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CHINA- PAKISTAN ECONOMIC CORRIDOR (CPEC), ITS IMPACTS ON PAKISTAN ECONOMY

CHINA- PAKISTAN ECONOMIC CORRIDOR (CPEC), ITS IMPACTS ON PAKISTAN ECONOMY

Sutinder Singh and John Mohd Magray
GDC, Bijbehare Anantnag India, GDC, Pulwama, India
Email: singh.john@ymail.co.uk

ABSTRACT
China is opening up its land borders in Xinjiang to interact more freely with central Asia and Europe. China and Pakistan are jointly building the china- Pakistan Economic Corridor (CPEC), with passes through Pakistan-occupied Kashmir. India views this is as violation of its sovereignty. Geopolitics rather than geo-economics predominates India’s thinking on possibilities offered by the revival of the old Silk Road by the Chinese. The CPEC project has been divided into phases, the first phase being the completion of Gwadar International Airport and major developments of Gwadar Port. This phase is expected to be completed by the year 2017. The project also includes the expansion of Karakoram Highway- the road that connects China with Pakistan and placement of fiber-optic line ensuring better communication between the two countries. This paper analyses the steps that should be taken to favour this scenario and warns about the consequences of poorly-managed implementation of the CPEC such as aggravating divisions within Pakistan and heightening tensions between Islamabad and other regional players. This paper will also look into the prospective implications of the CPEC on development of Pakistan and other neighboring countries.
Keywords: CPEC, Development, Economy, Phases, Silk Road Etc.


INTRODUCTION
The 3,000 km-long china Pakistan economic corridor (CPEC) consisting of highways, railways and pipelines is the latest irritant in the India-china relationship. The corridor connects china’s landlocked western province of Xinjiang to Gwadar port in south Pakistan. According to Pakistan Economic Survey 2014-15, the volume of trade between Pakistan and China has increased to $16 billion.

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