INTERNATIONAL JOURNAL OF SPECIAL EDUCATION Vol.38, No.

1, 2023

Exploring the Rural Development of China Pakistan Economic Corridor Project

Impact on Social Responsibilities and South Region of Pakistan

Mehtab Begum Siddiquia, Maryam Khokharb*, Tayyaba Rafique Makhdoomc, Anila

Devid, Azeem Akhtar Bhattie, Najaf Hussainf
a
Institute of Commerce and Management, University of Sindh, Jamshoro, Pakistan
b
Department of Business Studies, Bahria Business School, Bahria University Karachi
Campus, Karachi, Pakistan
C
Department of Business Administration, Government College University Hyderabad,
Pakistan
d
Benazir School of Business, Benazir Bhutto Shaheed University Lyari, Karachi, Pakistan
e
Department of Commerce Sindh University Laar Campus, Badin, Pakistan
f
Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad,
Pakistan
Email: [email protected], [email protected],[email protected],
[email protected], [email protected], [email protected]
Crossponding Author: (Maryam Khokhar, [email protected])

Abstract
Pakistan is a growing nation working to integrate with foreign business for efficient
economic activities. The China Pakistan Economic Corridor (CPEC) is pushing Pakistan's
corporate and industrial sectors to accelerate their strategy and developmental implementation
processes in order to stay competitive. For this reason, China is setting to the place in the
business while Pakistan is gradually embracing corporate social responsibility (CSR). This
article aims to investigate the indirect and direct effects of innovation on corporate social
responsibility and business performance in Pakistan's manufacturing sectors. So, for this, panel
data covering three years was collected. The theoretical framework is built on the institutional
and resource-based theories. The direct and moderating effects were investigated using the
multiple regression method. The CPEC is a huge bilateral initiative and developmental project
that was started by Pakistan and China, in which the major focus is on the enhancement and
modernization of the infrastructure of Pakistan in terms of improving trade with China.
Because of CPEC uncountable potential and possible benefits to economic growth and
economic development of common people's lives, the CPEC has become a huge success not
just for authorities but also for ordinary Chinese and Pakistani individuals. It is the biggest and
major foreign investment in Pakistan ever conducted by a single country. By being such a
source of transporting and moving millions of tons of Chinese products to the Middle East,
Africa, and Europe through Gwadar port, CPEC has the potential to significantly connect
Pakistan and China. Using an event research method and technique, this study adds to the
literature by assessing the influence of CPEC on stock returns. We estimate the continuously
compounded returns across sectors to see if this impact varies across sectors. Furthermore, The
median equality test is used to analyze the impact of CPEC on non-financial businesses and
enterprises listed on the Karachi Stock Exchange's quality of financial reporting. The impact
of CPEC on the stock market is found to be favorable and encouraging but not considerable,

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indicating that the stock market's exceptional performance cannot be ascribed to CPEC. At the
national and regional level, the significance and impact of CPEC is also mixed.
Keywords: Economic Development; Government Policies and Rules; CPEC Objectives;
CPEC Components, Factor Affect (social, culture, environmental and industrial).

