China Pakistan Research Articles

Impact of China Pakistan Economic Corridor on Local Economy and Tourism Development: Case of Hunza, Gilgit-Baltistan, Pakistan

This study is aimed to analyze the role of tourism in affecting the local economy of Hunza. The Structural Equation Modeling was applied for knowing the local people perception about CPEC projects and their effect on tourism economy development. In addition, descriptive statistics tools using STAT 12 have been used for the data analysis and prior to analysis, Cronbach’s alpha test was used to check reliability of various items of the questionnaire. The data werecollected from students, retailers, hotel owners, tour operators and travel agents. Results reveal that according to the respondents, CPEC is a game changer for the economy. In addition, there is significant effect of CPEC projects on the tourism development in Hunza. Results of the study also revealed that CPEC projects have negative effect on environment and local culture.

The CPEC Supply Web Framework in Context of Modern Manufacturing

There is a need to understand and integrate the technologies and concepts of the 4th industrial revolution (Industry 4.0), supply chain management, modern manufacturing and the opportunities provided by the logistic and development programs of Belt Road Initiative (BRI) and China Pakistan Economic Corridor (CPEC). The knowledge of multiple fields such as industry 4.0, supply chain management, logistic supply chain management and CPEC project plans have been synthesized. An attempt has been made to model a future state created through CPEC facilities and initiatives. A model framework is presented based on the core infrastructure of CPEC projects, which will push Pakistan towards industrialization through utilizing modern manufacturing techniques and establishment of supply web. The CPEC supply web model proposes to create high quality, mass customized products from raw material and parts to be supplied from local and nearby regions through efficient logistic pathway of CPEC and BRI. A supply chain operational reference (SCOR) model has also been developed for an insight into the scenario. It is important for investors, trade associations, businessmen and policy makers to understand the population, market, and economic dynamics along with modern manufacturing trends to create smart factories and supply chains in context of CPEC. The lessons learned from the planning, development and application of the solutions presented by CPEC can be utilized by other regions and countries depending on their relevant unique geostrategic and economic perspectives.

Transport infrastructure and industrial output in Pakistan: An empirical investigation

Development of transport infrastructure is considered to be a key factor in contributing socio-economic development. This research contributes towards the existing literature by analyzing the impact of different types of transport infrastructure (i.e., roads, railways, ports and airways on industrial output for Pakistan. Using annual data over a period of four decades, we apply contemporary time series modelling techniques to establish long-run relationships. The findings confirm the presence of a long-run equilibrium relationship among all key variables. Labour, capital, roads and ports infrastructure stimulate industrial output in Pakistan. The long-run elasticities suggest that a 1% increase in port and road infrastructure increases industrial value added by 0.36% and 0.28%, respectively. We find weak railways are deterring industrial output, and airways are found to have neutral effects. Our findings are validated by causality analysis and the model is found to be stable and robust. In the wake of China Pakistan Economic Corridor (CPEC), our findings suggest that future investment in the transport sector should focus more on railways in improving the industrial growth and output of the country.

The Potential of Pakistan in China Pakistan Economic Corridor (CPEC)

The Potential of Pakistan in China Pakistan Economic Corridor (CPEC)

Glacier-Related Hazards Along the International Karakoram Highway: Status and Future Perspectives

The China–Pakistan international Karakoram Highway passes through the core area of the “Karakoram Anomaly,” whose glaciers have maintained or increased their mass during a period when most glaciers worldwide have receded. We synthesized the literature and used remote-sensing techniques to review the types, distribution, characteristics, causes and frequency of major glacial hazards along the Karakoram Highway. We found that the glacier-related hazards could be divided into direct and indirect hazards, including glacier surges, glacial lake outburst floods, and glacial floods, which are concentrated in East Pamir and the Hunza River Basin. In the past 100 years, hazards from glaciers surges and glacial floods only occurred once and twice, respectively, which appear suddenly, with the hazard-causing process being short-lived and occurring mainly in the summer. Glacial lake outburst floods mainly occur in the spring and summer in the Hunza River Basin. Among these, ice-dammed lakes have the highest frequency of flooding, their formation and outbursts being closely related to the sudden advancement of surge-type glaciers. Under the background of global climate warming, we speculate that the glacier surge cycle may shorten and the frequency of the formation and outbursts in the glacial lakes may increase. In the future, we should combine models and new field observations to simulate, and deepen our understanding of the physical mechanisms of different glacier-related hazards. In particular, on-site monitoring should be carried out, to include the evolution of glaciers subglacial hydrological systems, the thermal state at the base of the glaciers, and the opening and closing of drainage channels at the base of the ice dams.

