Tag Archives: China-Pakistan Economic Corridor (CPEC)

Aiming to slow China’s advances, govern technologyUS moves to regulate artificialintelligence, signs order

on 02/11/2023

President Biden signed a far-reaching executive order on artificial intelligence last week, requiring that companies report to the federal government about the risks that their systems could aid countries or terrorists to make weapons of mass destruction. The order also seeks to lessen the dangers of “deep fakes” that could swing elections or swindle consumers.
“Deep fakes use A.I.-generated audio and video to smear reputations, spread fake news and commit fraud,” Mr. Biden said at the signing of the order at the White House. He described his concern that fraudsters could take three seconds of a person’s voice and manipulate its content, turning an innocent comment into something more sinister that would quickly go viral.
“I’ve watched one of me,” Mr. Biden said, referring to an experiment his staff showed him to make the point that a well-constructed artificial intelligence system could convincingly create a presidential statement that never happened — and thus touch off a political or national security crisis. “I said, ‘When the hell did I say that?’”
The order is an effort by the president to demonstrate that the United States, considered the leading power in fast-moving artificial intelligence technology, will also take the lead in its regulation. Already, Europe is moving ahead with rules of its own, and Vice President Kamala Harris is traveling to Britain this week to represent the United States at an international conference organized by that country’s prime minister, Rishi Sunak.
“We have a moral, ethical and societal duty to make sure that A.I. is adopted and advanced in a way that protects the public from potential harm,” Ms. Harris said at the White House. She added, “We intend that the actions we are taking domestically will serve as a model for international action.”
But the order issued by Mr. Biden, the result of more than a year of work by several government departments, is limited in its scope. While Mr. Biden has broad powers to regulate how the federal government uses artificial intelligence, he is less able to reach into the private sector. Though he said that his order “represents bold action,” he acknowledged that “we still need Congress to act.”
Still, Mr. Biden made it clear that he intended the order to be the first step in a new era of regulation for the United States, as it seeks to put guardrails on a global technology that offers great promise — diagnosing diseases, predicting floods and other effects of climate change, improving safety in the air and at sea — but also carries significant dangers.
“One thing is clear: To realize the promise of A.I. and avoid the risks, we need to govern this technology,” Mr. Biden said. “There’s no other way around it, in my view.”
The order centers on safety and security mandates, but it also contains provisions to encourage the development of A.I. in the United States, including attracting foreign talent to American companies and laboratories. Mr. Biden acknowledged that another element of his strategy is to slow China’s advances. He specifically referred to new regulations — bolstered two weeks ago — to deny Beijing access to the most powerful computer chips needed to produce so-called large language models, the mass of information on which artificial intelligence systems are trained.
While businesses often chafe at new federal regulation, executives at companies like Microsoft, Google, OpenAI and Meta have all said that they fully expect the United States to regulate the technology — and some executives, surprisingly, have seemed a bit relieved. Companies say they are worried about corporate liability if the more powerful systems they use are abused. And they are hoping that putting a government imprimatur on some of their A.I.-based products may alleviate concerns among consumers.
The chief executives of Microsoft, Google, OpenAI and another A.I. start-up, Anthropic, met with Ms. Harris in May, and in July they and three other companies voluntarily committed to safety and security testing of their systems.
“We like the focus on innovation, the steps the U.S. government is taking to build an A.I. work force and the capability for smaller businesses to get the compute power they need to develop their own models,” Robert L. Strayer, an executive vice president at the Information Technology Industry Council, a trade group that represents large technology companies, said on Monday.
At the same time, several companies have warned against mandates for federal agencies to step up policing anticompetitive conduct and consumer harms. The U.S. Chamber of Commerce raised concerns on Monday about new directives on consumer protection, saying that the Federal Trade Commission and the Consumer Financial Protection Bureau “should not view this as a license to do as they please.”
The executive order’s security mandates on companies were created by invoking a Korean War-era law, the Defense Production Act, which the federal government uses in what Mr. Biden called “the most urgent moments.” The order requires that companies deploying the most advanced A.I. tools test their systems to ensure they cannot be used to produce biological or nuclear weapons. The companies must report their findings from those tests to the federal government — though the findings do not have to be made public.
The order also requires that cloud service providers report foreign customers to the federal government. It also recommends the watermarking of photos, videos and audio developed by A.I. tools. Watermarking helps track down the origin of content online and is used to fight deep fakes and manipulated images and text used to spread disinformation.
Mr. Biden, trying to make watermarking sound useful to Americans, said, “When your loved ones hear your voice on a phone, they’ll know it’s really you.”
Many of the directives in the order will be difficult to carry out, said Sarah Kreps, a professor at the Tech Policy Institute at Cornell University. It calls for the rapid hiring of A.I. experts in government, but federal agencies will be challenged to match salaries offered in the private sector. The order urges privacy legislation, though more than a dozen bills have stalled in the divided Congress, she said.
“It’s calling for a lot of action that’s not likely to receive a response,” Ms. Kreps said.

