CPEC’s second phase to revive the economy

With the completion of major infrastructure and energy projects, the first phase of the China-Pakistan Economic Corridor (CPEC), which has helped Pakistan manage huge deficits in the energy sector and transportation infrastructure, is coming to an end. The second phase is all about industrial cooperation, development of agriculture and trade; therefore, its needs and demands are entirely different from the first phase. It demands the leading role of industrialists, the private sector and the business community, while the government’s role would be only of a facilitator. Special Economic Zones would be established in the second phase. Meanwhile China has allowed import of 313 duty-free items for Chinese market. Anyhow, CPEC will open new vistas of development as a result of which the national economy will grow fast, lead to creation of new job opportunities, poverty reduction, and development of transportation sector and boost industrial growth and exports.
The CPEC project consists of rail, road, and energy infrastructure and is part of the wider $1 trillion Chinese project known as the “Belt and Road” initiative. Pakistan has to remain on guard from the enemies who wish to sabotage the CPEC. Last month, the United States warned Pakistan of the long-term risks to its economy if it embraces China’s massive infrastructure project and suggested that it should instead look to the US business model. Alice Wells, the acting assistant secretary of state for South Asia, told a conference on November 21 that the $60 billion China-Pakistan Economic Corridor (CPEC) will only profit Beijing. Many EU countries have also criticized China’s project and its lending for regional infrastructure efforts, warning that it has increased the debts of the countries that they cannot afford to repay. India also continues its propaganda against the CPEC.
CPEC is a comprehensive package of cooperative initiatives and projects, which covers key areas including connectivity, information network infrastructure, energy cooperation, industries and industrial parks, agricultural development, poverty alleviation, tourism, financial cooperation as well as livelihood improvement including municipal infrastructure, education, public health and people-to people communication. Energy sector had been assigned top priority to help Pakistan overcome energy shortages. However, Gwadar Port Project is the centerpiece of Pak-China Strategic Partnership with its strategic location and potential for becoming the future economic and energy hub. The projects under China-Pakistan Economic Corridor will transform it into one of the world’s leading port cities having top-class commercial and tourist facilities, integrated infrastructure and investment opportunities. This will make Gwadar a catalyst for development of Balochistan in particular, and Pakistan in general.
The first phase included three multipurpose berths of 602m quay length, one service berth of 100m length, 4.35 km navigable channel of 11.6/12.5m depth, roads, plinths and transit shed, operational craft and equipment, including navigational aids and shore based port buildings and allied facilities. During Prime Minister Imran Khan’s recent visit to China, it was agreed to start the second phase of construction of China-Pakistan Economic Corridor (CPEC), which will focus on industrial cooperation, agricultural cooperation, and construction of Gwadar port and socio-economic development, of which 27 new projects will be launched during the year. The China-Pakistan Economic Corridor, linking Gwadar Port to the Chinese province of Xinjiang, will be a game changer not only for Balochistan and Pakistan but also Central Asian countries. In Balochistan, development activity has picked up with the return of peace after years of insurgency and violence.
But many anti-Pakistan lobbies have been at work to sabotage the China-Pakistan Economic Corridor (CPEC) including India and the US, as they know that with the completion of its projects Pakistan will usher into an era of progress and prosperity. Anyhow, CPEC will open new vistas of development as a result of which the national economy will grow fast, lead to creation of new job opportunities, poverty reduction, and development of transportation sector and boost industrial growth. Energy sector has been assigned top priority to help Pakistan overcome energy shortages, which will end load shedding to give relief to the people. China’s planned efforts in Pakistan include the development of Gwadar on the Arabian Sea into a world-class port. Saudi Arabia earlier this year said it plans to set up a $10 billion oil refinery in Gwadar, located in the southwestern province of Balochistan.