Daily Times

The China Pakistan Economic Corridor (CPEC) a flagship project of Belt and Road Initiative (BRI) launched by Chinese President, Xi Jinping a decade ago has emerged as a game changer for not only Pakistan but for the whole region.

This infrastructure project has an ability to create a huge economic market for the benefit for three billion people in China, South Asia, Central Asia and the Middle East through cooperation and connectivity.

Hence, the initiatives like CPEC and BRI could help people eliminate poverty and unemployment from the regional countries and realize the dream of shared prosperity and promote people to people contact. For Pakistan, the flagship project of the BRI has emerged as transformative force reshaping socio-economic landscape and improving the lives of millions of people. It is a significant project involving development of a network of infrastructure, energy, and industrial projects in Pakistan, with a focus on improving transportation links, energy production, and overall economic development.

The CPEC is expected to put positive impact on the social lives of people as well as the economy in Pakistan for several reasons: It includes the construction of roads, railways, and ports, which can improve connectivity within Pakistan and enhance trade routes with China. Then the improved infrastructure can lead to increased economic activity and development in previously underserved regions. The development of energy projects including power plants, one of the key components of CPEC is crucial for addressing Pakistan’s energy deficit and ensuring a more reliable and consistent power supply, which is essential for economic growth.

For Pakistan, the flagship project of the BRI has emerged as transformative force reshaping socio-economic landscape and improving the lives of millions of people.

“When we started CPEC in 2013, Pakistan was suffering from major energy crisis. We were experiencing power shortages for 16 to 18 hours per day and we had major infrastructural bottlenecks with very poor physical infrastructure,” former Federal Minister for Planning and Special Initiative Prof Ahsan Iqbal said in an interview with Chinese media. CPEC envisions the establishment of special economic zones and industrial parks to attracting both local and foreign investment, fostering industrialization and creating employment opportunities. The development of these zones can contribute to the overall economic transformation of the country.

The improved infrastructure and trade routes created by CPEC can stimulate economic growth by facilitating trade not only between China and Pakistan but also with other countries in the region. This increased trade can boost Pakistan’s economy and create new opportunities for businesses. The development of infrastructure, industrial zones, and other projects under CPEC can lead to the creation of jobs in various sectors. This is particularly important for addressing unemployment issues and improving the livelihoods of the population.

As per official data, through the CPEC in three years, Pakistan has attracted more than $25 billion of investment that helped modernized infrastructure and built new road network to connect several regions. Under the CPEC projects, more than 8,000 megawatts of electricity was added to the national grid that helped the country overcome power shortages. “As we had energy in economy, our agriculture and industrial outputs improved which brought more employment for thousands of young people, and it also helped them come out of poverty,” Ahsan Iqbal commented.

Around nine special economic zones were identified in different areas of the country providing all regions an equal opportunity of taking part and taking benefit from CPEC, which is another indicator that it is a very inclusive project and it does not leave anyone behind. “We are now jointly working with Chinese government to set up industries in these special economic zones through which both the countries could work together and export goods to third countries,” the former minister added.

The Gwadar Port and Economic Zone are developing very fast which is expected to bring about investment from China to speed up industrialization process and it could be a major contributor towards structural transformation of the economy. According to official sources, collaboration between the two countries on various projects within CPEC may involve technology transfer from China to Pakistan, contributing to the development of local technological capabilities.

Additionally, skills development programs associated with the project can enhance the workforce’s capabilities. It is pertinent to note that while CPEC has the potential for significant positive impacts, there have also been concerns and criticisms. Some issues include environmental concerns, questions about the terms of loans associated with the project, and geopolitical considerations.

It is hoped that with the Chinese technology and investment and access to global supply chains, Pakistan will be able to improve its exports as well. In next stage of CPEC, the experts stressed a need to ensuring an environment of peace, stability and continuity of policies in Pakistan. Pakistan has a very young population who is now getting education and skills relevant to future economy and it provides a very economical human resource for investments in industry and technology sectors.

The recently established Special Investment Facilitation Council (SIFC) brings all the government agencies, all federal and provincial government branches under one roof to attract foreign direct investment. As a new initiative under taken by the government, it is hoped that SIFC would encourage foreign investors to come to Pakistan. Chinese Ambassador to Pakistan, Jiang Zaidong has recently outlined three key points for future cooperation between the two countries including consolidation of the current phase of the CPEC, deepening cooperation in agriculture and mining, and improving livelihoods through small but impactful projects.

The writer holds a degree in Media and Communications and is currently studying International Relations at Comsats University, Islamabad.