Table of Contents

Introduction .................................................................................................................................................. 2
Literature Review .......................................................................................................................................... 4
Methodology................................................................................................................................................. 7
Findings ......................................................................................................................................................... 8
Discussion.................................................................................................................................................... 18
References .................................................................................................................................................. 25

1|IS CPEC CREATING MORE JOBS

Introduction
Pakistan has world’s fifth largest reserves of Gold in Baluchistan, second largest
reserves of Salt and sixth largest reserves of Coal in Punjab. At the same time,
there is a huge bulk of young population which is believed to have dynamic
features that makes Pakistan the fifth most populous country of the world. Its
proximity with the resource rich countries is another factor which makes Pakistan
procure pinnacle revenue and cash this opportunity to the highest. The world
politics took a shift after the soviet disintegration which made the world unipolar,
but the attacks on world trade center marked an austere shift. Pakistan served in
the war against terrorism with US as its front row ally. US has its two basic goals
to achieve in this region. First is security from the terror of Afghan Mujahidin and
Iran going nuclear, secondly, the economic security from the flourishing China
which is grasping the world economy every day. US is setting its corporate lines
with India to stop China creating its supremacy in the region. Realizing the geo-
strategic importance of Pakistan for trade and security. For many years both US
and China have been trying to create their influence in the country. Pakistan is
one of the most secure routes for China to import oil from Iran. Pakistan and Iran
have engaged an agreement of gas pipeline (from Iran to Pakistan) to overcome
the energy crunch and fulfill the daily life necessities. Pakistan is a strategically
very significant abode for China as it links China to the Southern Asian region,
Middle East and Central Asia. The Gwadar port was purchased by Pakistani
Government after the geological survey conducted by US authorities in 1958 at a
cost of $3 million. Before that, it was under the Omani rule. The construction of
Gwadar Port started under President General Pervez Musharraf’s regime. The
contract was given to a Chinese firm by the Pakistani government and phase-1 of
construction started in March 2002 which completed in December 2006 and
became operational in 2007.China takes this port strategically more important to
it because when this port will be operational, it will make a stress-free and the
benign way to access the Iranian oil and its exports to the international markets.

Pakistan being the ally of China for the South Asian region has started to work as a
passage by having a common gateway at Kashghar termed as “Economic Corridor”
to Gwadar. The purpose of this corridor is to achieve the economic and political

2|IS CPEC CREATING MORE JOBS

goals through trade and development. This economic corridor tangibly expands to
almost 2700km starting from Kashghar to Gwadar through Khunjrab. It will be
associated through rails and roads all over its route and will certainly strengthen
the Pak-China relationship through economic and political developments.
Pakistan, being the center ally to China and the second largest trading partner,
can gain a heavy profit without much effort. Pakistan can easily earn millions of
dollars through this corridor and can make the unstable economy much more
stable thus finding a way out of the crises. Successive governments in Pakistan
were not much successful in handling and reducing the energy crisis. The energy
crisis which our nation is facing nowadays has made the economy unstable and
created hurdles in foreign investments. The reluctance of foreign investors is
shackling the economy and the government is taking more loans to return the
preceding loans.
CPEC is a mega regional project and a component of “One Belt One Road”. With a
total Chinese investment of US $ 46 billion. It is planned to be completed in 15
years comprising 4 phases, involving 51 projects in sectors of energy, road and rail
infrastructure, special economic zones, communications and development of
Gwadar port.
Basically our research leads to the jobs created by this project, Its influence on the
economy of Pakistan. Is it fruitful for the youth which is expecting too much jobs
and infrastructure from this project? So for this purpose we made several
questions for the survey and we got different responses from public. Our research
has gathered significant information regarding the ongoing CPEC projects and its
effects. Our research questions mainly relate to Pakistan benefits besides the
Chinese ones.
The significance of this research merely focuses on jobs produced by CPEC. As
majority of the youth of Pakistan is unemployed CPEC is like the ray of hope for
them.
It will not only boost the economy of Pakistan but it is also producing a huge
number of jobs both for Chinese and Pakistanis. Pakistan’s electricity shortfall will
also be minimized under the projects of CPEC.

