Importance Of China Pakistan Economic Corridor – The geographical location of Pakistan is a country of deserts, wetlands, plains, coastal belt, forested mountains, snow-capped mountains and coastal belt. The eastern border of the country is India, the northeastern border of the country is shared with China, the country borders Afghanistan to the west and northwest and Iran to the southwest.-sl. In the south, the coast of Pakistan flows into the Arabian Sea. The total area of Pakistan is about 796,096 square kilometers; Pakistan is a strategically important place in Asia. Geopolitical and geostrategic significance of Pakistan Geopolitics or geostrategic significance refers to the field of study that examines the extent to which a country uses its geography to achieve its political and strategic goals.
Although Pakistan has benefited a lot from its geo-strategic importance, it has suffered many losses for the same reason. For example, Pakistan often receives large investments for being a gateway to landlocked Central Asian countries and suffering greatly from the global war on terror; after the 9/11 attacks and direct threats from then-US President George W. Bush, Pakistan had no choice but to grant US access to landlocked Afghanistan; however, this decision backfired as Pakistan continues to pay the price for the decision to date in the form of increased terrorism and loss of life to its citizens.
Importance Of China Pakistan Economic Corridor
Pakistan-China relations pave the way for CPEC Pakistan and China have always maintained friendly relations. China has always come to support Pakistan; Especially when Pakistan is threatened by India or America, China wants Pakistan’s support. China and Pakistan have managed to maintain close relations despite changing times and circumstances. What is CPEC? The China-Pakistan Economic Corridor (CPEC) is considered a brainchild of Chinese President Xi, who launched CPEC as a pilot project of the grand One Belt One Road (OBOR) concept, also known as the Belt and Road Initiative. (BRI). The Belt and Road Initiative (BRI) includes five other international economic corridors in addition to CPEC, including: 1. The New Eurasian Land Economic Corridor is also known as the Second Eurasian Land Bridge. 2. Economic corridor China-Mongolia-Russia. 3. China-Central Asia-West Asia Economic Corridor. 4. China-Indochina Peninsula Economic Corridor. 5. China-Pakistan Economic Corridor. 6. Bangladesh-China-India-Myanmar (BCIM) Economic Corridor. Chinese President Xi Jinping introduced the “1 + 4” cooperation model during his state visit to Pakistan in April 2015. According to this model, the main objective is to establish CPEC, which represents the “1” in the “1 + 4” cooperation model “, focusing on the construction of Gwadar port, energy, basic infrastructure and industrial cooperation, which shows the “4” is the “1 + 4” cooperation model.
South Asia: A Bump In The Belt And Road
The China-Pakistan Economic Corridor (CPEC) is a 3,000-kilometer network of roads, railways and pipelines to transport oil and gas from the southern Pakistani port of Gwadar to Kashgar in China’s northwestern Xinjiang Uygur Autonomous Region. Financial Projections Related to CPEC According to a report published by the Financial Times, Sanders and Stacey (2017) noted that: • China’s total investment: China plans to invest about $55 billion in Pakistan instead of CPEC. • Investment in energy projects: China plans to invest about $35 billion in various energy projects across the country. • China’s export volume: China’s export volume to Pakistan increased from US$ 9.3 billion in 2012 to US$ 16.5 billion in 2015, the rapid increase in export volume is enough to gave a glimpse of the growth to be seen in 2012 going forward. Benefits of CPEC to Pakistan: Positive impact on GDP. The China-Pakistan Economic Corridor (CPEC) will add more than five percent to Pakistan’s GDP by the end of 2020, as projected by the IMF.
Pricehouse Coopers (PwC) has predicted that if the CPEC program is successfully implemented, Pakistan’s GDP will grow from the current $988 billion to nearly $4.2 trillion by the end of 2050 (Hussain D., 2017). Deloitte predicts that the total value of CPEC infrastructure projects for Pakistan will be equal to 17 percent of GDP (Hussain D., 2017). Job creation and community economic development. The establishment of the China-Pakistan Economic Corridor (CPEC) will certainly bring long-term economic and social benefits to Pakistan. In 2014, Pakistan’s Ministry of Planning, Development and Reforms published a long-term economic development plan in 2014, which set a goal of transforming Pakistan from a lower-middle-income country to a middle-income country by 2025. To achieve this goal, Pakistan aims to attract a lot of foreign aid, for this important reason, the development of CPEC is very important.