If CPEC is a doom, can we avert it?

on 10/08/2017

 Yes, surely provided we pick a right path,

says Syed Sibte Ahmed Jafri

by Manzoor Shaikh & Muhammad Salahuddin

If you view Chinese the way Syed Sibte Ahmed Jafri, the CEO of Jafri and Associates does, you will surely add up to the concerns which are being widely spread in the wake of China Pakistan Economic Corridor (CPEC). But it is not despair only that results from such a view. There is a lot of signs of opportunity provided we succeed to choose the right path.

We asked Mr, Jafri as to what side of divide he finds himself on while viewing the CPEC.

ER: Is it an opportunity or a path to the collapse of Pakistani industry and turning us into a consumer market?

SSAJ: I have been visiting the US since 1980s. Initially, when I would visit shopping centers, there were hardly any American products. Only Japanese products were there. No Chinese or Indian products could be found. Slowly and gradually, Indian and Malaysian products started to appear. The time passed and now for the last five years, almost everywhere I find Chinese products. Take an example of android phones only. It is competing with iPhone in the market and its prices are much cheaper besides all qualities of iPhone. Chinese have captured the market of a stronger country like the US. Not only that but products like steel, turbines, power plants and others you name it are coming from China. All big western companies have set up their plants in China. They are continuing their brands made in China. If it can happen with the US then what about us. Once China enters in Pakistan with full force what shall we do especially in a situation when we don’t feel proud of doing anything good?

I have the experience of visiting Shahrah-e-Resham (Karakoram Highway) while it was being constructed. There were two worlds, different from each other. Since a subsection on Pakistani side was handed over to Chinese, I had a chance to see it. It was unbelievable. It was like an army of robots which was working there. Once the siren rang they started work, stopped for lunch and read quotes of Mao Zedong. They moved like ants. They strictly followed this timetable from dawn to dusk. They had the whole job. We can understand from this example.

Yet, there is another example too. Chinese did some wind projects here. If you visit there was a huge security. It was not for the people who go inside; it was meant to stop insiders from coming out. There are thousands of Chinese prisoners who were working. They worked like machines.

Almost no salary they were getting. Actually, they were serving their terms. Europeans use machines whereas the Chinese do it with manpower. It sounds a little funny but if you actually see it happening then you will realize who you are competing with. They have everything; they have competed the best European technology; they have abundant money; their banks are the wealthiest. They have the habit of meeting deadlines. How can we compete with them?

They have to transport their goods to the world. It is a must for their survival. They shall reduce 10 thousand kilometers of distance through CPEC. Gwadar is now under their control. They have everything at hand now. What they want now is infrastructure. It includes power for which they have installed power plants. What would you give them? Nothing! They will arrange everything including water and security.

Chinese psyche

They don’t have any consideration for forgiveness and forgetting. They don’t spare difference of opinion. We can recall the Tiananmen Square.

ER: Don’t you think the people ruling this country know what all you are talking about? Then what is the compulsion of being drifted towards that end?

SSAJ: I don’t think so that our people are aware. What is our interest is something they (the ruling elite of Pakistan) don’t know about. Have a look at Karachi only. They don’t know how the people are living in localities situated on the outskirts of the city. The people at the helm of affairs are ignorant. They are not bothered either. The modern world has an efficient system of information collection through intelligence sources. It is not the same case here. Our ruling elite is not bothered at all. When it comes to their personal interest only, they appear to be moving. Looking at the history of the country, only Z.A Bhutto was bothered.

ER: Do you think our military establishment is also is in t he dark? How can one believe they also don’t know about the picture you are depicting here?

SSAJ: There is no difference, though there must be some honest ones. They are not answerable. They can’t be depended upon. But still there is a hope that the honest people will rise.

ER: Is there any hope for corrective measures?

SSAJ: The only possibility is that Pakistan is protected by Allah. Sincerity with the nation is a must. We follow religion in personal lives but in business. It is crystal clear in Pakistan. The industrialists are not honest. What are they doing? There are many success stories also. All people are not the same. Many are kings in their businesses. There would be many opportunities as well in the CPEC. The honest will prevail. I am convinced Allah exists and also His system. If we follow Allah and the Sunnah we will succeed. Pakistan is the largest country in terms of donations. Edhi was born here and so is Sailani doing charity in Pakistan.

ER: Besides religion we need money to be involved in the CPEC? The people say we don’t have money.