3|IS CPEC CREATING MORE JOBS

LiteratureReview

China Pakistan economic corridor is being developed under the strategic co-
operation between government of Pakistan and China. CPEC comprises mainly of
infrastructure, transport and energy project. This network of physical
infrastructure would promote the regional connectivity, economic integration and
formation of favorable economic zones (Ahmad, 2017). Infrastructure can
contribute towards the local economic integration by number of ways. For
example, it can encourage the procedure of economic trade both locally and
globally (Bhattacharyay, 2008). Pakistan and China are solid exchanging
accomplices in spite of the social and ideological contrasts. These exchange
relations stretched out more than four decades. The two nations have marked
and actualized various trade agreement (like Bilateral Trade Agreement, 1963;
FTA, 2006 and FTA for Trade in Services, 2009). In addition, the size of exchange
among China and Pakistan is constantly expanding. In 2007, exchange volume was
of worth $4.1 billion yet it has come to $9.2 billion out of 2013. That is more than
124% in exchange volume. In addition, the exports of Pakistan have risen 400%
from 2007 to 2013 (Governmentofpakistan, 2018).

Construction and development under the umbrella of CPEC tends to decrease the
transportation cost and increase the trade volume. Clark et al. has examined the
relationship of infrastructure and shipping cost for clarifying the market access,
expanded trade volume and Salary per capita in US economy. The investigation
breaks down a huge data set and expresses that port effectiveness, distance and
trade volume are vital components for delivery cost. Among all, port productivity
is vital. Expanded productivity of port will in general drop down the delivery cost
by 12% where lower transportation costs related with enhanced foundation
would increase the trade volume by 25% (Clark X, 2004). Trade volume is
positively affected by the size of two economies and inversely related to distance
between them. So by trade routes distance between two countries will decrease
and hence volume of trade will increase.

4|IS CPEC CREATING MORE JOBS

CPEC would connect Gwadar with China so china would have access to warm
water of Arabian Sea. At present, products sent to Europe from China travel
distance of 19,132 miles of which 16,507 is via ocean, and 2,625 miles via land
(distance from Shanghai port to central China). After finish of CPEC, the products
from central Asia to Europe would have to travel a total distance of 9,579 miles,
of which 7,847 miles will be through ocean, and 1,750 via land (distance from
Karachi to central China). This will help china to increase its export and boost its
economy (Ms. Ayza, 2017)
The Gwadar port at that point would fill in as an associated base camp for China
to expand its control in the region. Furthermore, it would debilitate the
developing impact of USA in Asia (Ashfaq, 2017). lot of Chinese trade pass
through this route which is alarming for china that in any emergency Americans
can cut off its oil supply. So by CPEC china also want to protect its main oil supply
route.

Total cost of CPEC is increasing with time. According to Executive director of COE
of CPEC total investment of CPEC has increased from 46 billion dollars to 62 billion
dollars and will reach 100 billion dollar till 2030 (H, 2018). Chinese Banks would
also provide loans to different sectors and Chinese companies’ investment would
be apart from the above mentioned investment. Chinese companies would
directly invest in Pakistan energy sector to solve the energy problems which is the
main hindrance for foreign direct investment.

It is estimated that if all the projects are implemented successfully, the value of
those projects would exceed all foreign direct investment in Pakistan since 1970
and would be equivalent to 17% of Pakistan's 2015 gross domestic product. CPEC
will create 700000 jobs in time period of 2015-2030.Which will decrease
unemployment in country and will help to increase 2.5 percent points to country’s
growth rate (deloitte, 2017)

With numerous opportunities there are also many challenges for Pakistan. The
amount of Chinese debt which is being given to Pakistan is enormous. For country
like Pakistan which is already under the burden of foreign debt will become
difficult to payback these loans within short given period. So due to heavy
interest, the amount of debt is increasing day by day causing economic instability

5|IS CPEC CREATING MORE JOBS

in country. According to Punjab University economics professor “Panama Canal
and Suez Canal generate 3-5 billion dollar a year so Pakistan should not expect
more than 3 billion dollars through toll collection once corridor is completely
operational”. So this amount is not enough to payback Chinese huge loans.People
are raising worries over the loans involved, referring to Sri Lanka and Tajikistan's
borrowing from China. In 2011, Tajikistan has to surrender 1% of its area to China
in return for unpaid credits. Sri Lanka will give away 80% shares of the
Hambantota remote ocean port to China for the following 99 years, in return for
USD 1.1 billion debt relief. (Zofeen, 2017)