1. Introduction
The new initiative represents the deepened and stronger bilateral relations between China
and Pakistan, which has already been put through its paces by hardship and boosted by trust
and understanding. However, the overall value of all CPEC projects has risen tremendously in
recent years (Sun and Wu 2022). The China-Pakistan Economic Corridor (CPEC) vision and
mission are to continue improving Pakistan's interconnection intensify and its economic
growth and important indicators development by streamlining its transportation i.e. energy,
rail, air, road and special economic zones, as well as to connect Pakistan's deep-sea
terminal ports of Gwadar and Karachi to China's Xinjiang province and beyond (Menhas et al.
2019).
The China-Pakistan Economic Corridor (CPEC) is a part of China's One Belt, One Road
(OBOR) initiative. It's a transitional phase in which a number of initiatives were going to be
built, The objective of CPEC is to start trade on a land route more feasible by establishing an
infrastructure of roads, railroads, and pipelines (Sun, Jai, and Zhao 2019). Through all the
massive development and modernization of Pakistan's infrastructure, the corridor hopes to
deepen Pakistan's connection towards China. China relies significantly on marine routes that
pass through the South China Sea, close to controversial Spratly Islands, which are currently a
cause of conflict amongst China, Taiwan, Vietnam, the Philippines, and the US (Hou et al.
2023). The CPEC implementation allows Chinese energy imports to bypass these problematic
areas and forget a permanent route in the west, decreasing the probability of a conflict and
collision between the US and China (Hussain Shah et al. n.d.).
Pakistan is currently facing a lack of energy issues and these shortages are a major
obstacle to foreign investment and the fact that Chinese investment in Pakistan's infrastructure
and power projects will attract the country to more foreign investment (El-Kassar et al. 2022).
This economic trend will play an important role in the regional integration of Greater South
Asia. Spread across China, Iran, and Afghanistan and all over Myanmar. China not only offers
much-needed infrastructure but also makes Pakistan an important partner in its major economic
and strategic goals (Zhang et al. 2018). The Asian Development Bank states that CPEC will
connect economic nodes or centers, which will be centered on the urban landscape, in which a
large number of economic nodes or centers will be centered on the urban landscape, including
the larger urban landscape The number will be concentrated (Kanwal, Chong, and Pitafi 2019).
They connect the supply and demand sides of markets. Many people in Pakistan still turn to
CPEC with a sense of cautious hope, Almost everyone says CPEC is a game changer, but some
ask, for whom (Khokhar et al. 2022). The following is a simple overview of the CPEC in the
context of the Geopolitical Reward. China finances and builds the project, while Pakistan pays
for social and political disruption and loss of innocent lives (Ajibo 2021).
A trade corridor called the China-Pakistan Economic Corridor (CPEC) connects China
and Pakistan significant economic projects on the potential to open new horizons of progress

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between these two countries, with many benefits and China and Pakistan agreed to work
together on projects such as agriculture system and poverty alleviation to promote bilateral
relations (Hussain and Jamali 2019). This plan has been around since General Pervez
Musharraf proposed during his time as president but was not implemented due to political
instability in Pakistan. This project is considered a new hope for a secure future in Pakistan.
This project makes trade and transportation of goods easy for Chinese people, and it
provides a lot of benefits in terms of technology and infrastructure development. China has
been investing 46.5 billion dollars (about $140 per person in the US) in establishing new energy
resources in Pakistan to run this linkage smoothly. This will end the continuous load-shedding
in Pakistan. Moreover, it will reduce economic instability gradually (Ahmed et al. 2022).
Pakistan has been spending many its economic resources in importing oil. The CPEC depends
largely on our ability to respond collectively, that is, federal, provincial, and local governments,
the private sector, the media, and civil society, all working together (Khokhar et al. n.d.). If
that happens, the benefits to Pakistan’s economy and society, especially Baluchistan and the
southern KPK, will outweigh the costs because the literacy rate of the residents of these hilly
areas near port is relatively low (Nawaz Baloch et al. 2021). The government should set up
skill development institutes and IT firms to help in the economic and social development of
these areas.
The unity and cooperation between the Chinese and Pakistani populations is evident in
many areas. The Chinese are friendly, and they are busy developing CPEC and related projects
in Pakistan (Irshad et al. 2019). The Chinese government has envisioned CPEC as a dream of
success and Pakistan is fulfilling that dream as a bright future. Security-related issues were
faced initially by the government of Pakistan. A proper education and awareness-related
campaign was started in those areas to educate people about the benefits of the China-Pakistan
friendship and CPEC. This education and awareness campaign has brought forth excellent
outcomes (Khokhar, Iqbal, et al. 2020). The importance of CPEC and related projects has
attracted the attention of many other countries, such as Saudi Arabia. The main role of CPEC
is to increase the support of local people in the development of national economy and
infrastructure (Yumei Hou 2020).
The China Pakistan Economic Corridor (CPEC) is proceeding, and innumerable policies
are being involved in developing to benefit and assist the rural people. Moreover, just some
few measures and strategies specifically target regional corporation, such as amenities and
subsidies for starting a new venture, as well as access to education and healthcare (Khokhar,
Hou, et al. 2020). As a result, this study provides an opportunity to policymakers' attention to
the importance of CPEC in improving the living standards of region in South Asia.
Additionally, this study makes some recommendations to the board for developing better
rural infrastructure and transportation system through the establishment of basic facility and
resources development projects directed specifically at the poor and rural populations.
Moreover, the above mentioned recommendations and representations could be used in China
to improve and maintain infrastructure in rural areas interconnected mostly by corridor
(Khokhar 2019). Every firm must overcome challenges in this economically competitive world
in order to succeed and make a profit. To do this, entrepreneurs and company policy makers
discover and use a variety of innovation and techniques.

