Posted on 16 May, 2018 at 03:00 PM
The China Pakistan Economic Corridor (CPEC), a project of Belt and Road Initiative is seen as the game changer of Pakistan. CPEC will connect China's province Xinjiang with Pakistan Gwadar port on the Arabian sea which will stabilize the economy of Pakistan. CPEC will bring the advancements in technology, youth development and job creation, a boost to the tourism industry and Infrastructure development of the country.
Currently, the worth of the CPEC project is $64 billion. In the regime of PML-N the development of many commercial and Infrastructural projects including motorways, rapid transit system under CPEC. Some of the projects have been completed and some of the projects are under development. Pakistan Tehreek e Insaf has also prioritized the CPEC project and Prime Minister Imran Khan has signed 15 new projects during his recent visits to China regarding cultural, economic and political collaboration with both countries.
The previous government focused on physical infrastructure, PTI is concerning on educational, agricultural and social reforms of the country. CPEC is now totally shifted towards business to business interaction. Many new companies and entrepreneurs will get the chance to manage and invest in corridor and country. By doing this the government hopes to create new jobs in the private and government sector.
Moreover, the authorities also inviting other countries to invest in the venture and many projects have been signed between these countries. with the passage of time, the Chinese language has penetrated in Pakistan and many institutions that are teaching the Chinese language to the students to get the compete the requirements of the time.
A mega oil city with the collaboration of Saudia and Pakistan will be developed at Mouza Oil City to store the imported oil and transport to China and other Central Asian states.
Pakistan's economy is currently darkened by the clouds of the financial crisis and its currency is falling day by day. Recently Pakistan negotiated with IMF to take a loan of worth $6 billion to overcome its crisis and economic deficiencies. Pakistan has been periodically suffered for more than 3 decades and still, it is suffering from this instability of economic issue.
The authorities of Pakistan admitted that none of the IMF bailout packages was successful in Pakistan to relief the people of the country. Unlike, International Monetary Fund (IMF) assist the developing countries by providing the economic reforms and investment of bailout package to the profitable projects and a set of reforms to manage the economy. But, still, inflation has increased due to the poor reforms by authorities.
But, CPEC has increased the financial growth of 5.4% in 2017 and it is the highest economic growth since 2004. The refund of loans will begin from 2021 and will complete in 15 to 20 years.
PM Imran Khan has focused on Pakistan economy to survive in critical condition and the government is on its way to configure the structure. The new government is in touch to update the people with the new development of CPEC and Gwadar.
But, Pakistan needs long term reforms to get relief in the coming years. The future of this country depends on its capacity to repay Chinese debts.