Assignment No: 2

Topic: Impact of CPEC on Asian Countries

Names; CMS;
Ahsan Bukhari 799-2020
Muhammad Sami 130-2020
Syed Muhammad Uzair Subha 2398-2021
Muhammad Assad Ibrahim 2602-2021
Syeda Wania Ali 809-2022
Teacher Name: Dr. Abid Hussain
Course: Pakistan Studies.
Department: Department of Biomedical Engineering, Software Engineering.

Faculty of Engineering Science and Technology.

Hamdard University Karachi.
Abstract:
The China-Pakistan Economic Corridor (CPEC) is a major development project that aims to connect
China`s Xinjiang province with the Pakistani port of Gwadar. The project is expected to have a significant
impact on the economies of both countries, as well as on the wider region. CPEC is a part of China's Belt
and Road Initiative (BRI), which is a global infrastructure development program. The BRI aims to create
a network of trade and transportation routes that will connect China with Europe, Africa, and Asia. The
project includes the construction of roads, railways, pipelines, and power plants. China is providing most
of the financing for the project. The impact of CPEC on Asian countries will vary depending on the
specific country. China: CPEC is expected to have a significant positive impact on China's economy. The
project will provide China with access to new markets and resources. It will also help to reduce China's
dependence on energy imports. Pakistan: CPEC is expected to have a major transformational impact on
Pakistan's economy. The project will create jobs and improve infrastructure. Other Asian countries: CPEC
is also expected to have a positive impact on other Asian countries. The project will help to improve
connectivity and trade between these countries. It will also help to boost economic growth and
development. However, there are also some potential challenges that CPEC may face. These include
Security: The project will pass through some of the most volatile areas in Pakistan. Environmental
impact: The construction of roads, railways, and pipelines will have an impact on the environment. The
cost of CPEC could further increase Pakistan's debt burden. There is a risk that the project will benefit the
rich more than the poor. Despite these challenges, CPEC has the potential to be a significant driver of
economic growth and development in Asia. The participating countries need to work together to address
the challenges that CPEC may face. They also need to ensure that the benefits of the project are shared
equitably If CPEC is successful, it will have a significant impact on the future of Asia. The project could
help to boost economic growth, reduce poverty, and improve connectivity between countries in the
region. The scope of CPEC: The project includes a wide range of infrastructure projects, including roads,
railways, pipelines, and power plants. It also provides for the development of special economic zones in
Pakistan. It also provides for the development of special economic zones in Pakistan. The financing of
CPEC: China is providing most of the financing for the project. The challenges of CPEC: The project
faces several challenges, including security, environmental impact, and debt burden. The potential
benefits of CPEC: The project has the potential to bring significant economic benefits to the participating
countries. It could help to boost economic growth, reduce poverty, and improve connectivity between
countries in the region. The effect of recent economic and financial crises provides several rea develop
national and regional infrastructure in Asia as it enhances competence and productivity.

Keywords: CPEC, Economy, China, Pakistan, Asian Countries, Infrastructure

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Hamdard University Karachi.
Introduction:

The China-Pakistan Economic Corridor (CPEC) is a major development project

that aims to connect China's Xinjiang province with the Pakistani port of Gwadar.
The project is expected to have a significant impact on the economies of both
countries, as well as on the wider region. CPEC is a part of China's Belt and Road
Initiative (BRI), which is a global infrastructure development program. The BRI
aims to create a network of trade and transportation routes that will connect China
with Europe, Africa, and Asia. CPEC is one of the most critical components of the
BRI. The project includes the construction of roads, railways, pipelines, and power
plants. It also provides for the development of special economic zones in Pakistan.
The total cost of CPEC is estimated to be $62 billion. China is providing most of
the financing for the project. The impact of CPEC on Asian countries will vary
depending on the specific country. However, some general trends can be expected.

China: CPEC is expected to have a significant positive impact on China's

economy. The project will provide China with access to new markets and
resources. It will also help to reduce China's dependence on energy imports.
Pakistan: CPEC is expected to have a major transformational impact on Pakistan's
economy. The project will create jobs and improve infrastructure. It will also help
to reduce poverty. Other Asian countries: CPEC is also expected to have a positive
impact on other Asian countries. The project will help to improve connectivity and
trade between these countries. It will also help to boost economic growth and
development.

However, there are also some potential challenges that CPEC may face. These
include

Security: The project will pass through some of the most volatile areas in Pakistan.
There is a risk of terrorist attacks or other security incidents. Environmental
impact: The construction of roads, railways, and pipelines will have an impact on
the environment. There is a risk of pollution and deforestation. Debt
burden: Pakistan is already facing a high debt burden. The cost of CPEC could
further increase Pakistan's debt burden. Inequality: The benefits of CPEC may not
be evenly distributed. There is a risk that the project will benefit the rich more than
the poor.

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 Despite these challenges, CPEC has the potential to be a significant driver of
economic growth and development in Asia. However, the project must be carefully
managed to avoid any negative consequences. The participating countries need to
work together to address the challenges that CPEC may face. They also need to
ensure that the benefits of the project are shared equitably. If CPEC is successful, it
will have a significant impact on the future of Asia. The project could help to boost
economic growth, reduce poverty, and improve connectivity between countries in
the region.

Here are some additional details that could be included in the introduction:

 The history of CPEC: The project was first proposed in 2013 by Chinese President
Xi Jinping. It was officially launched in 2015. The scope of CPEC: The project
includes a wide range of infrastructure projects, including roads, railways,
pipelines, and power plants. It also provides for the development of special
economic zones in Pakistan. The financing of CPEC: China is providing most of
the financing for the project. However, Pakistan is also contributing some funding.
The challenges of CPEC: The project faces several challenges, including security,
environmental impact, and debt burden. The potential benefits of CPEC: The
project has the potential to bring significant economic benefits to the participating
countries. It could help to boost economic growth, reduce poverty, and improve
connectivity between countries in the region.

