CPEC 

 
● China and Pakistan have an exemplary and diversified friendship developed over a period of 
seven decades. Now ‘Iron Brothers’. 
● It not only has the potential to stabilise but also integrate Pakistan’s economy into an evolving 
trade bloc of CPEC and BRI (revival of ancient Silk Route) partner countries. Silk and Spice 
Routes have traditionally handled commerce along with a peaceful sharing of culture, knowledge, 
language and beliefs. 
● BRI comprises two main segments: Silk Road Economic Built (SREB) and 21st Century Maritime 
Silk Road (MSR). 
● BRI is the brainchild of Mr Deng Xioping who, in 1992, realised disparity in the levels of 
development in the West and interior China. 
● Maritime Silk Road will connect ​Chinese Coast to Europe​ through South China Sea, Indian 
Ocean through Gwadar and South China Sea to the South Pacific.  
● On land, the SREB, aimed at building “​a new Eurasian Bridge​”, shall comprise​ five major 
arteries​:  
1. China-Mongolia-Russia 
2. China-Central Asia-West-Asia and China-Indochina Peninsula Corridors  
3. Bangladesh-China-India 
4. Myanmar Economic Corridor 
5. CPEC. 
● When fully operational, as a part of BRI, CPEC will link Pakistan with more than 60 Countries, 
housing two thirds of the World population, 55% of the global GDP and having approximately 
75% of the global energy reserves. The BRI will comprise about 900 projects, valued at about 
1.3 trillion US dollars. 
● President Putin praised the civilised and soft manner of China. 
● President Xi Jin Ping’s thought on the whole process is woven around the spirit of mutual 
respect, commonality of objectives of socio economic development of partner countries, 
connectivity, partnership rather than alliances, interdependence and mutually beneficial 
commerce. 
● China’s Diplomacy shall endeavour to ‘bring certainty to a World full of uncertainties’. - Wang Yi 
● As of now the cost of the project stands at US Dollar 58 billion. It’s a combination of grants, soft 
loans, zero interest based loans and direct investment. Out of this amount only $ 6.017 billion are 
the loans that government of Pakistan will have to pay. Pakistan will start repaying these loans 
with effect from 2021. 
● CPEC Summary Plan issued in February 2017 encompasses execution of CPEC vision and 
objectives through short-term projects till 2020, medium term till 2025 and long term up to 
2030. Seven Joint Working Groups (JWG) comprising officials from both the countries have been 
constituted to oversee the execution of this Plan. These JWGs are working under Joint 
Coordination Committee (JCC) on CPEC. 
● As Pakistan was going through severe power shortages affecting its people and economy; 
therefore early harvest projects included production of 10400 of Megawatt electricity as priority. 
● Major part of the finances goes into electricity producing projects, development of infrastructure, 
establishment of Special Economic Zones (SEZs) and building of Gwadar Port. These are Foreign 
Direct Investment (FDI), or Build Operate Own Transfer (BOOT) or Build Operate Transfer (BOT) 
projects. Funded by Chinese banks, Chinese companies, which have invested in these projects, 
are responsible to pay back these loans. 
Progress: 
● Projects:​ Out of 22 projects 11 has been completed. There are 20 more projects in the pipeline. 
● Employment:​ About 75000 jobs have been created by CPEC. Out of these only 9500 are held by 
Chinese. 124 engineers were hired for various CPEC projects. The estimates of Centre of 
Excellence for CPEC Ministry of Planning and Development Pakistan visualises creation of 1.2 
million jobs up till 2030. 
● Energy:​ Under CPEC Pakistan and China have started projects for production of 17045 
Megawatt of electricity. Close to 4000 Megawatt electricity has already been added into 
Pakistan’s system. The energy produced by the power-producing units under CPEC is much 
cheaper i.e. rupees 8/ per unit as compared to the rates per unit for electricity provided by 
previously installed Independent Power Producing units. For preservation of environment, the 
coal-fired power producing plants installed under CPEC are using ‘​super critical​’ technology to 
ensure very reduced sulphur dioxide emission. 
● Education: P ​ akistan has created “CPEC Consortium of Business Schools” under the Higher 
Education Commission of Pakistan (HEC). The Consortium will augment Pakistan-China inter 
university collaboration. China Association of Higher Education (CAHE) and HEC are working 
closely on exchange and scholarship programmes. Presently about 50 faculties of the universities 
of both countries are connected through exchange programmes. 2000 plus Pakistani students 
are studying on scholarship in Chinese universities. CPEC is offering a great chance to make best 
use of our youth bulge, currently estimated to be about 60% of the population, 
● Gwadar: ​Gwadar Port is a $5 billion BOT project. With a depth of 20 Meters, ability to host 
200,000 DWT ships, having 120 berths and handling capacity of 400 million tons of cargo per 
year, will be one of the largest seaports of the World. Pakistan will get 9% of gross revenue of 
the port and 15% gross revenue from the Gwadar Economic Zone. 
 