UNDERSTANDING PAK-CHINA RELATIONS THROUGH CPEC: GEOSTRATEGIC IMPLICATIONS FOR SOUTH ASIA

In the prevailing geopolitical environment, China Pakistan Economic Corridor (CPEC) is the new addition with hopes of exploring new horizons in economic cooperation and expected to have regional and global geopolitical implications. Strategic thinkers, policy-makers, and scholars have heralded CPEC as a magnificent trade and investment project of future geopolitics. Yet many analysts have raised their eyebrows about the USA and Chinese competition ultimately seeking robust security and economic strategy by China and Pakistan to avoid Indo-US designs. The objective of this study is to focus on the all-weather relationship, which China and Pakistan are enjoying with shared goals and interests in the region. This article focuses on the China and Pakistan relations while keeping in mind the emerging strategic partnership of the United States with Pakistan’s belligerent neighbour India through a neo-realistic perspective focused on structure and anarchy in the international political system.

Optimality study of China’s crude oil imports through China Pakistan economic corridor using fuzzy TOPSIS and Cost-Benefit analysis

With China's increasing role in the international political arena, it needs to focus on the diversification of its energy import routes. China is heavily reliant on importing fossil fuels for its industrial and domestic needs, and its traditional trade routes are vulnerable to political, logistical, and security disadvantages. China has been importing from American, African, and Middle Eastern countries through Myanmar's and Eastern China's seaports. The China Pakistan Economic Corridor (CPEC), if utilized for the crude oil imports, can become a viable alternative, and may result in the reduction of the vulnerabilities faced by existing routes. To assess this proposition, this study has focused on identifying China’s most optimal route for crude oil import through a multi-criteria decision making (MCDM) technique; Fuzzy-TOPSIS (Technique for Order of Preference by Similarity to Ideal Solution). Furthermore, to confirm the economic viability of the CPEC route, its Cost-Benefit Analysis (CBA) has also been performed. Besides, Fuzzy TOPSIS has been used to identify the best transport mechanism from the CPEC’s seaports till Western China. MCDM criteria in both cases include time, economic costs, energy consumption, environmental emissions, and security risks. Results indicate that the maritime route, passing through Myanmar is the most optimal route, followed by the CPEC route. Both these routes are prioritised over the traditional route which passes through Eastern China seaports.

China–Pakistan economic corridor (CPEC), tourism demand, and environmental concerns: Policy implications for sustainable tourism in Gilgit‐Baltistan

The mega‐infrastructural development project provides easy access to remarkable tourism destinations and keeps attracting tourists. Tourist data from the tourism department of Gilgit‐Baltistan (GB), Pakistan, show that the China–Pakistan Economic Corridor (CPEC) project's impact positively relates to tourism demand. GB is at the early stage of tourism development, and residents show a willingness to support tourism even though tourism costs outweigh benefits. Besides, the existing tourism policy of Gilgit‐Baltistan focuses explicitly on economic sustainability but overlooks the socio‐cultural and environmental concerns. Therefore, the present study based on the stakeholder theory provides policy implications to minimize adverse effects on socio‐cultural and ecological resources and achieve sustainable tourism.

Media Coverage and Stock Market Returns: Evidence from China Pakistan Economic Corridor (CPEC)

This paper aims to analyze the print media coverage of the China Pakistan Economic Corridor (CPEC) to trace the changes in investor positive and negative market attentions and their impact on stock market returns. We access the daily and weekly coverage of CPEC by national and international newspapers from the Bloomberg database over the period from 2015 to 2018. Using the Harvard psychological dictionary, we categorize the news headlines into two categories such as; news with positive sentiments and news with negative sentiment. We then relate the positive and negative news sentiment to the stock market returns, using quintile analysis, OLS, and VAR models. The results show that investors react quickly and significantly to positive news. They pay more for the same stock if the positive news stream increases and hence the stock market return also increases. In contrast, the investors do not react with the same passion to increase in negative news. These findings are in line with the theoretical rationale of the disposition effect. The study presents empirical evidence on the spillover effect of print media coverage on stock market returns with respect to the China-Pakistan Economic Corridor (CPEC) which is considered a game-changer for the economy of Pakistan. Moreover, this study presents novel evidence that investors react quickly and significantly to the positive news whereas, to the negative news they react passively.

