May 11, 2021
China-Pakistan Economic Corridor: Unlocking Regional Potential
China and Pakistan intend to showcase the tremendous potential of the China-Pakistan Economic Corridor (CPEC), aiming to make it a regional connectivity hub. This was stated by the Pakistani Foreign Ministry following the second meeting of the strategic dialogue between the foreign ministers of the two countries, held in Hainan Province, China.
During the meeting, the ministers discussed bilateral relations, regional and international issues, and reaffirmed their commitment to advancing the economic corridor. Both sides emphasized completing ongoing CPEC investment projects on schedule and strengthening cooperation within special economic zones.
Strategic and Economic Significance of CPEC
The China-Pakistan Economic Corridor, signed at a total cost of $64 billion, aims to connect China’s strategically important Xinjiang province in the northwest with Pakistan’s Gwadar Port through a network of roads, railways, and pipelines for transporting goods, oil, and gas.
This project provides China with the lowest transportation costs to Africa and the Middle East while generating billions in revenue for Pakistan by providing transit facilities to the world’s second-largest economy.
Pakistani Senator Muhammad Talha, head of the Economic Corridor Project Board from Pakistan’s side, emphasized the strategic importance of CPEC in strengthening both Pakistan’s and the region’s economy, particularly through the facilitation and delivery of energy resources.
Industrial Development and Energy Projects Along CPEC
CPEC includes plans to build 29 industrial cities along the corridor, creating significant job opportunities, fostering economic development, and improving national welfare.
Talha also highlighted complementary energy projects, initiated in 2015, which include coal, solar, hydro, and wind power generation. These initiatives aim to reduce the cost of electricity and provide a reliable energy supply to support the corridor’s growth.
Security and International Considerations
To ensure the security of the corridor, Pakistan has formed a special team comprising members of the police, army, and Special Forces. The Chinese workforce involved in the project is required to obtain permission from Pakistan’s Ministry of Interior before visiting sensitive areas.
Regarding the United States’ stance, Talha noted that Washington has historically opposed CPEC, but such international opposition is a normal aspect of geopolitics.
Strengthening Pakistan-Turkey Relations
Talha also discussed Pakistan’s strong ties with Turkey, noting a long history of friendship and partnership between the peoples of both countries. The Pakistani senator praised Turkey’s intelligence services for their actions following the 2016 coup attempt and the handling of the Jamal Khashoggi case.
Regional Connectivity and Global Impact
CPEC is expected to boost growth in major Pakistani cities, including Islamabad, Lahore, Peshawar, Multan, Hyderabad, and Karachi. The project also shortens China’s trade route from the Malacca Strait to the European Sea Route, potentially generating annual profits of at least $10 billion for China and $5 billion for Pakistan.
Additionally, the corridor intersects with southeastern Iran, linking the ports of Chabahar (Iran) and Gwadar (Pakistan), and connects Russia, Mongolia, and Central Asia to the Gulf of Hormuz. This connectivity is expected to alter the international balance of power in the region while enhancing trade and strategic collaboration between China and Pakistan.
This article was originally published on my LinkedIn profile as part of my professional thought-leadership series. While the complete insights are shared here for your convenience, I encourage you to visit the original LinkedIn post link given below to join the discussion, explore audience perspectives, and stay connected for future updates.https://www.linkedin.com/pulse/china-pakistan-economic-corridor-project-cost-64-billion-ashaq?trackingId=RlxdoyoWTkO8sq7DJKDh2Q%3D%3D&lipi=urn%3Ali%3Apage%3Ad_flagship3_profile_view_base_recent_activity_content_view%3B6sy1Jw8UQheMTfHKouPc2A%3D%3D