Muhammad Iftikhar

Peoples Republic of China, the 2nd largest economy in the world, has taken a new positive step of sharing the fruits of its amazing developments with other countries of Central Asia, South East Asia, West Asia, and Africa by promoting a mega brilliant futuristic initiative “ONE BELT & ONE ROAD” (OBOR). The OBOR has two major components: One Silk Road Economic Belt, while the other is Maritime Silk Road. The creation of a Silk Road Infrastructural Fund (SRIF) and the establishment of Asian Infrastructure Investment Bank, (AIIB) have given great financial strength to this initiative of improving connectivity and common regional development in Asia. It is a multi-dimensional program of building infrastructure projects like a network of roads, fast track railways, pipelines, Industrial parks and energy development etc. If Chinese President, Xi Jinping’s vision of OBOR is fully realized it would create promising economic corridor directly benefiting 65 countries, 4.4 billion people worldwide and with a collective annual GDP of approximately US$21 trillion that accounts for 29% of the world’s wealth.

As far as the China-Pakistan Economic Corridor (CPEC) is concerned, it is the first flagship Project of China’s One Belt and One Road Initiative. Pakistan-China Economic Corridor (CPEC) is a combination of different mega projects currently under construction at a cost of $46 billion, which will rapidly expand and upgrade Pakistani infrastructure, as well as deepen and broaden trade and economic links between Pakistan and the China. CPEC will connect exceptionally important Gwardar Port situated in the Province of Baluchistan to China’s north-western autonomous region of Xinjiang via most amazing highways, railways and pipelines for transportation in particular oil and gas. The economic corridor will run about 3,000km from Gwardar, to Kashgar. Overall construction costs are estimated at $46 billion, with the project expected to be completed in 2030.

One Corridor and four dimensions (1+4) pattern of cooperation was agreed by both Pakistan and China to work CPEC. The four important areas include Gwadar port, energy, transportation, infrastructure and industrial cooperation. Initially, some 46 billion USD were estimated for CPEC. Out of this $34 billion were envisaged for the energy sector, $6.1 billion for roads, $3.7 billion for rail network, and $ 793 million for Gwadar port. The ports of Gwadar and Karachi in the Arabian Sea will become channels of trade and energy transactions between China and Central Asia on the one end and the Indian Ocean region and continents of Africa and Europe on the other. For Pakistan, CPEC is truly a game changer. Besides transforming Pakistan into a regional economic, trade and energy hub it would aggregate the strength of the economies of the region into a win-win for collective development thus shaping common destiny of the peoples of the region.

Pakistan-China Economic Corridor (CPEC) symbolizes the spirit and strength of excellent Pakistan- China friendship and cooperation for regional peace, security, progress and prosperity. Strategic in conception, the term CPEC conjures in the hearts and minds of the peoples of the two countries deep sentiments of mutual respect, special care and affection that have always characterized their relations. The government, arm forces and people of Pakistan have always expressed their unwavering support to make CPEC a success. It will be a historic and extremely important opportunity to overcome the impediments to our progress and development.

Political parties and provincial governments are vying with each other to get ever larger share of CPEC projects. This intra party political play is sometimes given out as a controversy over the routes. But in essence it is not a critique of CPEC. There is complete unanimity among all political parties on the importance of CPEC. The Governments of Pakistan and China have affirmed that this One Corridor will have several passages and all routes will be worked.

It is matter of happiness and satisfaction that the excellent relations between Pakistan and China in all important fields are further strengthening with the passage of time as rightly described by the Chinese Premier Li Keqiang who during his visit to Pakistan in May 2013 said ‘’the tree of China-Pakistan friendship’’ was planted decades ago, nurtured by successive leaders and ‘’is now exuberant with abundant fruits’’. Premier Li Keqiang was among the first advocates of the project. The idea of Economic Corridor was first proposed by him during his visit to Pakistan in May 2013. About benefit and importance of the project, President Mamnoon Hussain once predicted that the CPAC will be a “Monument of the Century”

It is a strategically significant and comprehensive concept which will benefit not only the people of Pakistan and China, but also billions of people living in the entire region. To transform the vision and concept into reality the President of Peoples Republic of China Xi Jinping paid a state visit to Pakistan in April, 2015. This was the first visit by a Chinese head of state in nine year. During his extremely important visit 51 MoUs were signed in diverse sectors of bilateral relations. Interestingly more than 30 of them were related to the Pakistan- China Economic Corridor. Talking about the Pakistan China Economic corridor, Prime Minister Muhammad Nawaz Sharif Nawaz Sharif who is famous for his vision, commitment, and pragmatism said: “This corridor will benefit all provinces and areas in Pakistan, and transform our country into a regional hub and pivot for commerce and investment. It will also enable China to create a shorter and cheaper route for trade and investment in south, central and west Asia, and the Middle East and Africa. This corridor will become a symbol for peace and prosperity.”

CPEC is considered economically imperative to Pakistan’s economic growth. Moody’s investor Service has described the project as a ‘credit positive’ In a note issued to clients Moody said: “The government’s support for the implementation of China-Pakistan Economic Corridor (CPEC) is credit positive for Pakistan because it will spur investment activity, boost bilateral trade flows and help ease the country’s growing energy shortages,”. The agency acknowledged that much of the project’s key benefits would not materialize until 2017, but stated that it believes at least some of the benefits from the economic corridor would likely begin accruing even before then.

Pakistan and China have enjoyed unmatched diplomatic and strategic relations since late 1950s. Regardless of a strong understanding on diplomatic levels, economic relations have remained below their actual potential. It is believed that conceived Pakistan-China Economic Corridor project will fill the gap. CPEC will be major achievement towards the goal of socio-economic development of billions of people living in this region. The corridor will serve as a major opening for trade between China and countries of the Middle East and Africa in particular oil from the Middle East could be offloaded at Gwardar, which is located just outside the mouth of the Persian Gulf, and will be transported to China through Pakistan. Such a link would not only cut the 12,000-kilometre the route for China’s energy imports, bypassing the Straits of Malacca between Malaysia and Indonesia, a bottleneck at risk of blockade in wartime but will also provide tremendous amount of opportunities of socio-economic development for Pakistan. The project will also play a vital role in regional integration, security, peace and prosperity. It is the Corridor of opportunities, what matters is how wisely we handle the initiative.