China-Pakistan Economic Corridor: Significance and Challenges

Abstract

CPEC is a part of Chinese mega project namely “Belt and Road Initiative" and a bilateral project between Pakistan and China. This project demonstrates the all-weather and time tested friendship between China and Pakistan. CPEC will be helpful not only to change the fate of whole South Asian region but it will also facilitate other regions like Middle East, Europe and African nations. Connected through the railways, highways and pipelines, the China-Pakistan Economic Corridor is about 3000 Kilometers long that will connect China’s western region of Xinjiang to rest of the world through Gwadar Port of Pakistan. CPEC Project can be seen through three aspects, i.e. economic, political & strategic. Regarding economic considerations, which are indeed with primary focus, poses the issue of Pakistan’s fiscal and balance of payment issue, which does mean to justify the full – scale version of its financial viability. This project also has Political significance, it is initially considered a Project of Pakistan Muslim League (N) and was not rooted in a broader national consensus. There were however, many reservations from the part of military establishment along with opposition political parties, business community. This project also enjoys strategic significance, India is critical toward this project because of its disputed territorial border issue of Gilgit – Baltistan as well as Dokhlam crisis in 2017 with China. In this perspective, CPEC has been trapped in geo political controversies between India – China. The role of America is also not positive regarding this project. The result of all these controversies can be seen in slowing down the pace of project.