CPEC will also impact Pakistani culture. Urdu has already lost its significance due
to English but in near future Chinese language would also impact its value. In
colleges and universities students are being told about importance of Chinese
language to get job in future as many companies will come to Pakistan due to
CPEC. Media is one of the major sources of cultural exchange. Many agreements
have been signed to broadcast the Chinese content. For the past few years,
Turkish and Indian dramatization arrangement have been prevalent among
individuals of all age. They are displaying exploitative content tending to impact
individuals particularly the adolescent, yet there is no one to be considered
responsible for. Same could be the situation with regards to CPEC. (Niazi, 2017)

CPEC would result in displacement of many local people in KPK and Gwadar. Out
of 73,000 square kilometers, cultivable land is just one percent. The local feared
that rich investors from outside will capture their land ultimately they would
become the minority and economically subservient one there is no land for
farming. (deloitte, 2017)

People are concerned regarding the transparency of CPEC.As work on CPEC-

related project makes 'fast' advance, the point of open discussions is bit by bit
moving from 'Will CPEC projects ever materialize?' to 'What is the sticker price
that will come connected to the Chinese projects for the ordinary Pakistani
people? 'The government’s policy of keeping information secret relating to the
financing of CPEC projects and the way of their execution is alleviating a lot of
worries among people regarding hidden costs of the deals. Many fear that the

6|IS CPEC CREATING MORE JOBS

deals made with China are going to impose enormous costs on the budget and
thus on the general population.

CPEC is increasing the bitter relations between the provinces. All the provinces
are concerned over the unequal distribution of resources. Baluchistan and KPK
are raising questions over the all major transport and energy projects have been
transferred to Punjab. The political parties of KPK have contended that
adjustments in the course of CPEC would turn all financial gain towards Punjab
region. They have requested to stick to the first course of CPEC, otherwise the
country would be separated (Dawn, 2015). Despite the inauguration of western
route which will pass through Baluchistan and KPK, both provinces have been
neglected in many other projects. Gwadar where all the locals have been push
aside and which is the hub of this project is neglected which will create further
anger among always neglected Baloch. If the federal government wanted to
implement the CPEC successfully then it has to deal with the issues of other
province.
Many people believe that CPEC seemed more like Chinese project and they are
getting maximum benefits from it. Many believe that Chinese are enforcing terms
to Pakistan and somehow the on ground situation is justifying their opinion. Take
the instance of the 660KV Matiari-Lahore DC transmission line, essential for
evacuation of 4,000-megawatt power from the new, under-construction coal-
fired plants at Port Qasim to energy centers in Punjab. NEPRA was compelled to
raise the original tariff of 71 paisa for each unit that it had determined to 74 paisa
after the contractor declined to undertake the project at that cost. (jamal, 2017)

Methodology
China Pakistan Economic Corridor, CPEC, doesn’t only affect the economy of
Pakistan but it has a direct impact on the lives of people. The cross cultural
exchange, interaction with Chinese employees working in Pakistan and the
perspective of major masses to Chinese Investment in Pakistan has an importance
that could not be neglected. To evaluate and understand, the report’s data has
been collected from the undergraduate and graduate students who are looking
forward to stable jobs in their homeland. Undergraduate students were easy to
7|IS CPEC CREATING MORE JOBS
find since the majority of the friends’ circle was willing to contribute and every
member’s parents were asked to distribute the form among their colleague.

Google forms were made and they were analyzed by every group member so that
every aspect of the response is within our domain. Analysis was made on the data
that was collected through google forms. The auto-created graphs and charts are
provided in the report. It helped us in analyzing the data and to understand the
behavior of human beings.

Findings
A survey was conducted among the general public so they would have a chance to
show their opinions on different matters regarding the topic. A hundred and
sixty-one (161) people answered the questionnaire. The survey had questions of
different natures which acquired consent on different cases for instance form
cultural and infrastructure to economic and political issues.

1. First off a question regarding fruitfulness of the China Pakistan Economic

Corridor was asked. The reaction was mixed but majority (53 per cent) of
the turnout agreed on the fact that the project will be fruitful for the
economy Pakistan.

8|IS CPEC CREATING MORE JOBS

 2. The second question dealt with the areas that the CPEC would have an
impact on. The corridor, according to major proportion of the responders,
would affect infrastructure of the country. But as seen from the chart
below the reaction turned out to be quite a mixed one. A big number of
people had different opinions, which judging by the nature of the corridor,
were also true.

