CPEC is not merely an ordinary economic corridor or a transit trade route, but it would be a fate changer project through which the Pakistani nation would be able to generate around 10,000 megawatts of power, a number of hydropower dams, a high-speed railway facility, educational institutes and medical facilities. The CPEC would also be the harbinger of enormous job opportunities for Pakistanis. Still other components include integrating industrial chains, clusters and parks so regional countries can build on their comparative advantage and entire industrial sectors can develop in concert.
Economic corridor can be termed as future of the world. It is estimated that about 3 billion people from China, South Asia and Central Asia would be benefited by the economic corridor. It has the potential to empower half of the world's population living in Asia, by developing special trade routes between China and Pakistan. The corridor is the most important agreement signed between Pakistan and China till now.
China's role in the current international financial system is constructive and we had to make some efforts and contributions on our part. Pakistan should enhance the capacity of the current system.
Economic corridor offers bright future to Pakistan and China and investors of both countries should take advantage of this opportunity for making investments and joint ventures. Entrepreneurs of both countries should meet frequently to explore all avenues of bilateral co-operation and strengthen commercial relations.
China-Pakistan Economic Corridor is a development programme to connect Gwadar Port in southern Pakistan to China's north-western region of Xinjiang via highways, railways and pipelines to transport oil and gas. Chinese Premier Li Keqiang was among the first advocates of the project. Chinese President Xi Jinping, former Pakistani President Asif Ali Zardari and Pakistan Prime Minister Nawaz Sharif have become strong supporters of the project.
The corridor, after completion, will serve as a primary gateway to trade among China, Middle East and Africa through Pakistan. Particularly, the oil from the Middle East could be offloaded at Gwadar, which is located on the mouth of the Persian Gulf. The oil would be transported to China through Balochistan. Such a link would vastly cut the 12,000 kilometres route that Mideast oil supplies must now take to reach the Chinese ports.
The government endeavours regarding Economic corridor should not be taken as, chauvinism. This is not the matter of any political party. It is the case of Pakistan's economic prosperity, which would get a double-triple boost if the economic corridor project is implemented in its true spirit.
It is worth mentioning that this year the federal government had announced six development schemes costing Rs 130 billion under the China-Pakistan Economic Corridor, marking the beginning of a process that will transform the country into a transit hub for the second largest economy of the world. The reason behind this vital importance is that 60 percent of oil is being imported from Gulf countries that reaches China after covering the distance of 16,000 kms, and after the completion of Gwadar port project, the distance will reduce to 2500 kms only.
Analysts claim that CPEC "will reopen the economic artery blocked for years, realise the interconnection in transport, trade, investment and finance and build a new Euro-Asian economic roadmap benefiting countries along the Silk Road and even more." There is no dearth of energy and recourses in Central Asia which would be available to others in the region, which is likely to become the biggest market in the world and would contribute to regional stability and prosperity.
Recently, China has commissioned a preliminary research study to construct an international rail link connecting its province Xinjiang's border to Pakistan. According to Chinese officials, this new rail link, which runs through the Pamir Plateau and Karakorum mountains, will be one of the hardest to build.
Pakistan is considering providing the shortest access and transit corridor for Kashghar goods. Apart from Karachi and Port Qasim sea ports, Gwadar will provide an additional gateway and for this, China is developing in its west "Kashghar's Special Economic Zone", which would link China further on the western side with Central Asia and on its south with South Asia.
China has planned numerous mega projects to be started at Gwadar that would be tremendously beneficial for both countries. In this regard, China is planning to replicate the model of Shanghai Free Trade Zone at the sideways of economic corridor. Remarkably, under the Early Harvest Programme, China had planned to pump $50 billion up to 2017 into a host of projects in Gwadar including coal, solar and wind energy units enabling Gwadar to create a nexus between Pakistan, Iran, China and Central Asian states that would ultimately generate billions of dollars in revenues of Pakistan's kitty besides creating endurable job opportunities.
Analysts believe that, Shanghai Free Trade Zone is a perfect model to be implemented at Gwadar. Surprisingly, the SHFTZ was also initially used as a testing ground for a number of economic and social reforms in China that showed marvellous success regarding economic growth. SHFTZ incorporated numerous relaxations in different sectors. Under the FTZ's new capital registration system, foreign investors are no longer required to contribute 15 percent capital within three months and full capital within two years of the establishment of a foreign invested enterprise (FIE).
The Free Trade Zone at Gwadar would also introduce similar incentives to foreign investors as are offered in the Shanghai Free Trade Zone, which will turn Gwadar into a hub of foreign investment. Both the Pakistani and Chinese governments are eager to invest in this plan. It is expected that the establishment of the special economic zone, free trade zone, and export processing zone in the port city would create innumerable job opportunities for Pakistan's skilled and unskilled manpower, which will ultimately raise the living standards of the people of Pakistan.
According to Chinese investment plans, Balochistan has a share of 38%; by generating economic activities ensuing to the modern infrastructure facilities and ample employment opportunities for the locals that will also help end the anti-state activities in Balochistan.
The Chinese investors have evinced serious interest in acquiring land in the vicinity of Gwadar Port Free Zone for developing the industrial parks around. It would, therefore be advantageous for the natural endowments of Balochistan including oil, gas, copper, gemstones, marble and gold reserves that would better be exploited by providing the professional training to the local manpower in conjunction with the soft loan schemes to help create a network of micro and small enterprises in the province.
Pakistan and China have signed agreements for constructing an international airport at Gwadar, for upgrading a section of the 1300-kilometre Karakorum Highway connecting to
Islamabad and of a fibre-optic cable to be laid from the Chinese border to Rawalpindi. According to Analysts, with the development of the corridor, Central Asia, traditionally an economically closed region owing to its geography and lack of infrastructure will have greater access to the sea and to the global trade network.
Besides extending co-operation in the developmental projects in Pakistan, China is also providing all out assistance to Pakistan in the field of 'civil nuclear technology. Prime Minister Nawaz Sharif inaugurated two Chinese sponsored nuclear power projects of 1100 MW each in Karachi last year. Earlier, China helped Pakistan in establishing four civil nuclear power plants (including two under construction) at Chasma. China provided this assistance to Pakistan despite the concern of US and its allies on Pak-China civil nuclear co-operation.
China has assured that it would "consolidate its friendship with Pakistan no matter how the international situation is changed." Pakistan too considers its 'friendship with China as the cornerstone' of its foreign policy. In the rapidly changing geo-strategic and security environment, both countries are likely to face many regional and global challenges. The need of the hour is that China should grant multiple visas to Pakistani businessmen so that they could frequently visit China. Both countries should adopt a liberal visa regime to promote commercial ties. Currently Pakistani businessmen have to go to Guangzhou via Hong Kong which is costly and time-consuming. China, therefore, should start a direct flight from Guangzhou to Lahore to facilitate enhanced exchange of trade delegations.
(The writer is President Pak-China Joint Chamber of Commerce and Industry)
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