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Pros And Cons Of The China Pakistan Economic Corridor

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China Pakistan Economic Corridor:
The China–Pakistan Economic Corridor often referred to by the acronym CPEC, is a collection of projects currently under construction at a cost of $51 billion, intended to rapidly expand and upgrade Pakistani infrastructure as well as deepen and broaden economic links between Pakistan and the People's Republic of China. The corridor is considered to be an extension of China's ambitious One Belt, One Road initiative, and the importance of CPEC to China is reflected by its inclusion as part of China's 13th five-year development plan.
Pakistani officials predict that the project will result in the creation of upwards of 700,000 direct jobs between 2015-2030, and add 2 to 2.5 percentage points to the country's …show more content…

Chinese interest in Pakistan's deep-water harbor at Gwadar had been rekindled by 1998 and in 2002 China began construction at Gwadar port which was completed in 2006. Expansion of Gwadar Port then ceased thereafter owing to political instability in Pakistan.
(https://en.wikipedia.org/wiki/China%E2%80%93Pakistan_Economic_Corridor)

1- Pros and Cons of …show more content…

Gwadar is also less crucial to China as it is expensive to pump or carry oil or gas over the Karakoram range to Xinjiang
Investments by China will boost Pakistan’s $274 billion GDP by over 15 %. Money will be taken from old investors to pay off new ones; CPEC will remain a pipe dream
China’s investment surpasses all foreign investments in Pakistan in the past. Win-win cooperation is based on trust, confidence and convergence of interests. The Chinese influence in Pakistan has touched an unprecedented high level and it has surpassed the US which has remained the most preferred ally since 1954. The impact of CPEC on Pakistan’s exports is also a big question. CPEC will generate 2 way trade so imports will rise as well; Envisioned projects will incur liabilities in foreign exchange for:

- Capital and fuel imports
- Debt Servicing
- Profit repatriation and wages
Pakistan is far more comfortable with China as a facilitator of the Afghan peace talks than it is with the US, whose intentions are highly

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