Assignment number 1

Subject

Constitution and ideology of Pakistan

Role of CPEC in development of Pakistan

Submitted to

Dr.Nabeel Younas Ansari

Submitted by

Abdul Kareem
Introduction------------------------------------------------------------------------------------------------------------------- 1
History behind CPEC--------------------------------------------------------------------------------------------------------- 1
Maps of CPEC------------------------------------------------------------------------------------------------------------------2
Significance of CPEC--------------------------------------------------------------------------------------------------------- 3
Developments regarding CPEC-------------------------------------------------------------------------------------------- 4
India’s objection stance regarding CPEC-------------------------------------------------------------------------------- 5
Issues with CPEC-------------------------------------------------------------------------------------------------------------- 5

Introduction
China–Pakistan Economic Corridor (CPEC) is a 3000 km Chinese infrastructure network

project undertaken in Pakistan. This sea-and-land based corridor is aimed to secure and

reduce the passage for China's energy imports from the Middle East by avoiding existing

route from the Straits of Malacca between Malaysia and Indonesia, which in case of a war

could be blocked and thus hampering the Chinese energy dependent economic avenues.

Developing a deep-water port at Gwadar in Arabian Sea and a well-built road and rail line

from this port to Xinjiang Province in western China would be a shortcut for boosting the

trade between Europe and China. In Pakistan, its aim is to overcome an electricity shortfall,

infrastructural development and modernize transportation networks. Along with shifting it

from an agricultural based economic structure to industrial based.

History behind CPEC

Since the 1950s, plans were made for an economic corridor stretching from the Chinese

heartland to Pakistan’s ports on the Arabian Sea. Ever since the completion of the Gwadar

port in 2006, Chinese interests in that particular region has been rekindled.

The expansion of the port was temporarily halted due to political instability in Pakistan and

the fall of General Parvez Musharraf and the outbreak of the Waziristan war in North-west

Pakistan.

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In 2013, President Asif Ali Zardari and Premier Li Keqiang decided to further enhance

mutual connectivity by signing a series of MOU’s on economic cooperation. These MOU’s

were part of a long-term plan for the formation of the Chinese-Pakistan Economic Corridor,

which would initially be a part of the Silk Road Economic Belt as well. Further, plans were

discussed by Prime Minister Nawaz Sharif met with Premier Li Kequiang in China to discuss

further plans, which resulted in the full scope of the project being announced.

The launch of CPEC was officially announced when China and Pakistan signed an agreement

to commence work on the $46 billion agreement, which is 20% of Pakistan’s annual GDP.

CPEC will be a part of the 21st Century Maritime Silk Road upon completion of the Gwadar
port.

Maps of CPEC

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 Significance of CPEC
This multi-dimensional project has opened Pakistan’s rebalancing options from geopolitics to

geo-economics. It includes four pillars i.e., the infrastructure, the energy requirements,

workforce development and economic progress. CPEC project is not an economic aid given

to Pakistan, but it is an investment for the next 15 years. This time frame is important for

Pakistan as it is the duration in which Pakistan by utilizing all of its resources and manpower

could bring Pakistan into global economic mainstream. It has been said that if CPEC utilized

properly would rebound the economy of Pakistan three to four times. CPEC would be a game

changer for Pakistan and for the region as well. The CPEC would play pivotal role through

economic incentives and regional integration in the form of networks, connectivity and

partnerships. It is a mega project that has the potential to transform the lives of the people in

the region by opening common vistas of co-operation and development in the field of

economics. CPEC is the broader part of the Chinese leadership and ambitious vision of

reconstruction of ancient Silk Road under the new One Belt One Road (OBOR) initiative.

This would incorporate countries such as Egypt in the Middle East and European countries

and important global points in Eurasia. The network expanding in the form of Land Silk route

and Maritime Silk route would link the regional countries through trade leading to an

economic boom in the region. Gwadar port has the rare distinction of being one the few

points where one belt and road would intersect. CPEC would also address the grievances of

province of Baluchistan. The sense of deprivation, discrimination and lack of proper

management and allocation of resources would be tackled under CPEC. The people would

have an economic progress and would get opportunities to trade and invest. The oil and

mineral resources of the province would be explored, and the establishment of Gwadar port,

Gwadar International Airport and Special Economic Zones (SEZ) would further enhance the

strategic and economic location of Baluchistan. CPEC would open job opportunities for the

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Balochi youth that would acquire modern innovative skills in the future being part of CPEC.

