Daily Times

Pakistan was one of the first countries to acknowledge the People’s Republic of China on January 4, 1950, and formally established its diplomatic relations on May 21st, 1951. During the Prime Minister of Pakistan’s visit to Beijing in 1956, a formal friendship deal was established. Thereafter, signing of the air and border land accords as part of the Sino-Pakistani Agreement in 1963 marked not only a turning point in the two country’s relations between government to government and people to people but now have improved more gradually since then in different areas.

Pakistan has consistently supported China’s stance on the One China Policy, on Xinxiang, Tibet, and Taiwan, while China has consistently supported Pakistan’s position on Kashmir. Mutual trust, respect, and friendliness characterize the bilateral relationship between the two neighboring nations. Both countries view one another as “all-weather friends” and have strong diplomatic, economic, and military connections. Economic cooperation has evolved throughout time despite its humble beginnings, notably since the 1970s.

One of the key turning points in relations between Pakistan and China occurred during the 1960s and 1980s with the construction of the Karakoram Highway. This road, which links the Chinese region of Xinjiang with Gilgit-Baltistan of northern Pakistan being considered the 8th wonder of the world, has long been cited as proof of the close ties between the two countries. Both China and Pakistan recognize the benefits of closer economic ties, which have led to the formation of a strong strategic alliance. This partnership has paved the way for increased trade and investment between the two countries.

The flagship China-Pakistan Economic Corridor (CPEC) is a component of the China’s ambitious Belt and Road Initiative (BRI), which intends to increase connectivity and trade between China and other regions of the world. In China’s Belt and Road Initiative (BRI), which intends to enhance connectivity and commercial networks connecting Asia, Europe, and Africa, Pakistan is a significant partner as well. Through Pakistan’s ports, the CPEC project of the BRI acts as a crucial commercial link connecting China to the rest of the world’s markets. The Malacca Strait, through which a large portion of China’s trade passes, is prone to possible chokepoints and security difficulties. China is significantly reliant on marine trade; consequently, through CPEC, it can now access the Middle East and the Indian Ocean by the shortest distance, reducing its only reliance on the Malacca Strait.

It is a well-known fact that every government in China and Pakistan has worked hard to enhance ties with China, and doing so has been advantageous for both countries in every way. When the PPP was in office, in May 2013, Chinese Premier Li Keqiang proposed the CPEC in Pakistan. The decision was taken through the signing of 21 Memorandums of Understanding, and after realizing the potential for greater economic connection and cooperation, the two sides intended to begin a number of projects to extend their connections. Lateran, The Memorandum of Understanding for the China-Pakistan Economic Corridor (CPEC) was formally signed on July 5, 2013, while the PML (N) was in power.

The CPEC was formally launched when Chinese President Xi Jinping visited Pakistan in April 2015. To begin the CPEC’s numerous projects relating to the energy, the construction of modern roads, railroads, optic fiber, creation of special economic zones (SEZs) and energy pipelines to create efficient transportation links connecting the China from the port of Gwadar with Pakistan’s, and finally both countries signed 51 separate agreements. The initial anticipated investment of the CPEC, which comprised investments in energy & infrastructure projects, industrial zones, and the development of the Gwadar Port, was around $46 billion; but now the investment portfolio has been increased mutually by two sides to $62 billion, which would have expected further investment exposure in ML1 and other infrastructure projects.

The CPEC framework projects that have already been finished have increased the length of the main national transmission network by 886 km, adding 6,000 megawatts of power, 510 kilometers of highways, 800 kilometers of fiber optic cable, and created 192,000 jobs. $25 billion in infrastructure and energy projects funded by the CPEC have been completed during the last ten years.

The China-Pakistan Economic Corridor (CPEC) is a multi-phase project involving infrastructure and development initiatives for regional connectivity and a range of investment opportunities from the years 2015 to 2020, 2020 to 2025, and 2025 to 2030. There have been 12 meetings of the joint working coordination committee for CPEC projects so far and the progress of CPEC projects has been evaluated therein. The two countries have also developed the Long Term Plan for the China-Pakistan Economic Corridor (2017-2030) with a framework for collaboration to manage CPEC growth. The National Plan will complement Pakistan’s Vision 2025 and the pertinent national and local programmes of China, has received the approval of both the Chinese and Pakistani governments. Up until 2020, 2025, and 2030, respectively, this plan’s short-term initiatives, medium-term projects, and long-term projects will all be considered. Along with China and Pakistan, the CPEC will also benefit Iran, Afghanistan, the Central Asian Republics, and the surrounding regions.

Both the governments of Pakistan and China have also created a space, that Projects in CPEC can be added, completed, or changed over time, so in these areas a holistic way forward approach to be adopted by coordinating all stakeholders. To successfully advance by 2030, it is essential for Pakistan to preserve the transparency, improving the security measures, the expansion of local force capability, industrial cooperation, improving in ease of doing business index, measures for technology transfer, institutional strength of our govt departments, trade and investment promotion in different sectors with joint venture projects, and to conduct regular ongoing assessment of the CPEC projects’ progress and adaptability on every three month bases.