“To build a China-Pakistan community of shared destiny is a strategic decision made by our two governments and peoples. Let us work together to create an even brighter future for China and Pakistan,” said Chinese President Xi Jinping in his congratulatory message on the 10th anniversary of the China Pakistan Economic Corridor (CPEC). Similarly, a high-powered Chinese delegation under the leadership of Vice Premier He Lifeng also visited Pakistan to participate in the commemoration of the 10th anniversary of CPEC, which stands as a flagship project within the Belt and Road Initiative.
Both countries are jointly celebrating this pioneering and ambitious project which is aimed at stimulating economic growth, alleviating poverty, and strengthening regional connectivity. China’s unwavering support has fueled Pakistan’s economic prospects, forging an unbreakable bond between the nations. With substantial investments, loans, and grants, China emerges as Pakistan’s foremost benefactor, bolstering growth and cementing a significant and enduring partnership in this decade. The commemoration stands as a testament to the unwavering commitment of both nations towards augmenting cooperation and seeking shared prosperity. The CPEC project, initiated by the signing of Memorandum of Understanding during Chinese Premier Li Keqiang’s visit to Islamabad in 2013, reached a major milestone in April 2015, when Chinese President Xi Jinping and Pakistani Prime Minister Nawaz Sharif inked 51 agreements, propelling the project’s value from $46 billion to a formidable $58 billion by 2020.
The CPEC marked the genesis of a momentous vision, forging an unyielding bond between Pakistan and China in their joint quest for shared prosperity, connectivity, and lasting camaraderie. China’s awe-inspiring commitment of $58 billion to revitalize Pakistan’s infrastructure, energy, and production sectors arrived at a critical juncture, when traditional international donors hesitated, and Pakistan’s economy stood on the precipice. Projections of creating 2.3 million jobs from 2015 to 2030 and a commendable boost of 2 to 2.5 percent to annual economic growth, elevated the corridor to the status of a potent catalyst, poised to effect a profound metamorphosis in Pakistan’s economic landscape.
Over the past decade, a substantial influx of $25.4 billion in direct Chinese investment has flowed into diverse sectors, encompassing transport, energy, and infrastructure— a testament to the transformative connectivity and investment corridor crafted within the ambitious Belt and Road Initiative, shepherded by Beijing. In a remarkable display of camaraderie, China further extended unwavering support to Pakistan’s economic stability, with a generous CN¥30 billion in loans and a currency swap arrangement. This invaluable assistance has served as a formidable bulwark, fortifying Islamabad’s financial health, enhancing debt management capabilities, and alleviating the burden of repayment obligations. Moreover, this strategic partnership has facilitated Pakistan in diversifying its trade dealings, mitigating dependency on the dollar, and fortifying foreign exchange reserves. The CPEC’s expansive network of roadways deftly intertwines rural and urban landscapes, forging a harmonious synergy that resonates with the momentum of progress. The strategic positioning of nine Special Economic Zones (SEZs) along these vital road links has proven a stroke of genius, beckoning substantial investments towards Pakistan’s shores.
In the aftermath of the COVID-19 scourge, the allure of these SEZs has grown even stronger, offering the promise of economic rejuvenation. Four out of the nine designated SEZs under CPEC are primed for take-off, with the completion of the first phase expected to see these initial SEZs, sprouting along the motorway network, commence operations by 2025. The remaining five SEZs are projected to become fully operational by 2030, underscoring the transformative potential of this grand endeavour.
Beyond a mere conduit of connectivity, the CPEC stands as a paradigm of enduring partnership, unlocking the vast potential of shared prosperity and progress. As both nations embark on CPEC’s second phase, it promises to kindle investment, progress, and prosperity for Pakistan and the entire region. This phase underscores a focus on high-quality development, envisioning a growth corridor with completed special economic zones, industrial and green corridors, and enhanced openness and connectivity.
CPEC’s unwavering focus on energy projects has immensely helped in tackling Pakistan’s chronic energy scarcity, encompassing a diverse array of coal, hydel, solar, and wind power plants, thereby substantially bolstering power generation capacity. This visionary initiative not only fulfilled immediate energy needs but also laid the foundation for a sustainable and greener future.
