Theories of Globalization

Assignment #2: CPEC (China Pakistan

Economic Corridor)

Moiz Shabbir Abbas

BBA-7G
02-111162-114
 CPEC (China Pakistan Economic
Corridor)
The following activities which CPEC is taking for their business benefit and also
given Pakistan many opportunities and benefits can be explain through three
following point:

1. The business opportunities, locations of that opportunities

and scalability.
Fishing is the most prominent economic activity along the coastline of Gwadar district, contributing to
employment, income generation and export revenues for the locals. Almost half of the population is
either directly or indirectly involved in the fishing industry and about one-fourth of the total fish
caught in Pakistan is from Gwadar. Gwadar has immense potential for the development of coastal
aquaculture for fish farming. Development of aquaculture could be expected to provide significant
direct employment for the locals and exports of fresh fish and shrimp through Gwadar to the Middle
East and frozen bulk product to China, Japan, Vietnam and Far East. It will promote further
development of feed production, packaging and export processing industries in and around Gwadar.
Moreover, this will attract investment for the development of canning industry in Gwadar which will
ease the pressure on Karachi port as the advanced processing of fish caught from Gwadar is being
done in Karachi right now. Development of these industries would not only timely meet domestic
demands but boost export of fish and fish products to many countries of Europe, Middle and the Far
East.

CPEC offers great socioeconomic opportunities in the form of Gwadar Free Port (Warm water deep
sea port at the apex of trade intensive the Arabian Sea), Regional Connectivity (CPEC connecting
China to Central Asia, South Asia and Middle East) and Investment Friendly Environment i.e. one
window operation in nine priority Special Economic Zones (SEZs) across the country. Moreover,
investment under CPEC is the biggest overseas investment by China so far which will help Pakistan
economy grow and become stronger. The CPEC project portfolio will be a confidence booster and
attract investments especially in the SEZs planned in the framework of the initiative. SEZs promote
industrialization and economic growth through sustainable development. SEZs and Industrial Parks
under CPEC provide business opportunities to Small and Medium Enterprises (SMEs) in the country.
Chinese are investing in the whole world and are relocating its industry which is their “Go Global”
strategy and therefore views Pakistan as a potential and strategically located country to relocate their
industry for shared cooperation. SEZs will help the country to meet global competitiveness challenges
by: • Creating industrial clusters having world class infrastructure • providing investor facilitation to
enhance productivity • Reducing cost of doing business • Generating employment • Reducing poverty
• Enhancing Exports • providing investment opportunities for local and overseas Pakistanis and
International Investors.
 https://obortunity.org/cpec-news/cpec-research/cpec-opportunities/
2. What issues Pakistan might face in executing and finalizing
the CPEC project as a hole.
Regional security could be the biggest issue to the CPEC as it passes through some of the areas
facing the biggest security challenges. The biggest challenged to the CPEC is the regional
security environment; specifically the Afghanistan conundrum. China’s huge investment in the
region is hinged on the peace and stability both in Pakistan, Afghanistan and Western parts of
China. This is why China is actively pursuing to bring the Taliban to negotiating table within the
quadrilateral framework between China, Pakistan, US and Afghanistan. The security situation in
Afghanistan is getting worse day by day and even could be devastating after the withdrawal of
NATO forces from Afghanistan as the Taliban have refused to come to the negotiating table
initiated by the quadrilateral forum comprising. After the killing of the Mullah Mansoor, the
Taliban leader there seems to be few chances that the Taliban could come to the negotiations.
Moreover, Pakistan has recently stated that after the killing of the Taliban leader in Pakistan, it
cannot guarantee to bring the Taliban to engage in peace talks.

With the refusal of talk by the Taliban in their recent statements it seems that it will take time to
prevail peace in Afghanistan. Stability in Afghanistan is of utmost importance as the spillover
effect can further destabilize the regional security environment, particularly Pakistan and
Western parts of China. This could create security issues for the mega projects namely TAPI and
CPEC in the region. Within Pakistan the situation is not good equally. The long lasting
insurgency in Balochistan and FATA (Federally Administered Tribal Areas) could hinder further
to materialize the CPEC.

As Lieven [18] has noted that after the Withdrawal of Western forces from Afghanistan,
Pakistan's survival will remain a vital concern for the Western and Chinese interests in the
region. On the other hand China is equally worry about the security situation of Afghanistan that
could affect the Xingjian province which is an important region for the functioning of the CPEC.
Moreover, the antagonistic attitude of the public of Pakistan and India could be a stumbling
block in getting the public support for the Indian inclusion to the CPEC to make it a cross
regional move. Pakistan’s internal security has improved qualitatively after the military operation
against the militants, yet the security phenomenon in Pakistan will remain a challenge to execute
mega projects like CPEC smoothly. Although a special security force has been formed to protect
the CPEC and related projects, given the porous border between Pakistan and Afghanistan and
some difficult terrains through which the CPEC will pass in Pakistan, security will remain a
hinge for the success of the CPEC.

https://www.omicsonline.org/open-access/china-pakistan-economic-corridor-prospects-and-challenges-
for-regionalintegration-2151-6200-1000204.php?aid=77852

3. Anything new/updated being planned or shared

 Peshawar-Karachi Motorway (Multan-Sukkur Section)
Construction works commenced in August, 2016 Project Completed and inaugurated on 05
November 2019.
 Expansion and reconstruction of existing Line ML-1
Feasibility completed, ML-1 Project declared ‘Strategic’ by 6th JCC in Beijing, Framework
Agreement on ML-1 signed on 15th May 2017 during PM Visit to China, Commercial Contract
for Preliminary Design signed on 15th May, 2017, Project will be completed in 2 phases, PC-1 of
Phase-1 approved by CDWP in May 2018, Expected COD 2022
 2×660MW Coal-fired Power Plants at Port Qasim Karachi (2015)
 Hydro China Dawood Wind Farm(Gharo, Thatta)
 UEP Wind Farm (Jhimpir, Thatta)
There are more projects but I have written only few
http://cpec.gov.pk/progress-update#