The China-Pakistan Economic Corridor (CPEC) celebrates its tenth anniversary, signifying a transformative phase in Sino-Pakistan relations. This milestone initiative has strengthened bilateral ties and showcased their robust economic partnership. CPEC has played a crucial role over the past decade by improving Pakistan’s infrastructure, fostering economic growth and creating numerous job opportunities, benefiting the region and beyond. The commemoration underscores both countries’ enduring commitment to enhancing cooperation and pursuing shared prosperity. CPEC originated during Chinese Premier Li Keqiang’s 2013 visit to Islamabad, leading to an “economic corridor” agreement. In April 2015, Chinese President Xi Jinping and Pakistani Prime Minister Nawaz Sharif signed 51 agreements, and its value increased from $46 billion to $62 billion by 2020.
CPEC’s objective is to modernize Pakistan’s transportation system including roads, railways, airways and energy, connecting Gwadar and Karachi ports to China’s Xinjiang Uygur Autonomous Region and beyond. As part of China’s Belt and Road Initiative (BRI) announced in 2013, CPEC aims to enhance connectivity, trade, communication and cooperation across Eurasia.
This ambitious project has been a game-changer, revitalizing Pakistan’s economy and promoting regional connectivity. CPEC has not only facilitated infrastructure development but also created jobs, encouraged technological advancement and strengthened trade relations between China and Pakistan.
One of the core pillars of CPEC is the extensive development of infrastructure projects. Over the past ten years, Pakistan has witnessed an unprecedented surge in the construction of roads, highways, railways and ports. The development of Gwadar Port, in particular, has positioned Pakistan as a pivotal hub for regional trade. The construction of the Karakoram Highway, Peshawar-Karachi motorway, orange line Train in Lahore, establishment of different economic zones and various energy projects has improved connectivity and bolstered the transportation network within the country. This infrastructural investment has not only enhanced Pakistan’s economic potential but also opened new avenues for trade and commerce, attracting foreign investors.
CPEC prioritized energy projects to overcome Pakistan’s energy scarcity, including coal, hydro, solar and wind power plants, significantly increasing power generation capacity. These projects addressed immediate energy needs and paved the way for a sustainable and greener future. CPEC transformed Pakistan into an energy-surplus nation, fostering industrial growth and attracting foreign investment.
Indeed, CPEC has injected new life into Pakistan’s economy, stimulating growth and development. The influx of Chinese investment has revitalized various sectors including manufacturing, agriculture and services. The Special Economic Zones (SEZs), established under CPEC, have become hubs of industrial activity, attracting both domestic and foreign businesses. This economic boom has generated employment opportunities, reduced poverty and improved the standard of living of many Pakistanis. Furthermore, CPEC has enhanced Pakistan’s export potential, offering easier access to the Chinese market and boosting bilateral trade between the two countries.
CPEC has also played a pivotal role in technological advancements in Pakistan. Collaboration between Chinese and Pakistani companies has led to the transfer of technology and expertise. This transfer has enabled Pakistan to develop its IT sector, establish research and development institutions and promote innovation. These advancements have not only benefited businesses but have also empowered individuals, enabling them to access new opportunities in the digital age.
Beyond its economic impact, CPEC has fostered people-to-people exchanges and cultural ties between China and Pakistan. Educational scholarships, exchange programs and cultural events have deepened mutual understanding and friendship between the two nations. The collaboration in the field of education has led to the establishment of Confucius Institutes in Pakistan, promoting Chinese language and culture. Similarly, the Pakistani Diaspora in China and Chinese communities in Pakistan have contributed to cross-cultural integration. These socio-cultural exchanges have strengthened bilateral relations, laying a solid foundation for long-term cooperation between the two countries.
CPEC enhances South Asian connectivity, with improved transport corridors boosting regional trade and efficiency in the movement of goods and people, thus benefiting neighbouring countries like Afghanistan, Iran and Central Asia, opening economic opportunities. CPEC’s strategic location and infrastructure projects have reshaped regional dynamics, fostering economic integration and shared growth. Regional stability is vital for CPEC’s success and increased-economic cooperation can promote peace-building efforts by reducing tension and promoting interdependence. Collaborative security measures are necessary to safeguard infrastructure and trade routes, benefiting the entire South Asian region.
India has strongly opposed the China-Pakistan Economic Corridor (CPEC) and Belt and Road Initiative (BRI) due to concerns about potential economic and regional destabilization. It objects to third-party involvement in the CPEC and emphasizes respecting territorial integrity. India’s reservations are based on geopolitics and strained relations with Pakistan. However, other South Asian countries, such as Nepal, Sri Lanka and the Maldives, have shown interest in the BRI, signing agreements with China for infrastructure development and connectivity. A collaborative approach, considering each country’s interests, is essential for regional stability and maximizing the benefits of projects like the CPEC.
Over the past ten years, CPEC has transformed the economic landscape of both China and Pakistan. It has brought about infrastructural development, energy sufficiency, economic growth, technological advancements and socio-cultural exchanges. The progress achieved under CPEC is a testament to the strong bilateral ties between China and Pakistan and the shared vision of mutual prosperity. The CPEC project faces several challenges, encompassing security concerns, regional dynamics, internal political chaos and the imperative for balanced economic development. Political instability could impede decision-making and policy implementation, leading to delays and potential project cancellations, while governance and transparency issues might deter foreign investors. Furthermore, security risks arising from political unrest may further hinder the smooth progress of CPEC initiatives and prompt China to re-evaluate its long-term strategic interests in the region.
As CPEC enters its second decade, it is imperative for both nations to address these challenges and capitalize on the opportunities to further strengthen this transformative partnership.
Certainly, CPEC’s impact extends beyond China and Pakistan, positively influencing the South Asian region. The enhanced connectivity, trade and investment opportunities, energy cooperation, infrastructure development and stability it brings have the potential to reshape regional dynamics and promote shared prosperity in South Asia. However, realizing the full potential of CPEC’s regional impact requires cooperation, collaboration and inclusive participation from all South Asian nations.