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The China Pakistan Economic Corridor (CPEC), which involves the creation of new trade
connections between countries for a variety of goals, is the same (Figure 1). CPEC is a grouping
of numerous significant projects that connects the western Chinese city of Kashgar via the
Khunjerab pass to Pakistan's warm-water deep-sea port at Gwadar. These projects include a
network of railways, roads, highways, and pipelines. They also include the construction of
industrial parks and several power generation projects. Baluchistan, Pakistan's largest region
and home to abundant natural resource deposits, is where Gwadar is located (Hou et al. 2022).

Figure 1: The CPEC has significantly shortened distance

2. Literature Review
Energy projects are classified into two categories: power essential initiatives and energy
development projects which have been actively promoted Roads and railways infrastructure
improvements projects which are the examples of capital projects. The amount of income
collection and gathered reforms required for improving the country's economy is considerable.
Pakistan and China exchange some commercial, cultural and social affinities. They're in the
same geographical importance and are confronting the very same challenges with key attribute
and togetherness. In the situation of COVID-19, the circumstance is on-going. No one else
could have predicted and anticipated that a solitary virus would really be destructive enough to
put the entire global economy at jeopardy (Waseem et al. 2022). That is why, in the eyes of
researchers and certain other stakeholders, this research project is crucial in understanding and
determining whether or not this huge project can resist high the extraordinary global epidemic
situation and support the economic growth of the directly impacted and pertinent countries, or
whether it will completely collapse under the poundage of this unprecedented natural
devastation as shown in table 1.
There is virtually little research on the significance of CPEC on Pakistan's remote regions.
It remains will have to see how these endeavours ultimately impact the lives of average men
and women, and how much the effect will have to be internal or external through facilitators
and mediators. This analysis connects the dots by investigating at the actual participation of
CPEC in enhancing the lives of these common people, as well as the indirect economic

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advantages of rural development in terms of regional infrastructure and

investment development in table 1.

Table 1: CPEC Development Ratio in Pakistan Areas

Province Human development index Project completion Rate
score in 2020-2021
Sindh 0.533 55%
Punjab 0.593 45%
Baluchistan 0.477 30%
KPK 0.311 17%
Fata 0.341 56%
Punjab 0.567 35%
AJK 0.611 19%

CPEC doesn’t only change the life of two countries i.e. Pakistan and China but also
changes and impact on the lives and prosperity of South Asia because it is mega project with
heavy investments (Nawaz Baloch et al. 2021). In the big scheme of things, the corridor will
become a source of business and economic community that will interconnect the Asian
mainland to the Indian Ocean, including its activities and ramifications expanding to the
neighbouring East, South, Central, and Western Asian countries. This would have a significant
impact on the location specific and destabilize Asia's conventional investment and political
arrangements as shown in the figure 2.

Overallimpact
Overall impact of CPEC
CPEC on
onSouth
SouthAsia
Asia

Rural development of Regional

Economic stability
energy project in Connectivity with
of local community
South Asia Local Community of

Figure 2: Overall impact of CPEC on South Asian Region

2.1 Rural Development of Energy Project in South Asia

Pakistan had friendly relations with China, this friendship called the brotherhood in the
local Chinese society. China-Pakistan friendship has a history of mutual understanding on a
particular policy. It includes economic defense and education, and their mutual cooperation has
benefited both his government supports local Pakistan community with economic technology,
education and nuclear program (HOU et al. 2021). CPEC is one of the projects that force them
to work more closely together. Pakistan and China enjoy their relationship with the current
research on the benefits of the CPEC project from the perspective of local development of