Dynamics of Indian Antagonist Approach towards CPEC and Its Implications for Pakistan

China Pakistan Economic Corridor (CPEC) is considered as a game-changer for Pakistan and for the whole region. The whole region of Pakistan can take benefits of the projects of CPEC carried out under the umbrella of One Belt One Road initiative. This paper is aimed to explore the regional dynamics of CPEC and Indian antagonistic role towards this project. Pakistan is one of the prime states in China one belt one road initiatives. China is executing a multiyear investment in multibillion dollars program and termed it China Pakistan Economic Corridor. Several projects are included in this plan for instance Industry, communication infrastructure and energy which cost almost USD 46 billion. It is expected that CPEC will contributes remarkably in reducing poverty and socio-economic development of Pakistan. Thus, keeping in view, the benefits of CPEC, most of the analyst claimed it to be the most important mega project in Pakistan. They also claim that it will greatly benefit the people of both countries i.e. Pakistan and China. 
 
 Received: 28 October 2020 / Accepted: 5 December 2020 / Published: 17 January 2021

Development and Sustainability of Rural Economy of Pakistan through Local Community Support for CPEC

This paper investigates the local community support for the China Pakistan Economic Corridor (CPEC) using the lens of social exchange theory. The study examines the direct effect of social, economic, cultural, and environmental factors on the local community support for CPEC projects, and the resultant impacts on the development and sustainability of the rural economy of Pakistan. The study also explores the moderation effect of media influence on shaping positive perceptions of CPEC among the local populace. The local communities at the CPEC route which are affected or can be affected by the project were targeted for data collection using a structured questionnaire. The collected valid data (N = 259) were thoroughly analyzed by obtaining reliability and validity statistics, a correlation matrix, multiple regression, moderation analysis, and hypotheses testing. Our results substantiate that the local community support for the CPEC project is heavily dependent on social, economic, cultural, and environmental factors and that there is a positive influence of media impact as an opinion-maker in the local community regarding the CPEC. The CPEC is expected to develop the rural economy, particularly through improvements in agriculture and allied activities, thereby providing livelihoods and income-generating opportunities to the rural masses. The article is important for regulators, the CPEC authority, government bodies, and the relevant community.

Just for Kicks: Football as a Potential Harmoniser in the China–Pakistan Economic Corridor

When the China-Pakistan Economic Corridor began in 2015, many Pakistanis remain concerned about a possible Chinese overreach in the country’s economic and political spheres. In this paper, I suggest that China can placate these critics by utilizing soft power through football. Under Xi Jinping, China has encouraged and supported significant investments in the sport at home and abroad, especially in Europe. While Pakistan is a minnow in world football, the sport is extremely popular among many working-class groups in different regions of the country like Balochistan, Gilgit-Baltistan, and Khyber Pakhtunkhwa. These regions, despite their contentious socio-political environments, are crucial for the success of CPEC’s myriad development projects. Using publicly available information, I explore recent Chinese movements in world football, building a theoretical case for why involvement in Pakistani football can bring benefits of goodwill towards harmonizing CPEC’s acceptance, diversifying Sino-Pak ties, building soft image for China through sports in Pakistani society, and facilitating service-oriented local empowerment through the Beautiful Game.