SSAJ: I don’t agree with this notion. Why big money? It can begin with smaller amounts of money. Chinese will give work to local companies also but honesty and hard work is a prerequisite. We shall have opportunity in the CPEC but it depends how we avail it.

 

KP raises fresh concerns on corridor

on 17/07/2017

PESHAWAR: Khyber Pakhtunkhwa government has conveyed concerns to  federal government about several aspects missing from the draft of long term plan (LTP) of China Pakistan Economic Corridor (CPEC) project, including western and northern routes, Sino-Pak trade imbalance and water resource management. LTP 2017 is a national plan approved by both Chinese and Pak governments and would remain effective till 2030. Its’ short and medium term aspects would be operative until 2020 and 2025, respectively. Officials said LTP draft was shared with KP government seeking comments and suggestion on plan’s various aspects. However, the government was given only 5 days to review the plan and offer comments. Time allowed for envisioning holistically and offering comprehensive comments on LTP for such a significant ‘game changer’ with far reaching effects is extremely limited. A federal government official said this while high lighting concerns over plan’s missing links. KP government shared its 11 page interim response with federal government. The response, offers critique of various parts of 30 page LTP. In its LTP appraisal, KP government pointed out that plan’s connectivity chapter was silent about western route being undertaken by federal government and northern route (three passages), of which one passage had been accepted by CPEC joint coordination committee. Regarding second northern route, it noted that entire CPEC trade was based on a single passage (Haripur to Khunjerab), which passes through world’s most difficult terrain. `From a strategic point of view, it noted that a fully functional back-up route is needed from first Gilgit to Mardan, second from Bisham to Alupur and third from Besham to Mardan. Besides, it pointed out that the document also misses Indus Highway connectivity to Afghanistan and Central Asia through KP, besides failing to integrate FATA with rest of Pakistan. It noted that document only mentions Chinese key functional zones, while Pakistan’s key functional zones are not mentioned. LTP is a Pakistani document and needs to state its needs properly, it added. Chapter concerning industries and industrial parks, said Pakistan’s important economic zones, other than Gwadar Free Trade Area, need to be mentioned and failure to treat the subject properly may lead to miscarriage of development. In KP, promotion of Hattar, Rashakai and Dera Ismail Khan special economic zones would contribute to Pakistan`s economic growth. It also points out that LTP pays inadequate attention to mining sector, which is important for both KP and Balochistan. The document went on to note that the northern tourism belt centered around KP and GB. Development of northern routes is not mentioned in LTP, while in energy sector, development of oil and gas sectors also needed to be addressed. The document said trade imbalance between China and Pakistan needs mentioning in LTP. It proposed that under industrial collaboration, those industries need to be set up that aim at import substitution in Pakistan and on making Pakistan an export hub. It also suggested developing floriculture saying KP has immense potential for it and flower exports will have an excellent brand image of Pakistan. The document also asked for a 5 years plan for Pak-China economic cooperation, industry regulations, time for opening financial institutions, inclusion of dairy sector and dispute resolution mechanism to resolve commercial disputes with simple laws. KP government also proposed a second fiber optic cable route in north running from KP to Gwadar, to provide an alternative connectivity to Afghanistan, Iran and Central Asia. It said LTP needs to define core and radiation zones where parts of Punjab, KP, Baluchistan and GB are included as core zones and country’s areas f all under radiation zones.  It said the documents did not adequately foresee growth potential in KP’s urban economic centers and therefore, towns of Abbottabad, Nowshera and Mardan etc need to be mentioned as nodes. Being dead on CPEC route, these will see exponential growth, it added.

Subcontracting in huge CPEC projects

on 04/07/2017

 Govt, Pak companies face big challenge: Al Kazim Mansoor

Soilmat Chief talks about reasons why Pak companies fail to reap benefits from CPEC

There are two views in Pakistan in the backdrop of the China Pakistan Economic Corridor (CPEC). First, Pakistani industry will be devastated by this initiative, second, CPEC would not affect us at all. I do not agree with both the views as they are two extremes, says Al Kazim Mansoor, the Chief Executive of Soilmat Engineers while talking to Engineering Review.
Pakistan has never seen such magnitude of development which is being witnessed under the CPEC, he believes.
Initially, the impact did not appear as our companies which work under the guidelines of the PEC and PEPRA met the criteria—the work experience and financial stability—set for comparatively low-cost projects.The issue surfaced when big projects like Sukkur-Multan Motorway started coming, he said. Let’s suppose they cost Rs100 billion and Chinese companies are to pass on works worth Rs.30 billion to Pakistani companies provided they meet the criteria in terms of their work experience and financial strength. Unfortunately, Pakistani companies fail to meet the standards which were fit for them in smaller projects. Now, the Chinese companies seek permission for giving such contracts to others.
This is a crux of the issue, he believes.

