CPEC A Game Changer Project

COMMENTARY / INSIGHT
CPEC — a game changer project

A news report reveals that "The CPEC commitment and financial flows have helped accelerate
Pakistan's GDP growth rate from 3.7 to around 5.7 per cent; its stock market is the best-
performing in Asia; it has been reclassified as an emerging rather than frontier market, and
western companies are now open to investing here"
Assad Ali Lund
OCTOBER 25, 2018
China Pakistan Economic Corridor (CPEC) is a multi-dimensional and mega developmental
project worth $46 billion (initial) investment. It is envisaged under the China’s One Belt One
Road (OBOR) policy initiated by Xi Jinping. Its core areas of focus are developmental and
infrastructural projects; working on power projects, fostering industries, building economic
zones, constructing roads, railway lines, highways, motorways and developing ports as well. In
other words, CPEC is a long-term socio-economic transformation, integration and cooperation
strategy. It is aimed at connecting Asian, African and European countries through a profound
network of highways, railways and roads.
On Pakistan’s side, it is undoubtedly a game changer and has the potential to boost Pakistan’s
crippling economy, improve infrastructure, expedite trade and commerce activities, overcome
energy crisis, alleviate poverty, generate excellent employment opportunities and usher Pakistan
in the era of social, economic and political development. According to the recent presentation
(CPEC: Its impact on Pakistan’s economy) by Ashfaque H Khan, “CPEC has the potential to
transform Pakistan into a regional hub for trade and investment and provide a unique opportunity
for Pakistan to boost its strategic and economic position”.
There is no denying the fact that this mega project has numerous potential benefits for Pakistan.
They range from improvement of infrastructure to the enhancement of trade and business, wider
cooperation to regional connectivity, creation of job opportunities to the alleviation of poverty,
fulfilment of power deficit to the industrial development, advancement of tourism to expansion
of FDI, deepening of ties to bilateral relations and resultantly, a sustainable economic growth in
the long run.
It is evident, under CPEC new schools, colleges, railways and economic and strategic routes will
be built. They as a result will open new avenues for our country at all fronts. This economic
corridor will link Gwadar (Balochistan, Pakistan) to Kashgar (China) that will upgrade Gwadar
seaport and uplift Balochistan at strategic and economic fronts ultimately. In addition, CPEC
route will be a gateway for trade among China, Middle East, Africa and Central Asia after
construction. The improved infrastructure will make Pakistan a strategically important country in
the region with enhanced trade and commercial connectivity between Asia, the Middle East and
Europe.
It is evident, under CPEC new schools, colleges, railways and economic and strategic routes
will be built. They as a result will open new avenues for our country at all fronts. This economic
corridor will link Gwadar (Balochistan, Pakistan) to Kashgar (China) that will upgrade Gwadar
seaport and uplift Balochistan at strategic and economic fronts ultimately
Moreover, China Pakistan Economic Corridor (CPEC) aims to bolster wider regional
connectivity and cooperation. According to news reports, “CPEC can become an economic
connectivity and development model for OBOR countries”.
Furthermore, China Pakistan Economic Corridor (CPEC) will potentially help Pakistan in
curtailing unemployment through the creation of new job opportunities. According to news
reports, CPEC will directly create 700,000 jobs till 2030. In turn, a major chunk of Pakistan’s
population will find suitable jobs and will enter the workforce.
Similarly, CPEC will also play an instrumental role in the alleviation of poverty in Pakistan by
curbing unemployment and economic disparity. This development project will improve living
standards, bring stability and progress in the country. The famous British scholar, Anatol Lieven
says; “There is no doubt that continued economic development is the key to a strong Pakistan.
The Corridor will help alleviate poverty in Pakistan by creating new business and job
opportunities”.
Additionally, this project’s one of top agendas is addressing Pakistan’s looming energy crisis.
Approximately, $ 34 billion are to be invested for power generation through building coal,
hydro, wind and solar power plants. In doing so, almost 17,000 MW energy will be generated by
the installation of these power plants that can really go a long way towards solving the power
deficit in our homeland. It is believed that electricity is the wheel of socio-economic progress
and industrial development. Thus, CPEC’s energy generation projects will ensure uninterrupted
power supply and improve the efficiency of industries.
Meanwhile, due to CPEC and the improved infrastructure and economic stability, our tourism
sector will also improve. Likewise, foreign direct investment (FDI) will also rise. A news report
reveals that “The CPEC commitment and financial flows have helped accelerate Pakistan’s GDP
growth rate from 3.7 to around 5.7 per cent; its stock market is the best-performing in Asia; it has
been reclassified as an emerging rather than frontier market, and western companies are now
open to investing here”.
Doubtlessly, CPEC will further deepen this friendly relationship and strategic partnership
between China and Pakistan. Another report suggests that “CPEC is a golden opportunity for
Pakistan to foster political cooperation, deepen bilateral relations, gain mutual benefits and
achieve win-win outcomes”. Beyond any doubt, CPEC will strengthen economic and political
cooperation and mutual understanding between both states.
There is no doubt that China Pakistan Economic Corridor is a harbinger of economic

development, stability and prosperity for Pakistan. It has the potential to bring about long-term
economic progress in Pakistan.
According to the International Monetary Fund (IMF), “CPEC can help close Pakistan’s power
deficit, significantly improve its fuel mix, and boost GDP by adding $13 billion in 7 years”.
Besides, the eminent British scholar, Anatol Lieven says; “CPEC is an economic breakthrough
for Pakistan, and if it works out can generate as much as three or four times the initial $46 billion
investment”. Most importantly, this project is expected to significantly contribute in the annual
economic growth rate of Pakistan that will truly result in economic boom in the country.
It is a fact that this mega project can be a catalyst for economic advancement and social
prosperity of Pakistan in the long run; if internal and external challenges to it including security,
law and order situation, corruption, transparency and accountability, provincial harmony and
political stability are tackled. Pakistan will be reaping greater benefits from economic corridor in
coming years if CPEC’s resources are utilized in a transparent and a responsible manner.
The writer is a freelance columnist, an undergraduate student of Economics at University of

Sindh, Jamshoro and aspirant to CSS, based in Dadu, Sindh
Published in Daily Times, October 25th 2018.

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COMMENTARY / INSIGHT

CPEC — a game changer project

There is no doubt that China Pakistan Economic Corridor is a harbinger of economic

The writer is a freelance columnist, an undergraduate student of Economics at University of

Published in Daily Times, October 25th 2018.

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