Pakistan’s economy is shrinking, and shrink economy always needs reforms, reforms either political, social or economic can be an upright source of wherewithal to fight preceding challenges. Since independence Pakistan is swathed with many serious issues, these are the issues which extremely hamper Pakistan’s economic growth. Nearly every political leader since independence didn’t pay courtesy to deal with problems, however, every political leader has tried to snatch public wealth through different means. For domestic development and trade balance Pakistan always went towards IMF toabailout. Recently in 2019 Pakistan again bailout of almost US$ 6 billion for 39 months.
Pakistan faces long-term economic challenges, including high budget and the debt deficit, low-income mobilization, low external vulnerability and less spending on education, social, health and many other sectors. This imitates the birthright of the jagged and cyclical economic policies of current years aimed at stimulating growth, but at the disbursement of growing weaknesses and persistent structural and institutional weaknesses, Pakistan failed to boost its economy. Thanks to Chinese One Belt One Road Initiatives, which will help Pakistan economy to grow self-reliant under the China Pakistan Economic Corridor CPEC.
The question of whether the so-called CPEC will certainly help Pakistan’s shrink economy or will abundantly abolish the nascent economic system where the Chinese investor will hold the power of the industrial sectors. Most of the leaders see CPEC is another obliteration for Pakistan economy. Furthermore, they believe that the CPEC will destroy the usual exquisiteness, for the construction of the roads, and Special Economic Zones (SEZs), they will cut down thousands of trees, many agriculture lands will convert to buildings, roads, and the pollution level will twofold compare to the present. They refused to ignore that CPEC is a game-changer for Pakistan but rather destruction for the country contemporary status quo.
Such questions got much attention in public, and researchers are worried about the specific outcome. As argued by many intellectuals the CPEC is win-win game, if CPEC allow China to the warm-water of the Arabian-Sea for smooth trade with less coast and safe route to save billions of dollars, so as for Pakistan the CPEC will bring a vast amount of employment opportunities, as well as trade prospects to the domestic people which will minimalize the level of unemployment, poverty, besides most importantly will link all those isolated people and their small business to the industrial hub as well as economic-cantered.
The CPEC according to most of the observers parting optimistic impacts on Pakistan economy. It believes that the CPEC has generated more than 60,000 jobs for Pakistani in 2015 and expected to generate more than 800, 000 job opportunities in near future 2025. A report released by the Think-Tan of South Asia Investors, the CPEC will offer about two million direct as well as indirect jobs, which will boost the economy and will raise GDP growth to 7.5% compared to 5% present.
Additionally, the data revealed by the World Bank, that the GDP of Pakistan has increased remarkably for $244 billion in 2014 to $300 Billion in 2017. To be more specific the annual GDP of Pakistan improved from 5.2% in 2018to 5.527% in 2019, viewing continuous improving with time being. Consequently, from the above facts, we conclude that CPEC is a game-changer for Pakistan, which will not only build the infrastructure but importantly will boost the economy and will add millions of jobs, unswervingly contributing toward the GDP growth of Pakistan.
The story isn’t finished yet. The CPEC, on the other hand, emphasis on Special Economic Zones (SEZs), under the CPEC agreement, there are eight SEZs has been planned. The important aims of special economic zones SEZs are to sustain trade balance, increase employment, create jobs and increase investment. These are the zones where the trade and other business’s laws are different from the rest of the states though SEZs are located inside the border of a nation. As far as SEZs are concerned China experienced successful stories of the so-called SEZs.
Fortunately, most of the SEZs are also in those isolated areas like Baluchistan, Gilgit Baltistan and Mohmand Agency, these areas are almost disregarded by many preceding governments due to the deficiency of pecuniary resources. The infrastructure, education, and the health system of these areas are self-same diminutives. Hence, after the construction of SEZs in these areas, will not only pave the infrastructure but health and the standard of living will rise along with education and many other amenities. In conclusion, all these SEZs will create thousands of jobs across the country which will raise thousands of people from poverty, unemployment as well as improve the standard of living.
Considering the fact that CPEC has a positive impact on Pakistan’s economy, such impacts are strongly related to trade and investment. Since a longtime, China is a major and important investor in Pakistan. But the flow of goods and services, as well as the investment, has risen up particularly after 2000. Trade is thus important for economic development. The CPEC has tremendous positive impacts on the trade relation between China and Pakistan, as well as the neighbour’s states. The CPEC will improve the trade relationship between Pakistan and the neighbour countries in addition to a general trade opportunity directly or indirectly, which will improve the economic condition of Pakistan.
Finally, it’s concluded that economically the CPEC is the combination of SEZs, infrastructures, gas, and pipeline which will, of course, help Pakistan to overcome energy shortage, infrastructure problem, unemployment, eradicate poverty up to some extent and will raise the GDP.
In previous ten years, the country experienced political instability which blowout many domestic social, economic as well as a political problem, resulting in the high inflation rate, corruption, poverty, social isolation because of poverty and unemployment. These kinds of problems which up to a great extent affect the country’s economic and social system are predictable to change under the CPEC contract. This contract will not only boost the economy but will also change the social and cultural ways of life. People to people communication, adopting a new culture, the rise of the living standard are all related to the CPEC.
The CPEC will also bring socio-cultural changes such as educational exchange, training and skill exchange, media exchange and business exchange. Thus, the CPEC is a real game-changer for Pakistan, which will increase regional cooperation, peace and stability in the region, diverse investment opportunities, socio-economic development (education, water and gas supply, medical treatment, poverty alleviation), educational exchange, professional drill, and will improve safety and constancy in the areas.
