Pakistan, which is neck deep in debt, has confirmed that it is under the debt of China. Pakistan has once again proved its loyalty towards China. Recently, Pakistan has directly awarded a crucial road construction contract worth US$ 2 billion to China, ignoring the requirements of international bidding. This contract has been given for the reconstruction of the Thakot-Raikot section of the Karakoram Highway, which is an important part of the China-Pakistan Economic Corridor (CPEC). This move can be a cause of concern for India as this area is very close to India.
The Economic Coordination Committee headed by Pakistan’s Finance Minister Muhammad Aurangzeb used a special rule to award the contract directly to Chinese companies, eliminating the need for international competitive bidding. This decision reflects the strengthening alliance between Pakistan and China, which can pose new challenges for India.
The Thakot-Raikot section of the Karakoram Highway is crucial for maintaining land connectivity between China and Pakistan. This highway is close to the Indian border and China’s increasing role in its reconstruction could become a serious security concern for India. This alliance of China and Pakistan intends to further strengthen China’s influence in the areas covered under CPEC. This project is not just to improve Pakistan’s infrastructure but is part of China’s strategic plan, which can pose a direct challenge to India’s security.
The matter of concern for India is that Pakistan has given this contract to China by bypassing its public procurement rules. This decision is against international standards, because any contract goes through the process of bidding. But under the agreement with China, Pakistan has changed its rules and handed over this contract directly to Chinese companies.
The issue is not just limited to road construction. Pakistan has also relaxed its terms for a US$49 million loan from South Korea to allow foreign consultants to be hired as per their terms. Such moves could further increase Pakistan’s financial instability, which could further increase the risk of an unstable neighbour for India.
This growing alliance between China and Pakistan can become a challenge for India at many levels. On one hand, China is carrying out its expansionist policies, while Pakistan is becoming its stooge and putting its sovereignty at stake. India needs to further strengthen its security policy in this region, so that this alliance of China and Pakistan can be effectively countered.