The China-Pakistan Economic Corridor (CPEC) has completed its first ten years. Undoubtedly, it has benefited the country immensely. It has helped overcome challenges like energy deficits, rehabilitation and construction of transport infrastructure, alternative seaports and many other mega projects. However, rapidly changing socio-economic alliances, formation of numerous Middle Corridors, geopolitical partnerships and geostrategic preferences in the region and around the globe are posing threats to CPEC.
Pakistan, Iran and Turkiye Road Transport Corridor, expanded BRICS, trends of de-dollarization, formation of alternative routes in Central Asian region (Uzbekistan & Kazakhstan) and the first time transit cargo from Russia via Iran’s Incheh Borun rail border near Turkmenistan, to the port city of Bandar Abbas on the Strait of Hormuz and transferred from there to Jeddah, Saudi Arabia’s largest port city all indicating changing geopolitics and geo-economics dimensions in the region and beyond opening new window of opportunities and hurdles for achieving the desired goals of trans-regional connectivity of the CPEC in the days to come.
Comparative studies reveal that CPEC Phase-I has reduced poverty and created jobs. According to data, 192,000 jobs had been created during the first phase. More than 100 small and medium enterprises (SMEs) benefited from CPEC projects, which created indirect jobs and provided support to many families in the country. Under CPEC, 851 km of new motorways were constructed, which improved provincial connectivity and attracted new investment into the country.
The economic impact has not only boosted the economy but has also resulted in the creation of over 236,000 jobs. The energy sector, a main point of the CPEC framework, is contributing 8,000 megawatts of electricity and expanding highways by 510km, accompanied by 886km of national core transmission lines.
Gwadar Port has built versatile berths capable of hosting 50-tonne ships. Within the energy sector, 14 projects have taken centre-stage. Notable milestones include the completion of the Lahore Orange Metro Line, a game-changer for public transportation.
It is hoped that agricultural progress, industrial growth and environmentally sustainable initiatives under the CPEC phase-II will help strengthen the economy. Hopefully, implementation of the CPEC phase-II projects will not only provide a cushion against the sluggish growth rate but also create more job opportunities in the country.
In this regard, the ML-1 project has a vital significance in the country’s infrastructure development, and its completion under phase II will improve connectivity and enhance intercity trade and commerce. The 1680 km track will serve as a bridge among the provinces of Pakistan. Additionally, CPEC phase-II will further strengthen the country’s transition to clean energy. Pakistan will have a new energy mix comprising a large portion of renewable energy after completion of the projects. It would help Pakistan reduce spending on fossil fuel imports for fulfilling energy needs.
The initiation of phase-II bodes well for fostering industrialization, advancing social development, expediting the growth of special free economic zones, and promoting the expansion of renewable energy initiatives within the country.
In summary, industry transfer and development, agriculture, water resource management, climate change management, disaster management and human resource and workforce management, under the CPEC phase-II would create mutually beneficial propositions for both the countries and their companies.
Both countries and respective embassies should avoid cosmetic celebration’s galas and so-called construction of the CPEC Bazaars on the ten years of its completion. It is suggested that both countries should jointly develop better policies and a workable environment for this connectivity project in the coming years.
There is an urgent need to jointly build a new financial model of generating new funds for investment in the ongoing projects of CPEC. In this regard all time high deposits of the domestic banking industry surpassing Rs.4500 billion should be channelized for CPEC projects initiation, implementation and completion by offering attractive and secured contracts.
There have been obvious changes in the geopolitical landscape surrounding CPEC, US and Japanese economic and strategic investment in the Indo-Pacific region, formation of the Mini-NATO, Indian strategies to dominate the regional space while isolating Pakistan and China, and the creation of a more hostile and insecure environment for Chinese companies and investment by the Joe Biden’s Administration should also be thoroughly examined by the policy makers and majority of the clusters of Think Tanks in Islamabad and Rawalpindi rather wasting their time in futile marketing efforts and photo-shoots to earn/secure more and more funds.
There is an urgent need to revisit joint strategies to counter increasing incidents of terrorism in the country posing security threats to CPEC projects. Unfortunately, safety and security of the Chinese workers and the CPEC projects remained an issue of contention among the different stakeholders which must be plugged in and resolved by adopting an integrated model of joint security.
The CPEC coastal security needs to be further enhanced because some international power brokers and regional actors involved in regional proxies sponsoring and staging new “End-Game” constitute a concern, for which both countries need to remain vigilant so that CPEC may not be an easy prey.
Moreover, in the second year of the interim set-up of Taliban in Afghanistan both countries also need to move ahead with Afghanistan to connect the region to Central Asia and beyond to open up greater opportunities for regional collaboration and prosperity. As peace in Afghanistan has been a major prerequisite for the progress and development of the whole region, including CPEC, it is high time to cash this opportunity through multi-dimensional cooperation of regional countries with, as well as through, Afghanistan.
The formation of Corridor of Knowledge, Corridor of Digitalization & Artificial Intelligence, Corridor of new mix of energies (blue/green hydrogen power generation), Corridor of qualitative industrialization/transfer/re-allocation of high industries, Corridor of mineral & metals exploration and last but not the least Corridor of Special Economic Zones will create win-win situation for both countries in the future under the flagship CPEC Phase-II.
In this regard, the role of Daily Pakistan Observer and the Centre for South Asia & International Studies (CSAIS) have strategic orientations for the future development of CPEC projects in the country through comprehensive media projection and pure policy formation, far away from ongoing cosmetic activities by many think tanks and media outlets in the country.