Second Phase - ‘One Corridor, Many Doors’: the newer vision for CPEC 
● Motivated by developments in social, economic, education, agriculture, and health sectors. 
● Joint Working Groups on​ agriculture and socio-economic development​ have been added to the 
existing groups. Contrary to the misperception of diverting funds from CPEC, its projects have 
been augmented by allocation of requisite funds. During 8th JCC Meeting, the year 2019 has 
been declared as y ​ ear of Industrialisation​. 
● 9 SEZs. 
● This not only manifests both leaders and Governments commitment to the BRI and CPEC rather 
indicates enhanced focus on socio economic development, industrialisation and trade and 
investment to benefit people at grass root level. 
● An additional grant of $ 1 billion has been kept for low gestation, low cost but high input projects 
for less developed areas of Pakistan. Vocational training, capacity building of provinces, 
improvements in health care and agricultural shall receive added emphasis. 
● Recently concluded Belt and Road Forum (BRF) at Beijing has brought more advantages for 
Pakistan under new Free Trade Agreement (FTA) in its exports to China would increase by $ 500 
million per year and could jump to $ 6 billion per year.  
● It is hoped that evolving economic opportunities from the CPEC would help alleviate the 
sufferings of 24.3% of our population that lives below the poverty line. 
● Phase II of CPEC encompasses steps to alleviate poverty, empower youth through vocational 
training, improve health facilities in underdeveloped areas and help improve agriculture sector. 
 
 
 
Recommendations: 
● Pakistan and China must continue with their commitments provide requisite politico-diplomatic 
support and physical security to the CPEC. 
● Institution of appropriate laws on presence of foreigners, purchase of property and investments 
by them are also considered essential. 
● CPEC can be turned into a useful foreign policy instrument to improve relations with Iran, 
Afghanistan and India by providing them land access for trade. It could help in convincing 
Afghanistan to become a CPEC partner and establish better Pakistan-China-Afghanistan 
trilateral relationships. 
● Formation of CPEC Authority is a step in the right direction as it would institutionalize strategies. 
● Flight of capital in the shape of profits must also be controlled and scrutinised by CPEC Authority 
and Security Exchange Commission of Pakistan. 
● Stability in Afghanistan is considered to be an essential prerequisite for actualisation of the vision 
of connecting Afghanistan and ultimately Central Asia and full operationalization of the CPEC. 
 
 
Federalism and 18th Amendment 
 
● The constitution is the foundation of the political and administrative governance system of a 
state and, therefore, it is considered as the most important and sacred document for it. All 
powers are used and drawn from the principles set in it. It describes the extent to which this 
power can be exercised. It defines the structure of the legislature, the powers of executive and 
judiciary that how the government and its different institutions will be formulated with a clear 
mechanism of their functioning with a system of limitations. 
● Even before its inception, Pakistan has been envisioned, under the objective’s resolution, as a 
nation under the federal form of governance. After its inception however its political direction has 
drifted under different presidencies. 
● A federation is defined as “group of states with a central government, independent in internal 
affairs.” 
 