The effect of recent economic and financial crises provides several rea develop
national and regional infrastructure in Asia as it enhances competence and
productivity. Regional infrastructure also helps to increase the standard of living
and reduce poverty by connecting isolated places and people with major economic
centers and markets, narrowing the development gap among a region this scenario
China Pakistan Economic Corridor (CPEC) is critically important for countries.
Pakistan needs it to overcome its economic development, and social and economic
problems while China needs it to expand its periphery of influence, consolidate its
presence, and secure future supply routes of energy and trade.

Pakistan enjoys a unique geographical landscape situated at the cross-r South Asia
but it is considered one of the least integrated region of the world CPEC projects
with an investment of $46 billion, is being developed as part of a partnership
between the two countries Pakistan and China in 2013 which is a lo plan having a
time frame of 2014-2030, with its two necessary condition Corridor - development
of the port at Gwadar and creating surface transport con between the city of

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Gwadar in southwestern Pakistan to China's northwest autonomous region of
Xinjiang.

In developing countries like Pakistan, the phenomena of unemployment and

disguised unemployment occur simultaneously as the population of the poor
stratum continues to promote inclusive and sustainable economic growth,
employment, and decent work for all are considered to be the key to eradicating
extreme poverty and hunger, which is recognized as one of the 'Sustainable
Development Goals'. Employment and decent work can enhance social welfare
when policies are taken to expand productive, remunerative, and satisfying work
opportunities es; improve workers' skills and potential. According to UNDP
(2015), Pakistan ranked 147 out of 188 countries in terms of the Human
Development Index and was placed as a low human development country. Given
the present scenario, the CPEC project-related investment in Pakistan for the
development of various sectors mainly; energy and infrastructure would predict the
creation of 700,000 direct jobs between 2015 to 2030 and add 2 to 2.5 percentage
points to the country's annual economic growth. Furthermore, transport and
infrastructure projects would allow easier and low-cost access to domestic and
overseas markets, promoting inter-regional and international merchandise trade
that would further surge private business investment and enhance productivity.
This investment would also influence the stock market. The revenue and share
prices will increase for the cement and steel sectors due to heavy construction.

Literature Review:

CPEC:
Infrastructure projects: CPEC includes a network of roads, railways, pipelines, and power
plants. The goal is to improve connectivity between China and Pakistan and to boost economic
development in the region

 Roads: CPEC includes the construction of new roads and highways, as well as the
upgrading of existing roads. This will improve connectivity between China and Pakistan
and will make it easier to transport goods and people between the two countries.
 Railways: CPEC includes the construction of new railways and the upgrading of existing
railways. This will improve the efficiency of transportation between China and Pakistan
and will help to reduce the cost of shipping goods.

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  Pipelines: CPEC includes the construction of new pipelines to transport oil and gas from
China to Pakistan. This will help to reduce Pakistan's reliance on imported oil and gas
and will make it more energy-secure.
 Power plants: CPEC includes the construction of new power plants to meet the growing
energy needs of Pakistan. This will help to improve the reliability of the power supply in
Pakistan and will create jobs in the construction and operation of the power plants.

 Energy projects: CPEC includes several large-scale energy projects, such as the Gwadar
Port and the Diamer-Bhasha Dam. These projects are expected to provide much-needed
energy to Pakistan and help reduce its reliance on imported oil.
 Gwadar Port: Gwadar Port is a deep-water port located in Balochistan, Pakistan. It is
being developed by China as part of CPEC. The port is expected to boost trade between
China and Pakistan and will also be a major hub for energy exports from the Middle East.
 Diamer-Bhasha Dam: The Diamer-Bhasha Dam is a hydroelectric dam being constructed
on the Indus River in Gilgit-Baltistan, Pakistan. It is the largest dam project in Pakistan
and is expected to provide much-needed water and electricity to the country.

 Economic growth: CPEC is expected to boost economic growth in Pakistan by creating

jobs, stimulating investment, and improving infrastructure. The project is also expected to
help reduce poverty and improve the lives of ordinary Pakistanis.

 Environmental impact: There have been concerns about the environmental impact of
CPEC. Some of the projects, such as the construction of dams, could hurt the
environment.
 Debt trap diplomacy: There are also concerns that CPEC could lead to debt trap
diplomacy. This is a situation where a country borrows money from another country to
finance a project but then becomes unable to repay the debt. This could give the lending
country undue influence over the borrower.

Components of CPEC:

CPEC includes several different components, including:

 Roads and highways

 Railways
 Pipelines
 Power plants
 Special Economic Zones (SEZs)

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The specific projects under CPEC are still being negotiated. However, some of the major
projects include:

