Reports suggest that Pakistan is trying to take full advantage of the ongoing tension between India and China in Ladakh. The biggest evidence of this is the agreement between Pakistan and China on the proposed hydropower project in Pakistan-Occupied Kashmir (POK) with the project cost amounting to $2.4 billion.
The China-Pakistan Economic Corridor (CPEC) is being constructed under China’s Belt and Road Initiative (BRI). Many of its projects are either incomplete or stuck, but China is approving new projects in POK to encircle India. In June, the Kohla Company of China signed the deal with Pakistan for the Hydropower Project Deal. Under this, 1124 MW hydropower plant is to be built in POK. According to reports from Pakistan, this is the largest investment by any Chinese company in the power sector in Pakistan so far. This is also the second megaproject in POK in the last two months, which China has agreed to fund. In May, China gave a contract to the Power Construction Corporation to build the Diamer Basha dam. China funded this dam, which is constructed at a distance of 320 km from the Chinese border.
Analysts say China is increasing investment in POK projects, including the Kohala Hydropower Project, as part of a strategy to corner— and encircle—India. India has been opposing the ChinaPakistan Economic Corridor (CPEC). India has time and again said that there should be no project that should be started in POK. India’s Ministry of External Affairs had issued a statement and said that the entire Jammu and Kashmir and Ladakh is an integral part of India and always will be. India has been continuously lodging its protests with Pakistan and China for any such project in the occupied areas of Kashmir. However, China is trying to weaken India’s front by making deals with Pakistan.
India inaugurated the Darbuk-Shyok-DBO road ahead of the recent standoff in eastern Ladakh. This 255- km road starts from Ladakh and ends at 20 km from Karakoram Pass. The Karakoram Pass is strategically important because it separates Ladakh from China’s Xinjiang province and is also an important part of the China-Pakistan Economic Corridor. China’s concern was increased by this road construction. Last week, when the Balochistan Liberation Army attacked Karachi-based Pakistan Stock Exchange, Pakistan Prime Minister Imran Khan immediately blamed India. Khan said in Parliament that there is no doubt that India is behind the attack. Chinese companies have a 40% stake in the Pakistan Stock Exchange.
James Dorsi, Senior fellow at Singapore’s Nanyang Technological University, said: “By blaming India for the attack, Pakistan tried to gain China’s sympathy. Pakistan wants to exploit the Indo-Chinese tension to reap economic benefits. Likewise, Beijing wants to pressurise India by prioritising dams and hydropower projects in POK over other projects.”