Daily Times

China Pakistan Economic Corridor (CPEC) is a multi-dimensional and mega developmental project worth $46 billion (initial) investment. It is envisaged under the China’s One Belt One Road (OBOR) policy initiated by Xi Jinping. Its core areas of focus are developmental and infrastructural projects; working on power projects, fostering industries, building economic zones, constructing roads, railway lines, highways, motorways and developing ports as well. In other words, CPEC is a long-term socio-economic transformation, integration and cooperation strategy. It is aimed at connecting Asian, African and European countries through a profound network of highways, railways and roads.

On Pakistan’s side, it is undoubtedly a game changer and has the potential to boost Pakistan’s crippling economy, improve infrastructure, expedite trade and commerce activities, overcome energy crisis, alleviate poverty, generate excellent employment opportunities and usher Pakistan in the era of social, economic and political development. According to the recent presentation (CPEC: Its impact on Pakistan’s economy) by Ashfaque H Khan, “CPEC has the potential to transform Pakistan into a regional hub for trade and investment and provide a unique opportunity for Pakistan to boost its strategic and economic position”.

There is no denying the fact that this mega project has numerous potential benefits for Pakistan. They range from improvement of infrastructure to the enhancement of trade and business, wider cooperation to regional connectivity, creation of job opportunities to the alleviation of poverty, fulfilment of power deficit to the industrial development, advancement of truism to expansion of FDI, deepening of ties to bilateral relations and resultantly, a sustainable economic growth in the long run.

It is evident, under CPEC new schools, colleges, railways and economic and strategic routes will be built. They as a result will open new avenues for our country at all fronts. This economic corridor will link Gwadar (Balochistan, Pakistan) to Kashgar (China) that will upgrade Gwadar seaport and uplift Balochistan at strategic and economic fronts ultimately. In addition, CPEC route will be a gateway for trade among China, Middle East, Africa and Central Asia after construction. The improved infrastructure will make Pakistan a strategically important country in the region with enhanced trade and commercial connectivity between Asia, the Middle East and Europe.

It is evident, under CPEC new schools, colleges, railways and economic and strategic routes will be built. They as a result will open new avenues for our country at all fronts. This economic corridor will link Gwadar (Balochistan, Pakistan) to Kashgar (China) that will upgrade Gwadar seaport and uplift Balochistan at strategic and economic fronts ultimately

Moreover, China Pakistan Economic Corridor (CPEC) aims to bolster wider regional connectivity and cooperation. According to news reports, “CPEC can become an economic connectivity and development model for OBOR countries”.

Furthermore, China Pakistan Economic Corridor (CPEC) will potentially help Pakistan in curtailing unemployment through the creation of new job opportunities. According to news reports, CPEC will directly create 700,000 jobs till 2030. In turn, a major chunk of Pakistan’s population will find suitable jobs and will enter the workforce.

Similarly, CPEC will also play an instrumental role in the alleviation of poverty in Pakistan by curbing unemployment and economic disparity. This development project will improve living standards, bring stability and progress in the country. The famous British scholar, Anatol Lieven says; “There is no doubt that continued economic development is the key to a strong Pakistan. The Corridor will help alleviate poverty in Pakistan by creating new business and job opportunities”.

Additionally, this project’s one of top agendas is addressing Pakistan’s looming energy crisis. Approximately, $ 34 billion are to be invested for power generation through building coal, hydro, wind and solar power plants. In doing so, almost 17,000 MW energy will be generated by the installation of these power plants that can really go a long way towards solving the power deficit in our homeland. It is believed that electricity is the wheel of socio-economic progress and industrial development. Thus, CPEC’s energy generation projects will ensure uninterrupted power supply and improve the efficiency of industries.

Meanwhile, due to CPEC and the improved infrastructure and economic stability, our tourism sector will also improve. Likewise, foreign direct investment (FDI) will also rise. A news report reveals that “The CPEC commitment and financial flows have helped accelerate Pakistan’s GDP growth rate from 3.7 to around 5.7 per cent; its stock market is the best-performing in Asia; it has been reclassified as an emerging rather than frontier market, and western companies are now open to investing here”.

Doubtlessly, CPEC will further deepen this friendly relationship and strategic partnership between China and Pakistan. Another report suggests that “CPEC is a golden opportunity for Pakistan to foster political cooperation, deepen bilateral relations, gain mutual benefits and achieve win-win outcomes”. Beyond any doubt, CPEC will strengthen economic and political cooperation and mutual understanding between both states.

There is no doubt that China Pakistan Economic Corridor is a harbinger of economic development, stability and prosperity for Pakistan. It has the potential to bring about long-term economic progress in Pakistan.

According to the International Monetary Fund (IMF), “CPEC can help close Pakistan’s power deficit, significantly improve its fuel mix, and boost GDP by adding $13 billion in 7 years”. Besides, the eminent British scholar, Anatol Lieven says; “CPEC is an economic breakthrough for Pakistan, and if it works out can generate as much as three or four times the initial $46 billion investment”. Most importantly, this project is expected to significantly contribute in the annual economic growth rate of Pakistan that will truly result in economic boom in the country.

It is a fact that this mega project can be a catalyst for economic advancement and social prosperity of Pakistan in the long run; if internal and external challenges to it including security, law and order situation, corruption, transparency and accountability, provincial harmony and political stability are tackled. Pakistan will be reaping greater benefits from economic corridor in coming years if CPEC’s resources are utilized in a transparent and a responsible manner.

The writer is a freelance columnist, an undergraduate student of Economics at University of Sindh, Jamshoro and aspirant to CSS, based in Dadu, Sindh

Published in Daily Times, October 25^th 2018.