Considerable progress has been made towards the China Pakistan Economic Corridor since its launch in 2013. China has been closely monitoring the developments in Pakistan and is largely in agreement on the direction the project is taking.
Pakistan has not used the IMF and World Bank loans to repay the loans obtained under the CPEC arrangement. This fact has attracted more interantional donors and persuaded them of the merit of the CPEC framework.
Around 42 per cent of Pakistan’s loans comes from the IMF and the World Bank. Another 18 per cent come from the Paris Club. The CPEC loans now account for around 10 per cent. The Chinese loans are concessional and there is no threat of Pakistan becoming vulnerable on account of repayment. The repayment situation is satisfactory and no debt crisis is feared.
In fact, the Chinese loans will ease the financial hardship and allow Pakistan to become a thriving economy. These is nothing wrong with the Chinese loan repayment.
The China-Pakistan cooperation for the Corridor projects will bring new opportunities for infrastructure development in Pakistan. This is win-win situation. The cooperation for development speaks of a wisdom shared between the two nations. Pakistan is keen to learn from China’s experience in poverty alleviation, environment protection and urban reconstruction.
China is already the biggest investor in Pakistan and its largest trading partner. Increasing investments will bring prosperity.
The infrastructure development will allow Pakistan to realize its great gegraphic potential.
As a formal member of the Shanghai Cooperation Organization (SCO), Pakistan is now participating in the Leaders’ Summit. This will enhance its influence and recognition on the international stage.
China has been an all-weather strategic partner for Pakistan. The friendship between Pakistan and China is deep-rooted. This has been the guarantee of peace and stability not only in bilateral relations but also in the region.
China is currently Pakistan’s biggest trading partner. The increasing investments will spur economic development and bring greater prosperity for the people. The CPEC is a great accomplishment. The deepening of economic cooperation will attract more capital
The CPEC is taking this friendship forward. It will continue to improve infrastructure, promote employment, broaden cultural exchanges and spur economic development in Pakistan. The CPEC and the Belt and Road Initiative (BRI) complement each other.
The CPEC is a flagship project of the BRI which seeks to explore new ways to broaden cooperation. China is laying down roads, railways, fibre optics connection in the economic zone, which is making it easier for third parties to connect with the project. The third parties to CPEC will bring more investments, catalyse job creation, promote economic uplift through technology transfer and regional stability.
Pakistan has been supportive of an Afghan-led and Afghan-owned peace process. China is increasing its efforts for the BRI. Pakistan is quite confident of increasing regional connectivity. The Gwadar Port will likely handle more than 20 per cent of the regional oil supply. It will also provide a platform to several Central Asian countries.
The CPEC will promote all sorts of economic activities in the region and be a win-win solution for all parties concerned. Saudi investment in Gwadar can be a game changer and will possibly lead to a new world order.
The writer is a consultant at the Institute of Strategic Studies Islamabad. He writes on East Asian affairs