CPEC's long term effect on the Pakistan’s Growing economy

By Muhammad Sami

CPEC's long term effect on the Pakistan’s Growing economy

The Chinese investment of $56 billion in CPEC, is considered to be the biggest investment China has ever made in any foreign country trade. CPEC is said to be one of the main parts of the long term Chinese project of reviving their ancient ONE BELT ONE ROAD (OBOR) initiative.

This mega trade project which will connect China with the Central Asians countries along with Pakistan, Russia, and India too. By developing three main corridors via the southern, northern and central Xinjiang route. However, CPEC could be the once in a lifetime opportunity for the Pakistanis as it is deemed to be the game changer not just only for Pakistan but for the whole region.

The developmental deals which are involved in CPEC are said to be an equivalent of 20 percent of the Pakistan’s annual GDP roughly estimated. 3,218 kilometers long roads to be built by the year 2030, along with the project of the railway to be built from Chinese city of Kashgar to the port city of Pakistan Gawadar. Also somewhere around $34 billion will go to invest in the energy sector which will produce around 17,000 Megawatts of electricity.

Also, huge investments to be made in the infrastructure of the transport sector. Along with the up gradation of railway sector from Peshawar to the Karachi. This project which will help immensely to boost the falling economy of Pakistan. As it is going to create thousands of opportunities for the youth. Plus it will also help Pakistan to grow as the fastest pace developing nation.

With that mega project, China has become the second largest trade partner of Pakistan. Also Chinese government along with several others private companies and firms assured to invest Furthermore $20 billion of investment in other sectors too. Apart from telecommunication, infrastructure energy sector, and trade projects.

However, to succeed the mega project which is also known as the fate changer for the Pakistani people can also prove to be linked to the political stability of the country. A country’s economy is said to be directly linked to the political stability. Because it tends to attract more foreign investment to the land.

CPEC can also help Pakistan to move on from the position of lower middle ranked income country to the high middle-income country also by the achieving targets of per capita GDP of the $4,200.

Through CPEC Pakistan will become the hub of the trade and business in Asia. And also help Chinese western parts to penetrate the European and Asian markets further. New agreements also soon to be concluded for the newly built Gwadar international airport along with the east bay expressway which will directly impact the job market and create thousands of jobs for local people of the region.

Furthermore, it will have a very much multiplier effect in the next 10 years if taken into account which will go to the ratio which would be no less than 1: 150 for each Chinese person inducted in a job to the 150 Pakistanis will going to be employed.

The good thing for Pakistani people is that this mega project is enjoying the backing of all the political parties along with the special interest of Pakistan Army in it. Also, Pakistani people are really hopeful and anticipating for the success of this huge project for Pakistan. Which will have a great impact on Pakistan’s economy and the lives of millions of people living in Pakistan.

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