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Pakistan. China is working to develop Pakistan’s special economic zones and generate energy.
Technology also promotes community development (Javed and Ismail 2021). The China
Pakistan economic corridor (CPEC) is a mega development plan in the South Asian region
with the mutual corporation of Pakistan in China (Khaskhelly et al. 2022).
The China-Pakistan Economic Corridor (CPEC) has garnered a lot of positive feedback
from within and without the neighborhood and regions. Because Beijing's financial
contributions can significantly overcome the considerable budget shortfall for regional
development interconnection, Islamabad, New Delhi and Washington have mostly indicated
enthusiasm to different extents. Furthermore, the project's protracted sustainability is
challenged and threatened by persisting antagonism and misunderstanding between India and
Pakistan, as well as aims at strengthening competitiveness between Beijing and Washington
(JR Kataria 2014). Beijing can help mitigate the lengthy antagonism between India and
Pakistan and appease Washington's and New Delhi's suspiciousness about its strategic decision
- making by focusing the optimistic logic of adequate infrastructural interconnection and
greater financial and economic incorporation, as well as making a contribution towards a more
sustainable global economic environment in South Asia (Neogi 2014).
2.2 Economic Stability of Local Community for South Asia
Pakistan is currently facing leadership problems. The previous two ruling parties and their
key leaders proved to be the most corrupt leaders in the world. They destroyed the country's
economic stability and Pakistan's international reputation and its local business community.
Money laundering scandals have led to a decline in foreign investment and stock exchange
trends. The China-Pakistan Economic Corridor is a significant breakthrough in this mandate,
or that the regulatory authorities are still active during this period. Honest leaders are essential
in the economic establishment. The real world is nowhere to be found. Unscrupulous leadership
will reduce the amount of money economically because the goal of a rogue leader will be to be
able to give us a certain price and a certain circulation. Corruption is another factor that can
lead to economic hardship (Zahid Rajput 2021). The assessment demonstrates that the CPEC
project has a favorable effect on the participating countries' stability and prosperity. The
establishment of the China-Pakistan Economic Corridor (CPEC) has had a beneficial impact
on the nation's economic stability, as it strengthens both governments' economic operations
and financial transactions. The CPEC has impacted numerous economic characteristics
including leadership quality, infrastructure quality, and income - generating activities rate, all
of people Zurich are essential in establishing economic stability (Zhao, Sun, and Webster
2022).
2.3 Regional Connectivity with Local Community of South Asia
Community support is essential for the successful implementation of the CPEC project. If
people are positive about the progress of CPEC, they will be helpful in helping the development
process. The CPEC project is beneficial not only to Pakistan but also to the people of Pakistan
as shown in figure 3. The Ambassador of Pakistan said that the CPEC project is beneficial not
only for Pakistan but also because Pakistan’s economic condition will reach its peak and
sustainable development will be achieved through CPEC.

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Figure 3: Major Project of China-Pakistan Economic Corridor

To the benefit of this project for Pakistani citizens is that it gives job opportunities
generate business for residents. The present investigation is directed towards the attitude and
benefit of Pakistan's citizens and their support for the development of the CPEC, which is the
growth of the economy and a person’s individual development. According to my research,
Pakistan facing a lot of problems at the moment when this project will basically solve such
problems. We are living in a situation where we have limited resources and these resources are
being used indiscriminately for the Pakistani citizen (Saad, Xinping, and Ijaz 2019). CPEC will
alleviate poverty and boost the economy by offering a proper setup and easy access to living
facilities. This is the standard of education, health, city market banking with reasonable rental
rates (Haq and Farooq 2016).

3. Methodology
The China-Pakistan Economic Corridor (CPEC), which relies on good growth of over 2
million, has an unusual position in Pakistan’s economy and contributes 7.5 percent to the
country’s GDP growth, according to a report by the South Asian Investors Research
Organization (Alam, Li, and Baig 2019). As noted in the report, CPP-related projects will
generate around 700,000 good trades over the period 2015-2030 and increase GDP growth to
7.5%, adding 2.5 percent to the country’s current GDP growth 5% concentrate. It has created
a great program through which we can investigate various freedoms, without having to endure
simple energy projects (Shaikh, Ji, and Fan 2016). With the delivery of CPEC, fiber optic and
satellite web partnerships will be completed in remote areas, and this can help increase the
weight of the web client. Furthermore, when the key frameworks (the new Gwadar design and
various courses, as agreed in all meetings) are assembled, more and more global media
streaming organizations will be created in a rewarding way of environment. Innovative
participation is an important area of CPEC (Farooq, Gul, and Khan 2018). This is necessary to
raise the level of economic cooperation between our two nations and to develop a space for
modern partnership (Naz 2020). It represents great potential and a bright future. The two sides
will continue to discuss the development of modern cooperation with each other, and, ideally,
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will recognize the progress of mutually beneficial projects that could yield positive financial
benefits (Zhang, Andam, and Shi 2017).

