By: Abdul Samad Mugheri
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, India, Central Asian Republic and the region. The enhancement of geographical linkages has improved road, train and air transportation. System with frequent and free exchanges of growth and men to men 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.
China Pakistan economic corridor is journey towards economic regionalization in the globalized world. It founded peace, development, and win-win model for all of them. China Pakistan economic corridor is hope of better region of the future with peace, development and growth of economy. China-Pakistan economic corridor (CPEC) is a mega project undertaken by China and Pakistan with 75 million Chinese investment to connect Kashghar city of the Xinjiang autonomous region of China to Gawader port city of Baluchistan province of the Islamic Republic of Pakistan. These two Exhilarating cities are being connected through construction of a vast network of highways, railways, airports, oil/gas pipelines, many energy projects, and construction of special economic zones (SEZS).
Modern transportation networks built under the CPEC will link Gwadar and Karachi seaports with northern Pakistan, including Quetta, Lahore, Peshawar, Gilgit-Baltistan, Muzzaffarabad western China and central Asia. The CPEC plan includes the construction of 1100 kilometers motorway from Karachi to Lahore, complete reconstruction of the Karakoram highway from Rawalpindi to China, its border, up gradation of main Karachi-Peshawar railway line so that trains could travel at over 160 kilometers of speed that will be finally connected to the Xinjiang province railway system of China up to Kasghar. This entire transportation network will cost nearly 11 billion.
The CPEC projects also include construction of oil and gas pipelines from Gwadar port to Kashghar, China. To address the issue of energy shortage in Pakistan energy projects worth $33 billion are being built in Pakistan as part of CPEC plan. While SEZS will be constructed to give a boost to industrial development, fiber optic will be laid to do the business through vast track communication networks. This entire network of energy, transportation and communication projects under CPEC, after completion is expected to give major strategic and economic advantages. to Pakistan and China. Firstly the CPEC gives China an alternate shorter route for transportation of oil and gas from West Asia and Middle East and for trade to and from West Asia, Middle East, Europe and Europe. A large oil/gas depot will also be constructed for storage and further transportation to China through pipelines. The route is only about 2500 kilometers long as compared with the route through Malacca straits to Shanghai, which is about 14501 kilometers long. While the route to China through Gwadar reduces the distance by about 12000 kilometers and likewise the traveling time, this route will also prove to be a good alternative to keep the supplies going even during any tensions in south East Asia and South China sea, that might cause closure of the Malacca straights. This route would also provide easy and quick access to China to the Indian Ocean and the Arabian Sea.
The CPEC would provide a major boost to Pakistan’s economy by substantially increasing its trade volumes with China, Russia, central Asia, Middle East and Europe. Besides from this, during the construction phase and after completion of the CPEC, Pakistan’s economic growth by about 3 percent due to increase in its industrial output due to the availability of electricity and because of enhanced production out of the SEZS, Moreover, after completion of the CPEC foreign investment in Pakistan would also increase, which will further enhance the economic growth rate.
Another major advantage to Pakistan would be a major increase in the revenue to be earned due to transiting goods of other countries. Another major advantage would be that CPEC would create employment opportunities for the Pakistani people to the tune of about two to three million. The CPEC would also increase tourism in Pakistan, which will facilitate flourishing of the tourism and hotel industry of Pakistan centered on commercial activities in Gwadar city.