This is an issue which, at least at the time, the government even do not know how to resolve.”

The question is how come big names like FWO and NLC also cannot meet the standards for acquiring huge projects under the CPEC?
Al Kazim guesses they may be exhausted as they are doing many projects like Karachi-Hyderabad Motorway, Karachi-Thatta National Highway and other full sections of roads.
He said there was yet another aspect as well. The Chinese are not westerners which give contracts to local companies as they find local companies cheaper. For instance, he said his company (Soilmat) worked on Reko Dik Project for which just 10 – 15 people arrived in Pakistan. They got the work done from them (Soilmat) and hired a foreign company for vetting their report. In contrast, the Chinese do it themselves. They pay $700 to $1000 to a fresh engineer who is equal to fresh Pakistani engineer thus the Chinese engineer is cheaper for them. In sum, Pakistanis may not have benefited much from them.
Moreover, purchases is also an issue. The Chinese companies have benefit of exemptions on import duties in Pakistan. They win projects because they bid the lowest rates as Pakistani companies cannot compete because of high taxation on purchases of material. This is a jolt to Pakistani industry.
Citing an under-construction building in Karachi as an example, he said: our developers also find Chinese companies cheaper and also better in building and material quality so they get attracted to them. Therefore, this question is not so easy to respond.
How to resolve it then? Is making consortium a way out if Pakistan companies do not meet standards for subcontracting?
“We are actually a hasty nation. We have to push things hurriedly. We do many things keeping elections in mind and it all becomes political too. There is no culture of thought process in the country. Like, Pakistan is going for the privatization of its airports—a decision which neighboring India took ten years back when Manmohan Sindh was the Prime Minister. They looked at all the aspects of the decision and implemented it. Here we are in hurry. It harms the country.
Yet another example is the projects launched by Mustafa Kamal in Karachi. They were done in a hurry and thus compromised quality. It also happened in Lahore but they now have expertise. Still the projects done in haste are faulty. When asked if the Chinese companies will bring workers from their country also? It seems so, he replied. Their eye is on benefits. I believe there will be some projects here on which Chinese laborers shall work.
On perception that there are a few companies in Lahore which get the lion’s share, Al Kazim said it was difficult to comment. Normally, the companies earn a lot of confidence of their client and consultant. They work together. Everything is open and every company is active. Thus, it is not possible to hide it if someone is denied. Relationships do work but still hoodwinking is not possible when there are many institutions involved.

CDWP approves Karachi, Peshawar mass transit programs

on 23/05/2017

The Central Development Working Party (CDWP) has cleared for the Executive Committee of the National Economic Council (Ecnec) two major mass transit programs one for Karachi and the other for Peshawar. The moot approved a total of16 development projects costing Rs130 billion. The two projects (in Karachi and Peshawar) which are part of the China-Pakistan Economic Corridor (CPEC) are expected to be formally approved on the sidelines of upcoming One Belt, One Road conference in China this month. Minister for Planning, Development and Reform Ahsan Iqbal presided over the CWDP meeting in Islamabad. The other projects are related to energy, transport and communication, water resources and manpower. Also, the moot approved concept clearance papers of two projects such as Hyderabad-Sukkur Motorway (M6) worth Rs238bn and Sindh Renewable Energy Development Project (SREDP) $122 million. Four major projects of transport and communication sectors costing Rs.102 billion were recommended keeping in view the approval limits of the CDWP.The meeting which gave its nod on revival of Karachi Circular Railway (Rs27.6bn) asked the provincial government for rationalization of the cost. Also it would be ensured that the stations and other buildings to be constructed under the project matched the historical architecture of Karachi. Under the project, 43.2km double railway track would be constructed besides 24 stations. The meeting also approved Rs56.8bn for Peshawar Sustainable Bus Rapid Transit Corridor Project of the Khyber Pakhtunkhwa government. The project, planned to be constructed with Rs48bn loan from the ADB, envisaged construction of 25.8km-long road track, 32 stations with commercial buildings and other allied facilities. The project, planned to be executed in 12 months, is expected to facilitate 472,000 people per day in its initial phase. The meeting also approved Karachi Neighborhood Improvement Project (KNIP) worth Rs10.5bn, a four-lane bridge across River Indus connecting Kallur Kot Bhakkar with Dhakki area of Dera Ismail Khan costing Rs7bn, a 30-megwatt Hydro Power Project in Ghowari in Gilgit Baltistan costing Rs7.9bn besides six water related projects worth Rs6.6bn which include three small dams.