9|IS CPEC CREATING MORE JOBS

 3. Next up, a question regarding the culture, specifically of Pakistan, was
asked. The question was, if CPEC would have any impact on culture of the
country or would it bring any changes in the social lives of people. The pie
chart below shows that major percentage i.e. 45% of the people thought
that it might just bring some cultural changes. This is due to the fact that
many different Chinese professionals that will be having their residence in
Pakistan might bring some changes by interacting with the local people.

10 | I S C P E C C R E A T I N G M O R E J O B S
 4. Chinese coaching classes are being conducted in Pakistan. But since the
origination of CPEC the classes coaching classes have grown exponentially.
The people were asked if CPEC is the sole reason for the increase in the
coaching classes. Evidently many people are in agreement to the
statement.

5. “Is CPEC another form the East India Company?” This question has been
raised by many people and the controversy has taken place in the minds of
quite a large proportion of the public. When the question was asked, many

11 | I S C P E C C R E A T I N G M O R E J O B S
 of the people were not vividly clear about it. But still there was quite a large
proportion which did not agree to the statement considering the ties
Pakistan and China had through different times.

6. The basic purpose of this report is to know what kind of jobs will CPEC be
creating (in majority). CPEC, as it appears, is a mega project which will,
hopefully, lead to prosperity and development in different fields for both
the countries. A question was asked that what type of jobs CPEC has to
offer. The bigger proportion of the voters, as seen from the graph below,
opted for “labor type”.

12 | I S C P E C C R E A T I N G M O R E J O B S
 7. Pakistan is a developing country and the area that requires the biggest
development is its industry. Pakistan, primarily, was an agricultural country.
But seeing from the conditions lately, the economy of the country is
starting to depend more on the industrial and manufacturing sector. China,
being an industrial country, has so much to offer to Pakistan. CPEC can
happen to be the building block of the prosperity and development
Pakistan is seeking. When the question regarding industries was asked
majority (47.2%) of the people had a consensus that the project will lead to
flourishment of all the industries of the country. But among the individual
industries logistics and transport was the major pick.

13 | I S C P E C C R E A T I N G M O R E J O B S
 8. One of the major concerns of Pakistani people about the China Pakistan
Economic Corridor is the transparency of its government about the project.
From the chart below, 48.4 per cent of responders think that the
government is partially transparent about the corridor. 31.1% think that it
is not transparent at all. This is a minor proportion but still shows that a
large number of people still have doubts about the project, which the
government has not responded to yet.

14 | I S C P E C C R E A T I N G M O R E J O B S
 9. Regarding the jobs, a question in the survey was asked to know if China
would prefer to employee its people over Pakistanis. 46.6 per cent of the
people had an opinion that natives from both the countries will be given
equal opportunities.

10.A question was asked that if China, having the upper hand, was dictating
terms to Pakistan. Majority of the people i.e. 43% were vague about it.
38.5% people were in agreement to the statement and thought that China
is using its upper hand to dictate terms to Pakistan.

15 | I S C P E C C R E A T I N G M O R E J O B S
 11.Pakistan since its birth has been a big target of various disputes. Provincial
dispute has been a major problem for the country and has also been a root
to many other problems. A controversy regarding CPEC took place that the
higher officials were trying to benefit their home provinces from the
corridor. In the survey when the people were asked that if some provinces
were benefitted more from the project than others 30% people had the
major consensus and agreed that CPEC does benefit some specific
provinces more than the others.

16 | I S C P E C C R E A T I N G M O R E J O B S
 12.The question that if CPEC would result in the advancement of Chinese
industry at the cost of downfall of Pakistani industry concerns the Pakistani
people. Many among the Pakistani natives think that with the CPEC, China
might benefit and flourish its industries. On the other hand, Pakistani
industry might experience a downfall. When the question was asked
majority of the public (3.6%) disagreed and thought that Pakistani industry
will flourish instead of falling down.

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Discussion
1. AREAS CPEC IS AFFECTING THE MOST
From responses gathered from public, majority of the people thinks that
economic zone is the most affected of all. Other areas are also affected but not as
much. But if we take a look on ongoing projects CPEC covers many projects which
include infrastructure, energy projects, railways and roads. And all these projects
are instigating with time. If we compare it with sociological theories the most
appropriate is modernization theory. As in modernization theory there are five
stage of development of a country. In modernization theory first stage is of taking
financial aid from other countries. Next stage is of technical technology transfer.
Pakistan is in second stage of technology transfer. With the completion of CPEC
there will be huge technology transfer between China and Pakistan.

