Afia Ambreen
Prime Minister Imran Khan visited china on 7-8 Oct and discussed the main agenda of China Pakistan Economic Corridor (CPEC) with the Chinese authorities. During the previous government’s tenure, all state institutions, the ruling party and opposition members unilaterally agreed that CPEC would bring a windfall of economic opportunity to Pakistan and started work on it with urgency. This work has nearly come to a complete halt in many projects surrounding the Corridor with the Lahore Orange Metro Line Train as a prime example and the government, under the leadership of Imran Khan, must reiterate Pakistan’s commitment to completing the project in this visit. China considers CPEC the flagship project of its ambitious One Road One Belt (OBOR) mega project. Many have thought of the flagship project as a game-changer for the region. Both China and Pakistan believe that the project is a win-win endeavour not only for Beijing and Islamabad but also for the whole region.
CPEC investments will be spread over 15 years with a total outlay of up to US $46 billion: around $35 billion on the energy front in an IPP (independent Power Producers) mode and the balance going to infrastructure development. Though, initially CPEC cooperation will come in two main sectors: infrastructure development and energy generation, going forward, the scope will be extended to other fields of finance, science and technology, which would hold paramount importance in order to reap more social and economic gains for the mutual benefit of people of both countries. As projects under the CPEC gather pace, broader synopsis of the short term and long term plans for the Corridor also slowly begin to get unveiled. Both Pakistani and Chinese governments need to be careful on a number of risks to smooth implementation of their partnership framework. Much of these concerns on CPEC projects focus on the general lack of know-how on finances, public private partnerships and the extent of the benefit to both China and Pakistan, and then weighing them against each other.
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 acknowledgement over its manufacturing, agriculture, and trade capabilities.
For a country on the verge of becoming a strengthened economy, Pakistan has solidified its foundations, embracing the framework of regional connectivity through the Pakistan China Economic Corridor. Apart from its major trading attributes contributing towards the prosperity of the two countries, CPEC will also enable local industries to flourish. Moreover, nine industrial zones under Special Economic Zones (SEZs) would be completed soon to promote industrial growth in the country by providing more lenient economic and tax policies. CPEC also includes a number of initiatives in Pakistan. Being the last land-stop before the Arabian sea, Gwadar has always been considered as a goldmine for possessing the geographical characteristics of a natural deep sea port. It is now the central nexus on which all of CPEC is geared towards.
CPEC will also contribute towards the improvement of peoples’ lives in Pakistan and China by promoting bilateral connectivity, construction projects, economic and trade opportunities, logistics and local trade in the region. CPEC will open doors to immense economic opportunities not only to Pakistan but will physically connect China to the markets of Asia, Europe and beyond. Almost 80% of China’s oil is currently transported from the Straits of Malacca (the distance is almost 16,000 km and takes 2-3 months), with Gwadar becoming operational, the distance would be reduced to less than 5,000 km.
In a nutshell, China Pakistan Economic Corridor project is vital for both Pakistan and China. This mega project will also improve the regional connectivity and will transform the region into the economic hub. This project will change the destiny of all the countries in the region. CPEC will bring an economic revolution in our country and will help the people to improve the life standards. Middle East and European countries are also expressing their interests to be the part of this game changer project. Pakistan has done military exercises with many other countries that definitely improved the capabilities. Pakistani forces have taken the responsibility of security of CPEC and will leave no space for enemies to sabotage this project.
