China Pakistan Economic Corridor: The Emerging Trends

Abstract

China-Pakistan Economic Corridor (CPEC) is a dream project of China based on Public Private Partnership (PPP) Model and it values $62 billion and Its many projects are still under construction. It is argued that being a Mega project of China it will rapidly modernized infrastructure {including port areas) in Pakistan and will also strengthen its economy by the constructive works such as transportation, energy projects and special economic zones. China has planned to build a vast network of Highways and Railways under CPEC. Moreover, it is said that this project will link seaports in Gwadar and Krachi as well as some other central points in Western China and Central Asia. However, this project is based on PPP Model; therefore, over $33 billion worth of energy infrastructure will be constructed by private consortia to  elevate the shortage of energy in Pakistan. According to an estimate CPEC will also create 2.3 million jobs between 2015-2030 and will also add 2 to 2.5 percentage points to GDP. Consequently in the year of 2015, China and Pakistan have signed 20 more agreements worth $1.6 billion under CPEC plan in Nov. 2016, China announced an additional $8.5 billion investment in Pakistan to upgrade Pakistan's main Railway line from Krachi to Peshawar. In Jan. 2017 Chief Minister Pervez Khattak of Khyber Pakthun Khwaha stated that he had received assurances from Chinese investment companies that they would invest up to $20 billion for different projects. China has also announced to provide interest free loans for several projects in Gwadar totaling $ 757 million. Meanwhile India has raised her objections that China intends to establish its hegemony on the border line and it can create serious security problems for India in future. Recently Doklam dispute has confronted peace and stability of border areas which has became a cause of concern for India. To conclude the present research paper highlights the emerging trends of