Khalid Taimur Akram
This lecture was delivered by Lieutenant Colonel Khalid Taimur Akram (Retd) – Executive Director, CGSS at the Center for Belt & Road and Research Center of Shanghai Cooperation Organization Beijing, China on 25th July, 2019
Part 1
This lecture was delivered by Lieutenant Colonel Khalid Taimur Akram (Retd) – Executive Director, CGSS at the Center for Belt & Road and Research Center of Shanghai Cooperation Organization Beijing, China on 25th July, 2019
The China-Pakistan Economic Corridor provides an exceptional opportunity for enlightening the political, social, and economic situation of Pakistan and its neighboring states. Since its inception in July 2013, probably no development initiative has received more attention in Pakistan than the CPEC. There is a widespread consensus among Pakistan’s military, political entities and society at large on the enormous potential of the CPEC for spurring economic growth in the country. Since both countries signed a Free Trade Agreement in 2006, China has become Pakistan’s largest trading partner. China has emphasized these close ties on all official occasions as ‘all-weather friends’ who are sharing a relationship which is “higher than mountains”, “deeper than oceans”, “sweeter than honey”, and “stronger than steel”.
In this context, it is interesting to mention that while Pakistan’s view about China in an overwhelmingly positive light, it seems that most Chinese either look down on their South Asian neighbors or at least share a far less enthusiastic attitude towards Pakistan. Today, Beijing is Pakistan’s top supplier for military hardware and nuclear technology.
CPEC: Economic
prosperity for Pakistan
With the promise of international opportunities and unlimited resources, Pakistan has embarked on a journey of economic growth. Being the 23rd largest economy in the world by Purchasing Power Parity, Pakistan has now picked up the pace in collaboration with the economic partners from around the world. The state now possesses the strength to boost its semi-industrialized economy and gain acknowledgment over its manufacturing, agriculture, and trade proficiencies.
The initiative will likewise develop major industrial, agriculture, and energy centers across its wake. The 300 Megawatt Gwadar Coal Power Project is listed among the significant energy projects totaling 12,335 MW which are being installed. As the next stage of CPEC development starts, private investors and firms are flocking to Gwadar with their expertise, experience, and capital to make the most of this unprecedented opportunity.
CPEC project consists of $46 billion direct investment in Pakistan. This massive amount may change the destiny of Pakistan because it will be used on roads, electric power projects, better communication facilities, industrial zones, exclusive development of Gwadar City to make it at international standards, etc. This development will boost Pakistan’s economy followed by the creation of job opportunities for talented individuals. Global Times (2017) reported that Pakistan’s economy is projected to be on a steady uphill path due to projects like the CPEC.
Industrial Expansion
Industrial zones are the key feature of CPEC initiative. It is proposed that the project will also be comprised of various economic zones in Pakistan on the CPEC route. Rashakai Economic Zone in Khyber Pakhtunkhwa, Dhabeji Economic Zone in Sindh, Bostan Industrial Zone in Balochistan, Punjab-China Economic Zone in Sheikhupura, Punjab ICT Model Industrial Zone in Islamabad, Industrial Park at Pakistan Steel Mills in Sindh, Bhimber Industrial Zone in AJ&K, Mohmand Marble City in FATA and Moqpondas and, Special Economic Zone in Gilgit Baltistan.
Business and Trade Benefits
CPEC project will generate new avenues for business and trade for Pakistan. CPEC is also a project of regional connectivity which will allow Pakistan to strengthen its business and trade with Afghanistan and other Central Asian states. It is anticipated that CPEC will also be exceedingly beneficial for Pakistan as far as its business and trade are concerned.
Infrastructural Benefits
and Up-gradation of
Connectivity and Communication
CPEC will upgrade infrastructural prerequisites in Pakistan along with better road provisions as well. It is proposed that the motorway venture which starts from Karachi to Lahore and leading to Peshawar will be exalted. The standard of roads from Gwader to various metropolises of Pakistan and ultimately to Kashgar will be enhanced. Moreover, the train routes in Pakistan are proposed to be upgraded so that better logistic support can be achieved once the CPEC project is entirely implemented.
Power and Energy Enrichment
Pakistan is confronting energy crisis for more than 10 years. Due to this drastic issue, Pakistan’s economy is badly suffered, its business and trade are affected, the social well-being is damaged and other substantial concerns are being raised. Now, this matter seems to be resolved. It is proposed in CPEC initiative that numerous power plants will be installed in Pakistan to resolve energy hitch. It is encouraging to mention here that the work has been started on such projects and people of Pakistan hope that the energy crisis will be ended soon. These projects are categorized into three sections; one is Energy Priority Projects, second is Energy Actively promoted Projects and third is Potential Energy Projects.
Towards Nation Building
Although upgraded safety and security operations have reduced the effectiveness of terrorist and insurgent groups across the country, the government of Pakistan has addressed its root causes, such as socioeconomic marginalization. Nonetheless, the CPEC is seen as a step in the right direction to address the structural issues, especially poverty, in Baluchistan.
Employment opportunities and stability in the province would lead to an overall development that could help to counter Baloch insurgency. Pakistan’s government has launched a website (www.cpec.gov.pk) sharing CPEC-specific facts and figures. In terms of the distribution of CPEC funds, US$7.1 billion has been allocated to Baluchistan, US$6.9 to Punjab, US$11.5 to Sindh, and US$11.6 to KP.
It is further clarified that Government attaches the highest priority for the rehabilitation of merged districts of Khyber Pakhtunkhwa previously under FATA and has been allocated Rs73 billion to bring them at par with other regions of the country. In addition, Rs33 billion has also been allocated for rehabilitation and resettlement of IDPs. The overall size of National Outlay is Rs1863 billion. These amounts have been given in the Public Sector Development Programme (PSDP) 2019-20 issued by the Ministry of Planning, Development, and Reform.
For long-term stability of the CPEC, the state should invest in building human resources as the internal migration of skilled labor could pose a threat by enhancing inter-ethnic tensions. Considering the significance of equality in nation-building, the state should ensure access to equal opportunities for all citizens irrespective of their ethnicity. The government, through the Pakistan Army, has already been working on developing human resources in Baluchistan that may have an impact on stability in the region. There is also a CPEC oriented initiative, effusively funded 3-years Diploma of Associate Engineers, which started with 10 Balochi students.