 The Karakoram Highway: This is a two-lane highway that connects China's Xinjiang
province with Pakistan's Gilgit-Baltistan region. The highway is being widened and
upgraded to a four-lane highway.
 The Gwadar-Kashgar Railway: This is a railway line that will connect Gwadar Port in
Pakistan with Kashgar in China. The railway line is expected to be completed in 2025.
 The Pak-China Friendship Highway: This is a railway line that connects Peshawar in
Pakistan with Khunjerab Pass in China. The railway line is expected to be completed in
2023.
 The China-Pakistan Gas Pipeline: This is a pipeline that will transport natural gas from
China's Xinjiang province to Pakistan's Punjab province. The pipeline is expected to be
completed in 2022.
 The Gwadar Port: This is a deep-water port that is being developed in Pakistan. The
port is expected to boost trade between China and Pakistan and will also be a major hub
for energy exports from the Middle East.
 The Diamer-Bhasha Dam: This is a hydroelectric dam that is being constructed on the
Indus River in Pakistan. The dam is expected to provide much-needed water and
electricity to the country.
 The Karachi-Peshawar Motorway: This is a six-lane motorway that will connect
Karachi and Peshawar, the two largest cities in Pakistan. The motorway is expected to be
completed in 2024.
 The Lahore-Karachi Motorway: This is a six-lane motorway that will connect Lahore
and Karachi, the two largest cities in Pakistan. The motorway is expected to be completed
in 2023.
 The Multan-Sukkur Motorway: This is a six-lane motorway that will connect Multan
and Sukkur, two major cities in Pakistan. The motorway is expected to be completed in
2022.
 The Peshawar-Karachi Gas Pipeline: This is a pipeline that will transport natural gas
from Peshawar to Karachi. The pipeline is expected to be completed in 2023.
 The Sahiwal-Multan Railway Line: This is a railway line that will connect Sahiwal and
Multan. The railway line is expected to be completed in 2022.
 The Quetta-Gwadar Railway Line: This is a railway line that will connect Quetta and
Gwadar. The railway line is expected to be completed in 2024.

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Financial Cooperation:

Financial cooperation is a cornerstone of CPEC. China has committed significant funds for
infrastructure development, including roads, railways, and ports. These investments facilitate
trade and economic activities, contributing to both nations' economic growth. Additionally,
financial institutions like the China Development Bank and the Industrial and Commercial Bank
of China play crucial roles in funding CPEC projects. The financial cooperation related to CPEC
is a complex and multifaceted issue. It involves a variety of actors, including the Chinese
government, the Pakistani government, Chinese banks, Pakistani businesses, and international
financial institutions. The mechanisms used for financial cooperation are also diverse, and they
can be tailored to the specific needs of each project.

One of the most important mechanisms for financial cooperation under CPEC is the provision of
government-to-government loans. These loans are provided by the Chinese government to the
Pakistani government at concessional interest rates. The loans are used to finance CPEC projects
that are of strategic importance to both countries, such as the construction of the Gwadar port
and the Karakoram Highway. Another important mechanism for financial cooperation is the
provision of concessional loans by Chinese banks to Pakistani businesses and projects. These
loans are provided at below-market interest rates, and they are used to finance CPEC projects
that are not of strategic importance to China.

In addition to government-to-government loans and concessional loans, Chinese companies have

also invested heavily in CPEC projects. These investments are made in a variety of sectors,
including energy, infrastructure, and manufacturing. Chinese companies have also been involved
in the construction of CPEC projects, and they have provided technical assistance to Pakistani
businesses. The financial cooperation related to CPEC has had a significant impact on the
Pakistani economy. It has helped to improve the country's infrastructure, create jobs, and attract
foreign investment. However, the project has also been criticized for its high debt burden and the
environmental impact of some of its projects.

The debt burden associated with CPEC is a major concern for Pakistan. The country has already
borrowed billions of dollars from China to finance the project, and it is expected to borrow even
more in the future. This debt burden could put a strain on Pakistan's economy and make it
difficult for the country to repay its loans. The environmental impact of CPEC is also a concern.
Some of the projects under CPEC have been criticized for their impact on the environment. For
example, the construction of the Diamer-Bhasha Dam has been criticized for its impact on the
Indus River. Despite the challenges, the financial cooperation related to CPEC has the potential
to be a major boon for the Pakistani economy. The project has the potential to create jobs, attract
foreign investment, and improve the country's infrastructure. However, it is important to
carefully manage the risks associated with the project, such as the debt burden and the
environmental impact.

Here are some of the specific challenges that need to be addressed to ensure the success of the
financial cooperation related to CPEC:

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  The high debt burden: Pakistan's debt burden is already high, and it is expected to
increase further as a result of CPEC. This could make it difficult for the country to repay
its loans and could lead to a financial crisis.
 The environmental impact: Some of the projects under CPEC have the potential to hurt
the environment. This could lead to protests and opposition to the project.
 The lack of transparency: There is a lack of transparency about the financial
arrangements of CPEC. This has led to concerns about corruption and mismanagement.
 The lack of local participation: The local communities that are affected by CPEC projects
are often not consulted or involved in the decision-making process. This can lead to
resentment and conflict.

These are just some of the challenges that need to be addressed to ensure the success of the
financial cooperation related to CPEC. It is important to carefully consider these challenges and
to take steps to mitigate them. Only then can the project achieve its full potential to benefit the
Pakistani economy?

Agricultural Cooperation & Development:

CPEC also encompasses agricultural cooperation, focusing on modernizing Pakistan's

agricultural sector. This involves introducing advanced farming techniques, improving irrigation
systems, and enhancing crop yield. By leveraging China's expertise, Pakistan aims to increase
food production, enhance rural livelihoods, and reduce food insecurity. Agricultural cooperation
and development is one of the key areas of focus under the China-Pakistan Economic Corridor
(CPEC) initiative. The two countries have agreed to work together to improve agricultural
productivity, develop new technologies, and increase trade in agricultural products.

Some of the specific areas of cooperation include:

 Technology transfer: China will share its expertise in agricultural technology with
Pakistan, such as water-saving irrigation techniques and crop-breeding methods.
 Capacity building: China will help to train Pakistani farmers and agricultural scientists.
 Investment: Chinese companies will invest in agricultural projects in Pakistan, such as
irrigation projects and food processing plants.
 Trade: The two countries will increase trade in agricultural products, such as fruits,
vegetables, and livestock.

