Pakistan and China are celebrating 10 years of CPEC – the flagship megaproject seen as the bedrock of bilateral relations between the two friendly countries. A decade later, it is necessary to understand the impact of the project on the country and the missed opportunities.
Beijing has maintained that CPEC has attracted $25.4 billion in direct investment ever since being launched in 2013. It said the projects have created 192,000 jobs, generated 6000MW of power, built 150km of highways, and expanded the national transmission by 886km. Prime Minister Shehbaz Sharif has claimed the projects played a pivotal role in Pakistan’s economic transformation.
As economists tally the results of Chinese investment, it must be acknowledged that the project has not achieved its ambitious goals. CPEC was an aggressive plan to build billions worth of infrastructure projects in Asia and beyond. It pledged an estimated investment of $46 billion for Pakistan and aimed to provide China access to the Arabia Sea through Gwadar port.
Many CPEC projects that commenced in 2013 had deadlines in 2020. Years later, Pakistan is still setting up nine Special Economic Zones (SEZ) where the Chinese were expected to invest. There has been no relocation of Chinese capital to set up industries in Pakistan yet. The government has blamed the previous PTI regime for the delay in completing CPEC projects. The political turmoil, Covid pandemic, and threats to Chinese nationals are also factors responsible for the slowdown.
China has rejected reports that CPEC has faced any slowdown during the pandemic. However, it must be acknowledged that the delayed completion of industrial zones did slow down investments. There are also conflicting reports on whether the projects created permanent or long-term jobs for locals as claimed. China has a lot at stake and should be concerned about the lack of progress.
Although China is known for not interfering in internal affairs, it is in their interest to ensure that Pakistan achieves political and economic stability. Pakistan should not take the investment for granted either as the success of CPEC is conditional to the continuity of economic policies. There have been several missed opportunities such as the Chinese plans to relocate industries to Pakistan which should now be seized. The government needs to fast-track CPEC projects if they are to benefit the country.
