Celebrating Ten Years of the China-Pakistan Economic Corridor.
The original article was written by Amir Jahangir for the Pivot Magazine.
The Belt and Road Initiative (BRI), is one of the world’s foremost, most massive infrastructure and investment initiatives launched by China in 2013 to promote connectivity and economic development across Asia, Europe, and Africa. The initiative involves the construction of transportation networks, energy pipelines, and telecommunications infrastructure to facilitate trade and investment between China and other countries.
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| The Belt and Road Initiative (BRI) |
The BRI promotes cooperation by encouraging countries to work together on infrastructure projects that will connect them to China and other participating countries, creating a network of economic and trade relationships that will benefit every state involved. It seeks to create a shared vision of the future that is based on mutual trust, respect, and understanding.
In 2013, the governments of China and Pakistan embarked on an ambitious and transformative journey to strengthen their economic ties and create new opportunities for both countries. The two nations are reaping the benefits of cooperation, growth, and prosperity through the China-Pakistan Economic Corridor (CPEC).
The China-Pakistan Economic Corridor (CPEC) is the flagship project within China’s Belt and Road Initiative (BRI) and holds significant importance for both China and Pakistan. The CPEC is a collection of infrastructure projects, including highways, railways, industrial zones, pipelines, and power plants, which aims at improving connectivity and economic integration between the two countries and even further.
The estimated investment for CPEC projects is around $62 billion. The significance of the CPEC in the BRI can be understood by the fact that CPEC provides China with a direct and shorter route to the Arabian Sea and the Indian Ocean via the Gwadar Port in Pakistan. This alternative route bypasses the Strait of Malacca, which is a potential chokepoint for China’s energy imports and trade. The strategic location of the CPEC enhances China’s energy security and reduces its vulnerability to potential maritime disruptions.
The inclusion of CPEC on the BRI map highlights the critical role Pakistan has to play as a partner country in connecting the Silk Road Economic Belt of the BRI. This trans-continental passage links China with South East Asia, South Asia, Central Asia, Russia, and Europe by land, as well as the 21st-century Maritime Silk Road, a sea route that connects China’s coastal regions with South-East and South Asia, the South Pacific, the Middle East, and Eastern Africa, extending to Europe. Thus, Pakistan, through CPEC, assumes a central and pivotal role in the BRI network, where it connects the belt with the road network.
CPEC is the flagship project of the Belt and Road Initiative (BRI), an ambitious global development strategy launched by China to connect Asia, Europe, and Africa through a network of roads, railways, ports, and other infrastructure projects. The CPEC aims to bolster Pakistan’s economy by improving its infrastructure and energy sector, with a total investment of over $62 billion. CPEC is expected to contribute around 2-2.5% to Pakistan’s annual GDP growth. Investments in infrastructure, energy, and other sectors could lead to higher economic output and increased productivity.
Over the past decade, CPEC has seen the completion of several vital transportation projects that have greatly improved the way people and goods move between China and Pakistan. The crown jewel is the 1,300 km long upgraded Karakoram Highway (KKH), which connects China’s Xinjiang region to Pakistan’s Gilgit-Baltistan and serves as the primary transportation artery between the two countries.
Additionally, under CPEC several new highways, motorways, and railways have been constructed that have significantly reduced travel times, boosted trade, and improved connectivity within Pakistan. Among them, the Multan-Sukkur Motorway, the Lahore Orange Line Metro Train, and the Havelian Dry Port stand out as notable examples of infrastructure development. Before the actualization of CPEC, Pakistan faced an acute energy crisis, with regular power outages severely impacting industries and everyday life. CPEC’s energy projects have made great strides in addressing this issue by adding more than 10,000 MW of power to Pakistan’s national grid. Major power projects include coal-fired power plants like the Sahiwal and Port Qasim plants, hydropower projects like the Karot and Suki Kinari hydropower stations, and renewable energy initiatives like the Quaid-e-Azam Solar Park and Dawood Wind Power Project. The energy crisis has been largely mitigated because of the construction of these power projects and it has led to, revitalizing industries and improving the quality of life for millions of Pakistanis.
CPEC also focuses on the establishment of Special Economic Zones (SEZs) which aim at promoting industrial growth, attracting foreign investment, and generating employment opportunities. Nine SEZs have been planned under CPEC, among which Rashakai Dhabeji, Allama Iqbal Industrial City, and Bostan Special Economic Zones are under construction.
Special Economic Zones (SEZs) offer various incentives to investors, such as tax holidays, one-window operations, and reduced customs duties, to stimulate industrial growth and create thousands of jobs. The development of the SEZs is expected to spur further economic growth in Pakistan and pave the way for a brighter future.