Figure 4: Rural Development Areas of South Region of Pakistan

This analysis used a consecutive mixed methodology and approach (structured

questionnaire, observations, and interviews) ,first we gathered some data through a structured
questionnaire and then with the passage of time we, conducted some deep interviews
(Melecky, Roberts, and Sharma 2019). The respondents of this study are different peoples
representing Pakistan's remote regions. People from rural areas comprise a significant
proportion of the population and the positive impacts of CPEC, particularly from the
perspective of locals, have been under-researched (Lee 2004). As a consequence, we used a
reasonable survey strategy to carry out the data acquisition. Owing to the excessive
geographical isolation in between regions, the convenient sampling methodology was also
appropriate. In something of a way, both knowledgeable (for the survey) and uneducated (for
the session) peoples were conveniently approached as shown in figure 4.
We gathered information that used a structured questionnaire method because it provides
the highest frequency of occurrence in advanced economies, specifically in Pakistan. In the
assessment, the language of communication was English, which is usually several Pakistanis
people can understand. Table 2 shows qualitative information for the population. There were
50 people between the ages of 20 and 30, 78 residents between the ages of 31 and 40, 70 people
between the ages of 41 and 50, 69 individual between the ages of 51 and 60, and 35 people
further than the age of 60. Out of total 302 respondents, 65 people passed matriculation,
97 peoples were all in secondary school, while 74 had a degree of bachelors, 52 had a post
graduate diploma, 11 had an MPhil degree, and only 3 had a PhD in figure 5.

Table 2: Details of residents who were questioned

Participants Frequency Percentage
Age of the Respondents
20-30 50 13.3
31-40 78 26.2
41-50 70 27.1
51-60 69 22.2
61 or above 35 11.2

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Educational Background
Matriculation 65 21.36
Secondary School 97 35.27
Bachelor 74 20.15
Master 52 16.13
MS/,Phil 11 5.98
PhD 3 1.11

The bonding between the two countries has proven that the CPEC has a strong bond to
the world’s economy and business communities. Developed economies significantly invest in
projects to gather higher returns or attain countless benefits that have essential aspects for
boosted economies and people’s living standards. Economic relations are mostly dependent on
projects that significantly impact on countries (Lei, Huang, and Wu 2019). Therefore, in CPEC,
national and economic interests pre-dominated over the definition of various measures. At the
same time, they emphasize the importance of projects, and the relationship between countries
and their local people (Ali 2019). Academic institutions, organizations, housing, jobs available,
and how these enterprises will strengthen their future and assist the community are all samples
of CPEC ventures.
In this study, infrastructure improvements have been influenced by the introduction of
the China-Pakistan Economic Corridor (CPEC), such as the Improvement of Farmers’ Quality
of Life (QOL) (Kousar 2018). The results show that the social, cultural and educational
interests of local communities are important predictors of the well-being of citizens, and that
QOL issues have had a significant impact on the well-being of citizens. However, the results
also showed that community resources have a significant relationship with the thematic well-
being of the people.
China and Pakistan exchange of cultural values, values and patterns with the beginning
of the China-Pakistan Economic Corridor (CPEC) is the latest project in the history of bilateral
economic cooperation. The culture refers to the way of life of groups within a community or
communities (S. uddin Ahmed 2019). These includes how they dress, wedding ceremonies,
languages, family life, their work patterns, religious rituals, and recreational activities. The
purpose of this cultural relations does not necessarily have to be one-sided (Huang 2019). The
most effective purpose of this project is to seek coordination and cooperation among national
meetings for their shared benefit. Chinese and Pakistani are exchanging social and economic
patterns, material and non-material cultures, to faceable 1ilitate mutual understanding as shown
in figure 6. In material culture, China and Pakistan exchanging goods, products and resources
with each other. Unhealthy cultures include food, language, clothing, religion and lifestyle
(Saad et al. 2020). We cannot understand culture without the material and non-material aspects
of each other’s culture. Both countries are in contact with CPEC and understand their lives,
goals, concerns and interests. CPEC is a powerful human tool that inherits both cultures,
develops a new model of society and incorporates new knowledge into Pakistani and Chinese
societies.

