International Journal of Scientific & Engineering Research, Volume 8, Issue 1, January-2017 536

ISSN 2229-5518

Role of CPEC in the Economy of Pakistan

along with its Threats
Abstract: The China-Pakistan Economic Corridor (CPEC) is a concept to unleash the process of meaningful cooperation between
China and Pakistan, and for the benefit of China and West Central and South Asia. This mega project is expected to take the
strengthen relationship between Pakistan and China to new heights. A hope to transform the economy and help to overcome
Pakistans power shortfall. The strategic meaning of CP EC needs to be defi ned and examined from different perspectives
Historical, Economic, Cultural, and Political. CPEC is a big opportunity for economic development of Pakistan with the building
of a network of roads, highways, railways from Khunjerab, the PAK-CHINA border, to the Gwadar. GWADAR is important
PORT due to its depth.

Introduction:
Pak-China relationships have kept growing and have strengthened ever since 1951
when friendship began. Good relationships with China havealways been a key
component of Pakistans foreign policy.The foreign policy of China towards South
Asia consists of State to State relationshipswith some principles which are no

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interference ininternal affairs, mutual trust, respect of sovereignty of independent
state, understanding and confidence. China biggest interest inSouth Asia interest is
its economic interest. China has goodrelations with countries of its region to get
economic benefits.
The relationship between Pakistan and China became closer and stronger with
thepassage of time. Both states are enjoying deep diplomatic, defense, economic
andCultural ties.(Kataria & Naveed, 2014).Pak-China relationship constant from
the very beginning. The Pakistan-China relations arecemented in major fields of
geo-politics, strategic, economics, civil and military infrastructural development
andother related areas of bilateral cooperation and investment.(Makhdoom, Khan,
& Khan).China and Pakistan have developed friendly relationship to contain
Indian dominance in the region. It has balanced the power (military and economic)
and Indian threat has also been minimized(Ahmed & Nagra, 2014).In his foreign
policy China give highly importance to South Asia.
President of China says on his official massage Friendship between China and
Pakistan is based on trust and mutual support, and we have been devoted friends
through both good and hard times. Our friendship is a pacesetter for amicable
relations between countries.Mr. Xi Jinping

IJSER 2017
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International Journal of Scientific & Engineering Research, Volume 8, Issue 1, January-2017 537
ISSN 2229-5518

CPEC is a framework of regional connectivity between two neighboring countries

Pakistan and China. CPEC will not only benefit China and Pakistan but will have
positive impact on Iran, Afghanistan, India, Central Asian Republic, and the
region. The enhancement of geographical linkages having improved road, rail and
air transportation system with frequent and free exchanges of growth and people to
people contact, enhancing understanding through academic, cultural and regional
knowledge, activity of higher volume of flow of trade and businesses, producing
and moving energy to have more optimal businesses and enhancement of co-
operation by win-win model will result in well connected, integrated region of
shared destiny, harmony and development.http://cpec.gov.pk/

Pakistan and China develop plans for the CPEC in April 2015, when they
signed fifty-one agreements and MOU on Chinese investments, total of $46

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billion over the next ten to fifteen years.CPEC is long journey towards economic
regionalization in the globalized world. It founded peace, development, and win-
win Situationfor all of them.China Pakistan Economic Corridor is hope for the
better future of the region with collaboration, peace, development and growth of
the economy.
China-Pakistan Economic Corridor is a very Critical Infrastructure project for both
the countries. CPEC is a mutually beneficial project which full fill the objectives of
both the countries. It provides an alternate secure route to China to import Energy
and find new markets for its goods and services. For Pakistan it helps to overcome
energy crisis, Infrastructure development, Removal of poverty, Peace and
prosperity in Provinces and main purpose to counters Indian influence in the
region, position itself as a major transit point connecting Eurasian region with
South Asia and South East Asia & provide base point to kick start its economic
growth.

In Pakistan, CPEC activities are being managed by the Ministry of Planning and
Development in partnership with ChinasNational Development and Reform
Commission (NDRC). Both sides have established a Joint Cooperation Committee
which focused on four main areas: Transport infrastructure, the Gwadar Port,
energy, and industrial cooperation.

There are many constraints for CPEC like political & economic development,
Geostrategic dynamicsand Security-related threats(Sial, 2014).With second largest
economy China have great opportunities for Pakistan to take advantage for

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