Economic corridor reshapes Pakistan

Second phase of project expected to help nation position itself as key hub for trade

Pakistan is undergoing a remarkable transformation propelled by the China-Pakistan Economic Corridor, or CPEC, a project under the Belt and Road Initiative that addresses the country's long-standing economic challenges and promotes sustainable development in its second phase, analysts have said.

The South Asian country has been and will remain one of the most important partners in and a beneficiary of the BRI, said Irfan Shahzad Takalvi, founder of Eurasian Century Institute, a think tank in Islamabad.

"The second phase of CPEC and the BRI would help Pakistan further manifest its position as an important, reliable, trade and commerce hub in the tri-regional space of South, Central and West Asia, a position that is already guaranteed through the infrastructure built in Pakistan during the first phase."

Muhammad Sami Saeed, Pakistan's interim minister for planning, development and special initiatives, told a BRI seminar in Islamabad on Oct 12 that the second phase of CPEC is progressing rapidly.

"CPEC has evolved from a mere connectivity project into a symbol of enduring regional cooperation, with significant implications for development and stability in the region."

Chinese Ambassador to Pakistan Jiang Zaidong, who also spoke at the event, reaffirmed China's unwavering support for Pakistan in implementing CPEC projects.

The first phase of CPEC focused on energy and port infrastructure, which has laid the foundation for economic stability and growth in the region. The second phase will see 63 projects, valued at around $35 billion, completed by 2030, and these endeavors underscore the commitment of both nations to fostering regional connectivity and extending the corridor's reach to Afghanistan and other Central Asian countries.

"The day is not far when Pakistan, with the help of China, will become an economic destination for Chinese and other international investors," said Tahir Farooq, editor-in-chief of Daily ITTEHAD Group of Newspapers and the head of the Centre for Regional Connectivity with Shared Future.

Shakeel Ahmad Ramay, CEO of the Asian Institute of Eco-Civilization Research and Development in Pakistan, said Pakistan still faces multiple problems, including poverty and inflation, and it needs more rapid economic growth.

In addition, Pakistan is highly vulnerable to climate change, ranking among top 10 countries vulnerable to this phenomenon.

"The second phase of the CPEC and its commitment to high-quality development can help Pakistan to overcome both challenges, economic and climate change," Ramay said.

Green growth

High-quality development vision revolves around the philosophy of green development, green growth, and giving due importance to environment and climate needs, he said.

CPEC's Main Line 1, which traverses north to south of Pakistan, is to be upgraded. Attention is being paid to special economic zones, corporate agriculture, and social sector.

"It means massive opportunities for investment, enhanced economic activity and multiplied jobs," Ramay said.

The CPEC is set to become a major source of employment, with projections indicating that by 2030, approximately 2.3 million jobs will be created through this initiative, according to official estimates.

Ahmed Raza, an engineer at a coal-fired power plant in Port Qasim, Karachi, said: "Eight years have passed since I first joined the brilliant team of engineers at Huaneng Shandong Ruyi (Pakistan) Energy (Limited). Chinese companies have opened windows of opportunities for tens of thousands of young Pakistanis like myself."

Kaswar Klasra is a freelance journalist for China Daily.