This slide analysis the hidden cost of CPEC for Pakistan. A multibillion Chinese project, seen as a game changer, comes with a heavy cost for Pakistan. How, the slide analyses it

1. The Hidden Cost of China-
Pakistan Economic Corridor
(CPEC)
By Safi Ullah

3. 1. Introduction to the Project
• CPEC is a multibillion (57 billion dollars) dollar project that aims at greater connectivity of the South,
Middle and Central Asia through land and sea routs.
• It is in fact a part of China’s greater and rather ambitious project i.e One Belt and One Route Project
(OBOR) which entails six major land routes to allow constant land communication in case of sea
blockade.
• China is a rapidly growing economy and has a pooling industry with voracious appetite for energy.
• Currently China is meeting 60 per cent of its energy needs from coal while rest 40 per cent are met
through fossil fuel imported from Middle East via Persian Gulf.
• China needs to reach the Persian Gulf for import of oil and the Red Sea to export its products via sea to
the rest of Europe through Suize Canal that connects Mediterranean and Red Sea.
• For China, the current distance from the East China to the Persian Gulf is around 10,000 Nautical miles
which will be reduced to mere 2500 kilometers, once the project is completed.

4. 1.1 PROSPECTS FOR PAKISTAN
• Pakistan has been grappling with energy crisis and economic constraints for long. CPEC provides a robust window of
opportunity for Pakistan to tame down the crisis seizing CPEC opportunity.
• It will make Gwadar Deep Sea port one of the busiest sea ports of the region, diverting enormous economic activity to
Pakistan.
• It would also beat down unemployment in the region and trigger trade activities.
• It would provide Pakistan a chance to improve its infrastructure i.e land communication lines.
• CPEC would also yield an opportunity of developing the under developed areas of Pakistan that include the regions of
KPK, GB and Balochistan.
• It would address the monster of energy crisis that has almost paralysed Pakistan’s socio-economic infrastructure.
• It would also tame down the dissenting voices, counter India’s hegemony in the region and reduce Pakistan’s
dependence on America.

5. 1.2 Hidden Cost of CPEC
• Apparently CPEC is a coffer that unfolds magnificent vistas of development for Pakistan,
gleefully dubbed as ‘game changer’ by powers that be.
• However, when tested on the touchstone of sustainable development and environmental
friendly prism, the foundations of the edifice on which CPEC project stands seem to be
shaky. Mystery shrouds the project so far, as much of the projects’ details have not been
made public by the Planning Commission Pakistan; however, the known details even do
not abode well on environmental grounds.
• To elaborate, the world has long shifted to other environmental friendly resources of
energy but 60 per cent of CPEC projects are coal powered that would toxify the air
enormously. Welker-Hood suggests in one of his studies in 2009 that coal combustion
affects not only the respiratory system but also the cardiovascular and nervous systems.

6. 1.3 Hidden Cost of CPEC (continued)
Dawn Published a story, claiming that hundreds of acres would be allotted to the Chinese for
agriculture purposes where pesticide factories, fruit processing plants, fertilizer production
installments would be set up. This has been done with least regard to the flora and fauna in
Pakistan.
No comparative studies are on record of the comparative environmental laws and
environmental protection mechanisms of both countries. Under what laws Chinese shall
operate in the allotted lands is shrouded in ambiguouity.
Ground water depletion, patches of drought, famine are common phenomena in Pakistan
and the industrial waste in forms of matter and toxic air is likely to exacerbate the situation.
The road construction practices would cause changes in topography such as bridges,
embankments, and many more hidden visual changes to topography.

7. 2. Literature Review
• A lot of literature has been produced on the hazards of CPEC in terms of environment.
• CPEC will likely face challenges owing to differences between China and Pakistan in
politics, economics, culture, religion, language, customs, environmental management
systems, environmental protection laws, social management systems, and social
management regulations. (Zhang, Ruilian, Andam Francis, et al, 2107).
• “A sense of social and environmental responsibility on the part of multinational
manufacturing enterprises should be established. Moreover, enterprises should reduce
environmental risks ERs of investment by implementing environment liability insurance
(Chen, 2014).

8. 2. continued…
• The road construction practices may also cause changes in topography
such as bridges, embankments, visual changes to topography due to new
road construction. (Bilal, Tariq, 2016). Siddiqui (2016) highlighted that
CPEC Road Project is not bad; however, ignoring environmental standards
in CPEC is bad.

9. 3. Results
• Undoubtedly a great project in terms of igniting economic activity.
• However, without due regard to environmental concerns, as suggested in the
foregoing literature, can prove disastrous.
• Change in topography, addition to environmental hazards, loss of natural
habitat, and myriad other health issues are likely.
• Shall endanger marine life.

10. 4. Conclusion
• FDI should always be welcomed in Pakistan but not with a blind eye.
• They should be concluded in conformity with the environmental laws so that
they bring benefits rather than pain and misery

11. Thank you!