Xi Jinping's Belt and Road Initiative transforms Pakistan's economy

In 2013, Chinese President Xi Jinping launched the ambitious 'One Belt-One Road' (OBOR) initiative, later rebranded as the 'Belt and Road Initiative' (BRI), with the aim of bolstering infrastructural connectivity between China and markets across Asia, Europe, and Africa.

A pivotal element of the BRI is the China-Pakistan Economic Corridor (CPEC), spanning around 2,700 kilometers from Kashgar in China to Gwadar port in Pakistan. President Xi's endorsement of CPEC in 2015 led to agreements totaling $46 billion and a comprehensive development roadmap until 2030.

Despite facing hurdles during political transitions in Pakistan, CPEC has made significant strides in infrastructure development and attracting foreign investments. This corridor plays a vital role in China's strategic vision by granting access to the Indian Ocean, opening up new markets, fostering economic diversification, and supporting the broader BRI objectives.

For Pakistan, CPEC represents a pathway to economic rejuvenation, infrastructural advancement, and energy solutions, addressing critical impediments to sustained economic progress. Through initiatives like power plants and dams, CPEC aims to alleviate Pakistan's energy crisis, fueling industrial growth and employment opportunities.

Furthermore, CPEC's focus on establishing special economic zones (SEZs) seeks to lure foreign investments, boost exports, and position Pakistan as a key economic player in the region. To fully capitalize on CPEC's potential in terms of industrial expansion and tourism, Pakistan must prioritize investments in human capital, enhance urban-rural connectivity, and cultivate a business-friendly environment.

Ultimately, CPEC not only elevates Pakistan's geopolitical significance but also strengthens security cooperation with China, fosters regional integration, and contributes to stability in South Asia.