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China Pakistan Economic Corridor Prospects and Challenges

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Pakistan Social Sciences Review P-ISSN 2664-0422

March 2020, Vol. 4, No. 1 [292-305] O-ISSN 2664-0430

RESEARCH PAPER
China Pakistan Economic Corridor: Prospects and Challenges
Dr. Muhammad Nawaz Bhatti 1 Dr. Ghulam Mustafa 2 Farzad Ahmad 3

1. Associate Professor, Department of Politics & IR, University of Sargodha, Pakistan


2. Assistant Professor, Department of Political Science & International Relations,
Government College University Faisalabad, Pakistan
3. Assistant Professor, Department of Politics & IR, University of Sargodha, Pakistan
PAPER INFO ABSTRACT
Received: This paper analyzes prospects and challenges for Pakistan at
January 7, 2020 national and international levels for the creation of mechanism
Accepted: to defeat the contemplations of rivals. The China Pakistan
March 14, 2020
Economic Corridor (CPEC) is being considered as a game
Online:
March 31, 2020
changer project. It will be a source of bringing peace, harmony
and prosperity not only in Pakistan but also in the entire region.
Keywords: It is a multidimensional developmental project in the global,
Prosperity, Mega regional, bilateral and domestic scenario. The power centers are
Projects, being changed very rapidly due to CPEC, as many European
Infrastructure, countries are also interested in the project for their trade
Free Trade Zones, enhancement. The myth of “One Belt One Road” has
Regional international strategic implication. It would create opportunities
Integration not only for Asian, European and African states but also for
Corresponding Oceania through an effective diplomacy for the creation of new
Author: infrastructure and free trade zones. The role of international
ghulammustafa@ players to destabilize CPEC is also the burning question of the
gcuf.edu.pk time that needs to be dealt with iron hands.
Introduction

In view of Pakistan with its unique geography has immense strategic


importance in South Asia. The geography of a country plays a pivotal role in
different perspectives. Although, countries’ natural resources have great impact,
yet, benefits could be achieved through proper mechanism of management and
infrastructural development. Infrastructure, in a country, is an essential element for
the development as it plays a significant role in uplifting the socioeconomic
condition of the people. The means of communication such as roads, water supply,
railways, bridges, airports, seaports, subways, tramways, dams, are the central
cohesive source of support and stability for the progress in a country. Economic
growth is directly proportional to the infrastructural development as it provides
the best sources to enlarge the markets and creates the opportunities for trade not
only within the country but abroad as well. Seaports are the dynamic and vibrant
Pakistan Social Sciences Review (PSSR) March, 2020 Volume 4, Issue 1

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).

China Pakistan Economic Corridor starts from Kashgar in China’s western


region and ends at Gwadar district in Baluchistan a province of Pakistan. This
corridor will connect the several countries of the world through Gwadar seaport
and will take the bilateral relationship of Pakistan and China at the new heights. A
beginning of a new journey of hopes will start to reinforce the economic condition
and to reduce energy shortfall in Pakistan. There are different phases of CPEC
project as international airport in Gwadar and Expansion of Karakoram Highway
that connects China with Pakistan has also been prioritized for fast and secure
transportation. Foreign direct investment in Pakistan will touch the new horizons
of economic prosperity, moreover, it is further estimated that CPEC will create
thousands of direct jobs during the period of 2015–2030. CPEC will make a bridge
between Middle East and South West Asia with Central Asian Republics. It forms
the closest oceanic path for landlocked Central Asian Republics.

CPEC has very vast geo-strategic importance on many accounts, for


example, it possesses great magnitude with respect to trade and commercial ties
with Central Asia, Gulf States, and East African countries, United Arab Emirates,
China and North Western India. Gwadar seaport will become a regional hub for
major trade and commercial activities (Razi, 2013).

