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What is China-Pakistan Economic Corridor, and Explain the Prospects of the CPEC for Pakistan’s progress?

CSS Pakistan Affairs Question, "Prospects of the CPEC for Pakistan" is written by Ayesha Maqsood...

CSS Pakistan Affairs | Prospects of the CPEC for Pakistan

The following question of CSS Current Affairs is solved by Ayesha Maqsood under the supervision of Howfiv’s Pakistan Affairs and Current Affairs Coaches. She learnt how to attempt 20 marks question and essay writing from Sir Syed Kazim Ali, Pakistan’s best CSS and PMS English essay and precis teacher with the highest success rate of his students. This solved past paper question is attempted on the pattern taught by Sir to his students, scoring the highest marks in compulsory and optional subjects for years, and uploaded to help aspirants understand how to crack a topic or question, how to write relevantly, what coherence is, and how to include and connect ideas, opinions, and suggestions to score the maximum.

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Outline

                                                                 Outline

1-Introduction

2-Elucidating the term CPEC, its components and phases 

3-A bird’s eye view of China-Pakistan Economic Corridor

4- Prospects of CPEC rearing Pakistan’s national progress

  • Improve regional connectivity and cooperation by increasing trade and providing investment opportunities
    • Case in point: According to the Ministry of Commerce of Pakistan (2024) in collaboration with the State Bank of Pakistan, and the Board of Investment, CPEC would improve regional connectivity with Pakistan by about 25% and trade and investments by about 25 billion Dollars
  • Boost the GDP by creating jobs and reducing poverty
    • Case in point:  CPEC Authority in collaboration with the World Bank states that Pakistan’s annual GDP would boost to about 2-3% by providing 2.3 million jobs, reducing poverty by about 2-3%, increasing exports by about 10-15% and decreasing imports by about 5-10%
  • Improve infrastructure and technological development by construction and connection with renewable technologies
    • Case in point: According to the CPEC authority, 95 projects would improve infrastructure (Roads, Railways, and Energy sectors, Gwadar) to about 80-95% and integrate with fibre-optic and 5G Technology
  • Enhance education and healthcare by implementing initiatives and programs
    • Case in point: Under the CPEC authority, Language and education programs would improve education by about 50-75% and advanced technology and policies would eradicate by about 60% of diseases
  • Increased economic empowerment by reducing economic diplomacy and providing diversified foreign policy
    • Case in point: According to the World Bank and the Ministry of Planning and Foreign Affairs of Pakistan (2024), CPEC would reduce economic diplomacy by reducing economic dependence on others by about 15% and providing diversified foreign policy
  • Improve security situation by enhancing artificial intelligence, cybersecurity and data protection
    • Case in point:  Under the CPEC authority collaborating with Pakistan’s special security wing, Security services would increase by about 55% by implementing artificial intelligence programs, improving cybersecurity and protection
  • Boost cultural exchange and understanding by promoting traditional arts and crafts, festivals and celebrations and tourism development
    • Case in point: Under the CPEC authority collaborating with Pakistan’s cultural centre, Cultural exchange between China, Pakistan and other neighbouring countries would increase by about 35% by promoting traditional arts and crafts, festivals and celebrations and tourism development

5-What are the opposite stances of Global West and East on CPEC and what factors hinder the progress of CPEC?

6-Remedial measures to eradicate problems that affect CPEC progress

7-Critical Analysis

8-Conclusion

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Answer to the Question

 Introduction

The economic corridor is an element to uplift the country’s development by paving the way for achieving goals, in this modern technological world. Its importance can be determined by Global West which has initiated many economic corridors for the country’s development. Likewise, the China-Pakistan Economic Corridor has a significant role in socioeconomic, political and technological development by providing many opportunities to regions and states. According to the World Bank Report (2024), in the 9-year development phase, Pakistan has been strengthening its economy by about 2-3% due to CPEC and improving infrastructure by about 55%. Nonetheless, some factors derail the progress of the CPEC by showing the CPEC, a debt-dead policy in China. However, CPEC, at the crossroads of South Asia, is a game changer for the region, regarding trade and economic purposes by strengthening regional Connectivity. Many prospects related to CPEC have been mentioned by the World Bank, CPEC Authority and Pakistani Government in their reports. It would improve the infrastructure, mainly roads, highways, energy sectors and buildings; boost the GDP by providing jobs and eliminating poverty; enhance education and healthcare; improve the security situation by integrating with Artificial Intelligence; and improve economic empowerment by diversified foreign policy. Critically, these prospects can only be achieved when the problems are removed. Hence, the China-Pakistan Economic Corridor is the backbone of Pakistan’s development, and all the crises are becoming serpents for its progress. This essay illustrates the prospects of CPEC in Pakistan’s national progress.

