An eye on a decade of progress over CPEC

Despite facing multiple security and political challenge from both domestic and international fronts, the China-Pakistan Economic Corridor (CPEC) is certainly shaping up as a win-win project for both China and Pakistan. Traditionally, China and Pakistan have cooperated closely at the strategic and political levels. CPEC is a symbol of the determination of the two nations to expand their bilateral collaboration economically as well. CPEC is a milestone that signifies this shift. CPEC not only serve as a roadway that simply connects point A to point B—this project is designed to do much more. The corridor aims to facilitate multispectral economic cooperation in finance, trade, energy, and industry among other sectors.

2. The first phase of CPEC has already contributed to overcome energy crisis, build modern infrastructure and create enormous job opportunities in Pakistan. The CPEC has undeniably brought numerous benefits to Pakistan’s economy. These developments have had a positive impact on the lives of millions of Pakistanis by providing better access to resources and creating employment opportunities. Furthermore, CPEC has strengthened bilateral ties between China and Pakistan, fostering an all-weather strategic cooperative partnership. This collaboration has not only bolstered economic and financial cooperation, but has also facilitated people-to-people exchanges and cultural ties, promoting mutual understanding and friendship between the two nations.

3. So far China has invested almost $30 billion, primarily in energy and infrastructure projects. China’s investment in Pakistan has also been instrumental in boosting the country’s foreign direct investment and attracting other international investors to the region. The CPEC’s success has positioned Pakistan as an attractive destination for businesses seeking to capitalize on the opportunities offered by this strategic corridor. The initiative has not only upgraded Pakistan’s infrastructure, but has also opened up job opportunities for skilled labour. This has significantly contributed to the labour market, which was abundant with skilled labor but no job vacancies.

4. To date China has completed major projects under CPEC in Gwadar that, in addition to Gwadar Port, include the Gwadar Power Plant, the distribution of 2,000 boat engines to the fishermen of Gwadar, the Khuzdar-Panjgur transmission line that connects Makran with the national grid, the new Gwadar International Airport project, the Pak-China Friendship Hospital, the Pak-China Technical and Vocational Institute in Gwadar, the Gwadar East Bay Expressway project and the Gwadar Free Zone.

5. China and Pakistan strongly reaffirmed their commitment to CPEC on the tenth anniversary of its launch this year for speedy completion of the project, particularly the second phase of industrialization of Pakistan and revolutionizing the agriculture sector. CPEC has been well-received by all segments of society in both countries and they regard it as a new source of potential synergy between their respective national development strategies, which has already helped them translate their close political cooperation into multifaceted economic cooperation, attain mutual benefits, and achieve win-win outcomes. Once completed CPEC will realize the visions of leadership of both China and Pakistan for regional connectivity and prosperity.

6. CPEC will not only reduce the distance for China to trade with the outer world but will also drastically cut down the cost of products because of faster and cheaper transportation of goods. There is no doubt that CPEC would ultimately help in creating a regional economic block of the three billion people of the region through improved regional integration and connectivity and Pakistan will play a critical role being located in the centre of three engines of growth – South Asia, Central Asia and China.

7. CPEC is a flagship project of the visionary Belt and Road Initiative (BRI) of President Xi, which would benefit both countries enormously. For China these development initiatives are a potential source of stability and prosperity for both countries. From a Chinese perspective, cooperation in the areas of security and economics are closely intertwined, and improvements on one side can improve the other. It is almost as though security and economics are two separate wheels on the same vehicle, and both need to be spinning to move things forward.

Economic development can strengthen internal stability, thus reinvigorating the economy through investment in infrastructure projects, construction of Special Economic Zones (SEZs) as well as the oil and gas pipelines will create a certain level of stability within Pakistan and also stabilize China’s western periphery, particularly the province of Xinjiang.

7. Pakistan serves as a crucial bridge between China and Central Asia, South Asia, and the Middle East. Security and stability in Pakistan will ensure the security and development of the all the sub regions of Asia. Pakistan knows that no other country gives such high strategic importance in its economic relationship with Pakistan as China does. Pakistan therefore, greatly values the economic corridor and views it as mutually beneficial in terms of politics and economic development. CPEC will help Pakistan advance from being a lower-middle-income nation to an upper-middle-income nation by 2025. To achieve this goal, Pakistan needs to attract increasing amounts of foreign investment which can come once the SEZs are fully operationalized. It is heartening to see that some of the SEZs already inaugurated are rapidly beginning to establish themselves and with the passage of time will emerge as powerful drivers of industrial growth and modernization in Pakistan.

8. China and Pakistan have taken positive measures to help set up the CPEC for success. Nevertheless, Pakistan’s domestic situation is still in a flux. Country’s political and security conditions must turn a corner towards stability thus ending this period of ambiguity and uncertainty if the full potential of CPEC, the flagship project of BRI and Gwadar Port, the jewel in the CPEC, is to be realized. With careful planning, transparent governance and effective utilization of resources, the CPEC can continue to be a catalyst for positive change in Pakistan and deepen the economic cooperation between China and its all-weather friend Pakistan.

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