China-Pakistan friendship dubbed as “higher than the Himalayas and sweeter than honey” further strengthened with the announcement of the CPEC project on 20th April 2015.
The economic corridor (CPEC), a part of China’s Belt and Road Initiative (BRI), is a 3000km linkage of roads, pipelines, and railways to transport goods from Gawadar port to Kashgar in Xinjiang. With an investment of 62 billion dollars, CPEC is a “flagship project” which can change the destiny of the country explicitly due to its strategic position. Pakistan is located at the juncture of energy proficient to the energy-deficient countries which would transform the country into a transit corridor.
With the four phases of the CPEC project; each focusing on transport, infrastructure, agriculture, and industry, it has been anticipated that if CPEC utilized properly, it would assist in revamping the ailing economy of Pakistan. In the first phase, the emphasis was laid on refining the transport sector of the country. The number of roads and railways have been constructed as a part of this plan.
Next comes the energy sector where 34 billion dollars have been invested for the refurbishment of the outdated energy sector of Pakistan. The establishment of Quaid-e-Azam solar, Port Qasim, Sachal wind and Sahiwal Coal have been completed while other 3 to 4 projects will be finalized very soon that would add about 7500 MW to the national grid of the country. It is no wrong to say that Pakistan has been able to overcome acute energy cries solely due to the installation of these energy-rich projects by China.
Besides, the 11billion dollars investment has spent on the infrastructure development in Pakistan under the CPEC project which envisages an extensive overhaul of the existing transportation infrastructure in Pakistan and laying out of new routes for easing the transit trade and enhancement of market accessibility. Also, the chief achievement has been the up-gradation of Pakistan’s digital Infrastructure in the form of construction of 44 million dollars Optical Fiber that runs from Khunjrab to Islamabad to amplify the source of data connectivity.
In the agriculture sector, the efforts are underway for boosting yields in the crop sector, reducing losses from harvest and transportation and engaging with life stocks and dairy. Moreover, as a part of the Long Term Plan (LTP), China has already started cultivating Hybrid rice in Pakistan. The usage of China’s expertise and modern technology would also aid in rebuilding the agriculture sector of the country.
The current focus as a part of the fourth phase has been made on the industrial development of Pakistan. New SEZ has been set up and Chinese investors are invited to acquire stakes and do investments in various sectors of the country. The first Special Economic Zone (SEZ) comprising of 20 factories is being set up in KPK. In the next stage, China is planning of planting heavy industry SEZ in Sindh. Keeping in view the importance of these zones for both China and Pakistan, president Xi at the aftermath of SCO meeting 2019 said:
“We must expand and enrich the construction of the CPEC with a new focus on industrial parks, agriculture and people’s livelihood’.
Not only this but the number of experts has also predicted that China’s investment could potentially stimulate an 8-10% increase in Pakistan’s GDP by 2020. Moreover, in 2018, the Chinese embassy while lauding the successful execution of projects enunciated that there was a growth of 2.11 percent in Pakistan’s GDP due to China Pakistan Economic Corridor.
New industries and Business would in return brings new jobs which would ultimately solve the employment crises in Pakistan. As per International labor organization (ILO), CPEC is estimated to create 400,000 jobs to the country while another source from Applied Economic Research Centre (AERC) has estimated that mega Initiatives would produce around 700,000 direct jobs in Pakistan. This means that our country will soon replete with a skillful and talented labor force that would contribute positively towards the development of the country.
Keeping in view the significance of this mega initiative for the betterment of Pakistan, there is a need to design investment-friendly policies on an immediate basis to make this project a success story. Moreover, knee-jerk reactions are required to resolve the confronted hurdles; be it external or internal as CPEC is not only a game-changer for China and Pakistan but for the whole South Asian region.
The writer is a Masters in International Relations from NDU and currently works at NOA Islamabad.