Friday, 14 October 2016

CPEC China Pakistan Economic Corridore

China is making big investment of 46 Billion Dollar in Pakistan in infrastructure and energy and infrastructure mainly. Now doubt it is the shortest route to china and good opportunity for Pakistan to exploit the china . This route is mainly for trade as china is biggest exporters to Europe and Middle east and China require energy resources from Middle east. This route will provide cheap energy resources and cheap value chain for China product for export.

Pakistan will receive reasonable income  from this route.

It is feared that Pakistan will become trading country instead of semi manufacturing country.
Pakistan exports are continuously decreasing especially textile in spite of  zero load shedding to industry in recent years. This shows there is structural problems which could not be solved. Even Pakistan could not increase export of garments even in presence of GSP status of Pakistan.

Pakistan Balance of trade with China is already negative if industry could not be corrected then Pakistan has to suffer. Due to CPEC there will be flood of chines products which will be negative for Pakistan and industry.

China volume of trade with rest of world through CPEC is encouraging. It will create opportunities for Pakistan of new foreign direct and indirect investment. CPEC will also create job to an unpredictable extent.

Again railway is the cheapest mode of transportation. Under CPEC roads are being constructed these motorways if analysed critically by an architecture expert are not cost effective not efficient in term of distance and not consistent with local road network of Pakistan. e.g Lahore to Karachi shortest route can be constructed nearly 950 km but which is signed that is nearly 1150 km such type of blunders and security and finance cost of these project should be managed actively and intelligently.

Now we can not take conclusive opinion but looking fifty fifty.  For positive response Pakistan has to make steps for industry and education purposeful education other wise CPEC result will not be very promising.

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