This aerial photo taken on Feb 28, 2023 shows the view of dormitories besides a man-made lake at the Thar Coal Block-I Coal Electricity Integration project in Sindh province, an energy cooperation project under the framework of the China-Pakistan Economic Corridor (CPEC). (PHOTO / XINHUA)
Pakistan is undergoing a remarkable transformation, propelled by the second phase of the China-Pakistan Economic Corridor (CPEC) under the Belt and Road Initiative (BRI), which promises to reshape the nation's destiny by addressing longstanding economic challenges, analysts said.
Pakistan has been and will remain one of the most important partners and beneficiaries of the BRI, said Irfan Shahzad Takalvi, founder of the Eurasian Century Institute, a think tank in Islamabad, Pakistan.
Chinese Ambassador to Pakistan Jiang Zaidong, who also spoke at the event, reaffirmed China's unwavering support for Pakistan in implementing CPEC projects
“The second phase of CPEC and 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,” said Takalvi.
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Overall, the second phase is set to directly contribute around a quarter of all GDP growth in Pakistan over the next decade or so, Takalvi said. “Indirectly, the contribution would be even higher.”
Pakistan’s caretaker Minister for Planning, Development, and Special Initiatives Muhammad Sami Saeed said during a seminar in Islamabad on Oct 12 that the second phase of the CPEC is progressing rapidly.
“The government of Pakistan is fully committed to executing development projects in accordance with the original plan,” the minister said. “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. He applauded Pakistan for its extraordinary security measures to ensure the safety of Chinese workers involved in CPEC initiatives.
As the CPEC continues to evolve, experts noted, it remains a focal point in fostering economic growth and connectivity between China and Pakistan, with significant implications for the broader region.
The first phase of the CPEC launched in 2015 focused on energy infrastructure and development of the Gwadar Port in Balochistan, which has laid the foundation for economic stability and growth in the region. Now, the second phase has brought increased hope and ambition.
Some 63 additional projects, valued at around $35 billion, are expected to be completed by 2030.
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 people of Pakistan attach high hopes to the second phase of CPEC as it is expected to see the transfer of industries and the latest technology from China, said Tahir Farooq, the editor-in-chief of Daily Ittehad Media Group.
“The day is not far (off) when Pakistan, with the help of China, will become (an) economic destination for Chinese and other international investors,” said Farooq.
Pakistan has been the biggest beneficiary of the BRI as the flagship CPEC project, first proposed in 2013 and kicked off in 2015, came at a time when the country was facing huge economic problems
According to Shakeel Ahmad Ramay, CEO of the Asian Institute of Eco-civilization Research and Development, Pakistan still faces multifaceted problems including poverty and inflation and it needs more rapid economic growth.
Also, Pakistan is highly vulnerable to climate change, ranking among the top 10 most vulnerable countries. Recent floods due to climate change inflicted a loss of $30 billion on Pakistan, he noted.
“The second phase of BRI in the country and the commitment to high-quality development can help Pakistan to overcome both challenges: economic and climate change, “the analyst said.
Key areas of emphasis in this second phase include the expansion of transportation infrastructure.
“It is time for qualitative improvement in Pakistan's railway infrastructure and it is already agreed upon between Pakistan and China,” said Takalvi of the Eurasian Century Institute.
He said upgrading the ML-1, or Main Line 1 railway, that traverses Pakistan from north to south is already part of the CPEC second phase.
Furthermore, the next phase of the development will pay special attention to special economic zones, corporate agriculture, and the social sector, Takalvi said.
The project is set to become a major source of employment. Official projections indicate that from 2015 to 2030, approximately 2.3 million jobs will be created through it.
“Chinese companies have opened windows of opportunities for tens of thousands of young Pakistanis like myself,” said Ahmed Raza, who works at a 1320MW coal-fired power plant at Port Qasim in Karachi, adding that it has been eight years since he “first joined the brilliant team of engineers at Huaneng Shandong Ruyi (Pakistan) Energy (Limited)”.
Farooq from Daily Ittehad Media Group said that the BRI is a vision of progress and prosperity with a shared future.
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“By announcing the BRI, President Xi Jinping has given a vision to all the nations of the world to live with peace, love, and tranquility,” said Farooq, who is also head of the Centre for Regional Connectivity with Shared Future think tank.
He said that Pakistan has been the biggest beneficiary of the BRI as the flagship CPEC project, first proposed in 2013 and kicked off in 2015, came at a time when the country was facing huge economic problems.
“Thanks to BRI, an excellent and state-of-the-art infrastructure is being developed, connecting far-flung areas of Pakistan to main commercial cities,” he said.
Kaswar Klasra is a freelance journalist for China Daily.
Contact the writers at vivienxu@chinadailyapac.com