After successful implementation, CPEC will not only help in the economic development of Pakistan but also create many employment opportunities. The China-Pakistan Economic Corridor (CPEC) is expected to create about 700,000 direct jobs between 2015 and 2030 and provide an annual growth rate of about 2.5 percent (Shah, 2017). An end to religious extremism. The reason for establishing the CEPC is often cited as the economic prosperity it will bring to Pakistan, which will help counter the threat of religious extremism. Pakistan believes that rapid economic development facilitated by CPEC will help stabilize Pakistan’s economic, political and security situation. Drawbacks and Risks of CPEC for Pakistan Debt Trap. There is a risk that CPEC will trap Pakistan in a debt trap from which it will not be able to get out. It is estimated that once CPEC becomes fully operational, Pakistan will have to pay around $3.5 billion annually for 20 years. Renowned Pakistani economist Khurram Hussain estimates these costs as follows: “The debt service flow will be about $1 billion and the return on equity will be $646 million at 17 percent.
Add to that $1.9 in interest as principal repayments. This means an annual net flow of $3,546 per year once the corridor is fully operational” (Hussain, 2016). Another prominent Pakistani economist, Hafiz Pasha, has also expressed reservations about how much Pakistani debt will be accrued to build CPEC, and he estimates that CPEC debt will add about $14 billion to Pakistan’s total debt, which has risen to about $90 billion at the end of the fiscal year.dollar. 2019 (Venkatachala, 2017). More worrying is the fact that Pakistan has no policy in place to repay China’s growing debt burden, as Khurram Hussain wryly noted that when the IMF team asked Pakistani government officials about their strategic plan to repay China’s debt, Pakistani officials responded, “additional Chinese investment in the long term building CPEC as a platform can also help meet the outflows of CPEC-related projects.” Risk of terrorism. One of the most important threats facing the China-Pakistan Economic Corridor (CPEC) is terrorism. Terrorism has been a major concern for Pakistan for the past two decades. Terrorism has affected Pakistan’s economic growth and development prospects.
The Benefits And Risks Of The China Pakistan Economic Corridor (css Essay) Pdf
Although Pakistan has waged a long and hard fight against terrorism, it has failed in the war. As the CPEC is critical to Pakistan’s economic development and the country’s future well-being, there are concerns that construction sites and the workers working on those sites could become potential targets for terrorist attacks. Indeed, there have been many incidents where Chinese engineers working in Pakistan have been targeted; many lost their lives in these attacks while many others were injured. In September 2016, Baloch separatists killed two Chinese engineers working in Balochistan while injuring several others. Although Pakistani authorities have promised security for Chinese laborers working in CPEC, these are only short-term commitments. As time passes and the CPEC transport network expands to remote areas, it will be difficult to ensure the safety of Chinese workers as the cost of providing security personnel and logistical support will also increase accordingly. It is not yet clear how Pakistan will be able to maintain a strong military presence to ensure the security of transport routes. In this case, Pakistan does not regulate the security system. Unstable political system in Pakistan. A stable political system in Pakistan is essential for the success of the China-Pakistan Economic Corridor (CPEC). One of the biggest problems that has plagued Pakistan since its independence is its unstable political system. Power in Pakistan often fluctuates between civilian and military leaders; this created a lot of confusion in Pakistan.
The resignation of General Pervez Musharraf in Pakistan in 2008 was the last time the country was led by a military leader since the 2009 general elections; The Pakistan People’s Party (PPP) came to power and completed the first five-year term of the civilian government. After the PPP era, PML(N) came to power. For the first time in the history of Pakistan
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