The agricultural cooperation under CPEC has the potential to benefit both countries. For
Pakistan, it can help to improve food security, create jobs, and boost economic growth. For
China, it can provide a market for its agricultural products and help to secure its food supply.

Here are some of the specific benefits of agricultural cooperation under CPEC:
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  Improved food security: Pakistan is a food-deficit country, and it imports a significant
amount of its food. The agricultural cooperation under CPEC can help to improve food
security by increasing agricultural productivity and reducing food imports.
 Job creation: The agricultural sector is a major source of employment in Pakistan. The
agricultural cooperation under CPEC can create jobs in the agricultural sector, such as in
irrigation, crop production, and food processing.
 Economic growth: The agricultural sector is a major driver of economic growth in
Pakistan. The agricultural cooperation under CPEC can boost economic growth by
increasing agricultural output and exports.
 Food safety: China has a strong food safety record. The agricultural cooperation under
CPEC can help to improve food safety in Pakistan by sharing China's expertise in food
safety standards and practices.

The agricultural cooperation under CPEC is a complex and multifaceted issue. It is important to
carefully consider the specific needs of the Pakistani agricultural sector and to tailor the
cooperation to those needs. It is also important to ensure that the cooperation is mutually
beneficial to both countries. Overall, the agricultural cooperation under CPEC has the potential
to be a major boon for the Pakistani agricultural sector. It can help to improve food security,
create jobs, boost economic growth, and improve food safety. However, it is important to
carefully manage the risks associated with the cooperation, such as the potential for
environmental damage and the need to protect the rights of small farmers.

Infrastructure, Energy, IT, and Communication:

The development of infrastructure, energy, IT, and communication networks is a fundamental

pillar of CPEC. This includes the construction of highways, railways, and the development of
Gwadar Port. The energy sector is a major focus, with numerous power projects, including coal,
solar, and hydroelectric plants, contributing to Pakistan's energy security. Moreover, CPEC
promotes IT and communication advancements, supporting digital connectivity and e-commerce
growth.

Infrastructure:

The infrastructure sector under CPEC includes a wide range of projects, such as:

 Roads: The CPEC will include the construction of new roads, the upgrading of existing
roads, and the construction of bypasses and flyovers. These roads will improve
connectivity between different parts of Pakistan and will make it easier to move goods
and people around the country.
 Railways: The CPEC will include the construction of new railways, the upgrading of
existing railways, and the construction of new railway stations. These railways will

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 improve connectivity between different parts of Pakistan and will make it easier to
transport goods and people around the country.
 Airports: The CPEC will include the construction of new airports, the upgrading of
existing airports, and the construction of new airstrips. These airports will improve
connectivity between Pakistan and other countries and will make it easier to transport
goods and people around the world.
 Ports: The CPEC will include the development of new ports, the expansion of existing
ports, and the construction of new shipping lanes. These ports will improve connectivity
between Pakistan and other countries and will make it easier to transport goods and
people around the world.
 Pipelines: The CPEC will include the construction of new pipelines, the upgrading of
existing pipelines, and the construction of new pump stations. These pipelines will
transport oil, gas, and other commodities around Pakistan and will help to meet the
country's energy needs.

Energy

The energy sector under CPEC includes a wide range of projects, such as:

 Power plants: The CPEC will include the construction of new power plants, the
upgrading of existing power plants, and the construction of new transmission lines. These
power plants will help to meet the growing energy needs of Pakistan and will reduce the
country's reliance on imported oil and gas. Renewable energy projects: The CPEC will
also include the development of renewable energy projects, such as solar and wind power
projects. These projects will help to reduce Pakistan's reliance on fossil fuels and will
contribute to the country's environmental goals.
 Hydropower projects: The CPEC will also include the development of hydropower
projects, such as the Diamer-Bhasha Dam. These projects will help to meet the growing
energy needs of Pakistan and will provide water for irrigation.

IT and Communication

The IT and communication sector under CPEC includes a wide range of projects, such as:

 Optical fiber networks: The CPEC will include the construction of new optical fiber
networks, the upgrading of existing optical fiber networks, and the construction of new
data centers. These networks will improve the connectivity and communication
infrastructure in Pakistan and will help to boost the country's IT and telecommunications
industry.
 Cloud computing: The CPEC will also include the development of cloud computing
projects. These projects will help to improve the efficiency of IT services in Pakistan and
will make it easier for businesses to adopt cloud computing technologies.

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  Digital literacy programs: The CPEC will also include the development of digital literacy
programs. These programs will help to improve the skills of Pakistani citizens in using IT
and communication technologies.

The infrastructure, energy, IT, and communication sectors are essential for the development of
the Pakistani economy and for improving the lives of the Pakistani people. The CPEC initiative
is helping to develop these sectors and is bringing many benefits to Pakistan.

some of the specific benefits of the infrastructure, energy, IT, and communication sectors under
CPEC:

 Improved connectivity: The CPEC will improve connectivity between different parts of
Pakistan and will make it easier to move goods and people around the country. This will
boost economic growth and development.
 Increased trade: The CPEC will increase trade between Pakistan and China. This will
create jobs and boost economic growth.
 Reduced poverty: The CPEC will help to reduce poverty in Pakistan by creating jobs and
improving the economy.
 Improved security: The CPEC will help to improve security in Pakistan by improving
connectivity and communication. This will make it easier for the government to monitor
and control the country.
 Enhanced regional cooperation: The CPEC will enhance regional cooperation by linking
Pakistan with China and other countries in the region. This will promote peace and
stability in the region.