Elucidating the term CPEC, its components and phases 

Decoding the term “the CPEC’’, the China-Pakistan Economic Corridor, at the crossroads of South Asia, is a ray of hope for Pakistan’s development connecting China’s Xinjiang region with Pakistan’s Gwadar Port through various projects. It is a flagship project of BRI and a game-changer for regional connectivity, including China, Pakistan, Central Asian Republicans, the Middle East and Europe for trade and investments. The main components of the CPEC are energy projects, transportation networks, Special Economic Zones, Gwadar Port and fibre optic cables. These components enhance Pakistan’s geostrategic importance. This project is divided into three phases: Short-term (2015-2020), which focuses on energy and structure; Medium-term (2020-2025), which focuses on Industrialization and Special Economic Zone development; and Long-term (2025-2030), which focuses on regional connectivity and trade expansion. Hence, CPEC is the project that creates regional stability and peace and lies at the crossroads of South Asia.

 A bird’s eye view of China-Pakistan Economic Corridor

Currently, the CPEC is facing a crisis due to the successive governments of both PML(N) and PTI. Many policies that have failed to be implemented hampers the project from being completed at the proposed time (2030). Many programs that were initiated during the tenure of Nawaz Sharif (2013-2017) have yet to be completed in both Imran Khan’s tenure (2018-2022) and Shahbaz Sharif’s tenure (2023-2029) leading to a derailed CPEC progress. The CPEC authority report mentions the investment amounts to about 50-55 billion dollars and about 95 initiated programs of which about 35-40 have been completed. However, the statistical evidence shows that about 10-15 billion dollars in investment amount is not mentioned in the records that are ultimately included in the corruption index. Also, due to the different political ideologies, it derails, as PMLN focuses on energy projects, infrastructure development, and Gwadar port, and PTI focuses on industrial cooperation, agriculture, and social sector development. Moreover, due to successive ministries of planning, commerce and foreign affairs, policies are regularly changed, and funds allocated to projects are deprived. It hinders socioeconomic, political technological development. Although many initiatives have been started Pakistan has not been able to avail these opportunities. Hence, the current situation of the CPEC is very unpredictable due to the successive governments.

 Prospects of CPEC rearing Pakistan’s national progress

  • Improve regional connectivity and cooperation by increasing trade and providing investment opportunities

The first and the most significant is regional connectivity and cooperation. The CPEC would improve regional connectivity and cooperation by increasing trade and providing investment opportunities to the Central Asian Republicans, the Middle East, South Asia and Europe. According to the Ministry of Commerce of Pakistan (2024), in collaboration with the State Bank of Pakistan and the Board of Investment, CPEC would improve regional connectivity with Pakistan by about 25% and trade and investments by about 25 billion Dollars. This shows that foreign investments increase in the country, strengthening the regional economy and development. Thus, Regional connectivity is important for increasing trade and foreign investments.

  • Boost the GDP by creating jobs and reducing poverty

Going down the ladder, the second prospect of the CPEC would boost the GDP by creating jobs and reducing poverty. Employment plays a role in the country’s development by increasing the GDP. The CPEC Authority, in collaboration with the World Bank, states that Pakistan’s annual GDP would boost to about 2-3% by providing 2.3 million jobs, reducing poverty by about 2-3%, increasing exports by about 10-15% and decreasing imports by about 5-10%. This report illustrates that when poverty decreases in the country and employment increases, it will boost the GDP. Also, when the products are made in the country, and local products fulfil the needs, it decreases and increases imports. Thus, the CPEC would boost the country’s GDP, paving the country towards development.

  • Improve infrastructure and technological development by construction and connection with renewable technologies

Moreover, the third prospect of the CPEC includes improving infrastructure and technological development through construction and connection with renewable technologies. Infrastructure development ensures the construction of roads, railways, and highways, integrating with advanced fibre optics and artificial intelligence. According to the CPEC authority, 95 projects would improve infrastructure (Roads, Railways, and Energy sectors, Gwadar) to about 80-95% and integrate with fibre-optic and 5G Technology. This illustrates that it would add a capacity of about 6000-7000MW and about advanced technology. Hence, the CPEC would improve the infrastructure and technological advancements.

  • Enhance education and healthcare by implementing initiatives and programs

Further, the fourth prospect of the CPEC includes, that the CPEC would enhance education and healthcare by implementing initiatives and programs. These projects would invest in constructing educational institutions and healthcare clinics and help make efficient policies. The CPEC Education programs would increase the literacy rate by reforming outdated curricula, and through healthcare programs, it would eliminate diseases. Under the CPEC authority, Language and education programs would improve education by about 50-75%, and advanced technology and policies would eradicate about 60% of diseases. This shows it would produce sharp-minded people, who would become able to improve research and development. Hence, all these programs would help increase the literacy rate and eliminate the pandemic.