Moreover, the Gwadar Port, located in Pakistan’s Balochistan province, has emerged as a vital strategic asset under CPEC, serving as a gateway for trade between China, Pakistan, and the rest of the world. The port has seen massive expansion and infrastructure development, including the construction of a new international airport, a free trade zone, and a network of roads connecting it to other parts of Pakistan.
The Gwadar Port will not only bolster Pakistan’s maritime trade but will also play a pivotal role Insight 51 in diversifying its economy and opening up new avenues of growth. Moreover, the port has become a symbol of China-Pakistan friendship, showcasing the power of regional cooperation and mutual development. There are 14 new projects planned under the CPEC Gwadar Development Plan.
The impact of CPEC goes beyond mere numbers and statistics; it has significantly improved the lives of millions of people in both China and Pakistan. The construction of new roads, railways, and other infrastructure has created thousands of jobs, while trade growth has led to increased economic opportunities for businesses and individuals alike. In addition, the alleviation of Pakistan’s energy crisis has enabled industries to operate more efficiently, fueling economic growth and leading to a higher standard of living. Furthermore, the development of SEZs and Gwadar Port has generated numerous indirect benefits for local communities, such as better access to education, healthcare, and other essential services.
While the past ten years have witnessed fairly good progress, CPEC has not been without its challenges. Security concerns, bureaucratic hurdles, and regional geopolitics have occasionally slowed down the pace of development. However, the unwavering commitment of both China and Pakistan to CPEC’s success has ensured that the project remains on track.
Without a doubt, the China-Pakistan Economic Corridor (CPEC) has the potential to create a substantial number of jobs for both China and Pakistan over the years. While it is difficult to provide an exact number of jobs that will be created, estimates suggested that CPEC could potentially generate around 2.3 million direct and indirect jobs between 2015 and 2030. This job creation potential stems from the various infrastructure projects, energy initiatives, and Special Economic Zones (SEZs) developed under CPEC. Construction and maintenance of transportation networks, power plants, and other infrastructure projects require a large workforce. Additionally, the SEZs are designed to promote industrial growth and attract foreign investment, which would result in more job opportunities.
Moreover, the development of Gwadar Port and its associated projects, such as the Gwadar Free Trade Zone and Gwadar International Airport, is expected to create numerous employment opportunities in the maritime and logistics sectors.
It is essential to note that these estimates are based on the successful implementation of CPEC projects and the ability of both China and Pakistan to overcome challenges such as security concerns, bureaucratic hurdles, and regional geopolitics. If CPEC continues to progress and achieve its goals, it has the potential to contribute significantly to job creation and economic growth in the region.
As we look to the future, CPEC has laid the groundwork for sustainable growth and development in both countries. With continued cooperation and determination, there is no doubt that CPEC will continue to be a beacon of hope and prosperity for China, Pakistan, and the entire region.
The China-Pakistan Economic Corridor has come a long way since its inception ten years ago. Through visionary planning, relentless execution, and strong bilateral cooperation, CPEC has transformed the economic landscape of both countries and positively impacted millions of lives. As we celebrate this remarkable milestone, let us reflect on the progress achieved and look forward to a brighter, more prosperous future for China, Pakistan, and the world.
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| Nine SEZs Under CPEC |
BRI has given the world a new perspective on cooperation and connectivity by redefining globalization. It has been viewed by some, as a new model of globalization that prioritizes cooperation, connectivity, and shared prosperity, rather than the competition and zero-sum approach of traditional globalization.
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| CPEC 2013-2023 |
BRI has given the world a new perspective on cooperation and connectivity by redefining globalization. It has been viewed by some, as a new model of globalization that prioritizes cooperation, connectivity, and shared prosperity, rather than the competition and zero-sum approach of traditional globalization.
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| The Importance of CPEC in the BRI: The Shortest Path to Connect the Road with the Belt Initiatives |
Undoubtedly, the China-Pakistan Economic Corridor (CPEC) has the potential to create a substantial number of jobs for both China and Pakistan over the years. While it is difficult to provide an exact number of jobs that will be created, estimates suggested that CPEC could potentially generate around 2.3 million direct and indirect jobs between 2015 and 2030.
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| Gwadar and Its Strategic Importance |
The China-Pakistan Economic Corridor has come a long way since its inception ten years ago. Through visionary planning, relentless execution, and strong bilateral cooperation, CPEC has transformed the economic landscape of both countries and positively impacted millions of lives. As we celebrate this remarkable milestone, let us reflect on the progress achieved and look forward to a brighter, more prosperous future for China, Pakistan, and the world.
