Inspired by President Xi’s vision of regional connectivity and people-centric development model, the China-Pakistan Economic Corridor (CPEC) is an important part of the Belt and Road Initiative (BRI) and its flagship project with Gwadar Port as the Jewel in the crown of CPEC.
The CPEC has played a significant role in fostering economic development and cooperation between China and Pakistan, benefiting both nations. The ceremony to celebrate ten years of the CPEC project, attended by Chinese Vice Premier He Lifeng, exemplifies the success of the initiative and further strengthens the strategic partnership between the two countries.
The China-Pakistan Economic Corridor (CPEC) is a massive infrastructure and economic development project that has been ongoing for a decade, with the aim of enhancing connectivity and trade between China and Pakistan. As Chinese Vice Premier He Lifeng arrives in Pakistan to commemorate this milestone, it is crucial to critically assess the impacts and consequences of this ambitious initiative. This article will present some aspects associated with the CPEC, examining its significance in fostering economic growth and cooperation while also exploring the potential risks it poses to Pakistan’s financial stability.
The CPEC has undeniably brought numerous benefits to Pakistan’s economy. The project has resulted in the construction of highways, ports and energy infrastructure, leading to improved transportation and energy efficiency. These developments have positively impacted the lives of millions of Pakistanis by providing better access to resources and creating employment opportunities.
Furthermore, the CPEC has strengthened bilateral ties between China and Pakistan, fostering a strategic cooperative partnership. This collaboration has not only bolstered economic and financial cooperation but has also facilitated people-to-people exchanges and cultural ties, promoting mutual understanding and friendship between the two nations.
China’s investment in Pakistan has also been instrumental in boosting the country’s foreign direct investment (FDI) and attracting other international investors to the region. The CPEC’s success has positioned Pakistan as an attractive destination for businesses seeking to capitalize on the opportunities offered by this strategic corridor.
With the arrival of China’s Vice Premier He Lifeng in Pakistan to celebrate a decade of the China-Pakistan Economic Corridor (CPEC), it is essential to acknowledge the positive contributions this initiative has made to bilateral relations and economic growth. The CPEC has undoubtedly brought significant advancements to Pakistan’s infrastructure and economy, improving the lives of many citizens. Not only, this initiative has upgraded Pakistan’s infrastructure, but it has also opened up job opportunities for the skilled labour. This has significantly contributed to the labour market which was abundant with skilled labour but no job vacancies.
This is not the only time our neighbour has helped us, in the last ten years, China has invested almost $30 billion, primarily in energy and infrastructure projects. This has pulled the country out of debts and possible bankruptcy. China has bailed out Pakistan at critical junctures when it was in danger of becoming bankrupt. Beijing rolled over and refinanced loans, allowing Pakistan to preserve its foreign reserves at a level sufficient to prevent default. China recently gave a $2.3 billion loan for two years, providing Pakistan with much-needed breathing room in the face of decreasing foreign reserves.
China has also completed major projects under CPEC in Gwadar, including Gwadar Power Plant, Distribution of 2000 boat engines to fishermen of Gwadar, Khuzdar-Panjgur Transmission line (via Nag-Basima) which connects Markran with National Grid, New Gwadar International Airport Project, the China-Pak Friendship Hospital, China-Pak Technical and Vocational Institute in Gwadar, the Gwadar East-bay Expressway Project, Gwadar Free Zone and Gwadar Port would become a shining pearl in the region.
The success of the CPEC lies in maintaining a balance between economic development and responsible financial management. With careful planning, transparent governance, and effective utilization of resources, the CPEC can continue to be a catalyst for positive change in Pakistan and deepen the economic cooperation between China and its all-weather friend, Pakistan.