It will bring prosperity and uplift the socioeconomic conditions of Pakistan


particularly less developed provinces of Baluchistan and Khyber Pakhtun Khaw.
Open and deep water sea is a natural blessing for a country while landlocked
countries always feel compulsion due to absence of a seaport as like Central Asian
States and Afghanistan. These states are rich with natural resources but they have
to rely on other seaports of neighboring countries (Rehman, 2012).

The length of CPEC is a 3,218 kilometer consisted with highways, railways


and pipelines. The estimated cost of CPEC project is expected to be US$75 billion.
The US$45 billion from the total amount will be used to make the corridor
operational till 2020 while the remaining amount will be spent on power
generation, communication and infrastructure development.

Historical Background of CPEC

Revival of Silk Route

In 1877, the term “Silk Route” was named by a German Geographer,


Ferdinand Von Richthofen as “Silk” was a lucrative and a major trade product in
the region. Silk Route was a network of trade routes for Afro Eurasian land mass

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China Pakistan Economic Corridor: Prospects and Challenges

that brought together the regions of Asia with Mediterranean and European world.
Routes from Syria, Turkey,

Turkmenistan, Uzbekistan, Kyrgyzstan, Pakistan and China were included


in Silk route. This trade route provided a significant base to establish the culture
and civilizations of China, Persia, Europe, Arabia and Indian subcontinent (Ghaleb,
2011).

Regional integration is a necessary measure to meet the needs of


economically globalized world therefore the revival of Silk Route, named as ‘One
Road, One Belt’ is being reformulated by China, which will become an economic
belt along the Silk Road and the Maritime Silk Road (Liping, 2015).

In 1958, during President Ayub Khan Regime, Pakistan paid £3 million to


buy Gwadar from the Sultanate of Oman. The euphuism of the project then slowly
started disappearing. Numbers of press reports on the progress of the project
started diminishing. Authorities started realizing that there were many a slip
between the cup and the lip. Since then the history of the decision making process
for its development has been that of studying, planning, shelving, restudying, re-
planning and waiting and hoping for some outside aid agency to finance the
project. Government of Pakistan formally developed the plan to convert Gwadar as
a major deep seaport in 1993 and also planned to link it with road and railway
networks. Federal government began construction of port in 2002 and finally it
became operational in 2008. This port is 180 nautical miles away from the Strait of
Hormuz, through which 60 percent of the world’s oil is transported. The port has
also become a key shipping hub and will provide the opportunity of mass trade
with Central Asia. In 2015, Chinese President Mr. Xi Jinping, in order to enhance
the bilateral relationships in the form of CPEC, visited Pakistan with his delegation
signed fifty-one memorandums of understandings with Pakistan (Ali, 2015).

Significance of CPEC for Pakistan

Economic Boost up

It is a logical prediction that if everything goes according to the plan,


Pakistan would be able to revive its industry and advancement in its economic
initiatives with the proper utilization of China Pakistan Economic Corridor as this
project could potentially lead to synergies among various downstream sectors with
benefits accruing to the larger population.

Foreign investment will also boost up the economic condition of Pakistan


and will help to overcome the barriers of decline. it could catalyze Pakistan’s slow
but sure transfer from an agrarian economy to a logistics hub for the transport of
goods from China to emerging markets in the Middle East and Africa and vice
versa. The so called concept of “Failure State” for Pakistan can be defeated through
CPEC.

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Pakistan Social Sciences Review (PSSR) March, 2020 Volume 4, Issue 1

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).

Solution of Energy crises

Energy is to be considered as a life line of a country. To fulfill the needs of


energy is mandatory for vibrant socioeconomic progress of a country. Industrial
demands, political instability and lack of efficiency are the major causes behind the
energy crises in Pakistan. WAPDA, KESC and other power generating
stockholders have been failed to tackle the problem of energy crises. China’s great
economic cooperation to Pakistan will help to resolve the energy dilemma. The
Projects of 10,400 Megawatts generating electricity through nuclear, wind, thermal,
coal and solar sources have been prioritized in CPEC project and it will be
completed till 2018. China will help in Thar Desert project for the production of
6,600MW electricity as it helps to convert this remote and underdeveloped area
into energy capital (Akram, 2015).