2. FRUITFUL FOR THE ECONOMY OF PAKISTAN

From responses most of the people are in agreement that the economy of
Pakistan will flourish. There are people who strongly agree that CPEC is very
fruitful for the economy of Pakistan. If we take a look on Pakistan economy in
present days, it is devastating. Our currency is devalued. The value of rupee is day
by day decreasing. So CPEC is hope for the economy of Pakistan. According to
analysts, if CPEC completed in its given time then Pakistan economy will be
among the most emerging economies in the world. Thousands of jobs will be
created thus eliminating poverty in the region. If we compare the current
situation to the sociological theories the most appropriate is dependency theory.
Dependency theory comprises of two components, periphery and core. It is a
notion in which there is a flow of resources from poor country (periphery) to rich
country (core). If we compare our conditions; Pakistan is periphery and China is
core. China is using Pakistan’s resources to take the maximum benefits from it by
doing only the investments.

3. CPEC WOULD IMPACT THE PAKISTANI CULTURE

According to social theories a society may change and evolve while experiencing
different situations through time. Pakistan, according to some researches, might

18 | I S C P E C C R E A T I N G M O R E J O B S
experience a cultural change through CPEC. In the conducted survey when the
question, “will CPEC effect the culture of Pakistan” was asked 45 per cent of the
people were of the opinion that yes, it would. Considering the fact that Chinese
workers, which would be residing in Pakistan and interacting with the locals,
might just happen to bring a little change. The CPEC in its nature is a mega project
and is anticipated to change the lifestyle of the villagers of the country. The local
people experiencing the advancements in technology and other fields, specially
agriculture, will experience a need to develop their way of living. Pakistan is a
developing country and a big proportion of the country’s population is orthodox
and is not aware of many technologies that are needed in the modern era. The
CPEC would not only help them get acquainted to the modern world but also
adapt to it. It can be the basis of many social developments that Pakistan will
experience in the course of time for example increased education rate and
advancements in agriculture methods.

4. CPEC THE MAIN CAUSE OF INCREASED CHINESE

COACHING CLASSES IN PAKISTAN
Functionalism theory suggests that everything in the society has a function. CPEC,
in Pakistani society, has many different functions. Increased Chinese coaching
classes is one of the functions of CPEC. When this question was asked from the
general public, 62.7% were of the opinion that CPEC was responsible for the
exponential increase in Chinese coaching classes in Pakistan. This might benefit
the natives in ways more than one. Firstly, the workers that would be working in
the project need to learn the language to have a smooth and comfortable working
environment. Without having to learn Chinese, there will be a communication gap
between the officials, which would not result in anything good. Students might
also get an advantage form this. China is not only known for its industries but is
also popular for a large number of great institutions. Pakistani students that are
willing to study in China can learn their language which would give them an
advantage because they could interact with the local people easily,there.

5. CPEC A SECOND FORM OF EAST INDIA COMPANY

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Neocolonialism is the phenomenon where a country uses political or economic
pressure to control or effect another country. Back in the 18th century, East India
Company came to make trade deals with the Indian sub-continent. But in the mid-
19th century, India ended up being controlled and ruled by the United Kingdom. A
dilemma took place in the minds of a significant number of people that the CPEC
might just be another form of the East India Company. China, in spite of having
great relations with Pakistan throughout all the years, might be dictating terms to
Pakistan and seeking to rule and dominate the country the same way Britain did
to the Indian Subcontinent. A survey was conducted to know what thoughts
people had on this matter. The majority (44%) proportion of the people were not
clear about it. But a great proportion (40%) of the people were of the opinion that
CPEC is not another East India Company. This turnout was not surprising
considering the fact that China has had great ties with Pakistan through ups and
downs. China has offered Pakistan political, economic, military and technical aids
to Pakistan and Pakistan has always considered China as its strategic ally.

