BRI Project of China and its benefits for Pakistan

Thesis Statement:
The Belt and Road Initiative (BRI), a monumental endeavor spearheaded by China, holds the key
to unlocking a treasure of benefits for Pakistan, in terms of economic growth, infrastructure
development, trade expansion, cultural exchange, and enhanced connectivity. However,
realizing these opportunities requires effective project implementation, transparency, and
accountability.

1. Extent of issue:

a. Overview of the Belt and Road Initiative (BRI) Project

 Belt and Road Initiative (BRI), Chinese-led massive infrastructure investment project
aimed at improving connectivity, trade, and communication across Eurasia, Latin America,
and Africa. (Encyclopedia Britannica)
 BRI is a revival of the ancient silk road.
 ‘One Belt, One Road’ initiative

b. Vision and Goals Behind the BRI

 The Belt and Road Initiative (BRI) is a long-term economic and political strategy of China
to accelerate economic development at home and in emerging countries and to foster
China’s global influence. (Statista)
 The BRI has officially Five goals defines by European Bank for Reconstruction and
Development:
1. Policy coordination
2. Infrastructure connectivity
3. Unimpeded trade
4. Financial integration
5. Connecting people

c. Infrastructure Development as a Key Objective of the BRI

 From 2013 to December 2021, China invested through construction contracts (often
financed through Chinese financial institutions) and investments amounted to about USD
890 billion in countries of the Belt and Road Initiative (BRI). (Green Finance and
development Center)
 China’s Trade with BRI countries grew upto $13.8 trillion in 2022. (Statista Report 2022)

d. China's Strategic Interests and Motivations for Implementing the BRI

 “Maintaining stability in China's neighborhood is the key objective of peripheral
diplomacy - We must encourage and participate in the process of regional economic
integration. (China’s President XI Jinping)

1
e. Significance of Pakistan's Participation in the BRI
 “Cooperation with China under the framework of the Belt and Road Initiative (BRI) "has
transformed Pakistan's economic landscape." (Pakistani Ambassador to China Moin ul
Haque)

2. Economic Benefits for Pakistan under the BRI Umbrella:

a. Employment Creation and Poverty Alleviation

 BRI projects have benefited the Pakistani people through job creation, improving
livelihoods, eradicating poverty and upgrading remote areas. (Pakistani Ambassador to
China Moin ul Haque)
 The estimated number of jobs to be available for Pakistani workers range from 400,000 to
2 million. (Editorial Writer Zeenia Shaukat)

b. Stimulating Trade and Boosting Export Potential

 China Exports to Pakistan was US$23.09 Billion during 2022, compared with worth US$
2,620 million in 2012 before BRI project. (Statista)

c. Development of Special Economic Zones and Industrial Parks

 Rashakai Special Economic Zone (RSEZ) is a BRI flagship project under the industrial
cooperation of China Pakistan Economic Corridor (CPEC). The economic zone has
predominant investment feasibility for the various industrial clusters/sectors including
following:

 Processing and Manufacturing

 Home Appliances
 Pharmaceutical
 Home Building Materials
 Automobile and parts
 Agriculture and Horticulture
 Wholesale Market/ Specialty mills (China Road and Bridge Corporation
Xinhua)

d. Promotion of Tourism Industry

 Pakistan’s tourism revenue was $19.4 billion in 2017, and it is projected to grow to $36.1
billion by 2030, a 24.4 percent growth over the previous two years. (Pakistan Journal of
Social Research)

2
3. Infrastructure Advancement Prospects for Pakistan under the
BRI:

a. Construction of Comprehensive Transportation Networks

 Pakistani Ambassador to China Moin ul Haque stated, construction of the China-
Pakistan Economic Corridor (CPEC), a flagship BRI project, is a "transformational" for
his entire the country. "The metro-train, it is a world-class, high-quality public transport
system. In Lahore, the second-largest city in Pakistan, people have this very efficient, very
modern and affordable transport system,"
 Orange Line Metro Train – Lahore
 Peshawar-Karachi Motorway (Multan-Sukkur Section)

b. Development of Energy Infrastructure

 Infrastructure development and energy upgrades have "helped change the economic, social
and industrial landscape of Pakistan." (Pakistani Ambassador to China Moin ul Haque)
 The total 12 projects with a total cost of US$ 15,377 million are under implementation
through IPP mode with the help of BRI
• 2×660 MW Port Qasim Coal Power Project
• 1,124 MW Kohala Hydropower Plant Project
• 720 MW Karot Hydropower Project (Government Pakistan Finance Division)

c. Technological Advancements in Communication Networks

 Cross Border Optical Fiber Cable (Khunjrab - Rawalpindi) is a project will help
improve the telecom and ICT industry of Pakistan, promote tourism, and create trading
opportunities for northern areas of the country. It will also provide the ICT infrastructure
for 3G/4G services in the northern areas and enhance communication security with an
alternative fiber route. (Pakistan Ministry of Planning, development, and initiatives)

