China Pakistan Economic Corridor Prospects and Challenges
China Pakistan Economic Corridor Prospects and Challenges
China Pakistan Economic Corridor Prospects and Challenges
RESEARCH PAPER
China Pakistan Economic Corridor: Prospects and Challenges
Dr. Muhammad Nawaz Bhatti 1 Dr. Ghulam Mustafa 2 Farzad Ahmad 3
centers for trade, commerce and are the major sources of enhancement of local,
national, regional and international trade. Seaports are also the source of strategic
importance in the region and play a pivotal role with respect to navel defense (Sial,
2014).
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that brought together the regions of Asia with Mediterranean and European world.
Routes from Syria, Turkey,
Economic Boost up
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CPEC project will not only be the source of development of Pakistan but
also become a source of regional integration. Multi-dimensional changes in the
national economy will bring direct benefits for common people. The corridor will
improve the economic, commercial and geostrategic worth of Pakistan. Poverty,
unemployment and socio-economic inequities of less developed provinces of
Baluchistan and KPK will be dealt with effective mechanism. The game-changer
project; China Pakistan Economic Corridor, will generate massive trade and
economic activities in the whole region. It will open new horizons of peace,
progress and prosperity for the common people of Pakistan (Falak, 2015).
Improvement in Infrastructure
Pakistan and India are two major nuclear powers of South Asia and history
of bilateral relationship between both countries remained in chaos. Due to support
of USA, India thought itself the hegemony of region. CPEC is spotlight in the new
Pakistan economic paradigm creating opportunity to act independently
particularly to get rid of western influence especially the US influence. Pakistan
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would be able to normalize its ties with India, Iran and Afghanistan through the
project of CPEC which will provide opportunity to keep a balanced environment in
the region.
Defense
International Scenario
CPEC can play a significant role to utilize the resources of South Asia for
effective trade and commercial purposes. It can also facilitate the north western
India and Afghanistan but stable government in Afghanistan is conditional to get
benefits from the corridor. SAARC was established to build regional cooperation
so bilateral and multilateral trade and cooperation among the member states can be
made possible by using each other’s sources and resources. CPEC is a great source
of cooperation for SAARC countries to develop trade activities. All the member
states of SAARC are rich in different natural resources and these can be used for
the betterment of the people of regional countries. CPEC is a source of
enhancement of trade for SAARC countries and further to other regional states of
Central Asia, Middle East and Africa. Pakistan will be a leading country due to the
emergence of Gwadar seaport and would be a gateway for the trade and business
activities in the region (Mahar, 2014).
different fields on the site also. The main policy of Chinese government towards
the development of Gwadar seaport is to reduce the economic gap from western to
eastern China and to get a hold on the Sea Lines of Communications (Catanzaro,
Qi, Jia, & Han, 2015).
One Belt One Road is an initiative that covers important countries of the
region which has great potential with respect to utilization of resources to boost up
economy for the betterment of population of the concerned countries. The “One
Belt one Road” comprises northern, central and southern routes. Southern route
begins from Guangzhou and covers the areas of China which connect Kashgar
with Pakistan. This is a point from where China would be connected with the
Arabian Sea through Gwadar seaport. Southern route is the shortest and the easily
accessible route for China. The Central route starts from Shanghai and connects the
country with Iran on the Persian Gulf which further can be extended to Europe.
The drawback of this route is its length as it is one of the longest routes amongst
all. Northern route is another option for China that begins from Beijing, connects it
with Russia and then to Europe (Mahar, 2014).
Sixty percent of natural resources of the world are present in Central Asian
Republics. These countries have a significant status with respect to monetary
prospects and geographical vital positioning. This region is a centerpiece of the
international arena as Russia, China, USA and European countries are
concentrating over the region for their energy requirements. For this purpose
regional and extra regional players are attempting to share their interests as much
as possible with Central Asian Republics. The natural resources of emerging and
resource-rich Central Asia are of great importance for the regional players. Central
Asia will be the highly valued region for major regional and extra regional players,
including USA, China and Russia so the significance of this particular region is
increasing day by day. These republics are landlocked. CPEC would provide the
nearest most marine access for CARs and provides opportunities to promote trade
and transport of goods and natural resources in world markets (Sial, 2014).
Middle East
Naturally, GSP is located near the oil rich Middle Eastern countries of
Egypt, Iran, Turkey, Iraq, Saudi Arabia, Yemen, Syria and UAE. GSP has very vast
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Challenges
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These parties are in the favor of the Western route because it covers the
backward and less developed regions of country. However, security situation is a
major issue on western route, due to this factor; China is most interested in Eastern
route (Kasi, 2015).
Political parties of KPK are not in the favor of other routes and they advised
the federal government to construct the original Gwadar-Kashgar route without
and modification. These parties are in the view that demands of people of less
developed province, KPK should be fulfill to avoid from any frustration. Security
situation in KPK and FATA is the burning question of the hour which may shackle
the completion of the project. Moreover, Destabilization in the political system of
Pakistan can delay the implementation of the CPEC project. For economic
development and vibrant regional connectivity, it is mandatory to create an
environment of political harmony among all the provinces of Pakistan (Falak,
2015).
