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
The Americans became a friend of Pakistan because those days Russia was their main enemy. The crisis of war united some countries. In my opinion, the destinies of those mini-states were concerned with the war between two superpower. Poor and backward countries were all became victims of the conflict. Pakistan used war tactics to teach math at that time because they wanted their offspring to understand the cruelty of war and warned their future generations to become stronger. Because the change of position in the international energy supply chain, the civil strife in Iraq rise in oil prices allowed the United States gained a lot of advantages from it. The higher price made America more investment in oil development and corresponding employment,
According to this treaty, dry port of Lahore (Pakistan) can easily accessible to Afghanistan for trading purpose and Afghanistan can use this port for trading goods to India. During late 90s and early 2000s, there was a huge trading of different good and services from Pakistan to Afghanistan. Economists find that the chief reason for this massive trading between these two neighbouring countries is that they share common border with each other. A smooth road name Torkhum Highway connects Pakistan with Afghanistan. From Peshawar, one of the major cities of Pakistan, Afghanistan is just 4-5 hours’ drive. Therefore it is very easy to trade goods and services to Afghanistan. Freight cost is minimum due to which Pakistani products are sold at lower prices in Afghanistan and because of lower prices the demand for Pakistani products is very in
At the start of the new millennium, China became rapidly known as the fastest growing economy sparking the greatest shift of relative power in history. Coincidence, or not, Afghanistan’s narrow border with China made it a perfect strategic target to presume military presence within the Asian region. Arguably, the invasion of Afghanistan lays largely on a tactical plan designed by the US to resist
There is very little doubt that this decade of 20th century was characterised by a very vicious strategic rivalry between the two contemporary super powers. Although the Soviet-US Enmity was the most dominant factor of this war, yet it was never fought between these two countries. One can argue that this was the only US war where not even a single US soldier received even a single bullet. With very little doubt, one can say that this US-Soviet war was actually fought between Pakistan and the USSR, where the Pakistani army was fighting to fulfil its commitments with its ally. A tussle between Kabul and Moscow finally involved an active role by Islamabad and Washington. Both Islamabad and Washington were able to rebuild their relationship a
Since 1960, Pakistan was perceived in the U. s. States as an integral bulwark against the globalized Communism in the Cool War. The U. s. States very carefully strengthened Pakistan during 1971 although The legislature kept in place an hands embargo. In 1970, Indian local
This will not only be beneficial for US-Pakistan relations but will also safeguard its strategic interests in the region in the long-term. Henry Kissinger in his book, “White House
Chinese cooperation with Pakistan has reached economic high points, with substantial Chinese investment in Pakistani infrastructural expansion. Pakistan has served as China's main bridge between Muslim countries. By facilitating the 1972 Nixon visit to China Pakistan played an important role in the communication gap by bridging it between China and the West. The relationship between China and Pakistan has been described by Pakistan's ambassador to China as higher than the mountains, deeper than the oceans, stronger than steel, dearer than eyesight, sweeter than honey, and so
As a landlocked country, neighboring China, Pakistan, Iran and Central Asian countries, Afghanistan has a significant geostrategic importance. The Khyber Pass, located between Afghanistan and Pakistan has long been one of the most important trade routes and strategic military locations in the world. 4000 miles incant route, called the Silk Road, or Silk Route is one of the ancient world networks of trade, and cultural transmission routes are crossing Afghanistan. The route is known as a meeting point of the Indian,
With a gross domestic product (GDP) calculated at the equivalent of $11.06 trillion and an average growth rate of 1.84 percent, China has the potential to surpass the United States' economy by the year 2030 (citation 1). China's rapid GDP growth is caused mainly by state investment, high exportation, and successes with e-commerce (citation 2). However, China was not always a country eager to open its doors to economic opportunity. Instead, the government strove to maintain self-dependency and to limit influence from other countries. Through the decades of isolation, many countries attempted to gain trade relations with China. These attempts usually were unsuccessful. It wasn't until the late twentieth century until China began forming the economic
The book “India, Pakistan and the United States: Breaking With the Past” By Shirin R. Tahir-Kheli asserted that to assure “cold peace" between both neighbouring countries India and Pakistan, Washington must acknowledge ground realities. According to the author threats and withdrawing the assistance cannot help to make Pakistan to change its policies no incentive of any kind can do anything with regard to the policy of Pakistan. The insecurity will prevail due to maintenance of its nuclear programs. The writer further says any measure of punishing Pakistan to roll back on nuclear proliferation would not work no sanction can do any effect on its approach. The Only thing, that can work is enhancing the attention on steps of engaging Pakistan and
China and Pakistan use their physical location (where they are located on a map) to an economic advantage. Prisoners of Geography states, “...the ancient Silk Road, the land trade bridge from the middle kingdom of the world.” (p52). Prisoners of Geography states, “Another
On the other hand, Silk Road is a rebirth of the economic trade, especially during the Mongolia empire period. As I mentioned, the pre-Mongol era is like a turning point for the international trading’s rise, because along the ancient Silk Road, there are a lot of countries, especially the countries of Central Asia. The international trade became the only way to promote the development of the economic.1 The construction of the Silk Road is like a economic belt to link China and the western
The Taliban insurgents in Afghanistan are affiliated with Al-Qaeda terrorist organization, which is a sworn enemy of America since the September 11, 2001 terrorist attacks on the United States. Therefore, defeating the Taliban insurgents in Afghanistan became a top priority for the United States, because the Taliban insurgents group allowed Osama Bin Laden, the leader of Al-Qaeda to run terrorist training camps in Afghanistan. The United States government called on Pakistan the closest neighbor of Afghanistan to ally with America against the Taliban insurgents in Afghanistan. The government of Pakistan became the U.S. ally in this war, but at the same time, supported the Taliban insurgents in Afghanistan. This paper argues that there are two
According to Ahmad Hasan Dani’s Centre of the Study of the Civilization of Central Asia: Roads are by definition channels of communication between one place and another, one region and another, one people and another, and one civilization and another (Sugimura & Umesao 21). They provide a means of connection and while “some roads are transitory, others secure a permanent place in human history” (Sugimura & Umesao 21). One such road, known as the Silk Road, contributed inestimably to the ancient world of Eurasia and played a significant role in both “cultural and commercial advancements” (Sugimura & Umesao i). This route promoted a network of trade of not only goods and merchandise, but also new ideas and techniques all of which were brought to various regions especially during the Tang dynasty. Because of trade and the Silk Road, cultural exchanges were made possible and “western countries shared the learnings and culture that flourished in the Chinese capital” (Sugimura & Umesao i). Although there were disadvantages of the Silk Road because of banditry and spread of disease, this network of trade nevertheless connected the ancient Eastern and Western worlds through the spread of religion, culture and politics.
Pakistan by virtue of its geographic location started its international collaborated in 1990s during the Afghan war. After the war ended, it had to face the post war consequences as a burden of more than 3 million Afghan refugees, ever growing drug trade in neighborhood as well as Federally Administered Tribal Areas (FATA) of Pakistan. Indeed the militia which fought against erstwhile USSR in Afghanistan was abruptly abandoned who found safe haven along Pakistan Afghan borders. After 9/11 the situation got complicated, Pakistan was to be fighting against those who were once trained in collaboration with CIA. Despite worst domestic pressures, Pakistan continued its commitment to international community in its counter terrorism efforts. Beside others, Ramzi Yousef and Mir Amal Kansi, the prime perpetrator of terrorists’ attacks on World Trade Center and United States embassies in Africa were apprehended by Pakistan. “Despite being the victim of terrorism itself, Pakistan has been cooperating with the international community and the US in counterterrorism efforts” .