The CPEC is a complex and ambitious project, but it has the potential to bring many benefits to
Pakistan. The infrastructure, energy, IT, and communication sectors are essential for the success
of the CPEC, and they are already making a positive impact on the country.

Special Economic Zones, Tourism & Defense Cooperation:

Special Economic Zones (SEZs) established under CPEC aim to attract foreign investment,
promote industrialization, and create jobs. These zones provide incentives to businesses and
facilitate trade. The project also intends to boost tourism by improving infrastructure in scenic
areas. Defense cooperation involves enhancing security along the corridor to ensure the safe
passage of goods and people.

Special Economic Zones (SEZs)

Special Economic Zones (SEZs) are designated areas that offer a favorable business environment
for investors. They typically offer tax breaks, relaxed regulations, and other incentives. The
CPEC includes the development of several SEZs in Pakistan. These SEZs are expected to attract
foreign investment and boost economic growth in the country.

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Here are some of the specific benefits of SEZs under CPEC:

 Attract foreign investment: SEZs can attract foreign investment by offering a favorable
business environment. This can boost economic growth by creating jobs and generating
revenue.
 Create jobs: SEZs can create jobs by attracting new businesses and industries. This can
help to reduce unemployment and improve the standard of living.
 Improve skills: SEZs can help to improve the skills of the workforce by providing
training and education opportunities. This can make the workforce more competitive and
attract more investment.
 Promote technology transfer: SEZs can promote technology transfer by bringing foreign
companies into the country. This can help to improve the technology base of the
economy and make it more competitive.
 Boost exports: SEZs can boost exports by providing a platform for businesses to export
their products. This can help to improve the balance of trade and generate foreign
exchange.

Tourism & Defense Cooperation

The CPEC also includes cooperation in the areas of tourism and defense.

Tourism

The CPEC is expected to boost tourism in Pakistan by improving connectivity and infrastructure.
The development of new tourist destinations, such as the Diamer-Bhasha Dam, is also expected
to attract tourists to Pakistan.

Here are some of the specific benefits of tourism under CPEC:

 Generate revenue: Tourism can generate revenue from tourism-related activities, such as
hotels, restaurants, and transportation. This can help to boost the economy and create
jobs.
 Create jobs: Tourism can create jobs by providing employment opportunities in the
tourism sector. This can help to reduce unemployment and improve the standard of
living.
 Promote cultural exchange: Tourism can promote cultural exchange by
bringing people from different cultures together. This can help to build
understanding and tolerance between different cultures.
 Protect the environment: Tourism can help to protect the environment by
raising awareness of environmental issues and promoting sustainable
tourism practices.
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Defense Cooperation

The CPEC is expected to help Pakistan to modernize its armed forces. China has already
provided Pakistan with military equipment, such as fighter jets and tanks. The two countries are
also working together on joint defense projects, such as the development of a new naval base in
Gwadar.

Here are some of the specific benefits of defense cooperation under CPEC:

 Modernize the armed forces: Defense cooperation can help to modernize the armed
forces by providing them with new equipment and training. This can help to improve the
country's security.
 Promote regional stability: Defense cooperation can promote regional stability by
reducing the risk of conflict. This can help to create a more secure environment for trade
and investment.
 Counter-terrorism: Defense cooperation can help to counter terrorism by sharing
intelligence and coordinating operations. This can help to make the country safer from
terrorist attacks.

The development of SEZs, tourism, and defense cooperation are all important aspects of the
CPEC, and they are expected to play a significant role in the project's success. However, it is
important to note that there are also some risks associated with these aspects of the CPEC.

For example, SEZs can be susceptible to corruption and environmental damage. Tourism can be
disrupted by security threats or natural disasters. And defense cooperation can lead to arms races
or regional instability.

It is important to carefully manage these risks to ensure that the CPEC benefits both Pakistan and
China.

Poverty Eradication & Human Resource Development:

CPEC recognizes poverty eradication as a critical goal. By creating job opportunities through
infrastructure development and industrialization, the project aims to uplift local communities and
reduce poverty rates. Additionally, human resource development initiatives, including vocational
training and skill enhancement programs, contribute to a skilled workforce capable of
participating in CPEC-related projects.

Poverty Eradication

Poverty is a major problem in Pakistan. According to the World Bank, 26.4% of Pakistanis lived
below the national poverty line in 2020. The CPEC is expected to help eradicate poverty in
Pakistan by creating jobs, boosting economic growth, and improving infrastructure.
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The construction of roads, railways, and other infrastructure projects will create jobs in the
construction sector. These jobs will be created directly, as well as indirectly through the supply
chain. The CPEC is also expected to boost economic growth by attracting foreign investment and
increasing trade. This will create more jobs in other sectors, such as manufacturing and services.

The CPEC is also expected to improve infrastructure in Pakistan. This will make it easier for
people to get to work and school, and it will also help to boost economic activity. Improved
infrastructure will also make it easier for businesses to operate, which will create more jobs.

Human Resource Development:

Human resource development is another key goal of the CPEC. The project is expected to help
improve the skills of the Pakistani workforce by funding education and training programs. This
will make the Pakistani workforce more competitive in the global economy and help to attract
foreign investment.

The CPEC also includes projects to promote women's empowerment. This will help to improve
the status of women in Pakistan and reduce poverty. Women's empowerment is important
because it can lead to increased economic participation, improved health outcomes, and reduced
violence against women.

The CPEC is a complex and ambitious project, but it has the potential to bring many benefits to
Pakistan. Poverty eradication and human resource development are two of the key goals of the
CPEC, and they are expected to play a significant role in the project's success.