Spatio-temporal variation analysis of snow cover in China-Pakistan Economic Corridor based on remote sensing technology

Based on the MODIS10A2 snow product data from 2001 to 2019, the characteristics of annual variation, interannual variation and spatial distribution of snow cover in China Pakistan Economic Corridor from 2001 to 2019 are analyzed by using remote sensing technology. The result shows that: the snow-cover in a year generally starts from the middle of October, and the snow cover area reaches the maximum value in January of the next year, and reaches the minimum value in July. From 2001 to 2019, the snow area of China-Pakistan Economic Corridor generally showed a decreasing trend. The distribution of snow in the China-Pakistan Economic Corridor is extremely uneven. The northern area is obviously more than that in the south. The mountainous and plateau areas are with high frequency of snow cover, and the plains are areas with low frequency of snow-cover. Permanent snow-cover is relatively low. Few, mainly concentrated in the Karakoram Mountains, in terms of distribution range, mainly distributed in 4452-8378 m.

Human resource diversity management (HRDM) practices as a coping mechanism for xenophobia at transnational workplace: A case of a multi-billion-dollar economic corridor

China–Pakistan Economic Corridor (CPEC), a multibillion-dollar partnered project is considered as a game-changer, as it combines the strategic interests of China and Pakistan that cannot be comprom...

Maritime trade in the Indian Ocean: value-focused thinking for BRI and CPEC by employing A’WOT hybrid technique

Belt and Road Initiative (BRI) and China Pakistan Economic Corridor (CPEC) have so far developed the narrative of bringing prosperity and peace; particularly in the welfare context of Afro-Asian population in Indian Ocean littoral states and enhanced cooperation among countries in Asia, Europe and Africa. The grey areas needs to be analysed with Value-Focused Thinking (VFT) for the overall discourse of maritime. Thus, this study examined the emerging role of BRI viz-a-viz trade opportunities and challenges for Pakistan and China by employing A’WOT method. Results reveal that the successful BRI and CPEC endeavours will open up a door for future investment, prosperity and sustainable development in Indian Ocean Region (IOR). However, Pakistan has higher ratio of threats compare to China and relative to the opportunities considering the weaknesses due to internal and external factors. Maritime trade under BRI has success potential due to geo-strategic location of Pakistan and weaknesses can be avoided in a complete decision support manner with appropriate policy and strategic arrangements.

Implementation of Smart Grid Technologies in Pakistan under CPEC Project: Technical and Policy Implications

Potential implementation of smart grid technologies has been given wide attention for modernization of electrical power systems. Existing power grid infrastructure of Pakistan is ill-suited to accommodate increased renewable energy sources and poses interoperability issues for seamless transition towards decentralization and digitalization of the power grid. Modernization of power grid through realization of smart grid technologies is much needed to meet the ever-increasing energy demand of the country. The China Pakistan Economic Corridor (CPEC) is a conglomerate of multibillion dollar infrastructural projects with a major focus on energy sector which offers a great opportunity for the country to invest appropriately in the power grid transformation. This research study is focused on devising a technical and policy framework for conversion of the existing power grid into smart grid under the umbrella of CPEC. Potential key drivers are identified for the deployment of smart technologies to upgrade the power grid of Pakistan. The presented research proposes a stage-wise implementation plan to upgrade the power infrastructure of the country. In particular, this research study presents cost benefit analysis for a case study with an aim to reduce the interruption index values. Obtained values of the cost benefit analysis suggest that the investment incurred for smart grid realization can be paid back within a period of twenty months and offers a positive net present value which establishes the financial feasibility of the project. Importantly, policies and recommendations are suggested which would enable the concerned stakeholders to ensure grid modernization as per the proposed smart grid implementation plan.

Chinese Investment under China–Pakistan Economic Corridor: Implications on Banking Performance in Pakistan

This study empirically examines the relationship of Chinese Foreign Direct Investment (CFDI) under the China-Pakistan Economic Corridor (CPEC) and commercial bank performance in Pakistan, thereby highlighting the un-explored area of the existing literature. For this purpose, a panel dataset over the period 2009 to 2020 of commercial banks was collected from the State Bank of Pakistan. We have employed various econometric techniques including random effect and System Generalized Method of Movement (Sys-GMM). To more accurately analyse the relationship between CFDI and bank performance, we also separately examined the pre-CPEC period 2009-2013, and the post-CPEC period 2014 to 2020. The results indicate a significant positive impact of Chinese FDI on the banking performance in Pakistan in full as well as in Pre-CPEC samples, while negatively significant with banking performance in Post-CPEC samples. For the control variables, we found some variations in signs and significance across the various bank performance measures and the three samples. This unique outcome of the study is very important for the policymakers of developing countries in general and Pakistan in particular.

