CHINA-PAKISTAN ECONOMIC CORRIDOR: PROSPECTS AND CHALLENGES FOR ECONOMY OF PAKISTAN

Mudassar Hussain Shah ,Danish Sarwar ,Saima Iqbal

doi:10.52337/pjia.v4i3.242

Abstract

Chinese huge $62 billion investment in China-Pakistan Economic Corridor (CPEC) project in Pakistan creates numerous prospects and challenges for the economy and stability of Pakistan. CPEC is part of the China’s One Belt and Road Initiative (OBRI), which connects different countries and encourages the global economic Initiative. CPEC includes energy, agriculture, tourism, Gwadar port, communication and connectivity infrastructure and many other different types of projects. Currently CPEC first phase is completed and now second phase has begun. CPEC can play the most important role in the future direction of the Pakistani economy. CPEC is very beneficial for the people of Pakistan and China. This review study on the prospects and challenges for economy of Pakistan from the perspective of CPEC is evaluating the recent scenarios, which sees the potential and evaluation of areas on economic activities and potential threats, which can counter by the governments of Pakistan and China on regional and global level. This study also highlights the difficulties, which are creating by the India to impose sanctions on economic products of Pakistan through the platform of (Financial Action Task Force) FATF and harm the projects of CPEC. The findings revealed that Pakistan must promote the CPEC, counter CPEC propaganda, and integrate with the plan to create a smoother image of Pakistan, achieve national cohesion and reduce radicalization. Moreover, China and Pakistan should work together to break the shadow of distrust.

Highlights

Pakistani economy faced many difficulties in past few years due to lack of investment and bad perception of the country at international level
China-Pakistan Economic Corridor (CPEC) is the excellent opportunity for Pakistani economy
If Pakistan's opponents will succeed in imposing economic sanctions in financial action task force (FATF) on Pakistan, this will lead to a serious economic catastrophe, and an extremely serious economic crisis in Pakistan

Summary

Introduction

Pakistani economy faced many difficulties in past few years due to lack of investment and bad perception of the country at international level. Due to China Pakistan economic corridor, a historical project between two nations, Pakistani economy has a bright opportunity to grab all the benefits and to boost up the industry. It will effect on Pakistani economy in terms of GPD loss, but both Pakistan and China are well aware about this information warfare and know the importance of CPEC project for both countries.

Results

Conclusion