "The Chinese master plan conceives (of) a future where the majority of Pakistani socio-economic sectors are deeply penetrated by Chinese companies and Chinese culture thus, Islamabad’s finances and societal structure are facing experiencing a colossal wreck. The combination of high upfront tariffs, interest rates and surcharges will complicate Pakistan's efforts to repay its loans, forcing the state to increase its domestic and export prices, making it difficult to compete with neighbouring and other countries which maintain lower prices. The borrower is always servant to the lender. The 15-year (CPEC) mega project illuminates how Pakistan voluntarily is becoming progressively subjugated by China and its terms and conditions."

Currently, Pakistan is working with China on the China-Pakistan Economic Corridors that runs the length of Pakistan connecting its port cities to China’s western-most province of Xinjiang. The $50 billion economic corridor has seen Chinese companies and labour pour into Pakistan affecting the competitiveness of the local market.

If Pakistan does not weigh the pros and cons of each CPEC-related project wisely, as the project currently stands it is a win-win situation for China. This can be seen in the case of the Gwadar Port where profits generated via the trade route will be 91 percent in favour of China in the following 40 years. As per the interest rates charged by the China Development Bank and the China EXIM Bank, China could recover its investment in less than three years, but for Pakistan, it could take another 25 years.

The report compares Islamabad’s growing exposure to Beijing as the erstwhile colonisation of the Indian sub-continent by the British East India Company. It concludes, “As long as Pakistan operates in the shadow of another East India Company (i.e. China-Pakistan Economic Corridor) and does not realize the importance of protecting its national interests, which in essence are the people of Pakistan, its attempts for national development in the future will transform into national calamity."

(The above story first appeared on LatestLY on Jun 22, 2018 12:32 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).