Pak China Economic Corridor
Pak China Economic Corridor
Pak China Economic Corridor
1
Ph.D. Scholar, University of Sindh, Jamshoro, [email protected]
2
Professor, Department of Sociology, University of Sindh, Jamshoro, [email protected]
3
Assistant Professor, Institute of Commerce, University of Sindh, Jamshoro,
[email protected]
4
Assistant Professor, Department of Political Science, University of Sindh, Jamshoro
164 The Government
Public/Private
North/So
Partnership-sub-
uth Africa Trade Integration
regional organizations
Corridor
initiatives
East/Wes Trade/Economic
Asia Public/Private
t Corridor Integration
Source: (Bernstein, 2009)
Table I is showing that important trade corridors in different regions along with
characteristics of corridors and funding mechanism. The main theme of all
corridors is to increase trade and economic activities in region and social
development of people through different funding sources.
EC for Pakistan
This corridor is necessary for Pakistan due to socio-economic condition of
country. In Pakistan, internal business situation is very bad and industrial sector is
50% less performing due to electricity short fall. While due to war on terror, we
have faced roughly loss of 35 billion dollars and direct foreign investment is
decreasing due to law and order as well as geo-political situation. Furthermore,
41% poverty rate may shake the foreign exchange (Khan and Khan, 2012.
Therefore, the EC is oxygen for economy of Pakistan. It truly can substitute of
lifesaving drug for dying economy of Pakistan.
Benefits of EC
Chinese premier Wen Jiabao assured to Pakistani prime minister in a meeting that
China would stand with Pakistan in all circumstances (Kardon, 2011). It is
estimated that $ 100 million annually can be generated from oil & gas transit
through economic corridor (Starr, 2007). It will provide a socio-political
opportunity to Pak-China to cater stake and power in regional politics. Thus, we
can say that EC will provide the road-network of opportunities for Pakistan.
168 The Government
Domestic
Investment
Estimation of Local Domestic Share Share in
of China in
Component (%) billion
billion US $
US $
Energy 33.7 10.4
Coal (7560 MW) 8.8 20 1.8
Wind (200 MW) 0.5 20 0.1
Hydel (1590 MW) 4.2 50 2.1
Solar (1000 MW) 1.7 0 0
Second phase 9.5 20 1.9
Mining expenditure 9 50 4.5
Road 5.9 80 4.7
Rail 3.7 50 1.8
China-Pak Economic Corridor 169
Mass Transit in
Lahore 1.6 50 0.8
Gwadar Port 0.7 50 0.3
Total 79.4 18
Source: (Ahmar, 2014)
Analysis: The table is showing the investment of China in different projects of
EC corridors along with the share of Pakistan. It describes that only in energy
sector China’s direct investment is $ 33.7 billion. While in other projects
participation of China is 5.9 in roads, 3.7 in rail, 1.6 in mass transit @ Lahore and
$ .7 billion for up-gradation of Gwadar port. Other side the picture shows that
Pakistani share is $18 billion.
1. Pakistan is facing wave of energy crisis, unemployment, terrorism and
violence. This project is blessing of God. It will boost the economy of
Pakistan greatly.
2. Pak-China economic corridor is a cluster corridor. Therefore, Pakistan
may get maximum benefits. Pakistan have chance to enhance capacity of
trade companies and bring innovative ideas in business.
3. EC will be the source of income generation activities in different sectors
like travel, real estate and banking. New employment opportunities will
also be opened for the professionals and skilled labour workers (Khan and
Khan, 2012).
4. It is assumed that 3 billion people will be benefitted from EC. Thus, we
can say that almost all citizen of Pakistan will be benefitted (Khan, 2013).
Conclusion
The Pakistan has nascent economy and it is a golden opportunity for Pakistan to
learn best practices of import, export and economic strategies from China. China
is largest trade partner of Pakistan but success of CEC will impose deep and
positive impacts on relations of both countries. CPEC will boost our socio-
economic development through rapid growth of GDP. The EC is oxygen for
dwindling Pakistani economy. From economic point of view, this corridor will
bring deprived and troubled areas like Baluchistan (Pakistan) and Xingjiang
(China) on the way of development. The peace, geo-political, economic stability,
solidarity and development of these less developed and deprived areas
170 The Government