Towns and trade routes in the Indus valley before the english conquest

The article traces the history of towns, trade and trade routes that ran through three regions of the Indus Valley – Sindh, Baluchistan and West Punjab with adjacent lands of eastern Pashtuns. Pakistan consists now of these areas and, according to the author of the article,has a special geographical position of transitory, intermediate type, being located between India, on one hand, and the Middle East, on the other. In addition, its northern borders lead to the mainland of Asia, while the southern shores connect it with the world ocean. Taking advantage of factual data found in the works published by agents and military officers of the British East India Company and research done later the author characterizes the nomenclature and value of imported and exported goods, gives estimates of the urban population, its confessional, professional and caste structure. Special attention is paid to Karachi, “maritime gates” of the region, and to Shikarpur, playing the similar role in the land trade by linking the Indus valley with Afghanistan and via it with Persia and Central Asia. The author underlines that the geographical intermediateness has played a significant role in the historical destiny of the region and its impact can be observed until today, most vividly in the shape of the investment project called “China Pakistan Economic Corridor”. Although the bulk of the material in the article deals with the situation in the first half of the 19th century,it is preceded by short notes concerning historically more distant epochs(the campaign of Alexander the Great in the 4th century BC, the conquest of the region by Muslims in the early 8th century AD, period of the Mughal Empire).

How Belt and Road Initiative (BRI) and the China-Pakistan Economic Corridor (CPEC) are Reshaping China's Soft Power?

A rising and globalizing China has evoked mixed reactions. There is a growing body of literature that highlights China's military hegemonic tendencies. This has overshadowed the Chinese efforts at promoting co-operative interdependence, of which the Belt and Road Initiative (BRI) is a symbol and emerging reality. This paper contextualizes the BRI, along with the China Pakistan Economic Corridor (CPEC), to examine and explore the symbols, tools and contours of the Chinese soft power. This study contends that, despite apprehensions by critics about China's motives underlying the BRI, for the participant countries it offers infrastructural development through economic investment and educational exchanges that showcase Chinese culture and its soft power. Do the participating countries find these offers appealing? This raises two critical questions: Does China's economic development oriented soft power through BRI obviates its military designs? Does China have the tools that Joseph Nye conceptualizes for the soft power that a global power requires? This study makes a critical appraisal of Joseph Nye's concept of Soft Power and analyses how the Chinese scholars and policy makers are transforming its usage and conceptual applicability as China stands for globalization, multilateralism, common and shared goals for the planet and humanity. Given COVID 19, China's soft power appeal could have political and security implications for the global world order.

Power Supply to Local Communities Through Wind Energy Integration: An Opportunity Through China-Pakistan Economic Corridor (CPEC)

Global warming and depletion of fossil fuels have urged the world to control their impacts and find clean and green energy sources. Due to this paradigm shift, renewable energy resources (RESs) have received tremendous attention around the globe and amongst other RESs, wind energy has been proving itself a promising renewable resource. However, still, the proper selection of wind turbines (WTs) and their installation is considered a major challenge. Presently, due to the economic boom of Pakistan as a regional power under the China Pakistan Economic Corridor (CPEC) and increasing energy demand, it needs to meet the energy shortage. This paper aims to conduct a pre-feasibility ainvestigation of wind farm exploitation at Gwadar and Quetta, major cities of Baluchistan province in Pakistan by harnessing the wind energy potential and electricity generation cost through different WT models. The wind speed (WS) data is recorded by a professional wind mast at different measurement heights during F.Y 2016 and analyzed using Five approaches, Modified Maximum Likelihood Method (MMLM), Graphical Method (GM), Empirical Method of Lysen (EML), Empirical Method of Jestus (EMJ) and Energy Pattern Factor Method (EPF) at the proposed site and EPF shows the best performance than other approaches. Different WTs models are also evaluated and out of them, the GW121 WT gives the lowest cost in dollars and lowest payback period at each site so it can be recommended as one of the most feasible WT for electricity generation for powering local communities at the proposed sites.