6. TYPE OF JOBS WILL CPEC CREATE

Dependency theory suggests that ‘developing countries’ depend on developed
countries to improve their situations and status. Similarly, Pakistan is somewhat
dependent on China. Seeing that China has been there for Pakistan through all
thick and thins, therefore, Pakistan considers it to be the biggest ally in the
developed world. Pakistan is a third world country and considering the various
precarious conditions it is facing; Pakistan needs a lead in order for it to get on the
path of development. China, being an industrial country, and the rate at which it
is industrializing, it needs efficient labor. Pakistan is ready to offer the labor. In
the conducted survey, when the people were asked to give their opinion on the
question, “what type of jobs will CPEC create the most”, the majority (63%) of
them were of the consent that CPEC will create jobs of labor type. The CPEC
would not only create labor for Pakistanis but also for the Chinese people. This
will also lead to cross culture interaction.

20 | I S C P E C C R E A T I N G M O R E J O B S
7. CPEC RESULTING IN ADVANCEMENT OF CHINESE
INDUSTRY WITH THE DOWNFALL OF PAKISTANI
INDUSTRY
Responses suggest that CPEC will affect local business in bad way but not to a
really bad extent. Because of free trade agreement in the beginning cheap
Chinese products from their efficient manufacturing plants will flood Pakistani
economy. Local products which are usually expensive and not much attractive will
be neglected by the customers. But soon local businesses will flourish as business
men will import Chinese efficient manufacturing plants from china under free
trade conditions. This is evident from sociological theory of Stages of
Modernization of a country. In these stages first stage is of financial aid. Till this
time from back 40 years Pakistan has remained in this stage with the exception of
few governments. We have accepted financial aid from a lot of countries like
Saudi Arabia, USA UK and china. In second, a country is imports technology from
other countries. Pakistan is currently in this stage. So by CPEC local businesses will
affect for short period of time but after that technology transfer will occur and so
will our economy go towards road of prosperity.

8. CPEC PROVIDING EQUAL OPPURTUNITIES FOR ALL

PROVINCES
From our findings we can see that most of the people have agreed with the
statement that CPEC will provide equal opportunities for all provinces. Although
there has been inequality between all the four provinces in terms of economy
because of geographical location and climate. But CPEC will provide equal
opportunities for all provinces especially for Baluchistan. A road is not just a path
way; roads are arteries through which economy pulses. Western route passing
through Baluchistan and KPK will create business and employment opportunities
in terms of hotels and restaurants. Industrial parks which are to build up in
Baluchistan and whole country will completely change the game. Only there will
be a problem of security which is the major hindrance in the path of prosperity.
This is in according to a functionalist theory. According to functionalist theory
prosperity of whole country and success of CPEC can only happen and will happen

21 | I S C P E C C R E A T I N G M O R E J O B S
if all the provinces are not treated equally. Otherwise it will lead to failure of
whole project.

It is obvious that there is inequality between various provinces. But through CPEC
much of it will disappear. And according to conflict Theory inequality is inherent
in society or a country. But it changes from inequality to equality.

9. PREFERENCE OF EMPLOYEES
From our findings majority of people think that china will employ both citizens
from both of countries i.e. Pakistan and China. Today the world had changed a
lot due to free market economy and globalization. Like in Europe have all countries
connected. Their citizens can go in any country of European Union and work
there. This leads to more prosperity in the region. Organizations can have more
diversity and this have more and diverse ideas. Same thing is going to happen
because of CPEC. In sociology this concept is called globalization. Through this
concept china will employ Pakistani workers in various project as a result both
Chinese companies will profit by cheap labor and Pakistani citizens will get
employment.

10. CHINA DICTATING TERMS TO PAKISTAN

Most of the respondent voted testifying the fact that china is dictating terms to
Pakistan in CPEC. China is setting up terms in which it will benefit more than
Pakistan. In fact, China will gain much more than just economic benefits. China
want to increase its influence in the region and in the whole world. On one side
china is setting up condition of taking Gawadar port on lease for forty years. For
forty years, china will have full control over the port and Pakistan will a have none
but only after forty years when the infrastructure has degraded much.

This matter Dependency theory explains this matter well. According to the
Dependency theory rich countries benefit economy wise from poor countries.
Rich countries get cheap labors and raw material and sell back finished products

22 | I S C P E C C R E A T I N G M O R E J O B S
to the periphery. Rich countries make sure that the world’s financial order does
not allow poor countries to become developed ones. They put embargos on
various machines which in fact can produce high end products.

