Introduction

China Pakistan Economic Corridor is known as the game changer for

Pakistan and China and for the whole region. China was regarded as a
sleeping giant in earlier decades. But now, China is playing a core role
not only in the Asian region but in the entire world. It has announced
to the world its dream of reviving the Great Silk Route which was once
the only known trading route in the world. Chinese President Xi
Jinping takes initiative for the revival of ancient Silk Route as a One
Belt One Road project which connects around 60 countries of Asia,
Europe and Africa for economic activities. This project has the
potential to boost Chinese economy and overall world economic
activities. OBOR project based on seven corridors which are described
below

(1) China-Mongolia-Russia Economic Corridor

(2) New Eurasia Land Bridge (Second Eurasia Land Bridge)

Economic Corridor

(3) China-Central Asia-West Asia Economic Corridor

(4) China-Indochina Peninsula Economic Corridor

(6) BCIM Economic Corridor

(5) China-Pakistan Economic Corridor

(7) 21st-Century Maritime Silk Road

The Concept of One Belt and One Road

The “One Belt One Road” concept has international strategic
importance. The One Belt One Road initiative covers countries and
regions with a total population of 4.4 billion and a total economic
volume of US$ 21 trillion, 63 percent and 29 percent respectively of the
World’s total.4

the Belt and Road Initiative (BRI), the project involves building a big
network of roadways, railways, maritime ports, power grids, oil and gas
pipelines, and associated infrastructure projects.

The project covers two parts. The first is called the “Silk Road
Economic Belt,” which is primarily land-based and is expected to
connect China with Central Asia, Eastern Europe, and Western
Europe. The second is called the “21st Century Maritime Silk Road,”
which is sea-based and is expected to will China’s southern coast to the
Mediterranean, Africa, South-East Asia, and Central Asia.

CPEC
CPEC provides a secure and shortest route to China and brings
opportunities for regional landlocked states like Afghanistan, Central
Asian Republics and decreases Chinese dependence on South China
Sea as well as Malacca Strait. Like other economic corridors the prime
objective of CPEC is to increase the phenomena of interdependence
towards nearest states for business, trade, industrial development, and
overall societal growth. China gives incentives to Pakistan for
infrastructural developments, energy development, and development
of the Gwadar port. China is an emerging economy of the world with
increasing energy demands. As compared to other corridors CPEC only
based on one country Pakistan and it reduced 13000 km to 2500 km
distance for China towards oil rich Middle Eastern countries. Also,
provides secure route and reduces ‘Malacca dilemma’ because
currently 70 percent of China’s energy supply passed through strait of
Malacca which is under the influence of Indian and American naval
forces that become a permanent threat for China.
 Digitalization in Pakistan

Pakistan has seen significant progress in digitalization, with increasing

internet and mobile phone penetration rates. Social media platforms
are widely used, and e-commerce is on the rise. Digital payment
solutions are becoming more common, driven by government
initiatives. Efforts are underway to enhance digital literacy and
technical skills. However, challenges such as infrastructure limitations,
the urban-rural digital divide, regulatory hurdles, cybersecurity
threats, and financial constraints persist. Despite these challenges,
Pakistan's digital landscape shows promise, with ongoing
government initiatives and private sector contributions fostering
growth and innovation in the digital economy.