However, it is important to note that there are also some challenges associated with achieving
these goals. For example, the CPEC is a large and complex project, and it is important to ensure
that it is implemented effectively. Additionally, the CPEC is likely to have a significant impact
on the environment, and it is important to take steps to mitigate this impact.

Despite these challenges, the CPEC has the potential to be a major force for good in Pakistan. By
helping to eradicate poverty and improve human resource development, the CPEC can help to
create a more prosperous and equitable future for the Pakistani people.

Here are some of the specific ways in which the CPEC can help to improve human resource
development in Pakistan:

 Education: The CPEC includes funding for education projects, such as new schools and
universities. This will help to increase access to education and improve the quality of
education in Pakistan.
 Training: The CPEC includes funding for training programs, such as vocational training
and apprenticeships. This will help to improve the skills of the Pakistani workforce and
make them more competitive in the global economy.

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  Research and development: The CPEC includes funding for research and development
projects. This will help to develop new technologies and improve the productivity of the
Pakistani economy.
 Skills matching: The CPEC includes projects to match the skills of the Pakistani
workforce with the needs of the labor market. This will help to ensure that people can
find jobs that match their skills.
 Entrepreneurship: The CPEC includes projects to promote entrepreneurship. This will
help to create new businesses and jobs in Pakistan.

The CPEC is a long-term project, and it will take time to achieve its full potential. However, the
project has the potential to make a significant difference in the lives of the Pakistani people. By
helping to eradicate poverty and improve human resource development, the CPEC can help to
create a more prosperous and equitable future for Pakistan.

Economy:

The China-Pakistan Economic Corridor (CPEC) is a multi-billion dollar infrastructure

development project that aims to connect China's Xinjiang province with the Arabian Sea via
Pakistan. The project includes roads, railways, power plants, and other infrastructure projects.
The CPEC is expected to have a significant impact on the economy of Pakistan. It is estimated
that the project will create up to 2.3 million jobs and add 2 to 2.5 percentage points to the
country's annual economic growth. The CPEC is also expected to boost exports and improve the
investment climate in Pakistan.

Here are some of the specific ways in which the CPEC is expected to impact the economy of
Pakistan:

 Infrastructure development: The CPEC will involve the construction of new roads, railways, and
power plants. This will improve the country's infrastructure and make it easier to transport goods
and people. This will also boost economic activity and create jobs.
 Energy: The CPEC will include the construction of new power plants. This will help to meet
Pakistan's growing energy needs and reduce reliance on imported oil. This will save the country
money and improve the balance of payments.
 Exports: The CPEC will create new trade routes between China and Pakistan. This will help
Pakistani businesses to export their goods to China and other countries. This will boost exports
and create jobs.
 Investment: The CPEC is expected to attract foreign investment into Pakistan. This will help to
finance the project and boost economic growth.

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 Tourism: The CPEC will improve the country's infrastructure and make it a more attractive
destination for tourists. This will boost tourism and create jobs.

The CPEC is a major undertaking that has the potential to transform the economy of Pakistan.
However, some challenges need to be addressed. These include the need to ensure that the
benefits of the project are shared equitably, the need to manage the environmental impact of the
project, and the need to mitigate the risks of debt default. Overall, the CPEC is a positive
development for the economy of Pakistan. It has the potential to create jobs, boost exports,
attract investment, and improve the country's infrastructure. However, it is important to address
the challenges that the project faces to ensure that it is a success.

In addition to the economic benefits, the CPEC is also expected to have a positive impact on the
culture of Pakistan. The project will bring together people from different cultures and
backgrounds, which will help to promote understanding and tolerance. The CPEC is also
expected to boost tourism, which will help to preserve and promote the country's cultural
heritage. Overall, the CPEC is a major undertaking that has the potential to transform the
economy and culture of Pakistan. It is a project that has the potential to bring peace, prosperity,
and development to the region.

China:

CPEC is expected to have a significant positive impact on China's economy. The project will
provide China with access to new markets and resources. It will also help to reduce China's
dependence on energy imports. The Gwadar port, which is a key part of CPEC, is expected to
become a major trading hub. It will also be used to export Chinese goods to the Middle East and
Africa. The construction of roads, railways, and pipelines will also help to improve connectivity
within China. This will make it easier for Chinese businesses to transport goods and services.

Overall, CPEC is expected to boost economic growth in China and help to reduce its trade
deficit.

Pakistan:

CPEC is expected to have a major transformational impact on Pakistan's economy. The project
will create jobs and improve infrastructure. It will also help to reduce poverty. The construction
of roads, railways, and pipelines will improve connectivity within Pakistan. This will make it
easier for businesses to transport goods and services. The development of special economic
zones will also create jobs and attract foreign investment.

The Gwadar port will also be a major boost for Pakistan's economy. It will create jobs, attract
foreign investment, and boost trade. Overall, CPEC is expected to boost economic growth in
Pakistan and help to reduce poverty.

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Other Asian countries

CPEC is also expected to have a positive impact on other Asian countries. The project will help
to improve connectivity and trade between these countries. It will also help to boost economic
growth and development. For example, the Karakoram Highway, which is a part of CPEC,
connects China with Pakistan and other Central Asian countries. This highway has improved
connectivity and trade between these countries. The construction of the Gwadar port will also
boost trade between Pakistan and other countries in the region. Overall, CPEC is expected to
have a positive impact on the economies of all the Asian countries involved in the project.

Here is a table summarizing the potential impact of CPEC on the economy of each
Asian country:

Asian Countries:

Geo-Political Partners:
CPEC is also seen as a geo-political partnership between China and Pakistan. China is a
major power in the world, and Pakistan is a strategically located country. CPEC is seen as
a way for China to expand its influence in the region, and it is also seen as a way for
Pakistan to strengthen its security and economic ties with China.
Overall, CPEC is a major initiative that has the potential to transform the economies and
societies of China and Pakistan. It is a complex project with many challenges, but it has
the potential to be a major success.