The symbolic and strategic role of Karakoram Highway (KKH) is another side of CPEC

strategy. The CPEC is not only passing through developed areas of Pakistan, but it would

cover underdeveloped parts of Pakistan as well. Hence, it has greater economic benefits for

Pakistan. CPEC has opened opportunities for locals in Azad Kashmir and Gilgit-Baltistan as

some routes of CPEC would pass through GB. The CPEC project would not just integrate the

commercial class or the business class of the society, but the role of youth and local masses

would be central in all development plans and projects. The CPEC would not only attract the

tourism and direct foreign investment in Pakistan but would also help Pakistan to overcome

its prevailing energy crisis.

Developments regarding CPEC

On 12 August 2015 in the city of Karamay, China and Pakistan signed 20 more agreements

worth $1.6 billion to further augment the scale and scope of CPEC. Details of the plan are

opaque but are said to mainly focus on increasing energy generation capacity. As part of the

agreement, Pakistan and China have agreed to co-operate in the field of space research.

In November 2016, China announced an additional $8.5 billion investment in Pakistan with

$4.5 billion allocated to upgrade Pakistan’s main railway line from Karachi to Peshawar

including tracks, speed, and signalling, and $4 billion toward an LNG terminal and

transmission lines to help alleviate energy shortages.

In February 2017, the Egyptian Ambassador to Pakistan expressed interest in CPEC

cooperation. In January 2017, Chief Minister Pervez Khattak of Khyber Pakhtunkhwa stated

that he had received assurances from Chinese investment companies that they would invest

up to $20 billion for projects.

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As of September 2017, more than $14 billion worth of projects were under construction. In

March 2018, Pakistan announced that following the completion of under-construction energy

projects, future CPEC energy projects would be geared towards hydropower projects.

India’s objection stance regarding CPEC

The Government of India, which shares tense relations with Pakistan, objects to the CPEC

project as upgrade works to the Karakoram Highway are taking place in Gilgit Baltistan; a

territory that India claims as its own.

In May 2016, India’s Minister of State and External Affairs, Vijay Kumar Singh raised

concerns regarding CPEC. Despite Indian objections, China and Pakistan initiated works on

the $44 million Pakistan-China Fiber Optic Project on 19 May 2016 which will require

passage through Gilgit-Baltistan; the same region for which India expressed concerns to

China. Former Indian National Security Advisor M. K. Narayanan also in May 2016 stated

“CPEC must be viewed as a major threat. Both countries [China and Pakistan] have a

common intention to undermine India`s position in the region.”

Issues with CPEC

CPEC passes through Pakistan-occupied Kashmir (PoK) and Baluchistan, both of which are

home to a long-running insurgency where it faces terrorism and security risks.

CPEC project’s lack of transparency and accountability is a cause of concern, as it may be

skewed in favor of China economically and strategically.

China would also disseminate its ideology and culture in Pakistan through the terrestrial

distribution of broadcast TV, which will cooperate with Chinese media in the “dissemination

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of Chinese culture”. A similar sinification is visible in the Mandalay town of Myanmar which

has impacted local architecture and culture.

The project may undermine Pakistan’s sovereignty as its foreign policy, especially with India

may be dictated by China, complicating the already estranged relations and create political

instability in South Asia;

Chinese approach of not partnering with local companies will not help Pakistan create job

opportunities.

The political tension in Afghanistan also may severely impede the benefits of transit corridors

in South Asia.

Several media outlets in Pakistan have criticized the project’s finances as being shrouded in

mystery, while one of them going as far as to suggest that the article suggested that “there are

far too much secrecy and far too little transparency”.

The trade imbalance is also an issue as Chinese exports through the Karakoram Highway

have entered the domestic Pakistani market and are cheaper due to the relatively higher cost

of production in Pakistan.

Some Baloch nationalists have opposed the large-scale development projects envisioned by

CPEC, fearing that such developments in the province would eventually result in local

residents “losing control” over natural resources. Others have alleged that CPEC is a

“conspiracy” meant to stimulate the settlement of migrants from other regions of Pakistan in

order to render ethnic Baloch a minority in the province.

The local’s residents where these projects are based have concerns that their wellbeing and

benefits will be subverted in order to meet the demands of the corridor.

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