What is Significance of CPEC for Pakistan
Significance of CPEC For Pakistan
Social Significance:
1. Increase in Scholarships by 50%: CPEC can enable Pakistanis to get education in Chinese universities by scholarships. This can enable necessary human development & allow Pakistani youth to observe why China is successful.
2. Increase in jobs, reducing unemployment: Pakistan can utilize its massive youth force in CPEC. This is currently a challenge as CPEC gives most of its white-collar jobs to Chinese. If this is rectified, Pakistani youth can be trained in CPEC & excel in all sectors of CPEC.
3. Tourism through CPEC will make Pakistan more culturally diverse: As other cultures will be introduced. Pakistan can relive days of 50’s & 70’s when it used to be a cultural hub for European travelers on the Hippie Trail.
4. CPEC can easily overcome Pakistan’s Energy Crisis: CPEC has multiple coal, hydro, & solar energy generation projects included such as:
A. Suki Kinari PP (870 MW)
B. Sahiwal Coal PP (1320 MW)
C. Rahim Yar Khan PP (1320 MW)
D. Tharparkar PP (3960 MW)
E. Qaid E Azam Solar Park (1000 MW)
Infrastructural Significance:
1. Will develop & expand Pakistan’s Maritime capabilities: Through development of Gwadar port, Pak can become a regional hub & can overtake Middle Eastern trade routes as Gwadar is more feasible as deep sea port.
2. Will expand Pak’s Road networks: Through multiple motorway projects:
A. M3: Lahore Multan
B. M5: Multan Sakhar
C. M6: Sakkhar Hyderabad
D. Lahore Sialkot
E. Etc.
3. Will revive Railway Network: through improving existing & adding new projects.
A. ML 1: Karachi to Peshawar
B. ML 2 & ML 3: In pipeline.
C. Karokaram Railway.
Technological Significance:
1. 4G & upcoming 5G technology: Pakistan is already making use of CPEC 4G technology, which has brought it into the 21st century. Furthermore, China is the world leader on 5G technology through Huawei, & CPEC will provide Pakistan this technology as well. Eg: Khunjerab – Gwadar Optic Fiber Network.
2. Chinese automobiles: Are increasing in Pakistan, & this breaks existing monopolies, making cars cheaper & better.
3. Chinese investment opens for SME’s, Start Ups, & Freelance industry: CPEC will bring private investment in these areas for Pakistan, enabling it to utilize its youth population.
4. Chinese investment in Tech Development Institutions: Such as the Gwadar Technology University can boost Pakistan’s Tech industry & give competition to Indian IIT’s.
Economic Significance:
1. Special Economic Zones (9) included in CPEC: These are to promote foreign investment in Pak as they are tax free.
A. Rashaki SEZ (in Nowshera KPK)
B. Allama Iqbal SEZ (in Faisalabad)
C. Dhabeji SEZ (Thatha Sindh)
- Industrial Zones: To promote local businesses through facilitation & collaboration. Not tax free.
“CPEC can help boost Pakistan’s GDP by up to 15% in the short term, & more in the long term” – CPEC; Challenges & Opportunities. (2015) - CPEC to invest in Pakistan’s Agriculture sector & introduce modern infrastructure methods.
- 6 million jobs expected to be generated: In sectors such as Paper, Ceramics, Glass, Chemicals, Food processing, Packaging.
- Transit fees charged for CPEC can boost economy: Although Pak has not included this in agreement with China, it can charge fees for any products from other countries besides China.
- Pakistan gets linked to 151 countries through CPEC: and can benefit from easy trade routes to all. This will reduce costs for nearly all imports Pakistan has, & can also boost exports if Pak is able to boost its export through Economic & Industrial Zones.
Geo-Strategic Significance: - Increases entire regions dependance on Pakistan.
- Pakistan will be able to leverage deals with Central Asia & Russia to include them in CPEC.
- Can increase influence in Indian Ocean through being part of String of Pearls.
Security Significance: - China more open to Military deals since Pakistan will contain its investment: Recent purchase of JF17 Thunder+Cruise missiles is example of this.
- CPEC development will curtail youth militancy & insurgency: Since youth will be employed & less vulnerable to terrorist/political groups using them.