CPEC's Potential for Digitalization

The China-Pakistan Economic Corridor (CPEC) projects have the
potential to significantly contribute to digital infrastructure
development in Pakistan. Here are some ways in which CPEC projects
can impact digital infrastructure development in the country:
1. Telecommunications Infrastructure: CPEC projects include the
development of telecommunications infrastructure such as the laying
of fiber optic cables and the expansion of broadband networks. This
can improve internet connectivity and access to digital services across
Pakistan.
2. Smart Cities Development: As part of CPEC, there are plans to
develop smart cities in Pakistan. These smart cities are designed to be
technologically advanced, with integrated digital infrastructure for
services such as smart grids, smart transportation systems, and e-
governance platforms.
3. Data Centers and Cloud Computing: CPEC projects can facilitate the
establishment of data centers and cloud computing facilities in
Pakistan. This can support the growth of the IT industry, enable data
storage and processing capabilities, and promote digital innovation.
4. E-Government Services: CPEC projects can support the development
of e-government services in Pakistan, making government services
more accessible to citizens through digital platforms. This can
streamline administrative processes, improve transparency, and
enhance public service delivery.
5. Digital Skills Development: CPEC projects can also focus on initiatives
to enhance digital skills among the Pakistani workforce. This can
include training programs, capacity building initiatives, and
collaborations with educational institutions to prepare individuals for
the digital economy.
6. Cybersecurity Infrastructure: With the expansion of digital
infrastructure, there is a need for robust cybersecurity measures. CPEC
projects can include investments in cybersecurity infrastructure to
protect digital assets, data, and critical information systems.
7. E-Commerce and Digital Payments: CPEC projects can facilitate the
growth of e-commerce platforms and digital payment systems in
Pakistan. This can boost online businesses, promote financial
inclusion, and drive economic growth through digital transactions.

Challenges and Considerations:

While the China-Pakistan Economic Corridor (CPEC) has the potential
to drive a digital revolution in Pakistan, there are several potential
barriers that could hinder the realization of this vision. Some of the
key challenges include:
1. Infrastructure Limitations: Despite investments in digital
infrastructure, Pakistan still faces challenges in terms of inadequate
physical infrastructure such as power supply, internet connectivity,
and transportation networks. Without a strong foundation of physical
infrastructure, the development of digital infrastructure may be
hampered.
2. Digital Divide: Pakistan has a significant digital divide, with
disparities in internet access, digital literacy, and technology adoption
between urban and rural areas, as well as among different
socioeconomic groups. Bridging this digital divide is crucial for
ensuring that the benefits of the digital revolution reach all segments
of society.
3. Regulatory Framework: A conducive regulatory environment is
essential for fostering innovation, protecting digital rights, and
promoting a competitive digital economy. However, Pakistan may
face challenges in developing and implementing effective regulations
and policies that support digital transformation while addressing
concerns related to data privacy, cybersecurity, and intellectual
property rights.
4. Cybersecurity Threats: The increasing digitization of services and
data also brings about cybersecurity risks. Pakistan needs to
strengthen its cybersecurity infrastructure, enhance capabilities for
threat detection and response, and implement robust cybersecurity
measures to protect digital assets and critical information systems
from cyber threats.
5. Skills Gap: Building a digital economy requires a skilled workforce
with expertise in areas such as information technology, data analytics,
cybersecurity, and digital marketing. Pakistan may face challenges in
addressing the skills gap and ensuring that its workforce is equipped
with the necessary digital skills to drive innovation and growth in the
digital sector.
6. Financial Constraints: Implementing digital infrastructure projects
and initiatives requires significant financial resources. Pakistan may
face challenges in securing funding for digital transformation
projects, especially in the face of competing priorities and budget
constraints.
7. Political Instability: Political instability and governance issues can
also pose challenges to the successful implementation of digital
initiatives. Uncertainty in policy direction, changes in government
priorities, and lack of continuity in decision-making can impact the
long-term sustainability of digital transformation efforts.
Addressing these barriers will require a coordinated effort from
government, industry stakeholders, and the civil society to overcome
challenges and unlock the full potential of a digital revolution
through CPEC in Pakistan.

Conclusion

The China-Pakistan Economic Corridor (CPEC) presents a significant

opportunity for Pakistan to accelerate its digital transformation. By
investing in telecommunications infrastructure, smart cities, data
centers, and e-government services, CPEC can bridge the digital
divide, empower citizens, and propel the economy into the digital age.

However, realizing this vision requires overcoming several

challenges. Limited physical infrastructure, a persistent digital divide,
a complex regulatory environment, and cybersecurity threats all need
to be addressed. A collaborative effort between the Pakistani
government, industry leaders, and civil society is crucial to ensure
that CPEC unlocks the full potential for a digital revolution in
Pakistan.

By successfully navigating these challenges, Pakistan can leverage

CPEC to create a robust digital infrastructure, cultivate a skilled digital
workforce, and foster a thriving digital economy, positioning itself for a
brighter future in the interconnected world.