  • Increased economic empowerment by reducing economic diplomacy and providing diversified foreign policy

Additionally, the fifth prospect of the CPEC includes, that the CPEC would increase economic empowerment by reducing economic diplomacy and providing diversified foreign policy. Since its inception, Pakistan’s economy has depended on the Western side and foreign policy is also more oriented towards Western interests. According to the World Bank and the Ministry of Planning and Foreign Affairs of Pakistan (2024), CPEC would reduce economic diplomacy by reducing economic dependence on others by about 15% and providing diversified foreign policy by about 45-55%. This shows that the CPEC would decrease the economic dependence on others by uplifting the economy. Also, it would provide the opportunity to adopt a neutral foreign policy. Thus, this step considers the root, which would eradicate national problems by providing neutral foreign policy and economic empowerment.

  • Improve security situation by enhancing artificial intelligence, cybersecurity and data protection

Furthermore, the sixth prospect of the CPEC includes the fact that it would improve the security situation by enhancing artificial intelligence, cybersecurity, and data protection. Pakistan has been facing terrorism and extremism from the sides of India and Afghanistan. So, to get rid of these security concerns, all programs have been connected with artificial intelligence, which alarms about upcoming threats to Pakistan. Under the CPEC authority collaborating with Pakistan’s special security wing, Security services would increase by about 55% by implementing artificial intelligence programs and improving cybersecurity and protection.  This step is important in this manner, it would provide the upcoming threats by radar system turning the redshift to blue shift. Thus, this would be a great prospect for saving Pakistan from terrorist attacks.

  • Boost cultural exchange and understanding by promoting traditional arts and crafts, festivals and celebrations and tourism development

Last but not least, the prospect of the CPEC includes boosting cultural exchange and understanding by promoting traditional arts and crafts, festivals and celebrations and tourism development. Preservation of cultural heritage is the heart of any nation. Under the CPEC authority collaborating with Pakistan’s cultural centre, Cultural exchange between China, Pakistan and other neighbouring countries would increase by about 35% by promoting traditional arts and crafts, festivals and celebrations and tourism development This step would be boosted by integrating the cultural norms with the country’s development. Hence, the country’s development goes hand in hand with understanding cultural norms and values. Moreover, all these prospects would help eradicate social evils and strengthen the nation’s progress.

What are the opposite stances of Global West and East on CPEC and what factors hinder the progress of CPEC?

The importance of the CPEC can never be denied as it becomes the reason for uplifting the country in all domains; like social, political and economic development. However, some critiques have prevailed from Global West and East by showcasing China’s CPEC as a debt-trap policy. Their stance on the CPEC is like the East India Company of the British, which shatters the roots of the country through colonisation. The American president’s stance on CPEC is scarce, as his many statements are not straightforward to the CPEC; he opposes the CPEC, as debt implications and potential for China’s military expansion. The U.S. has also launched the Build Back Better World (B3W) initiative to counter China’s BRI project, of which CPEC is a part.  European Union Council has shown concerns about meeting international standards and environmental safeguards to Pakistan and China. Moreover, the Global West has increased the threats to the CPEC by engaging the Global East like India and Afghanistan in security threats, which increases security concerns like terrorism, extremism, and secularism. Hence, these factors and opposite stances hamper the progress of the CPEC and prolong its phase times.

Remedial measures to eradicate problems that affect CPEC progress

“Nations are collectively judged by their deeds here and now, and get the fruits of their actions,’’ by Allama Muhammad Iqbal, shows that prospects can only be achieved whenever a nation moves its hands and feet for our development. So, Pakistan should focus on prevailing problems that hamper the CPEC progress by trying to eradicate these problems for the country’s sake. Therefore, it should eliminate the governance problems by stabilising the government’s tenure and stressing the completion of its tenure of 5 years by putting aside the political unrest. It hampers the CPEC’s progress by derailing it. Further, the rigid policies of the CPEC should be implemented by reforming documentation with Pakistan’s unstabilised successive governments. It is necessary because different ministries arrive with varying political agendas and change their policies. Moreover, the running government should increase the funds for investment in the CPEC project because it should be completed timely. It can be done by collecting revenues and taxes and increasing the GDP. Hence, Pakistan should take remedial measures to foster the CPEC project by eliminating problems.

Conclusion

Critically evaluate, there is always room for improvement in this fake world that would go hand in hand with evils. In the same way, Global West and Global East present the China-Pakistan Economic Corridor as a debt-trap policy of China. Moreover, it also shows China’s militant expansion to the CPEC. Because Pakistan would adopt the diversified foreign policy due to this project. However, its importance can never be denied and can be determined by regional connectivity, increased trade, attracted foreign investment, improved infrastructure and energy sectors, and technological advancements. The CPEC lies at the crossroads of South Asia, increases Pakistan’s Geostrategic importance and puts the fire in the hearts of opposition. Hence, it is the game changer for South Asia because it decreases the economic dependence on the West and lessens the value of the Dollar.

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