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Central Route
This route is longer than western but shorter than the eastern route.
Backward and less developed areas of the country would get economic
opportunities from this route. Construction of roads would have to be make sure
because this route needs is not well constructed except Gwadar-Ratodero section.
Due to insurgency in Balochistan and KPK, a better security mechanism must be
ensured by provincial and federal governments. This alignment covers almost all
the provinces and a better political harmony would be prevailed.
Gwadar-Turbat-Panjgur-Khuzdar2-Ratodero-Kashmore-Rajanpur-Dera Ghazi
Khan-Dera Ismail Khan-Bannu-Kohat-Peshawar-Hasanabdal-and onwards.
Eastern Route
This route is longer than other two routes. It covers much of the developed
areas of the central Punjab except some backward areas of Balochistan, Sindh and
Southern Punjab.
Gwadar-Turbat-Panjgur-Khuzdar-Ratodero-Kashmore-Rajanpur-DeraGhazi Khan
Multan-Faisalabad-Pindi Bhatian-Rawalpindi-Hasanabdaland onwards.
Western Route
This route is one of the shortest routes among all. As this route covers most
of the backward areas of country so a vast economic opportunity is available for
the people of this route. Roads are needed to be constructed for western route.
High security costs would be spent due to insurgent activities in Balochistan and
FATA.
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with Central Asian Republics. Chabahar port is a part of the counter balance policy
so that the China’s influence can be affected due to its presence at Gwadar seaport.
The main concern of India is to minimize the influence of China in Indian Ocean as
India considers that China is encircling it through Gwadar seaport.
Zayed, Jable Ali, Khor Fakkan, Hamriyah, Khalid, Rashid are the significant
seaports of United Arab Emirates which handle million of tons of cargo each year.
All of these seaports are in competition with Gwadar seaport (Bhutta, 2015).
Security Concerns
Among other challenges, security situation is the most crucial challenge for
both countries. East Turkestan Islamic Movement (ETIM), Tehreek-e-Taliban
Pakistan (TTP), Lashkar-e-Jhangvi (LeJ), Daesh (ISIS), Balochistan Liberation Army
(BLA), Balochistan Liberation Front (BLF) and the militant wings of some political
parties can create horrible problems for China Pakistan Corridor Project. China has
deep concerns regarding security issues of the whole corridor and Gwadar seaport.
Even after operation Zarb-e-Azab, many elements of terrorists are still active and
can create deep troubles to destabilize China Pakistan Economic Corridor. Army
will establish Special Security Division which will be comprised on army battalion,
paramilitary forces, Rangers and Frontier Corps to ensure the security of China
Pakistan Economic Corridor. It is mandatory for Pakistan to create a better
mechanism of security at border with Afghanistan for proper utilization of CPEC
(Amir, 2015).
Indian Factor
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spread sphere of influence in the region. India has invested in Iran and
Afghanistan to counter the impacts of CPEC and to reach the Central Asian
Republics via land routes. For this purpose, India is active to help Iran for the
construction of Chabahar seaport to build a north-south corridor will run to
Afghanistan and eventually stretch to Central Asia (Bhutta, 2015).
Conclusion
CPEC is an important project for both China and Pakistan for better and
secure supply of their goods, products and services. The corridor would be an
alternative route for China while economic prosperity and a balanced environment
in the region would be ensured for Pakistan. The corridor would help Pakistan to
counter Indian hegemony in the region while Gwadar seaport would become the
major transit point linking Eurasia with South and South East and Central Asia.
The completion of CPEC project would enhance the business and trade
opportunities because major oil shipments from Middle East will be offloaded at
Gwadar seaport. Gwadar seaport has very vast geo-strategic significance as it is
located just 180 nautical miles away from Strait of Hormoz which is life line for
Europe as 40-50 percent of oil passes through this strait. The presence of Pakistan-
China naval forces would be problematic for the interests of Europe.
energy. CPEC would reduce the distance from 12,000 km to 2,395 km. CPEC will
act as a bridge which would connect three billion people of Asia, Africa and
Europe. CPEC has received the significance with respect to trade and business not
only in Pakistan but also from all over the world. Central Asia Republics,
Afghanistan, China, Japan, Singapore, Russia and several European countries have
showed their intention t become a part of CPEC. Viable strategies, policies and
efficient techniques to convert China Pakistan Economic Corridor into a
comprehensive and competitive corridor is a big challenge for government of
Pakistan. The corridor will open new economic opportunities for Pakistan and it
will connect China to its markets in Asia, Europe and beyond. The reservations of
Baloch nationalists would be dealt with effective mechanism so that this multi-
dollar project cannot become issue like Kala Bagh Dam. Foreign intelligence
agencies are operated and working to make the corridor as a failure project. The
security of CPEC is a burning issue for China for secure and better supply and
transport of its goods and services. Federal and provincial governments should
ensure the mechanism of better security of the corridor.
Recommendations
Federal government should take steps to elaborate the possible internal and
external challenges for CPEC.
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Baloch and other local tribes must be recruited in Coast Guard and Navy.
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