Challenges and opportunities of China Pakistan economic corridor

Prof. Dr uzma Shujaat
China Pakistan Economic Corridor (CPEC) is a strategically bilateral initiative aimed at connecting Gwadar port in Pakistan which China’s Xinjang region through a network of transportation and energy projects. Despite its potential to super economic growth and regional integration, CPEC also faces several challenges including political and security risk social and environmental risk.
CPEC phase 2.0 represents a paradigm shift in Pakistan- China relations. This phase aims to redefine the framework of bilateral relations through deeper collaboration, advanced technological transfer and transformative socio- economic projects. China’s commitment to transferming CPEC into a multi dimensional Framework with 5 very thematic corridors, Innovation. Green corridors. Regional connectivity. This initiative reflects China’s commitment to transforming cutting edge technologies modernising Pakistan’s and infrastructure and fostering a knowledge based economy.
● Establishing an economic growth corridor with clean priorities.
● Tech-driven industries + fostering innovation.
● Addressing poverty alleviation, education and healthcare through targeted socio-economic projects.
● Accelerating energy transition and promoting sustainable economic models.
● Expanding exports and building global supply chain linkages.
As the two nations strengthen their partnerships through initiatives like these, the world will witness CPEC phase 2.0 emerge as a model of international cooperation and economic integration benefiting not only China and Pakistan but the entire region.
The location and geography of a country play a significant role in shaping its strategic cooperation with other countries. In today’s globalized world, geographical location is not the only factor that influences the development of geo-economics and geopolitical relations. Corridors with weak and unstable economies can benefit from their geographical location by offering attractive opportunities for strategic cooperation to fulfil their national interests. In that context, Pakistan’s a particular example of a country facing such a situation.
Pakistan’s geographical location is between two rapidly developing countries China and India and share borders with energy rich Iran and have proximity the central Asian States. The CPEC 1st and second phases designed to harvest short term projects but the third phase aims to 1st phase electricity + infrastructure, inefficiencies, encourage intra-Pak and regional connectivity. 2nd productive capacity by boosting industries particularly export oriented through special economic zones supported by Chinese investment.
The 3rd phase involves the construction of railway lines and energy pipelines between Kashgar and Northern Pak and upgradation of Korakoram Highway. Despite Pakistan’s promising economic development through CPEC, it faces several challenges that threaten it’s political, economic, social and security stability. There are also other obstacles such as socio-political issues, low literacy rates, terrorist attacks and corruption. Massive investment from China through CPEC has increased Pakistan’s economic depence in China. If we see through the lenses of dependency theory, Theotonio Dos Santos, which describe how countries become dependent on one another due to expansion and self-sustainment. In this perspective we can understand why Pakistan continued to work with China dispite many challenges.
D Theory fundamentally explains how developing countries can be trapped in an unbalanced economic relationship. Actually, the DT is a part of the structuralism paradigm which assumes certain basic principles when examining its politics. Exploitation can take the form of investment and development benefiting the developed countries.
A country cannot rely solely on using only land, labour and capital to achieve sustainable economic growth. Instead it must increasingly rely on increasing productivity by introducing advance technologies and developing it’s capital goods sector. So there are many challenges for Pakistan in implementing CPEC in a full fledge manner at the same time Pakistan will have many benefits from their projects.
The author is the Acting Director of the Area Study Centre for Europe, University of Karachi.