By: Tahir Farooq
The China-Pakistan Economic Corridor (CPEC) has undoubtedly been a game-changer for both countries over the last decade. This monumental project, initiated in 2013, has witnessed remarkable progress and cooperation between the two nations, fostering economic growth, infrastructure development, and strengthening bilateral ties. The recent visit of Vice-Premier He Lifeng, the special representative of Chinese President Xi Jinping, to Pakistan marks a significant milestone in the 10 golden years of CPEC, underscoring the commitment and success of this transformative venture.
During the past 10 years, CPEC has brought about substantial economic advancements for both China and Pakistan. The corridor has facilitated trade and investment, boosting economic growth in the region. It has enhanced Pakistan’s infrastructure, including roads, railways, and ports, leading to improved connectivity and reduced transportation costs. China has gained access to the Arabian Sea through Gwadar Port, providing a strategic outlet for its goods.
The energy sector in Pakistan witnessed a remarkable transformation as a result of CPEC. The development of energy projects, such as coal, hydro, and solar power plants, has helped alleviate Pakistan’s energy crisis and provided a reliable and sustainable energy source for its industries and citizens. This has significantly contributed to economic development and improved Pakistan’s overall quality of life.
CPEC also facilitated industrial collaboration between the two nations, leading to the establishment of special economic zones in Pakistan. These SEZs have attracted numerous Chinese companies, creating employment opportunities for the local population and fostering technology transfer and skill development. The growth of industries in Pakistan has not only boosted the country’s economy but has also strengthened China’s position as a global manufacturing powerhouse.
One of the most prominent special economic zones is Rashakai Special Economic Zone. Located in the Khyber Pakhtunkhwa province of Pakistan, Rashakai SEZ is designed to be an industrial hub that aims to attract local and foreign investment, foster economic growth, and create employment opportunities. RSEZ is strategically positioned to attract various industries, particularly manufacturing and processing. The establishment of industries within the SEZ leads to increased industrial growth and contributes to Pakistan’s overall economic development.
As CPEC continues to move forward, it remains a shining example of successful international cooperation, contributing to regional stability, prosperity, and the shared dream of a brighter future for China and Pakistan
CPEC has also played a vital role in enhancing connectivity bilaterally and the broader region. The development of modern transport networks, such as the Karakoram Highway and the Gwadar Port, has improved trade and economic relations with neighboring countries in Central Asia and the Middle East. This has opened up new avenues for regional integration and prosperity.
Besides economic benefits, CPEC has also facilitated bilateral social and cultural exchanges. People-to-people contacts have increased, fostering mutual understanding and friendship between the two nations. Educational and cultural exchanges have further strengthened the bilateral relationship, creating a bridge of cultural diversity and harmony.
If we look at the visit of the Chinese Vice-Premier to Pakistan, it marked a momentous occasion in the 10 golden years of the China-Pakistan Economic Corridor. The achievements and progress made during this time have transformed the economic landscape of both nations, fostering greater cooperation and friendship.
Recently six MOUS were signed which showed a pathway for a shared future for both countries. Export of dry chilies, realignment of Karakoram Highway, and feasibility study of Phase II of CPEC were among the MOUS signed. These MOUS show mutual trust despite the problems they face in Pakistan even when Pakistan, economic-wise, is at its lowest.
There is no denying that Pakistan is in a midst of an economic crisis and Chinese investment in Pakistan is in a pickle but Chinese support is still there.
There are certain threat perceptions related to the mega project due to different factors starting with security threats for CPEC in Pakistan. Being a flagship project of BRI, the security of the CPEC is of great importance for both China and Pakistan. Providing and ensuring the security of the Chinese personnel and project sites is a crucial challenge for Pakistan. The federal government has raised a Special Security Division of the Pakistan Army to ensure security and protect the Chinese nationals working on the project.
It is argued that challenges like militancy in tribal areas, the insurgency in Baluchistan, and the law and order situation in Karachi create instability in Pakistan. In addition, political fissures between the opposition and the government contribute to an unstable policy that would ultimately affect the CPEC. Besides the security concerns, India is also constantly creating hurdles for Pakistan.
The slow bureaucratic system in Pakistan is also a concern for high-quality construction of CPEC in the coming decade. If this issue is to be addressed, there needs to be a policy shift that needs to start from the parliament where they will have to decide how the system will work. There needs to be a consensus amongst the leadership and establishment that slowness causes problems and it should be rectified.
Despite all these problems, a positive factor is that CPEC is still standing tall and despite the problems, slowly but surely the project is going ahead. Some fine-tuning on Pakistan’s side is required and the country is well on track again to make it economically viable.
As CPEC continues to move forward, it remains a shining example of successful international cooperation, contributing to regional stability, prosperity, and the shared dream of a brighter future for China and Pakistan.
The author is Editor In Chief of Pakistan Economic Net & Daily Ittehad Media Group, and Vice President & Chairman of Foreign Relations Committee, Council of Pakistan Newspaper Editors (CPNE).
Courtesy: China Daily (Hong Kong)
