China and Pakistan Economic Corridor

Abstract

The China-Pakistan Economic Corridor (CPEC) is a pivotal component of China’s Belt and Road Initiative (BRI), aimed at enhancing connectivity and trade between Asia, Europe, and Africa. This paper explores the origins, projects, benefits, and environmental challenges posed by the CPEC and BRI.

It also examines the impact of these initiatives on international trade, regional development, and infrastructure growth. Despite concerns about environmental degradation, the BRI has made significant achievements in improving global connectivity and trade partnerships. China and Pakistan economic corridor is journey and relationship towards economic regionalization in the global world.

Introduction

The Belt and Road Initiative (BRI) is one of China’s most ambitious global infrastructure projects, launched in 2013. The initiative seeks to enhance connectivity and trade between Asia, Europe, and Africa through the development of trade routes and infrastructure projects.

One of the flagship projects under the BRI is the China-Pakistan Economic Corridor (CPEC), which involves the construction of highways, railways, and energy projects connecting China to the Arabian Sea through Pakistan. This paper delves into the projects under CPEC and BRI, their impacts on international trade, and the challenges posed by these ambitious endeavors.

Projects

The BRI encompasses several major infrastructure projects, primarily focused on developing transportation networks such as highways, railways, ports, and energy pipelines. Key CPEC projects include the construction of the Gwadar Port, the Karakoram Highway, and multiple energy projects aimed at addressing Pakistan’s energy shortages. The Silk Road Economic Belt and the 21st Century Maritime Silk Road are two key components of the BRI, spanning over 60 countries, with the goal of fostering global trade through enhanced infrastructure.

International Trade Project

CPEC is an essential link in the broader BRI framework, serving as a major trade route connecting China to the Middle East, Africa, and Europe through Pakistan. The development of the Gwadar Port provides China with a direct access route to the Arabian Sea, bypassing the longer route through the Strait of Malacca. This enhances international trade efficiency and boosts China’s role in global trade.

Belt and Road Initiative Project

The BRI consists of six main economic corridors that stretch across continents. It involves over 140 countries and aims to create new global trade routes. The infrastructure investments include the construction of ports, highways, railways, and airports, designed to improve trade logistics. With China’s investment estimated at over $1 trillion, the BRI is transforming global trade, particularly for developing nations along the route.

First Development of BRI’s

One of the first and most significant developments of the BRI was the opening of the Gwadar Port in Pakistan under the CPEC. This port now serves as a crucial hub for Chinese trade with the Middle East and Africa. The port’s development was a major milestone in the BRI and showcased China’s ability to create critical infrastructure in developing nations.

BRI’s Impact

1. Global Connectivity: BRI has significantly enhanced global connectivity by establishing new trade routes and improving transportation infrastructure.
2. Trade Expansion: Countries participating in the BRI have seen increased trade volumes with China, leading to an estimated increase of 4.1% in trade flows globally since 2013.
3. Investment in Infrastructure: Over 140 countries have benefited from Chinese investments in infrastructure, with the World Bank estimating that the BRI could lift 7.6 million people out of extreme poverty.

Adverse Environmental Effects of BRI’s

1. Deforestation and Habitat Loss: Construction of roads, railways, and industrial zones has led to large-scale deforestation and loss of biodiversity in many regions.
2. Increased Carbon Emissions: Many of the energy projects under the BRI are coal-based, leading to concerns over increased carbon emissions.
3. Use Water Scarcity: The diversion of water resources for construction and industrial purposes under BRI projects has exacerbated water scarcity in certain regions.

Achievements of BRI’s

1. Global Infrastructure Development: The BRI has built or upgraded over 12,000 km of railways, 29,000 km of highways, and 200 ports worldwide.
2. Investment Growth: BRI-related investments have surpassed $900 billion globally, supporting the economic growth of several developing nations.
3. Trade Volume Increase: Since the launch of the BRI, trade volume between China and participating countries has exceeded $6 trillion, with annual growth rates of 9.2%.

Authentic Facts and Figures

I’mInvestment Scale: China has pledged over $1 trillion for the BRI, with over $60 billion earmarked for CPEC alone.

Trade Impact: Between 2013 and 2021, BRI countries’ trade with China grew at an average rate of 4.1%, contributing an additional $117 billion annually to global trade.

Employment Generation: BRI-related projects have created over 300,000 local jobs across participating countries as of 2021.

In conclusion, while the BRI and CPEC have yielded substantial benefits in terms of trade expansion and infrastructure development, they also present significant environmental and sustainability challenges. The long-term success of these initiatives will depend on balancing economic growth with environmental preservation.

Benefits of CPEC:

• Economic Growth: CPEC has the potential to significantly boost Pakistan’s economy, contributing to an estimated 2-3% increase in GDP by 2030.

• Employment Opportunities: The various projects under CPEC are expected to create over 700,000 jobs in Pakistan by 2030.

• Energy Security: Through CPEC, Pakistan has received substantial investments in its energy sector, including coal, solar, and hydropower projects, addressing its energy crisis.

• Power plants: china spent $35 Billion in the power plants,19 power plants constructed in Pakistan.
• Regional Connectivity: The development of the Gwadar Port and the transportation infrastructure connects Pakistan with global markets, facilitating regional trade and investment opportunities.

The views and opinions expressed herein, and any references, are those of the author and do not necessarily reflect the editorial policy of the Centre for Development and Stability (CDS).

This article was written by a student of Sardar Bahadur Khan Women’s University Quetta, Balochistan.