Pakistan’s transformation into an energy-surplus nation under CPEC has heralded a new era of industrial growth, enticing foreign investors to the nation’s shores. A commendable total of 14 power projects, amassing an impressive 8,000 megawatts of installed capacity, now stand as a testament to the successful endeavour of resolving Pakistan’s long-standing power shortages.
This stable energy supply has captured the interest of global investors, attracting industries keen on establishing their operations within the fertile economic landscape of Pakistan. The Gwadar port, a pivotal player in this grand endeavour, has undergone a remarkable transformation, emerging as a fully functional maritime hub that links Pakistan to the global stage, catalyzing trade and commerce across the region. As the Gwadar Sea port approaches full operational capacity, the tangible dividends it yields will fuel the economic growth of both nations. The impending completion of the Gwadar new international airport will undoubtedly amplify its strategic significance, unlocking a plethora of opportunities in the days to come.
The Gwadar International Airport, generously financed by China, cements the city’s stature as a vibrant trade and logistics hub. The inauguration of its airbase infrastructure on July 27 heralds an era of elevated connectivity and trade opportunities in the region. Gwadar’s strategic location, coupled with cutting-edge facilities, primes it to realize its full potential as a pivotal gateway to global trade and commerce. Moreover, the agreement to upgrade Pakistan’s railway ML-1 (Main Line 1, Peshawar to Karachi) opens the floodgates to industrialization and export-oriented connectivity, paving the way for a new chapter in the quest for regional integration and prosperity.
Originally conceived as a visionary endeavour linking Gwadar Port in southwest Pakistan with China’s northwestern region of Xinjiang, the CPEC has metamorphosed into a multifaceted mission spanning energy, infrastructure, industrial cooperation, and the elevation of Gwadar as a pivotal trade hub. Its transformative impact stretches across borders, fostering regional integration and trade while fortifying connectivity between China, Pakistan, and neighbouring nations, marking its role as a pivotal Belt and Road Initiative (BRI) linchpin.
Transport infrastructure enhancements, including the Karakoram Highway and Peshawar-Karachi Motorway, have expedited travel and facilitated the seamless movement of goods and people. With nine Special Economic Zones (SEZs) making steady headway, particularly the thriving Gwadar Free Economic Zone, the CPEC is steadily becoming the most alluring “investment destination” in the region. This influx of investment in SEZs marks a compelling testament to the CPEC’s rising appeal as a gateway to newfound opportunities and economic prosperity in the vibrant landscapes of the region.
Embarking on the second phase of CPEC, China has committed a generous $1 billion grant for Pakistan’s social sector development, reinforcing their partnership in pursuit of shared prosperity. The forthcoming second phase of the China Pakistan Economic Corridor (CPEC) will witness 63 additional projects, valued at approximately $35 billion, completed by 2030. This robust endeavour underscores the unwavering dedication of both nations in realizing the corridor’s vision, fostering regional connectivity while paving the way to Afghanistan and other Central Asian countries.
During Chinese Vice-Premier He Lifeng’s visit to Islamabad, the two countries signed six documents on the Joint Cooperation Committee on CPEC; a memorandum of understanding (MoU) on establishing an export exchange mechanism within the framework of CPEC; a protocol of phytosanitary requirements for the export of dry chillies from Pakistan to China and a document on the final report on the feasibility study of realignment of KKH Phase-II.
Both sides also signed through diplomatic channels an MoU on the industrial workers exchange programme as well as minutes of the 21st conference of a technical committee to promote the strategic ML-1 project.
Beyond a mere conduit of connectivity, the CPEC stands as a paradigm of enduring partnership, unlocking the vast potential of shared prosperity and progress. As both nations embark on CPEC’s second phase, it promises to kindle investment, progress, and prosperity for Pakistan and the entire region. This phase underscores a focus on high-quality development, envisioning a growth corridor with completed special economic zones, industrial and green corridors, and enhanced openness and connectivity.
