The China-Pakistan Economic Corridor (CPEC) has entered into its second phase, highlighting immense contribution in terms of qualitative industrialization, infrastructure development, generation of new jobs, energy cooperation and, notably, social development in the different parts of the country.
It is pertinent to mention that the total installed capacity of the 14 energy projects under the flagship of CPEC have been commercialized in operation accounts for about 1/5 of the total installed power capacity of Pakistan. The units of the SK Hydropower Station have been connected to the grid to generate electricity which has become a value addition.
Despite the blessings and immense contributions of CPEC Phase-I, it has been labeled a debt trap, an instrument of so-called Chinese imperialism, and, last but not least, as being incompatible with the country’s resources. Western policymakers, their puppet media, and pseudo-economists have propagated this borrowed narrative, speculating a slowdown. Yet, CPEC Phase-I has remained a “driving force,” steering the macro-economy and its sub-sectors toward greater stability and sustainability while diversifying its scope, utility, importance, and productive capacity.
Critical analysis reveals that safety, security, bureaucratic hurdles and deferred payments have been “haunting” the Chinese government and its private companies’ resolve; however, despite these “undeniable” bitter realities, the iron-clad friendship remained focused and committed to pursuing the CPEC projects in the country. Even some diplomatic halves could not reach a break-even point producing diminishing returns. Ultimately, the political resolve of both the leadership rescued the sporadic situation sailing the CPEC towards shores of maturity and completion.
Now it is imminent that because of the rapidly changing socio-economic priorities, unilateral sanctions, threats of high tariffs, intensity of ongoing US-China trade war, geopolitical compulsion and geostrategic divergences on politics, economy and security indicating some direct and other indirect ramifications on both the countries and their common projects mainly BRI and of course CPEC Phase-2.0 in the days to come. Thus revision in the existing bilateral engagement, economic and energy cooperation should be initiated as soon as possible securing our vested interests.
Undoubtedly, the CPEC Phase 2.0 aims to redefine the framework of bilateral relations through deeper collaboration, advanced technological transfer, and transformative socio-economic projects however, it still needs a “holistic” and “comprehensive” policy dialogue, workable implementation mechanism and solid sovereign guarantees of safety, security and systematic approval, execution, completion and payment of the Chinese private companies would be value addition for the further strengthening of bilateral relations and speedy initiation of the CPEC Phase 2.0.
It is a positive sign that Prime Minister Mian Shehbaz Sharif is striving diligently to complete the pending projects of CPEC Phase-I and expedite the initiation of CPEC Phase 2.0. The supportive role of the SIFC has also been beneficial in addressing challenges and paving the way for greater progress and prosperity. However, issues such as safety, security, irresponsible wish lists, and an “unfriendly discretionary syndrome” have hindered the pace, progress, and productivity of CPEC, necessitating immediate resolution. To revitalize CPEC and ensure its systematic advancement, the government of Pakistan must address unresolved issues, reform its untamed bureaucracy, guide unwise politicians, and strengthen safety and security measures. Demonstrating seriousness in overcoming these challenges and charting a robust roadmap for Phase 2.0 is essential to achieving long-term prosperity for both nations.
The policymakers must recognize that without a robust safety and security system, attracting Foreign Direct Investment (FDI) will remain a challenge for Pakistan. While China’s unwavering commitment to CPEC as a strategic partnership for growth and connectivity is a positive sign, Pakistan’s deviation from China’s policy shift in regional connectivity, socio-economic integration and security could hinder progress. Therefore, immediate action is required, including the re-engineering of the national narrative, social marketing, media policies and overhauling safety and security measures for Chinese projects. Establishing new corridors—such as Growth, Livelihood-Enhancing, Innovation, Green and Regional Connectivity—within CPEC Phase 2.0 is essential for progress.
Ironically, the Planning Ministry is advocating for the formation of new corridors under the framework of economy, exports, environment, energy, and equity, claiming the Minister’s visionary leadership. However, without addressing policy flaws and rectifying issues, the pace and progress of CPEC Phase 2.0 will likely falter. Therefore, it is crucial to prioritize the common prosperity of the people by adopting a new approach to CPEC Phase 2.0, with a revised list of projects and enhanced safety and security measures for Chinese stakeholders in the country.
In summary, the author suggests that policymakers from both countries should create a comprehensive roadmap for the transfer of qualitative industries following the high tariffs imposed by President Trump, offering beneficial propositions for all. The author emphasizes the need for close collaboration on safety and security for the Chinese and CPEC projects, with joint efforts to combat terrorism in Balochistan. Furthermore, the formation of a “Corridor of Knowledge” involving sinologists, applied economics, social marketing, human branding, media personnel and strategists is crucial to guiding CPEC Phase 2.0 in the right direction. The author also highlights the misuse of Chinese scholarships, urging that only deserving students should be granted them. Additionally, the creation of corridors for digitalization, artificial intelligence, robotics, biosciences, health, vaccines and hybrid agriculture is recommended to transform the economy and address poverty and unemployment. Finally, the author advocates for the establishment of a “Green Corridor” with joint ventures in renewable energy, waste management and disaster management, offering a path forward that addresses climate change and diversifies CPEC Phase 2.0.
To conclude, “Corridor of Social Development” through immense community development, women empowerment, poverty eradication, skilled education, launching of small but meaningful projects would gear the country and communities towards better future and qualitative life in the days to come. Thus replication of the Chinese model of Poverty Eradication must be pursued and implemented in the country.
Inauguration of the “Gwadar Airport”, speedy building of the “Special Economic Zones” (SEZs), formation of sustainable “supply chains” and last but not least, “startups” need to be implemented as soon as possible. Undoubtedly, the CPEC Phase 2.0 facilitates a paradigm shift in Pakistan-China ties further focusing on innovation, digitalization, ICT, science & space, technology transfer, and sustainable development creating befitting propositions for both the countries.
