CPEC challenges and its prospects

1. CPEC
CHALLENGES AND ITS PROSPECTS

2. INTRODUCTION:
 CPEC is brimmed with a host of geo-economic, geo-strategic and geo-political connotations for
Pakistan. It could potentially make Pakistan an economic and a trade hub. CPEC would lift the
crippled economy of Pakistan, while accomplishing the target of $4200 Per Capita Income, would
empower and develop the underdeveloped regions of Pakistan specifically Baluchistan province,
would alleviate poverty and unbridled inflation, would create around 02 million jobs and above
all the CPEC would bring back the lost glory of Pakistan.
 The China-Pakistan Economic Corridor (CPEC) provides both challenges and opportunities for
Pakistan and China.

3. INTRODUCTION:
 The CPEC is a process rather than just one project.
 The Corridor strategy can be traced back to the 1960s as part of Pakistan‘s efforts to develop
Gwadar port as an alternate port and shipping hub, which could ultimately uplift province of
Baluchistan, serve as an important conduit for China and assume the role of regional transit and
transportation hub in maritime domain.
 China has the financial muscle while Pakistan has fought militancy avidly to bring political stability
in the country. Therefore, the economic cooperation between Pakistan and China can be
enhanced, especially as the next stage of social development projects is now underway.
 CPEC will make Pakistan economically and politically strong and should be accepted across the
board as a reality.

4. CHALLANGES:
 Security is one of the biggest challenge faced by both the countries in the regulation of this
massive process.
 Challenges of CPEC depends upon the nature of enmity of both the countries with their rival
nations. Its obvious that USA is not happy with the ever increasing influence of China over the
world. Similarly China border dispute with India may also pose a threat to CPEC.
 Because of the terrorism issue in Pakistan, total of three routes are constructed as alternatives.
Officials at the Planning Commission argue that the completion of infrastructure in K-P and
Baluchistan will take a few years and thus it was imperative to utilize the existing infrastructure.
This was done to accommodate Chinese concerns rooted in the security condition in K-P and
Baluchistan.

5. CHALLENGES
 The uncertain political system is a great challenge in the completion of this mega project.
 Absence of incentives for the investors, imposition of ban on non-filers to buy a property worth
more than 5 million unless they register themselves with the Federal Board of Revenue (FBR),
FBR’s strict regulation on banking transactions of non-filers, levying of high taxes on transfers of
property discouraged the investors to put their money in the sector in 2018-19. Another factor
that contributed to slowdown of the real estate is non-utilisation of developmental budget that
led to contraction of construction sector and consequently, realty sector. But, there are bright
prospects that there will be a high growth in the real sector in 2020.

6. PROSPECTS
 CPEC is a long-term well-grounded project to develop a strong collaboration between the two
neighboring countries of Pakistan & China for the mutual benefits of China, Central, West, &
South Asia.
 The major focus areas of different economic corridors under consideration include transport,
human resource development, energy, telecommunication, tourism, agriculture, environment and
trade in a region.
 The National Tourism Coordination Board is playing an active role in ensuring effective
coordination among the Baluchistan Coastal Development Authority (BCDA) and Government of
Sindh to mobilize investment in maritime tourism sector of blue economy.

7. PROSPECTS
 Both the countries have devised an ‘action plan’ to cooperate in agriculture, education, port
development and maritime sector. The agricultural cooperation between the Xinjiang Agriculture
University and the University of Agriculture, Faisalabad is already in place. China will invest $200
million in Pakistan’s seafood, steel and agriculture sector to boost bilateral business. The mining
sector is also likely to flourish. Baluchistan is rich in mineral resources. These economic activities
will promote micro, medium and small-sized industries, thereby, opening up job prospects for the
local population.
 CPEC offers a “golden opportunity” for Pakistan to revitalize its economy and achieve
development. The fundamental reason is that CPEC can significantly enhance the overall
competitiveness of Pakistan. With “Made in Pakistan” as a breakthrough point, China will help
accelerate the development of Pakistan’s local industries, and promote the export and import
substitution of high value-added products, so as to make Pakistan’s existing parks to grow
stronger.

8. CONCLUSION
 CPEC is widely believed as a fate changer for Pakistan due to unprecedented investment of US$
45.6 billions promised by China for Pakistan. CPEC is of huge significance for the revival of
Pakistan's ailing economy, the resolution of energy crisis and strengthening of federation of
Pakistan through development and building of infrastructure.
 CPEC is a reality and it will bring in economic prosperity which will make Pakistan politically strong
and more stable. The time has come for Pakistan to lead the Third World. We have the
manpower and intellect to do it.