China Pakistan Economic Corridor (CPEC): Benefits for Pakistan

Abstract

The China Pakistan Economic Corridor (CPEC) is part of China’s “One Belt, One Road” initiative and the nexus of two major economic corridors: the Silk Road Economic Belt and the Southeast Asian Maritime Silk Road. In addition to the economic corridor, CPEC in Pakistan will include energy projects, infrastructure development, industrialization, and the expansion and improvement of Gwadar Port. The project has great potentials for Pakistan, in both economic and regional domains. However, CPEC faces serious challenges on internal and regional fronts. This thesis will examine CPEC in two ways: through a cost/benefit analysis of the proposed project, and through a comparison to the Suez and Panama Canals, two long-time economic corridors that have been well studied. These analyses indicate that CPEC has the potential to boost Pakistan’s economy, making the country a regional economic hub. Whether or not this will happen will rely on the effective and timely completion of the project, ensuring transparency and efficiency.