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PhD
MS/,Phil
Master
Bachelor
Secondary School
Matriculation
Educational Background Percentage
61 or above Frequency
51-60
41-50
31-40
20-30
Age of the Respondents

0 50 100 150

Figure 5: Graphical representation of detail of residents who were questioned

Figure 6: Development of CPEC Energy Project of South Region

Pakistan ranks seventh among the top ten countries affected by climate change. CPEC has
great potential to address Pakistan’s climate and environmental issues. In the Long-Term
Global Climate Risk Index, 2019 ranks seventh among the ten countries affected by climate
change. The mountain is known as a climber’s paradise and is home to five of the 14 thousand
on the planet (8,000 meters high (on Mount Everest), the second notable of the mountains, K2
and Nanga Parbat. Known colloquially as "Soon Mount” It has more than 50 mountains that
are more than 7,000 meters high (twice the height of Mount St. Helens). This will boost the
travel industry in GB, which will eventually be a positive for the nearby open (Z. S. Ahmed
2019). The Khyber Pass is closed from November to May due to heavy snowfall. They also
bring a range of technical difficulties for transportation companies, including extreme weather

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conditions. If upgrading some routes can help solve these problems. CPEC is a powerful human
tool that inherits both cultures, develops a new model of society and incorporates new
knowledge into Pakistani and Chinese societies (Hussain 2017).

4. Results and Discussions

The results of this research show that policymakers and officials are receiving support
from citizens for the CPEC project and therefore create policies to take local citizen advantages
into account in future projects because if we take care of local community then the situation of
Pakistan will be improved in South Asia. The Energy Era will be an important focus of the
Economic Corridor project, with approximately $33 billion in resources expected to be spent
in the region. As a feature of the “Early Harvest” project, as part of the “Early Harvest” project
for the corridor, March 10, 2018, it is expected to have 10,400 MW of electricity. CPEC
infrastructure projects include road and rail sector projects. To ensure the smooth and efficient
development of the local community. It is important and basic for the development of Pakistan
and south regional program. Pakistan is one of the leading countries in Pakistan. They worked
with china to the suitable livings of citizens.
The result of the research to ensure that CPEC development provide a better living of
south region According to my research, Pakistan facing a lot of problems at the moment when
this project will basically solve such problems. It is possible when the advantage of having a
parcel center is useful because it allows direct shippers and exporters to enter the straight line-
bridge administration which reduces the transport time, moreover, from outside business
departments. The reduction in the time of transportation directly affects the cost of import and
thus creates more positions and pay through the economy. China-Pakistan Economic Task will
improve its capacity to improve Gwadar port. It can impact on social security system of south
region. Security concerns are the most important challenge for CPP and both Pakistan and
China are working to resolve them. For the sake of economic prosperity, security challenges
must be tackled comprehensively to prevent future threats.
According to my research CPEC, which has a clear economic agenda, has changed the
political agenda. Some aspects of the planning and technicalities associated with this route have
been criticized in political forums and in the media The future challenges of the port will
increase the competition with the existing ports. In addition, Gwadar Port will face stiff
competition in current and future trade. They face many challenges but the rural development
of south region creates a positive impact on development of Pakistan.
4.1 Recommendation for Government
While countering to India's ambitions, Pakistan needs to integrate its partners, specifically
Afghanistan and Iran, in the CPEC-centric connectivity. Afghanistan and Iran maintain
bilateral networking projects with China. This provides Pakistan the opportunity to cooperate
with Chinese projects in these regions. As India's imprint and reach develops in Pakistan's
surrounding countries, it's imperative that Pakistan maintains its current political and economic
and transit relationships with them.
We should always make preparations for regions to seize the opportunities provided by
these major infrastructure projects. Local communities must always be actively encouraged to
collaborate in innovation activities, as per the authorities. Improvements in infrastructure, such

