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The Case: 

 

Historically, the concept of a corridor has been a source of development in different parts of the world. China-Pakistan Economic Corridor (CPEC) is a mega infrastructural development project initiated in Pakistan that aims to join Gwadar port to China’s northwestern autonomous region of Xinjiang through a network of highways, railways, and pipelines. The four main pillars of CPEC are Gwadar port, communication infrastructure, energy infrastructure and industrial zones. Chinese engineers, technicians, and labor will come to Pakistan for construction of these projects. The overall construction costs are estimated at $46 billion for the entire project, which is expected to be completed in several years.

 

Requirement:

 

Being an economist, analyze the scenario of CPEC and discuss how this mega project will affect the overall economy of Pakistan in general while GDP and employment level of Pakistan in particular.

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Traditionally, China and Pakistan have cooperated closely at the strategic and political levels. Now the two nations are making efforts to expand their bilateral collaboration economically as well. The construction of the China-Pakistan Economic Corridor (CPEC) is a milestone that signifies. This initiative has been well-received in both countries, although it is not without its problems.1 Nevertheless, China and Pakistan regard the CPEC as a new source of potential synergy between their respective national development strategies, which may help the two countries translate their close political cooperation into multifaceted economic cooperation, attain mutual benefits, and achieve win-win outcomes. For the economic corridor to reach its potential, however, there are security and political challenges in Pakistan that must be addressed.s this shift. The CPEC appears to be a very crucial project for both the countries. For China it provides an alternate secure route to import Energy and find new markets for its goods and services. For Pakistan it helps counters Indian influence in the region, position itself as a major transit point connecting Eurasian region with South Asia and South East Asia and provide a much needed base to kick start its economic growth.It will connect western, central and eastern route of China Pakistan Economic Corridor not only providing employment opportunities to locals but would provide telecom services in un served and underserved areas of the route

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