Improvement in Infrastructure

Construction of roads, ports, railways and highways is another significant


vision in CPEC project. Pakistan will improve its infrastructure in order to connect
it with regional countries and Europe and Africa as well.

Investment and trade barriers would be removed which would create a


sound business environment within the region. Adjacent areas to the corridor get
attractive locations for manufacturing, agricultural and services industries. Besides
this, small and medium companies would be special benefits from the corridor
also. The project will attract several countries of the world for economic and trade
activities which would expand employment and economic growth for Pakistanis.
Economic and industrial free zones would be established which will connect all the
regions of Pakistan to get direct benefits from the corridor (Husain, 2015).

Balanced environment in South Asia

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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China Pakistan Economic Corridor: Prospects and Challenges

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

Economic and military assistance from China would help Pakistan to


narrow down the widening gap in the fields of economic, military and nuclear
capabilities which would be far beneficial to counter the aggression from India.
China’ naval presence at Gwadar seaport will strengthen the defense of Pakistan
coastal area. The presence of China at Gwadar will help to keep a check over oil
transportation in the Persian Gulf. The Naval activities of India around the Gulf of
Persia and Aden can also be monitored through Gwadar seaport so it can play
significant role in military and strategic operations (Hal, 2015).

International Scenario

Regional Connectivity and Cordial Multilateral Relations

South Asia comprises the sub-Himalayan countries which are surrounded


by Western, Central, Eastern, Southeastern Asia and Indian Ocean. Population of
South Asian countries is 34 percent of Asia’s population. One fifth of the world’s
population lives in South Asia, due to which it is the most densely populated
geographical region in the world.

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).

China’s “String of Pearl” and “One Belt One Road Strategy”

For continuous improvement of economic stature, China has to meet her


energy requirements and has to manage trade and transportation of its products
round the world. The industrial zones of China are away from Shanghai port. It
costs a lot of taxes and heavy duties. Gwadar seaport is the best option for China to
reduce the distances up to 2500 kilometers from 16000 kilometers. For this purpose,
Chinese government funded millions and is providing man power with experts in
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Pakistan Social Sciences Review (PSSR) March, 2020 Volume 4, Issue 1

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).

The “String of Pearls” portrays the rising indications of China’s geopolitical


impact to get access to ports and airfields. Other aim is to develop particular
diplomatic relationships and to enhance the military capabilities. It extends from
the South China Sea, across the Indian Ocean, and to the Persian Gulf. It is the
China’s Sea Lines of Communications (SLOCs) that covers the strategic area from
the Chinese land to Sudan port. These Sea Lines of Communications pass through
significant and major choke points.

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).

Opportunity for Landlocked Central Asian Republics to connect with Region

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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China Pakistan Economic Corridor: Prospects and Challenges

geo-strategic importance in this region and CPEC provides better opportunities of


trade and transshipment to connect Middle East with other countries. In case of
any disturbance, Gwadar seaport would be a substitute port for the continuity of
trade in the region (Razi, 2013).

Inclusion of new foreign states in CPEC Project

Iran, Turkey, Turkmenistan, Russia, United Kingdom, Germany and France


have expressed their intention to become part of China Pakistan Economic
Corridor. Although the relations between Russia and Pakistan were not at good
stage due to Cold War-era but now both countries have decided to create new
horizons of bilateral relations. New bilateral relationship backed by military deals
and joint military exercises are ascribed to the fact that Russia is interested to get
close with Pakistan’s traditional ally, China. Russian Ambassador, Alexey Y
Dedov elaborated that Russia supports the China Pakistan Economic Corridor as it
is essential for better economy of Pakistan. He emphasized to enhance the volume
of bilateral trade. Russia is interested in enhancing defense and military ties with
Pakistan, adding that cooperation between intelligence agencies of the two
countries would also be reshaped. Besides these states, many others are interested
in the CPEC project due to its economic and strategic significance.