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as the construction of facilities, institutions, roadways, and playgrounds, would improve the
quality of life of different regions. It is suggested that perhaps the authorities make investments
in regional development and generate new institutions, institutions, and playgrounds in remote
regions, permitting residents to effortlessly acquire essential information and basic life
necessities. Country’s development would often provide new employment opportunities in
regions, but it would also promote tourism from numerous places, culminating in a beneficial
and positive improvement in people’s interpersonal relationships. Pakistan's difficulty is to
bring the CPEC though position and make it flourish in turbulent climate variability. In addition
to developing the CPEC into a functioning corridor, Pakistan has;
• To easily get in touch on the western end with Afghanistan and Iran, and to integrate into these
regions on the eastern side with India. The mobility system being involved in the construction
of the CPEC can be interlinked to the transportation and communication connections of these
three regional neighboring states.
• The CPEC would have been used to capitalize on preexisting South Asian geographic area
interconnections. This will necessitate establishing the appropriate road and railway
connectivity in Pakistan to interconnect with western China, as well as establishing Gwadar
port into a larger regional economic powerhouse. Pakistan can enhance its recent business
relationship with Pakistan by implementing CPEC and completing the Long-Term Plan,
primarily emphasizes on agriculture and tourism in South Asia.
4.2 Reliability Analysis
Prior to using correlation and regression analysis to verify a hypothesis, it is important to
ensure consistency and normalcy. The Cranach’s Alfa value must be greater than 0.6 for the
data to be regarded as reliable and consistent. The results were checked, and they were higher
than 0.6. Considering the initiatives that have already been taken as components of the CPEC
is undeniable that the CPEC's primary priority has been on boosting and upgrading
infrastructure like electricity, healthcare centers, institutions, and roadways. These projects are
intended to continue providing protracted advantages such as employment generation,
environmental conservation, and educational progression. Although the CPEC has a favorable
effects so far anyway, its protected development is reliant on the ability to equitably distribute
and maintain its international relationships.
Beyond Pakistan and China's bond, CPEC should be established in the energy sector,
trading terminals, and road networks for this objective. Nevertheless, spite of numerous
security and political concerns, observers hope that this study will assist in reducing
unemployment in Pakistan's impoverished areas, specifically in Baluchistan and KPK.
However, in order to fully benefit from the project's economic advantages, Pakistan must
manage all difficulties. Renewable energy should be assimilated into the country's overall
energy regulations, and energy targets for sectors of the economy should be incorporated to
eventually realize the country's overall energy saving prospects.
Energy security and plan should also manage to improve energy sustainable management
via investment interventions that enhance energy efficiency measures. As a consequence, by
interconnecting both governments through ancillary networks originated in Punjab and
Kashmir, CPEC has the tendency to transform an unstable political and economic circumstance
into a prosperous and peaceful region, as well as encourage South Asian regions and global
continuous improvement.
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5. Conclusion
Numerous researchers have examined the further role of CPEC in economic and social
development, labor, and resident’s well-being. Economic growth is fundamental for
democratic peace and stability in national sentiments toward China's advancing involvement,
with the CPEC functioning principal as a navigation framework for a geopolitical strategy.
While interdependent relationships and interdependence are significant characteristics of the
CPEC, the initiative has prompted international condemnation, particularly in India, which is
itself an apprehensive about its own geographical importance.
As a result, China must dedicate more attention to addressing collective problems and
fostering regional integration through enhanced engagement and performance coordination. It
is also imperative for the CPEC's achievement and Pakistan's own sustainable growth that
Pakistan encompasses its neighborhood plan in order to stabilize bilateral relations in its
neighbors and friends, specifically with India. A little too far, India and Pakistan have only
ever had intermittent peaceful relations, which are almost always based along both countries'
democratic and philosophical sentiments instead of their obvious improvement for
socioeconomic development and structural cooperation. Because an insecure and immature
Pakistan is neither in India's nor China's advantage, China potentially act as a moderator in the
world's most regional security convoluted region, encouraging Pakistan and India simply put
their disagreements down to focus on regional development.
5.1 Limitations and Future Recommendations
Further studies with a focus on service industries or the same industries over different
cross sections need to be done since this study only focused on Pakistan's manufacturing and
consumer industries and was a longitudinal study in which data was collected from the same
subject for a number of years. Following the successful execution of CPEC, comparable data
can be acquired from China to compare the identical theoretical background in two different
scenarios. Pakistani data were collected by the researcher for this study. There has never been
a comparative study of China and Pakistan on this topic; it will be a new study in the Asia
region. Additionally, it is advised that future research on the subject be conducted in other
developing nations, as the findings may not be applicable to these nations.

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