18th Amendment: 
● The aim of the amendment was to continue the democratic set up in coming decades for 
de-centralization of power under the 18th Amendment. It gives provincial autonomy under the 
legal framework. 
● The most significant change is the removal of 58-2(b) clause which relates to dissolution of 
parliament by the president which resulted in adverse consequences for the democratic state. 
● Under the 18th amendment, the parliament with mutual consensus changed the name of NWFP 
province to Khyber Pakhtunkhwa (KPK) but there remain some unresolved questions which 
could not be handled by PPP government i.e. security, education, economic and foreign policy 
measures. 
● Literature criticized the 18th amendment for not addressing issues related to the education 
system in the provinces such as budget allocation. 
● The 18th amendment was also criticized for not providing proper resources to provinces and 
local body governance system for socio-economic development of society. 
● Different authors have raised concerns that even after the 18th amendment, the provinces have 
feelings of deprivation and it is claimed that Punjab still monopolizes the resources. These 
authors further argue that the 18th amendment has become a stumbling block between centre 
and provinces as it has engaged them in a struggle for securing more resources and this will lead 
 to the development of harsh feelings between developed and less developed provinces. It results 
in province-oriented patriotism and weakening of centre. Hence, it is argued that the 18th 
amendment created misconception between Center and provinces and has further widened the 
gulf. 
● Various institutions, such as The Executive Committee of the National Economic Council 
(ECNEC), Evacuee Trust Property Board (ETPB), are still waiting for the fulfillment of federal 
promises form their implementation which clearly shows the difference between theory and 
practice in the implementation of the 18th Amendment. 
● In economic and administrative sector, the government has also failed to provide equal level of 
facilities to all regions. Current government of KPK also raised its voice in provincial assembly 
against the federal government with reference to their province’s share in CPEC, which is not 
practically done by government. 
● While historical events provoke more enhancement towards power sharing between the center 
and the provinces, re-structuring the federation and devolution of power is necessary for 
provinces otherwise negative relationship between the provincial revenue and federal revenue 
will provoke inequality within Pakistan and will provide mixed findings in terms of Indian and 
Pakistani federation. In short, Pakistani system is still suffering from constitutional ups and 
downs like Indian system. 
● Shriram Maheshwari attributes the ethnic groups as major problem within Pakistan, which did 
not permit the strengthening of the federal system in Pakistan, due to administration setup, 
which includes all the political and economic affairs of Pakistan directly. 
 
Features of 18th Amendment: 
● The 18th Amendment reversed the balance of power between the president and prime minister 
restoring the original parliamentary character of the Constitution. 
● It introduced significant electoral reforms making the Election Commission a permanent body 
with full time members.  
● The president is a figurative head of state, his power to declare a state of emergency has been 
removed. 
● A total of 15 ministries have removed from federal jurisdiction and allowed to be establishment 
under provincial jurisdictions. It was the central government that had jurisdiction over the 
aforementioned ministries, which resulted in extremely skewed human development among 
provinces, particularly Balochistan. 
● There would be a balance of power between provinces and development would largely be more 
equitable. 
● The total strength of the cabinet was fixed at 11% of the total membership of the parliament. 
● Provinces were now legally required to establish local government systems, devolve the political 
electoral process, administrative and financial responsibility and the authority to elect 
representatives. 
● Insertion of Article 175(a) governing the appointment of judges of Supreme, High and Federal 
Shariah Courts. 
● As a constitutional duty the State is to provide free and compulsory education to all citizens of 
Pakistan from the ages of 5 and 16 years. 
● Barring of person(s) having acquired foreign citizenship from contesting in national elections for 
parliament. 
● The concurrent legislative list in the 4th Schedule was removed in its entirety and various 
ministries and powers divided clearly amongst the provincial and federal governments, ensuring 
 a clear division of power and authority. It is aimed at providing greater autonomy to the people of 
Pakistan and to the provinces of Pakistan with respect to their rights to governance. 
 
 
 
Concurrent List: 
● The concurrent list of the 4th schedule of the 1973 Constitution of Pakistan, was a 
comprehensive list of ​47 subjects​ upon which both the Parliament and Provincial Assembly 
could jointly legislate. Under the 18th amendment with the abolishment of the concurrent list one 
item namely; Boilers, which appeared at serial number 29 has been shifted to part 1 of the 
federal legislative lists. While two items namely; E
​ lectricity, and Legal, Medical and other 
professions​, have been shifted to part 2 of the federal legislative list. 
● Under Article 270(9) the 18th amendment has provided for the creation of an implementation 
commission, formulated by the federal government as they see fit. Under this the implementation 
a commission was created which was headed by​ Senator Mian Raza Rabbani​. 
 
Center-Province Relations: 
● There is a sizeable body of opinion among politicians, political scientists, governance 
practitioners and the public that the pendulum of granting greater powers to the provinces 
swung too far in this endeavour, with the result that it is becoming increasingly unworkable to 
run the affairs of the federation smoothly and effectively. 
● The 18th Amendment has created a governance gap; where it has removed the Federal 
​ he recent 
umbrella, funnelling finances to provinces without checks and accountability. ​ T
revelations in the “Fake Accounts Case” in Sindh, if proved, will reflect the weakness of the 
federation, but not necessarily at the cost of strengthening of the provinces. 
● The 18th Amendment has so far not offered much to the common man and has neither managed 
to lead to a smoother interaction between the federal and provincial levels.