11. TRANSPARENCY REGARDING THE PROJECT

Most of the people suggest that Pakistani government is not transparent on
letting information to its people. Reason is that currently world powers have a lot
of concerns CPEC. USA and its allies not want increased influence of china in the
world. There are increased number of chances that china will become world
power through CPEC. Because through CPEC china can save a lot of money on
importing oil and other items from gulf by reduced length of route. And can ship
its products at low cost to Europe, Middle East and Africa. And other thing is that
china will also have its military bases in this region thus increasing its power in
world. Due to all these reasons if information related to CPEC is revealed it might
cause problems with the security and other strategic issues.

Functionalist theory is completely in correspondence with this case. According to

functionalist theory it is inevitable to not public the information related to CPEC.
As it has a lot of concerns with the success of this project. And this project is very
important for the economic security of Pakistan as it is facing huge economic
crisis and an unbearable debt.

12. FLOURISHMENT OF INDUSTRIES

Logistics and manufacturing industry will flourish under CPEC. With logistics
leading as industry. This is due to the fact that Chinese import and export will pass
through Pakistan by the corridor. Considering this fact, a theory comes to mind
that, world system perspective theory. According to this theory the rare two types
of countries, core and periphery. Core countries are the one which are developed
and the periphery are the one which are underdeveloped and have cheap labor
and raw material. According to world perspective theory core benefit from
periphery by exploiting raw material. And on the other hand periphery had to
live through by selling raw material and cheap labor.

23 | I S C P E C C R E A T I N G M O R E J O B S
Conclusion

Pak China Economic Corridor in inevitable for the economic stability of Pakistan. Although the
term and conditions set in CPEC are majorly in the favor of China. China will gather most of the
benefits from CPEC. But a country whose economy is sinking, inflation high to its record levels ,
population striving for making both end meet, young jobless graduates and high security issues
CPEC is ray of hope .

Coming to industries which will benefit from CPEC. Majorly logistic business will flourish and
secondly hotels and economic zones and then industrial economic zones. Moreover Pakistani
citizens will get improved railways, newly built high ways and motor ways. These things will not
only be a ways of transporting Chinese products but will also help Pakistanis to increased their
business in different provinces thus strengthening local business. Pakistan should import
technology that china uses in its agriculture sector so that Pakistan is able to get that much
yield.

Irrespective of all negative propaganda regarding CPEC people still believe that CPEC is
important for Pakistan to get out of the economic crisis. It would impact all the components of
Pakistan economy(infrastructure, transport and agriculture etc).But People have shown certain
concern over the nature of negotiation that have been made with China. People have shown
dissatisfaction over the government transparency regarding the terms of CPEC. Government
should have a better policy over the transparency in order to gain the trust of Public. It has
been observed that initially people were not interested in minute details of projects but now
people are paying more attention into the detail. People believe that government should
provide facilities to Chinese investors but not on the cost of their own public interest.

Government should provide all the provinces with equal opportunities and make sure that the
local are getting the maximum benefits from it. If they are preferring one particular province
then that would make the project controversial so all the parties must be on the same stage.

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Ashfaq, A. a. (2017). Challenges and oppurtunities for Pakistan. Retrieved 2017, from pide.org:
pu.edu.pk/images/journal/studies/PDF-FILES/Artical-7_v16_2_2015.pdf

Bhattacharyay. (2008). Infrastructure and Regional Co-operation.

Clark X, D. D. (2004). Transport cost and bilateral trade. Journal of development economics , 417-450.

Dawn, T. (2015). Burea report,KP assembly opposes the change in CPEC. Dawn.

deloitte. (2017). How CPEC will boost Pakistan economy? Retrieved from deloitte.pk: www.deloitte.pk

Governmentofpakistan. (2018). Economic survey of Pakistan. Islamabad: Finance division.

H, M. (2018, feb 9). Retrieved from The News International:

https://www.thenews.com.pk/print/278751-cpec-contribution-to-cross-100-bn-by-2030

jamal, N. (2017, March 12). DAWN news. Retrieved from dawn.com: www.dawn.com

Ms. Ayza, D. (2017). Infrastructure development promote regional economic integration. Retrieved from
Pide.org: http://pide.org.pk

Niazi, Z. (2017, june 12). CPEC socio cultural impact. Retrieved from nation.pk: www.nation.pk/12-Jun-
2017/cpec-socio-cultural-impact

Zofeen, E. (2017, june 25). Retrieved 2018, from The Wire: https://thewire.in/external-affairs/is-cpec-
good-bad-or-a-disaster-for-pakistan-economy-environment

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