Challenges

Gwadar seaport is situated on the western end of Balochistan coast, which


is the opposite end of the Gulf of Oman. Oil for Japan and western countries is
transported through the Gulf of Oman. After completion of CPEC, the goods and
products from China and Central Asia will pass through this significant trade route
of Gwadar seaport which will surely be the source of enhancement of economy of
Pakistan. As far as, the internal and external challenges for China Pakistan
Economic Corridor are concerned, these can be divided into three possible
categories.

 The insurgent groups of nationalists of Balochistan and KPK.


 Some of the competitor seaports of the regional countries.
 The role of external powers; USA, Israel and India.

Baloch Sub-Nationalists’ perspective

Balochistan is rich in energy and mineral resources. The most persistent


grievance of Baloch nationalists is the exploitation of natural resources by the
federal government without enough compensation to the province. Aspirations of
Baloch nationalists about the economic, ethnic and political rights raised the issues
and grievances in Balochistan. The successive governments did not play their role
to address and resolve these matters. Consequently, the worst ways were paved to
raise bleeding insurgencies and revolts. The absence of problem resolution
mechanisms and the negligence of the well being of the masses are also the reasons

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Pakistan Social Sciences Review (PSSR) March, 2020 Volume 4, Issue 1

of nationalism in Balochistan. Real negligence from the central government is the


mishandling of the nationalists’ perspective (Waqar, 2015).

Many political parties and groups of Balochistan like National Awami


Party, Baloch Republican Party and the most notorious separatist group “The
Balochistan Liberation Army” have many reservations about China Pakistan
Economic Corridor. Even BLA strives to establish an independent state of
Balochistan free from Pakistan. BLA is involved in the killing of Chinese engineers
during the construction of Gwadar seaport.

Following are some reservations of Baloch Nationalists regarding China


Pakistan Economic Corridor.

 Domination of Central Government


 Gwadar Seaport - Demographic Imbalance
 Political Instability
 Lack of Educational Institutions
 Less Representation in National Services
 Removal of Baloch Identity and Culture in Pakistan
 Disempowerment of Local Inhabitants

CPEC and less developed province Khyber Pakhtunkhwa

Some political parties of province have reservations about China Pakistan


Economic Corridor and argue that federal government has changed the original
route of the corridor. They claim that these changes in the corridor will divert
economic and other benefits to Punjab only.

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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China Pakistan Economic Corridor: Prospects and Challenges

Route controversy (Eastern, Western and Central Routes)

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.

A major bridge is needed to be constructed on Indus River. Security


situation is comparatively better than central and western routes. This rout can be a
source of inter-provincial disturbance as it completely bypasses the province of
Khyber Pakhtunkhaw.

 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.

Westren route passes through Gwadar-Turbat-Hoshab-Panjgur-Besima-


Kalat-Quetta-Qila Saifullah-Zhob-Dera Ismail Khan-Mianwali-Attock-Hasanabdal-
and onward (Waqar, 2015).

Competitor seaports particularly Chabahar and UAE

China Pakistan Economic Corridor is an economic threat to Iran, which is


just 72 kilometers away from it. It can drag trade and commercial activities away
from the Chabahar seaport of Iran. India is building a long road of 213km to
connect Chabahar port with Afghanistan. This route further would be connected

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Pakistan Social Sciences Review (PSSR) March, 2020 Volume 4, Issue 1

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

CPEC is an opportunity for Pakistan to strengthen its defense. As India


considers itself the hegemony of the region so prosperous Pakistan with respect to
its trade and development through the project of CPEC would be like a thorn in the
paw. Sea Lines of Communications of the region would be monitored by Pakistan
and China at Gwadar seaport and it will not be bearable for India. India is
confused and bewildered after China’s huge investment in Pakistan. CPEC and
development of Balochistan are not acceptable for India as PM Narendar Modi
showed his concerns during his visit to China with the premier of China. China did
not bother the reservations of Indian Prime Minister.