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China:
China is the main driver of the CPEC. It is providing the majority of the funding for the project,
and it is also involved in most of the major projects. China sees the CPEC as a way to expand its
economic and political influence in the region. The CPEC is also seen as a way for China to
secure its energy supplies and reduce its reliance on the Strait of Malacca.

Pakistan:
Pakistan is the host country for the CPEC. It is providing land and other resources for the project,
and it is also expected to benefit from the economic and security gains that the project is
expected to bring. The CPEC is seen as a way for Pakistan to improve its economy and security.
Pakistan is a strategically located country, and the CPEC could help to make it a more important
player in the region.

The United States:

The United States is a major ally of Pakistan. It has expressed concerns about the CPEC, but it
has also said that it is committed to working with Pakistan to ensure that the project is beneficial
to both countries. The United States is concerned that the CPEC could give China too much
influence in the region, and it is also concerned about the environmental impact of the project..

Russia:
Russia is a major power in the region. It has expressed interest in participating in the CPEC, but
it has not yet made any major commitments. Russia is concerned about the potential impact of
the CPEC on its interests in the region.

The European Union:

The European Union is a major economic power. It has expressed concerns about the
environmental impact of the CPEC, but it has also said that it is open to working with China and
Pakistan on the project. The European Union is concerned about the potential impact of the
CPEC on its trade interests in the region. The CPEC is a complex and ambitious project that is
likely to have a significant impact on the geopolitics of the region. It is too early to say what the
full impact of the CPEC will be, but it is clear that the project is a major development that will be
closely watched by countries around the world.
Here are some of the specific ways in which the CPEC could impact the geopolitics of the
region:
 China's influence in the region: The CPEC is seen as a way for China to expand its
economic and political influence in the region. The project could give China greater
access to markets and resources in the region, and it could also help to increase China's
influence over the countries involved in the project. The balance of power in the
region: The CPEC could shift the balance of power in the region in favor of China. This
could be seen as a threat by other countries in the region, such as India.

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 The security situation in the region: The CPEC could also have an impact on the security
situation in the region. The project could increase the risk of terrorism and other security
threats in the region. The environment: The CPEC could also have a significant impact
on the environment in the region. The project could lead to increased pollution and
deforestation. The CPEC is a complex and ambitious project that is likely to have a
significant impact on the geopolitics of the region. It is too early to say what the full
impact of the CPEC will be, but it is clear that the project is a major development that
will be closely watched by countries around the world.

Afghanistan:
CPEC is expected to have a positive impact on Afghanistan's economy. The project will help to
improve connectivity between Afghanistan and Pakistan. This will make it easier for businesses
to transport goods and services. The construction of the Gwadar port will also boost trade
between Afghanistan and other countries in the region. However, there are also some potential
challenges that CPEC may face in Afghanistan. These include security concerns and the lack of
infrastructure.

India:
CPEC is expected to have a mixed impact on India's economy. The project will boost trade
between China and Pakistan. However, it could also lead to increased competition for India in
the region. India has also expressed concerns about the security implications of CPEC. The
project passes through some of the most volatile areas in Pakistan. There is a risk of terrorist
attacks or other security incidents.

Iran:
CPEC is expected to have a positive impact on Iran's economy. The project will help to improve
connectivity between Iran and Pakistan. This will make it easier for businesses to transport goods
and services. The construction of the Gwadar port will also boost trade between Iran and other
countries in the region. However, there are also some potential challenges that CPEC may face in
Iran. These include sanctions imposed by the United States.

Sri Lanka:
CPEC is expected to have a positive impact on Sri Lanka's economy. The project will help to
improve connectivity between Sri Lanka and Pakistan. This will make it easier for businesses to
transport goods and services. The construction of the Gwadar port will also boost trade between
Sri Lanka and other countries in the region. However, there are also some potential challenges
that CPEC may face in Sri Lanka. These include the lack of infrastructure and the high cost of
living.

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Qatar: Qatar is a small country located in the Persian Gulf. It is a major oil and gas producer,
and its economy is heavily dependent on these exports. CPEC could have a positive impact on
Qatar's economy by providing a new market for its exports. The Gwadar port could also be used
to export Qatari gas to China.

Iraq: Iraq is a large country located in the Middle East. It is a major oil producer, but its
economy has been struggling due to political instability and security concerns. CPEC could have
a positive impact on Iraq's economy by providing a new market for its exports and by helping to
improve the country's infrastructure.

Bahrain: Bahrain is a small island country located in the Persian Gulf. It is a major financial
center, and its economy is also dependent on oil and gas exports. CPEC could have a positive
impact on Bahrain's economy by providing a new market for its financial services and by helping
to improve the country's infrastructure.

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Kuwait: Kuwait is a small country located in the Persian Gulf. It is a major oil producer, and
its economy is heavily dependent on these exports. CPEC could have a positive impact on
Kuwait's economy by providing a new market for its exports and by helping to improve the
country's infrastructure.

Oman: Oman is a small country located in the Arabian Peninsula. It is a major oil producer, but
its economy is also diversifying into other sectors, such as tourism and manufacturing. CPEC
could have a positive impact on Oman's economy by providing a new market for its exports and
by helping to improve the country's infrastructure.

