China will provide market access to 90% of Pakistani commodities at zero duty to help the latter correct trade imbalances. his is estimated to increase Pakistan’s exports to China by $500 million, under the free trade agreement phase-II between two countries.
According to a China Economic Net’s report, China will invest $1 billion in 27 projects in education, health, agriculture, irrigation, human resource development and poverty alleviation sectors.
Official statistics show that the CPEC initiative has created 70,000 direct jobs for the locals in the past five years, and per capita income has increased by 23%.
Based on incomplete statistics, 17 projects under CPEC paid taxes of $930 million to the Pakistan government. Pakistan’s GDP growth in the 2013-2014 fiscal year after the start of the construction under CPEC increased from 3.7% in the previous fiscal year to 4.14%, and has since then maintained growth, hitting 5.79% in the fiscal year 2017-2018. According to a recent report by the Economic and Commercial Counselor’s Office of the Chinese Embassy to Pakistan, under second phase of CPEC, promotion of industrial cooperation on the basis of special economic zones will be a priority area, and investment in private sector and establishment of joint ventures will be encouraged.
Recently, while meeting with Yao Jing, Chinese Ambassador to Pakistan, Muhammad Hammad Azhar, the newly-appointed Federal Minister for Economic Affairs of Pakistan, has reaffirmed his support for China and the China-Pakistan Economic Corridor (CPEC).
The envoy stated that Minister Azhar has rich experience in financial and economic work, and believed that he will lead the Economic Affairs Ministry to play an important role in the economic and social advancement of Pakistan.
China-Pakistan cooperation in energy has progressed rapidly in the past five years, seeing the completion and roll-out of seven energy projects which meet the electricity demand of 8.6 million households.
In 2018, the Port Qasim Power Station and the Sahiwal Power Station combined to generate more than 16 billion kWh of electricity, accounting for a quarter of Pakistan’s generating capacity. The Sahiwal Power Station was dubbed by the Pakistan government as a miracle in the country’s history of electric power.