China-Pakistan Economic Corridor promotes modernization, multilateral cooperation

BEIJING, Nov. 20, 2024 /PRNewswire/ -- A news report by chinadiplomacy.org.cn on China-Pakistan cooperation through the China-Pakistan Economic Corridor (CPEC):

A recent research, conducted by the Institute of Peace and Diplomatic Studies, Islamabad, Pakistan, highlights efforts by China and Pakistan to strengthen cooperation through the China-Pakistan Economic Corridor (CPEC).

As part of the Academy of Contemporary China and World Studies' project on knowledge sharing, the research draws on findings by several scholars in key areas such as industrial growth, environmental sustainability, human development, and regional connectivity.

The research shows that in the past decade, CPEC has helped Pakistan facilitate infrastructure development, promote industrial growth, enhance environmental sustainability, boost regional connectivity, and accelerate human development. Here are some highlights of the report:

CPEC facilitates infrastructure development

The corridor strategically links Kashgar in China with Gwadar in Pakistan, passing through major cities such as Quetta, Peshawar, Islamabad, Lahore, and Karachi, according to Dr. Liaqat Ali Shah's study, "Building Foundations: Infrastructure and Energy Synergies under CPEC." This connection facilitates access to Central and South Asia. Investment in transport infrastructure, estimated at approximately $8.9 billion for 2,500 to 3,000 kilometers of roads connecting Gwadar Port to Kashgar, is expected to stimulate economic growth by enhancing connectivity, reducing transportation costs, and increasing efficiency for businesses and workers. Additional benefits include shorter travel time, job creation, and tourism development.

Often intertwined with transport initiatives, energy projects play complementary roles in enhancing economic development. Efficient transport infrastructure — such as roads, railways, and ports — facilitates the movement of goods and services, reducing costs and improving market access. Simultaneously, reliable energy infrastructure supports industries, businesses, and households with the power needed for efficient operations. When developed together, these sectors significantly enhance economic productivity.

As China-Pakistan relations deepen, the combination of Chinese expertise and commitment, along with Pakistan's resolve, its domestic market, connectivity with regional economies, and its desire for essential economic changes, inspires hope for improved collaboration between energy and transport infrastructure in the near future.

CPEC promotes industrial growth

Multibillion-dollar projects under CPEC, including improvements to road and power infrastructure, the development of Free Trade Zones (FTZs), and upgrades to Gwadar Port, are seen as transformative for both the region and the world. These initiatives are expected to drive economic prosperity in Pakistan by modernizing its industrial sector.

Dr. Attaullah Shah's research "Catalysing Growth—Industrial and Technological Advancements under CPEC" focuses on the second phase of CPEC (2021-2025), which shifts toward industrial development and establishing Special Economic Zones (SEZs). This phase aims to attract both local and foreign investments, foster industrial growth, and create jobs. Innovation and sustainability are key pillars of this phase, with plans to develop an innovation corridor to position Pakistan as a leader in technological advancements within the region.

The establishment of SEZs across Pakistan is expected to generate employment, promote technology transfer, and boost the manufacturing sector. Their success relies on robust governance, consistent policies, and enhanced security measures. The main measure of mutual development is the speed at which the second phase of CPEC is implemented. This phase focuses on achieving real industrial growth and socioeconomic development while sharing Chinese knowledge and experience with Pakistan.

CPEC enhances environmental sustainability

The research by Dr. Zahid Anwar and Tanzeel Ur Rehman, "Promoting Environmental Sustainability through Agricultural Development and Tourism Integration under CPEC," highlights the environmental and agricultural aspects of CPEC. While CPEC's energy projects have significantly alleviated the power crisis, reliance on coal-fired power plants has raised environmental concerns. Pakistan and China are collaboratively addressing these issues, considering Pakistan's rich coal reserves and international standards.

In the agricultural sector, CPEC aims to improve productivity through technology transfer and modern practices. Enhanced infrastructure and innovative technologies are expected to significantly bolster agricultural productivity, improve rural livelihoods, and ensure sustainable food production amidst prevailing environmental challenges.

Additionally, integrating tourism with agriculture is seen as a way to promote environmental sustainability and economic diversification. Agritourism not only supplements farmers' incomes but also contributes to job creation, preserves cultural heritage, and fosters environmental stewardship through sustainable farming practices.

CPEC boosts regional connectivity

A study by Dr. Muhammad Munir and Muhammad Abdul Rafay Shaffi, "Gateway to Growth - Gwadar Port as the Nexus of Regional Trade and Blue Economy Development," emphasizes the strategic importance of Gwadar Port in CPEC. Gwadar Port, located in Balochistan, is one of the world's most strategic deep-sea ports, and it is of vital importance to both Pakistan and China. Located near the Strait of Hormuz, a key route for global oil trade, the port has great potential for regional and international trade, connecting Pakistan with important areas like the Middle East, Central Asia, and Africa. Its strategic location could transform Pakistan's blue economy by enhancing connectivity and boosting trade.

This deep-water seaport in Pakistan can effectively serve as a hub for transshipment, warehousing, and sea trade, facilitating the management of commercial and industrial activities related to imports and exports, particularly with Afghanistan, Oman, the United Arab Emirates, Saudi Arabia, Qatar, China, and Central Asian countries.

CPEC accelerates human development

Dr. Abdul Sattar's research titled "CPEC and Human Development in Pakistan: A Descriptive Analysis" explores the impact of CPEC on Pakistan's socioeconomic development.

CPEC focuses not only on building infrastructure but also on soft power projects in education, healthcare, and skill development. By sharing knowledge and building capacity, CPEC aims to improve Pakistan's human capital. Specific initiatives include setting up vocational training centers, offering scholarships, and enhancing medical facilities. These efforts contribute to improving Pakistan's Human Development Index.

The human development aspect of CPEC includes projects aimed at poverty alleviation, job creation, and improving living standards. Educational exchanges between Chinese and Pakistani institutions are helping to develop a new generation of skilled professionals who can drive Pakistan's economic growth.

Looking ahead, the success of CPEC's second decade will depend on achieving key goals through strong collaboration between countries, effective governance, and a commitment to inclusive and sustainable development. The next phase offers more opportunities in areas like coastal tourism, the blue economy, and the development of modern SEZs, which will attract local and foreign investment, especially from China.

By encouraging innovation, ensuring environmental responsibility, and strengthening regional connections, CPEC can continue to be a powerful driver of Pakistan's economic and social progress. Both nations can anticipate a future filled with prosperity and shared growth.

China-Pakistan Economic Corridor promotes modernization, multilateral cooperation
http://en.chinadiplomacy.org.cn/2024-11/19/content_117555973.shtml 

SOURCE chinadiplomacy.org.cn