SWOT Analysis of China Pakistan Economic Corridor (CPEC) : Strengths

SWOT analysis of China Pakistan Economic Corridor (CPEC)
Strengths:
1. Pakistan is located at the juncture of West and Central Asia and Persian Gulf and
Middle East and thus has a strategic significance (Rivals)
2. China is considered as world biggest economy, CPEC project will boost relation of
both countries(Rivals)
3. CPEC will provide safer trade route to Pakistan to extend their market to European,
Middle East, Russia, Gulf Countries and Africa (Customer)
4. People can have access to cheap Chinese products (Customer)
5. Time to transport products will be reduced (Supplier)
6. Companies of both countries can also create alliance to supply things to each other
and get more benefit(Supplier)
7. CPEC will also enhance tourism department in Pakistan(New Entrants)
8. Other countries also want to invest in CPEC project (New Entrants)
9. Railway lines will also be improved that will further save time(Substitute)
10. CPEC project will also improve Pakistan traffic condition (Substitute)
11. Foreign investment in Pakistan will also boost(rivals)
12. Pakistan will be a good place for investors because of its connection with Europe,
Asia and Gulf countries(Rivals)
Weaknesses:
1. CPEC is developed in Pakistan, so Pakistani labor will be used, that have no
knowledge about modern infrastructure(supplier)
2. Material is provided by Pakistani supplier so quality of material may be not
good(supplier)
3. Lack of funds can delay CPEC project(supplier)
4. India is investing heavy amount of money to fail this project(rivals)
5. European Countries consider this project bad for them(rivals)
6. Terrorism is spread by different countries to fail CPEC project(rivals)
7. Change in government policies can harm project (supplier)
8. Iran and India are developing “chabahar port” against CPEC and “gawadar”(new
entrants)
9. Sea transportation is used by countries for larger transportation that can be harmful
for CPEC(substitute)
10. Air transport is still considered good because of time saving(substitute)
11. Supplies of customers can delay in case of any accident(customer)
12. Toll tax of CPEC can increase transportation cost (customer)
Opportunities:
1. Chinese investment can increase Pakistan GDP(Economy)
2. New industries will be developed with CPEC(Economy)
3. Security will be provided for CPEC (law and politics)
4. Government and security agencies working together to make CPEC successful(law
and politics)
5. CPEC will bring new jobs for people of Pakistan(demographics)
6. People of Pakistan can avail scholarship programs of China and can study in China
(demographics)
7. Serious steps are taken to overcome energy crisis with cooperation of chinese
government(technology)
8. The Karakoram International University (KIU) and Lanzo University of China decided
to make joint research on CPEC that will bring new innovation (technology)
9. Modern transport vehicles can decrease transportation time (technology)
10. Surveillance system of CPEC can be improve by cameras and by smart surveillance
projects (technology)
11. People of both countries are working together so they can learn new things from
each other (social issues)
12. Culture of both countries is different so they can introduce different cultural
products from different regions of countries (social issues)
Threats:
1. China has provided loan to Pakistan to complete CPEC that will be burden on
Pakistan(Economy)
2. China is bigger economy so import rate of Pakistan can increase (Economy)
3. Both countries has different taxation rules that will be impact on products
(Economy)
4. CPEC is passing from all provinces of Pakistan, these provinces are run by different
provincial government and have different policies (law and politics)
5. Security is provided to every citizen of china working on this project (law and
politics)
6. Every new government in Pakistan make changes in policies that can harm CPEC(law
and politics)
7. Religion of both countries are different (Social Issues)
8. After CPEC china influence on Pakistan can increase that will be bad impact on our
culture(Social Issues)
9. China now a days is considered as technological hub in world while Pakistan lags
behind in technology(technology)
10. Chinese products popularity in Pakistan can be a risk to Pakistani industries
(technology)
11. Chinese experts and workers are be preferred to work on CPEC as compare to
Pakistan (demographics)
12. CPEC is passing from all provinces of Pakistan but still “Baluchistan” is not
preferred(demographics)
Conclusion and Recommendation:

CPEC is a comprehensive mega development project for Pakistan and China, and after
successful completion Pakistan is expected to transform into a regional economic hub.
However for Pakistan, It is most important for the state to curb terrorism across the country
and to develop institutions to cope with poor governance and corruption. It is also
necessary to disclose terms and conditions of the project which have been set with China.
Both Pakistan and China need strong commitment to finish projects according to settled
timelines, which will reduce extra expenditures and save time.

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