The Baloch vs Beijing - Pakistani militancy targets Chinese investment

In this file photo taken on November 13, 2016, a Pakistani Army personnel looks on during the opening of a trade project in Gwadar port, some 700 kms west of Karachi. Gunmen have stormed a five-star hotel in the southwestern Pakistani port city of Gwadar, the centrepiece of a multi-billion dollar Chinese infrastructure project in the country, a provincial minister said on May 11. (AFP)
Updated 15 May 2019
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The Baloch vs Beijing - Pakistani militancy targets Chinese investment

  • Deadly weekend attack in Gwadar was latest high-profile assault linked to Chinese projects
  • Gwadar is crown jewel of $62 billion corridor of energy and infrastructure projects China is building in Pakistan

ISLAMABAD: A vast Chinese-funded infrastructure project in Pakistan has become a major trigger for separatist insurgents, galvanizing their movement as they employ new tactics — including suicide attacks — in an escalation that could rattle Beijing, observers say.
A deadly weekend attack by gunmen who stormed the luxury Pearl Continental hotel in Gwadar, a port on Pakistan’s southern coast, was the latest high-profile assault linked to the multi-billion dollar China-Pakistan Economic Corridor (CPEC).
CPEC — part of China’s massive Belt and Road initiative — seeks to link its western province Xinjiang with Gwadar, giving Beijing valuable access to the Arabian Sea and conferring new roads, ports, and airports on Pakistan.
Pakistani authorities routinely tout Gwadar, a former fishing village, as “the next Dubai.”
The problem is that Balochistan, Pakistan’s largest and poorest province through which much of CPEC runs, is a Pandora’s Box of Islamist, sectarian, and separatist insurgencies.
Saturday’s attack was claimed by the separatist Balochistan Liberation Army (BLA). Chinese and Pakistani investors visiting the hotel, isolated high on a ridge overlooking the port, were the target, a spokesman for the BLA said.
“We warn China to stop her exploitative projects in Balochistan and do not support Pakistan in the genocide of Baloch people, otherwise, we would respond with more attacks,” the English-language message to media read.
The BLA has attacked the Chinese in Pakistan before, said analyst Michael Kugelman of the Washington-based Wilson Center.
What’s new is the desire and capacity to attack highly visible, well-secured Chinese targets, he said, citing another deadly attack claimed by the group on Beijing’s consulate in Karachi last year.
“There’s good reason to believe that the Pearl Continental attack spooked (Beijing) in a big way, given that a major facility was struck in a city that houses one of the crown jewels of CPEC,” Kugelman said.
The project, he continued, “is a major trigger for Baloch insurgents.”
“CPEC represents everything the insurgents despise: A large infrastructure and development project undertaken by the Pakistani state and its Chinese ally.”
Separatist groups in Balochistan, whose proud population have a turbulent history, have long demanded autonomy and a fairer share of resources.
For years the Pakistani military maintained a crushing grip on the insurgency, while brushing off accusations of serious rights abuses.
However, analysts say Chinese investment appears to have imbued the nationalist movement with new energy, inflaming the long-running grievance over resources and giving sometimes-disparate groups a common focus.
At the same time, Pakistan’s determination to protect Chinese investment saw the military further intensify its stance, deepening resentment among the Baloch people.
With positions hardening on both sides, one result is the relatively new phenomenon for Baloch separatists of suicide attacks, such as in the Karachi consulate attack.
Nationalist politician Jan Mohammed Buledi described the development as previously “unimaginable and unthinkable” for a movement driven more by socialist principles than jihad.
“When locals resist they are kidnapped, tortured and their mutilated dead bodies appear,” he explained.
The state, he argued, has left young Baloch “no option but to blow themselves up.
“And now with the influx of Chinese, the Baloch separatists are getting international attention, so it seems the only way out.”
Anger against the Chinese, seen as usurpers, is real and powerful, said Buledi — but the true enemy for the separatists remains the Pakistani state, with analysts warning that unless genuine grievances are addressed, a low-level insurgency could continue indefinitely
“They blame the state for its long and relentless predatory behavior in Balochistan, and for the scorched earth policies used by the military,” agreed Kugelman.
Publicly at least, Beijing backs Pakistan’s crackdown, and while the Pearl Continental attack was widely reported in Chinese media the claim that Chinese investors were the target was largely downplayed.
What Beijing can do about the threats its faces remains to be seen.
One tantalising suggestion came from a Baloch leader based in the US, who told AFP that some Chinese officials have sought help from exiled Baloch nationalists in exchange for bringing them home.
AFP was unable to verify the claim.
“To the best of my knowledge they are still in contact with more than half a dozen nationalist leaders in US, UK and other European countries,” he said.


Pakistan launches first skills impact bond to fund training with private capital

Updated 8 sec ago
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Pakistan launches first skills impact bond to fund training with private capital

  • New $3.57 million pilot ties investor returns to job placement and retention outcomes
  • The program aims to upskill youth at scale, with 40 percent of trainees targeted to be women

KARACHI: Pakistan on Tuesday launched its first-ever Pakistan Skills Impact Bond (PSIB), a private-capital-funded instrument aimed at financing technical training by linking investor repayments to measurable employment outcomes, as the government seeks new ways to upskill its rapidly growing workforce without relying solely on public spending.

The Rs 1 billion ($3.57 million) pilot tranche, backed by a government guarantee, is part of a three-year program designed to fund skills training through an outcome-based model, under which investors are repaid only if trainees achieve results such as certification, job placement and at least six months of employment retention.

Social impact bonds are a form of results-based financing in which private investors provide upfront capital for social programs, while governments or donors repay them only if agreed performance targets are met. Pakistan’s skills bond is intended to shift training finance away from traditional input-based budgets toward a market-oriented approach that rewards verified outcomes and crowds in private investment.

“Speaking at the event, Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, underscored the transformational importance of the PSIB in Pakistan’s broader economic reform agenda and human capital strategy,” the finance division said in a statement. “He described the day as ‘an important moment focused on education and training,’ reiterating that Pakistan’s demographic dividend can only be realized if the country succeeds in upskilling and reskilling its youth at scale.”

The program is anchored in collaboration with the National Vocational and Technical Training Commission (NAVTTC) and is expected to evolve over time, with later tranches potentially linking repayments to a small share of trainees’ future earnings, a move officials say could help make the model financially self-sustaining.

The bond forms part of a broader government push to adopt social impact financing across priority areas including education, gender equality, health, climate resilience and poverty reduction, the statement said.

“Highlighting gender inclusion as central to the program design, the Finance Minister welcomed the recommendation led by the British Asian Trust that 40 percent of trainees under the PSIB be women, acknowledging that women’s participation and leadership in the workforce will play a decisive role in shaping Pakistan’s economic trajectory,” it added.

The Ministry of Finance has provided the initial guarantee to help establish credibility and attract investors, but has stressed the support is limited to the pilot phase.

The government has noted the model is intended to support Pakistan’s large youth population by aligning training with labor market demand, including high-value digital skills, while reducing long-term pressure on public finances.

The launch ceremony was attended by senior government officials, development partners, private sector representatives and international organizations involved in structuring and financing the bond.