By C. Andrew
Chin-Pakistan Economic corridor (CPEC) is a framework of
regional connectivity CPEC will not only benefit china and Pakistan but will
have positive impact on Iran, Afghanistan, India, Central Asia Republic and the
region.
As a pilot project of belt and road
initiative which focuses on connectivity and cooperation to promote common
prosperity the CPEC is a win-win proposition for Pakistan and the region. The enhancement of geographical linkages
having improved road, rail and air transportation system with frequent and free
exchanges of growth and people to people contact enhancing understanding
through academic, cultural and regional knowledge and culture, activity of
higher volume of flow of trade and businesses, producing and moving energy to
have more optimal business and enhancement of co-operation by win-win model
will result in well connected.
Integrated region of shared destiny, harmony
and development. It is perceived that
the CPEC will turn Pakistan into a bigger economy (125th largest by 2025 and
20th by 2030).
This the hard reality, however, more
importantly only an economist can differentiate between a foreign loan and
investment and their respective impacts on Pakistan’s economy. So it is
important to clearly state that out of the $63 billion to be injected into the
CPEC about $48 billion will be in the
form of investment in commercial projects by Chinese companies in
Pakistan which will not increase the latter’s external debt liability.
Which means Pakistan’s loan would be only about $15 billion. Besides, Gwadar Port in Pakistan and its
allied infrastructure would bring about a “sea change” in the Arabian Sea.
The CPEC will establish all-weather
connectivity between Gwadar and Kashgar in China’s Xinjiang Uygur autonomous
region. And surrounding areas and the
ground are being development to ensure the CPEC brings prosperity to the
region.
It is stated that the CPEC will open doors to immense
economic opportunities not only to Pakistan but will physically connect China
to its markets in Asia, Europe and beyond as well. Almost 80% of the china’s
oil is currently transported from Strait of Malacca to shanghai (distance is
almost 16,000 km and takes 2-3 months) with Gwadar becoming operational the
distance would reduce to less than 5,000 km. According to china Daily, if all
goes well and on schedule the 21 agreements on energy including gas, coal and
solar energy, these projects would provide up to 16,400 MW of energy
altogether. As part of infrastructure projects worth approximately $11 billion and
1,100 kilometer long motorway will be constructed between the cities of Karachi
and Lahore while the Karakoram Highway between Rawalpindi and the Chinese
border will be completely reconstructed and overhauled.
The Karachi-Peshawar main railway line will
also be updated to allow for train travel at up to 160 kilometers per hour by
December 2019. Pakistan’s railway network will also be extended eventually
connect to China’s Southern Xinjiang Railway in Kashgar.
A network of pipelines to transport liquefied natural gas
and oil also be laid as part of the
project including a $2.5 billion pipeline between Gwadar and Nawabshah to
transported gas from Iran. Oil from the Middle East could be offloaded at
Gwadar and transported to china through
the corridor, cutting the current 12000 km journey to 2395 km. It will act as a bridge for the new Maritime
Silk route that envisages linking 3 billion people in Asia, Africa and Europe
part of a trans-Eurasian project.
When fully operational. Gwadar will promote
the economic development of Pakistan and become a gateway for Central Asia
countries, including Afghanistan, Uzbekistan linking Sri Lanka, Iran and
Xinjiang to undertake marine transport.
Over $33 billion worth of energy infrastructure will be constructed by
private consortia to help alleviate Pakistan’s chronic energy shortages which
regularly amount to over 4500 MW and have shed an estimated 2-2.5% off
Pakistan’s annual GDP. With
approximately $33 billion expected to be invested in energy sector projects power
generation assumes an important role in the CPEC project. Over 10,400 MW of energy generating capacity is to be developed
between 2018 and 2020 as part of the
corridor’s fast-tracked “Early Harvest” projects.
The region of Baltistan is
known for its fresh fruit exports like cherries, apricot and apples so the CPEC
will be a game changer by opening business opportunities for the region’s traders. The will provide local
traders with an advantage and help them double their sales by tremendous saving
in cost of transportation.
Presently, fruits are being exported through air-cargo via Dubai it
would be faster and cheaper if the same could be sent by road to china via
Xinjiang. Tourism which currently makes up an insubstantial part of our
earnings is believed to be elevated by opening of this economic corridor. The
CPEC some believe will also boost tourism in the 73000 square km region. The region is considered to be a
mountaineer’s paradise since it is home of five of the ‘eight-thousands’ (peaks
above 8000 meters), as well as more than 50 mountains over 7000 meters. It is also home to the world’s second highest
peak K2 and the Naga Parbat. K2 is the
second highest Mount on Earth after Mount Everest. It is located on the border between Baltistan
in the Gilgit-Baltistan region of Pakistan and the Taxkorgan Tajik Autonomous
country of Xinjiang, China.
However, the CPEC has faced criticism and negative
publicity since its inception from countries that feel threatened by the rise
of Pakistan and china. And since
investment in future projects depends largely on the assessments of their
potential negative narratives could make it difficult to realize the full
potential of the CPEC.
The
findings of an online survey by Pakistan- China institute to “assess the
perception and awareness of respondents
with regards to various impacts and challenges that Pakistan will face in its
association with the CPEC” reinforces “the supposition that people are not at
par with the reality of CPEC” to some extent. Therefore the Pakistani
government needs to identify the shortcomings of its policies and take remedial
measures so as to present the true picture of the CPEC because its opponents
are using all the media tools especially social media to paint the CPEC ina
negative light. It is necessary for Pakistan to establish a media team that can
efficiently publicize what the CPEC really stands for by conducting
evidence-based research on the CPEC engaging all segments of the media and
academia to publicize the importance of the CPEC at the national level to help the people to
understand that its trickle-down effects will raise the living standards of the
common peoples of Pakistan highlighting CPEC’s role in the international arena
to attract more investment to Pakistan ensuring the press releases on CPEC
activities are issued in time creating and training a group of people to write
articles for media outlets highlighting the CPEC’s benefits and refuting the
defaming campaigns and publishing weekly
newsletters and quarterly, bi-annual and
annual magazines/journals for stakeholders, academia, students,
researchers and the business community.
Besides, the Pakistani government must not forget that
china invested in the CPEC at a time
when Pakistan faced severe energy shortage which slowed its economic growth and
increased extremism and terrorism. The CEPEC energy projects have almost ended
the decade-long chronic electricity shortfall within 32 months. Many countries have achieved progress and
prosperity after doing away with their geostrategic policies and focusing on
geo-economic realities. Thanks to china,
Pakistan has now realize the importance of geo-economic realities through the
huge influx of CPEC related direct investment which will define and decide the
destiny of generations of Pakistanis. Therefore, it is moral, social and
national obligation of people of Pakistan to serve and secure the CPEC with all
its manifestations.
