An opportunity is just knocking at Pakistan’s door, where this is a game-changer and will reap benefits. “Pakistan will become an economic hub” one can surely expect from this project.

1. SUBJECT :
INTERNATIONAL BUSINESS MANAGEMENT
ASSIGNMENT ON:
CPEC BOOSTING UP PAKISTAN’S TRADE
SUBMITTED TO:
SIR MANSOOR
GROUP MEMBERS:
 MAHGUL KHAN 1310-BBA012
 VARDA SHAIKH 1310-BBA027
 HIBA SHAIKH 1310-BBA009

2.  MARYAM QAZI 1310-BBA015
INTRODUCTION:
Pakistan is entering into a new phase of economic development. China
is a rising economic power and is a neighbour of Pakistan. Pakistan
could easily benefit from China’s US$ 11 trillion economy and world’s
largest in Purchasing Power Parity (PPP).
The current Chinese model is the result of its surplus wealth. The two
countries enjoy cordial relations in all fields since the 1950s. An
opportunity is just knocking at Pakistan’s door, where this is a game-
changer and will reap benefits.
ROLE OF CPEC IN BOOSTING UP PAKISTAN’S TRADE:
This introduces a new dimension in China’s global trade. Pakistan would
become a Suez Canal for China’s trade in the Middle East, providing it
an alternative access as a friendly state to address its future
vulnerability in the South China Sea.
In return, the economy of Pakistan would be transform from US$ 237
billion to much larger economy. The World Bank’s latest report sees
positive growth of Pakistan’s economy under the CPEC investment. This
would be having positive impact on Pakistan’s trade with China, which
is accumulates US$ 5 billion deficit at present. In spite of unique
diplomatic and political friendship, Pakistan’s trade with China had
remained in doldrums from 1950s to 2007.
PAKISTAN’S ECONOMIC SURVEY(2014-15):
According to Pakistan Economic Survey 2014-15, the volume of trade
between Pakistan and China has increased to $16 billion.

3. The 3,218 kilometre route will connect Kashgar in China’s western
Xinjiang region to the port of Gwadar. Currently, nearly 80 per cent of
China’s oil is transported by ship from the Strait of Malacca to
Shanghai, a distance of more than 16,000 km, with the journey taking
between two to three months. But once Gwadar begins operating, the
distance would be reduced to less than 5,000 km.
EXPECTATIONS FROM CPEC:
“Pakistan will become an economic hub”
Along with CPEC, Pakistan will become an economic hub in South and
Central Asia, an axis of regional trade. The Gwadar Port, while gaining
importance as Pakistan’s economic center, will be one of the most
important ports in the Arabian Sea.
Businessmen of Gilgit-Baltistan who exports fresh fruits like cherries,
apricots and apples, is hoping that CPEC will be a game-changer for the
region. So far, the carefully packaged truckloads of fruit traverse the
rundown Karakoram highway to reach the national capital Islamabad,
from where they are flown to Qatar, Abu Dhabi and Dubai. According to
the Asian Development Bank (ADB), Gilgit-Baltistan produces over
100,000 metric tonnes of fresh apricots annually.
Gwadar has a 200,000 tonne tanker capacity, which presents
unmatched opportunities for boosting global economic interactivity
within Pakistan. Located strategically at the tail of the Corridor, yet at
the confluence of most of the world’s oil-producing states, Gwadar
automatically becomes one of the largest transshipment ports. It is
envisaged to have an international airport, crude oil refineries and the
ability to dock larger ships, turning it into a robust trade and
transportation hub.

4. CONCULSION:
The CPEC will affect Pakistan’s trade flows through multiple channels.
First, it will reduce behind- the- border trade costs and bring about a
shift in the modes of transportation. Second, it will strengthen
economic integration with the world’s largest trading nation, China.
Finally, it was give a boost to intra-country trade within Pakistan.
 The CPEC project will provide a network of road and railways to
link remote manufacturing facilities to the Karachi and Gwadar
seaports.
 The improved connectivity will reduce the costs of transportation
and curtail travel time.
 Furthermore not only will it enhance competitiveness of existing
firms, it will also incentivise exports.
 Moreover the project will also lead to the expansion of the export
product set.
For instance, Pakistan’s northern areas produce vegetables and fruits,
such as apples, apricots and cherries. But due to a lack of good
connectivity, most of this produce cannot be exported. The CPEC will
link the northern areas to airports in Peshawar, Rawalpindi, and Lahore.
This will give a boost to the export of agricultural commodities, as most
of these products are transported by air owing to their perishable
nature. This improved connectivity to sea port and airports is just one
aspect of the CPEC’s influence on trade flows. Another important
change would occur in the modes of shipment The reduction in behind-
the-border trade costs will give a boost to trade flows and increase
integration with China.

5. “However, to exploit the full potential of the CPEC, the country needs to
focus on reducing trade costs at the border by rationalising tariffs, and
those beyond the border, by negotiating trade agreements.”