Production of plutonium with the help of China at the Chinese built


Kyushu reactor and purchasing of eight submarines worth $5 billion from China
will strengthen capability of Pakistan Navy. The nexus of India and United Arab
Emirates is active to create hurdles for China Pakistan Economic Corridor

Exploration of economic activities in Balochistan would be a source of


peace, prosperity and harmony for common people of province which are
problematic for India and UAE. Due to China’s growing influence and Russian
muscles to reach Central Asian Republics, India is in deep trouble and wants to

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China Pakistan Economic Corridor: Prospects and Challenges

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).

American Approach towards CPEC

United States of America has strategic interests and objectives in South


Asia. USA has a grand alliance with India against the rising Asian tiger China.
South Asian countries are enriched with natural resources and the surrounding
regions of South Asia have great potentials in the energy sector. So whole of the
region will sustain as a paramount for the world's economies. Forty percent of the
world's oil and gas resources are present in the Indian Ocean so this region has a
great strategic and economic influence. As far as strategic interests of the USA are
concerned, there is an ambience and sense of tension between USA and China to
secure their interests. Keeping influence over the region, there is possibility that
like other hidden foreign forces for anti-Pakistani elements, the US may contribute
its share to curb militancy in the province. To get access to the Strait of Hormuz,
US would be more in favor of an independent Balochistan. According to Global
Research scholar, Michel Chossudovsky, the separatist movements in different
parts of the world have been hijacked by foreign powers to fulfill their purposes.
He says that British intelligence agencies, CIA and Mossad provide facilities to
Baloch militants in Iran and Afghanistan to destabilize the area. He says that the
objective for such interference is to destabilize the province by creating insurgency
by nationalist groups and also to create violations for its separation from Pakistan
(Amir, 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.

Most of the China’s oil is currently transported from Malacca strait to


Western China which has a distance of almost 16,000 km and it takes 2-3 months.
The distance would be reduced to less than 5,000 km after the completion of CPEC.
10,400megawatts (MW) of energy would be generated from gas, coal and solar
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Pakistan Social Sciences Review (PSSR) March, 2020 Volume 4, Issue 1

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

 Political parties should play a constructive role for the implementation of


China Pakistan Economic Corridor.

 Issues regarding routes controversy must be resolve untidily and political


parties must play their pivotal role for collective benefits.

 Federal and provincial governments should create an environment of


cohesion for better utilization of China Pakistan Economic Corridor.

 Benefits from China Pakistan Economic Corridor must be presented to the


representatives of provinces.

 Federal government should take steps to elaborate the possible internal and
external challenges for CPEC.

 Federal and provincial governments must provide a secure and safe


environment to all workers of China and other countries who are working
for the construction of CPEC.

 The government should work quickly on CPEC so that there remains no


space for terrorists and militants to create problems in the construction of
CPEC project.

 Major share of revenues should be given to less developed provinces.

 Baloch-oriented developmental projects should be initiated in Balochistan.

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China Pakistan Economic Corridor: Prospects and Challenges

 Employment for local inhabitants at Gwadar seaport must be ensured for


their better livelihood.

 Fear of demographic change at Gwadar district must be dealt with effective


mechanism so that people can get confidence.

 Improvements in communication infrastructure must be ensured for better


life.

 Establishment of technical and Maritime Educational Institutions must be


built for local inhabitants of Balochistan.

 Baloch and other local tribes must be recruited in Coast Guard and Navy.

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Pakistan Social Sciences Review (PSSR) March, 2020 Volume 4, Issue 1

References

Akram, M. (2015, April 26). The Cup And The Lip, The Dawn, pp. 8-9.

Ali, S. M. (2015, June 19). The Far Reaches of the Corridor. The Express Tribune.

Amir, R. M. (2015, May 17). Economic Corridor Challenges. The Dawn.

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