CPEC and economic revival.
Byline: Ahsan Munir
Pakistan is a populous country -with a youth bulge, is in need of jobs. At present, our economy needs stimulus: some big economic projects which could provide jobs to the youth, consume local industries capacities and help improve local industries' quality, productivity, and technology.
China sponsored China-Pakistan Economic Corridor (CPEC) is one such project-with an investment portfolio of $60 billion, which could jump start our economy and has been heralded as 'game changer' for our economy. The CPEC project could be broken into two clear phases: first phase involves establishment of rail and road linkages from Gawadar to China, and establishment of SEZs along the CPEC. Second phase would involve generation of long term economic activity through transit of goods between Gawadar and China, and export of goods by companies established in SEZs through Gawadar port. Most of the committed investment through CPEC is targeted at improving generation capacity and transmission capability in the energy sector of Pakistan. Recently, a Chinese company has shipped power equipment to Pakistan for the country's first USD $ 1.7 billion worth of transmission project under the CPEC framework.
However, it is not clear how Pakistan will benefit from rail and road linkages and SEZs established under CPEC framework? Will Pakistan end up as a transit route for goods, or will actively integrate its local industries with economic activities...
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