China- Pakistan Economic Corridor (CPEC): Challenges and Prospects
Group-6
Members: Kulsum Zahid, Komal Soomro,Haroon,Maqsood
1. Introduction
China-Pakistan Economic Corridor is a framework of regional
connectivity.
CPEC will not only benefit China and Pakistan but will have positive
impact on Iran, Afghanistan, Central Asian Republic, 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 businesses and
enhancement of co-operation by win-win model will result in well
connected, integrated region of shared destiny, harmony and
development.
Vision and Mission :
Integrated Transport & IT systems including Road, Rail, Port, Air and
Data Communication Channels
Energy Cooperation
Spatial Layout, Functional Zones, Industries and Industrial Parks
Agricultural Development
Socio-Economic Development (Poverty Alleviation, Medical Treatment,
Education, Water Supply, Vocational Training)
Tourism Cooperation & People to People Communication
Cooperation in Livelihood Areas
Financial Cooperation
Human Resource Development
b. Starting date
· 22 May 2013 between Nawaz Sharif and Xi. Jinping
· Initial: $ 47 billion
· Now: $62 bn
Chairman of CPEC: Abdul Razak Dawood
c. Phases of CPEC
i. Phase 1 :
The first phase of CPEC was to remove key economic
bottlenecks namely energy and infrastructure
544 KM of roads have been constructed and 1456 KM are
under construction.
In the energy sector, 5320 MW of electricity has been
added to the national grid while work on 7 projects with
4170 MW power projects are nearing completion
Regarding development in Gwadar, 10 projects in
infrastructure and social sector development have either
been completed or under construction.
ii. Phase 2 : about industrialization, socio-economic
and agricultural cooperation and promoting business and
consolidating developments
iii. Phase 3 : long term proposal. Building
highways (4000km), upgraded railway, Gawdar-Khashgar Oil
Pipeline, 21 mineral processing pipe line.
2. Prospects for Pakistan
a. Economic growth
b. Energy
1320MW Sahiwal Coal-fired Power Plant
1320MW China Hub Coal Power Project, Hub Balochistan
660MW Engro Thar Coal Power Project
1000MW Quaid-e-Azam Solar Park (Bahawalpur)
884MW Suki Kinari Hydropower Project, KP
c. SEZs
Rashakai Special Economic Zone
Dhabeji Special Economic Zone
Allama Iqbal Industrial City
Bostan Special Economic Zone
d. Agricultural enhancement/ technological development
e. Gawadar development
3. Challenges for CPEC
I. India aggressive behavior
promotes security issues for CPEC (India Involvement).
II. Political instability and
poor governance are also threating the process of progression
of CPEC.
III. The separatist rebellion in
Baluchistan.
IV. Foreign espionage
activities in Pakistan.
V. Lack of domestic
consensus.
VI. Challenges from Khyber
Pakhtunkhwa on the changed direction of route from federal
government
VII. Cultural threats to
Baluchistan.
VIII. The risk of assets seizure in
case Pakistan fails to repay its Chinese loans.
IX. Trade imbalance between
China and Pakistan (Pakistan’s import rate is higher than
export from China)
X. Chinese military purpose.
XI. US-China economic war is
the great hurdle for Pakistan in all perspectives.
XII. Ethnic and sub nationalist
groups in Pakistan are serious threats to CPEC.
XIII. Hybrid warfare is promoting
the external threats to Pakistan.
XIV. External terrorism is also
hurdling in the way development of CPEC (Cross border
terrorist attack).
XV. Challenges from
Baluchistan ( Baloch tribes have fear that they may be
converted into minorities).
XVI. Emerging chaos in
Afghanistan is a great threat for CPEC.
XVII. The resolution of Iran nuclear
issue may hamper the CPEC development.
XVIII. If Pakistan is unable to
stabilize the domestic economic stability then CPEC will be
great challenge.
4. Solution and recommendations
I. Promote skill based technical
education
II. Build roads and infrastructure for
reaping the benefits
III. Remove Bureaucratic red tapes
IV. Reforms for Ease of doing business
5. How is it a game changer for Pakistan? (Suggested readings)
https://ipripak.org/cpec-a-game-changer/
https://ipripak.org/saarc-and-cpec-preparing-for-future-oped/
https://pide.org.pk/blog/cpec-phases-and-challenges/
6.Quotations about CPEC
1. Our Future generations will continue to eat the fruits of this game
changing project. Asif Ali Zardari
2. CPEC is an epoch making project going to put Pakistan-China
friendship and their economic cooperation to new heights. Shehbaz Shareef
3. Pakistan-China friendship is higher than Himalayas, deeper than
ocean, sweater than honey and stronger than steel.
7. BOOKS ABOUT CPEC
1. CPEC, a game changer (written by Minhas Majeed).
2. CPEC, a gateway to sustainable economic development (written by
Mahwish Zafar).
3. CPEC and Pakistani Economy; an appraisal . (written by Ishrat
Hussain).
4. China Pakistan Economic Corridor ( written by Dr. Ijaz Hussain).
5. Creating Shared Futures. (written by Talat Shabeer).