4. Social and Cultural Impacts on Pakistan of the BRI:

a. People-to-People Exchange and Cultural Integration

 “Our goal is not only to link Pakistani universities with Chinese ones, but also to be more
international and try to develop links between Pakistani universities and international
organizations, United Nations agencies and world-class universities in neighboring
countries, which can help the nation pursue global development.” (Prof. Manzoor
Hussain Soomro, Pakistani honorary professor of Beijing Technology and Business
University (BTBU)
 “Under the three 3-year diploma programs, 70 AIT students will have the chance to study
in China on fully-funded scholarships.” (Eng. Mansoor ul Hassan Siddiqui)

3
b. Fostering Understanding and Cultural Awareness
 The interaction between the citizens of neighboring countries, if based on an informed
understanding of diverse cultural practices and aesthetic traditions, can engender a process
of acculturation, which can help evolve transnational identities based on geo-cultural
heritage of the region. (Former Head of Cultural affairs of Pakistan Nadeem Omar
Tarar)
c. Social Development and Community Empowerment
 Gwadar Port has seen the establishment of the China–Pakistan Friendship School
(Embassy of the People’s Republic of China in the Islamic Republic of Pakistan 2018a),
built with a grant of US$400,000, and the development of the Gwadar Free Zone, which
is an industrial zone built by the China Overseas Ports Holding Company (COPHC) that
represents an inward investment of US$250m (COPHC 2015). The school was built
under the social sector platform. (Mustafa Hayder Sayed, A case study on The China-
Pakistan Economic Corridor)

5. Enhancement of Regional Connectivity for Pakistan under

China’s Flagship Economic corridor:

a. Advancements in Regional Trade and Connectivity

 About 97% of USD 19.4 billion Pakistan–China trade occurs through sea routes. After
completing highway networks under the flagship of BRI, the bilateral trade will increase
substantially and shift towards land transportation simultaneously. (Chinese School of
Economics and Management)

b. Integration of Pakistan into Regional and Global Supply Chains

 Through the BRI, Pakistan is being integrated into regional and global supply chains,
providing opportunities for its industries to participate in global trade and value chains.
(Research Gate)

c. Strengthening Economic and Diplomatic Ties with Partner Countries

 "We shared the view that cooperation under the BRI has opened a gateway to
opportunities for common prosperity." (Chinese President Xi Jinping said at the
Second BRI Forum)

d. Joint Infrastructure Initiatives for Seamless Connectivity

 The China-Pakistan Economic Corridor (CPEC) within the framework of BRI serves as a
transformative transportation project, facilitating the movement of global imports and
exports between Gwadar and China, as well as connecting China to various destinations
worldwide. As China imports 60% of its oil from Middle East countries. (Pak. Journal
of Int’L Affairs)

4
6. Advancing Prosperity: The Roadmap within BRI for Pakistan's
Future:

a. Strengthening Institutional Capacities and Governance

 According to Institutional pillar of Global competitive Index (GCI), China is at 41th
position and Pakistan is at 90th. (Centre of Excellence CPEC Pakistan)
 Develop political solidarity on the project’s guidance and direction, by discussing the
matters on the forum in national and provincial assemblies (legislations), to make things
clear about the equal gains for all the provinces to stop and ensure that there are equitable
gains for all provinces; and stop arrests, nuisance and other constraints of critics.
(International Journal of Management & Entrepreneurship Research)

b. Promoting Local Industries and Skills Development

 Encourage Pakistan to leverage the BRI project to enhance the competitiveness of local
industries, promote technology transfer, and invest in human capital through skills
training and education. The CPEC should ensure local empowerment on priority basis in
order to generate goodwill and popular support guaranteeing success of project. (Pakistan
Administrative Review)

c. Economic Diversification Strategies

 Explore opportunities beyond traditional sectors, such as agriculture and textiles, and
diversify into sectors like technology, services, and innovation to drive sustainable
economic growth. (Research gate)

d. Prioritizing Environmental Sustainability and Conservation

 The need for environmental protection and sustainable development by implementing
green practices, promoting renewable energy projects, aligned with SDG’s and ensuring
proper environmental impact assessments for BRI projects. (Economic and Business
Aspects of Sustainability)

e. Make investor friendly policies to attract more Foreign Direct Investment

(FDI)
 Provide tax incentive packages to investors for special economic zones (SEZs). (Board of
Investment Pakistan)

f. Ensuring Security: A Crucial Element for Efficacious Prosperity in Pakistan

 12000 security forces under the special Security Division have been deployed, their number
must be increased. (Times Magazine)

Conclusion:
“BRI projects have benefited the Pakistani people through job creation, improving livelihoods,
eradicating poverty and upgrading remote areas.” (Pakistan’s Ambassador to China, Moin ul
Haque)