📷 Image Credits: Al Jazeera English
The China-Pakistan Economic Corridor (CPEC), a $62bn project launched in 2015, aimed to uplift Pakistan’s economy through infrastructure and energy development. Prime Minister Shehbaz Sharif’s upcoming trip to China signals a renewed push to revitalize the project amidst economic challenges and security concerns. The CPEC, a flagship of China’s Belt and Road Initiative, has faced criticism for potentially burdening Pakistan with debt. While the CPEC initially showed promise, it encountered setbacks due to political, economic, and security crises, raising doubts about its future.
The CPEC includes projects like the development of a seaport at Gwadar and infrastructure across Pakistan. However, challenges have hampered progress, with key sectors like transportation and energy showing limited results. The anticipated job creation and economic benefits have fallen short, leaving Pakistan grappling with mounting debt.
Security poses a significant hurdle, with attacks on Chinese workers and interests in Pakistan creating unrest. Balochistan, a key region for CPEC projects, has witnessed targeted violence, leading to concerns about China’s investment safety. Despite security risks, efforts to ensure foolproof security are being emphasized to maintain Chinese commitment to the project.
Furthermore, governance issues and bureaucratic hurdles have slowed down CPEC implementation. The formation of the Special Investment Facilitation Council aims to address these challenges and enhance economic policy execution. Ensuring a forward-looking plan to maximize the CPEC’s potential is crucial, amidst calls for transparency and long-term sustainable growth.
As Pakistan navigates economic uncertainties and engages with global partners like China and the International Monetary Fund, the fate of the CPEC remains intertwined with security measures, governance improvements, and economic viability. Reviving the CPEC presents both challenges and hopes for Pakistan’s economic future.