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Challenges and Concerns:
While CPEC offers numerous benefits, it also faces challenges and concerns. These include
issues related to transparency, environmental impacts of infrastructure projects, debt
sustainability, and regional security. Addressing these challenges is crucial for the long-term
success and sustainability of CPEC.
Challenges for Pakistan: Pakistan faces several challenges in the implementation of the China-
Pakistan Economic Corridor (CPEC) project. These challenges can be identified as external and
internal. The Vice Director General of the Policy Research Office at the International
Department of the Central Committee Communist Party of China, Dr. Luan Jianzhang is of the
view that political unrest, security situation, and administrative issues are some of the greatest
challenges in the way of successful completion of the corridor. The construction of the corridor
has been defined by many as a strategic moment such that Pakistan has assumed the position of
economic pivot for the whole region. This paradigm shift in circumstances is a cause of great
worry for the enemies of Pakistan both within and outside. India, Israel, and the US are unhappy.
For India, CPEC is a thorn in its paw. They have put their heads together to work out new
strategies to block the project forward in March. RAW has opened a special office in Delhi and
has been allotted $300 million to disrupt CPEC. Already one can notice a sudden upsurge in the
acts of terror in the three restive regions and the activation of certain NGOs and think tanks all
trying to air misgivings and create fear psychosis. 20 In Pakistan, some political parties like
ANP, Baloch nationalists, and PkMAP raised serious objections to the CPEC project. Even PTI
and JUI (F) showed inclinations to climb 152 Pakistan Vision Vol. 16 No. 2 the bandwagon of
anti-CPEC forces. Objections were being raised despite assurances by the government that this
project would provide equal opportunities to all the provinces. There are numerous internal and
external challenges for Pakistan over Pakistan China One Belt One Road Project. Here some
very serious challenges have been described.
 Security: The CPEC passes through a region that is affected by terrorism and other
security threats. This could pose a risk to the safety of the project and its workers.
 Debt: Pakistan is already heavily indebted, and the CPEC is expected to add to its debt
burden. This could make it difficult for Pakistan to repay its debts and could lead to
financial problems in the future.
 Environmental impact: The CPEC could have a significant environmental impact,
including increased pollution and deforestation. This could damage the environment and
could also lead to social unrest.
 Local community concerns: Some local communities in Pakistan have concerns about the
CPEC, such as the displacement of people and the lack of transparency in the project.
These concerns need to be addressed to ensure the success of the project.

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  Geopolitical concerns: The CPEC has been criticized by some countries, such as India,
who are concerned about the growing influence of China in the region. This could lead to
tensions between China and other countries in the region.
These are just some of the challenges and concerns of CPEC. It is important to address these
challenges to ensure the success of the project.
Here are some of the specific ways in which the challenges and concerns of CPEC can be
addressed:
 Security: The security of the CPEC can be improved by increasing the presence of
security forces in the region and by working with local communities to address their
concerns.
 Debt: Pakistan can manage its debt by borrowing money from other countries, such as
China, and by improving its economic performance.
 Environmental impact: The environmental impact of the CPEC can be mitigated by
taking steps to reduce pollution and deforestation. This could include planting trees, using
cleaner energy sources, and recycling materials.
 Local community concerns: The concerns of local communities can be addressed by
providing them with compensation for their land and by involving them in the planning
and implementation of the project.
 Geopolitical concerns: The geopolitical concerns of other countries can be addressed by
working with them to ensure that the CPEC is beneficial to all parties involved.
The CPEC is a complex and ambitious project that faces several challenges. However, it is also a
project with the potential to bring significant benefits to Pakistan and the region. By addressing
the challenges and concerns of CPEC, it is possible to ensure the success of the project and to
realize its full potential.

Data Collection and Analysis Tools:

 Internet
 Research Articles
 Technical Books
 Interview Conduction.

Conclusion

The China-Pakistan Economic Corridor is a complex and ambitious project. It has the potential
to bring significant benefits to both China and Pakistan, but it also has some risks. It is important
to carefully manage the project to ensure that it is successful and that it does not have any
negative consequences. The China-Pakistan Economic Corridor represents a significant
collaboration between China and Pakistan, encompassing diverse sectors to promote economic
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 growth and connectivity. Financial cooperation, infrastructure development, agricultural
advancement, and various other areas contribute to the project's multifaceted nature. The project
is expected to create jobs, boost economic growth, and improve the lives of millions of people.
The successful implementation of CPEC requires addressing challenges and concerns while
maximizing its potential to benefit both nations and the broader region. As CPEC continues to
evolve, its impacts on the geopolitical landscape and regional economies will remain subjects of
interest and scrutiny.

Recommendations:

 The Pakistani government should ensure that the environmental impact of CPEC is minimized.
 The Chinese government should ensure that the loans it provides to Pakistan are on favorable
terms and that they do not lead to debt trap diplomacy.
 The two governments should work together to ensure that the benefits of CPEC are shared
equitably between China and Pakistan.

References

 China-Pakistan Economic Corridor:

https://en.wikipedia.org/wiki/China%E2%80%93Pakistan_Economic_Corridor
 [Belt and Road Initiative](https://en.wikipedia.org/wiki
 https://mcqsnotes.com/wp-content/uploads/2018/10/CPEC-Challenges-Oppertunities-for-
Pakistan.pdf
 “Strategic Importance of Gwadar Port for Pakistan,” International Relations, accessed December 4, 2015,
http:// muhammadalamgir.wordpress.com
 https://global-u.org/globalu/en/download/Featured%20Authors/erebus_wong/One-Belt-One-
Road.pdf
 https://www.tandfonline.com/doi/abs/10.1080/24761028.2016.11869094
 http://111.68.103.26/journals/index.php/IJSAS/article/view/3287
 https://sci-hub.se/https://www.jstor.org/stable/44986507

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