1- CPEC to bring $3.01 billion of inflows in next five years in Pakistan. 2- Dollaar hits historical high at 157 in open market.

CPEC impacts on Pakitsna Foreign,
domestic Policies

Posted on November 10, 2018 at 01:00 PM

In 2013 President Xi Jinping visited in Pakistan and marked the launch of China Pakistan-Economic Corridor (CPEC) connecting with Belt and Road Initiative (BRI). It was an ideal time to implement and improve Pakistan's domestic politics as well as geopolitics posture.

With almost $64 billion investment, China Pakistan Economic Corridor (CPEC) shows the flagship project of China's maritime silk route initiative aimed at the construction of infrastructure, ports as well as rail and road infrastructure connectivity in Pakistan, Bangladesh and Srilanka. How will CPEC impact on Pakistan's economy? According to a report published by the International Monetary Fund (IMF), CPEC is going to boost the GDP of Pakistan's economy and country will get extra benefits from CPEC.

During the recent CIIE exhibition in China President Xi Jinping said that China and Pakistan should increase interactions between legislative bodies, political parties, interactions between governments. As a result of interest, Pakistan's post-2018 political set up the elected government has increased its grip on CPEC related decisions. In the current situation, a relationship between Pakistan and China has de facto enabled the Civilian side to gain importance in important decisions. Although the Pakistan Army is a key player in Sino-Pakistan ties as Pakistan Army is supposed to provide security to China Pakistan Economic Corridor (CPEC). The elected government of Pakistan focused to mobilize the civil forces for CPEC projects.

With respect to the geopolitical implications of the China-Pakistan Economic Corridor, a survey of regional scenario presents a picture made of benefits and potential for cooperation for all regions.

CPEC also causes a major issue and an element of strain in Pakistan's tense relations with China. India has raised issues of sovereignty during leadership meeting mentioning route through Gilgit Baltistan (part of the occupied Kashmir) and a major issue why India is not interested to take part.

India and Iran also concerned the port of Gwadar will be a Chinese military outpost in the Arabia sea. In 2016 a Pakistan navy official said that China is willing to deploy its naval ships to safeguard the project of Gwadar. Besides raising the concerns the main newspapers of Pakistan and India reported that a submarine of India was detected and prevented to enter from entering Pakistani waters and currently India tried again to enter into Pakistani waters.

Iran is another player in this region and Iran shows interest to involve in CPEC projects. Iran has expressed its desire to become a part of CPEC projects and China has also welcomed the opportunity for Iran to the development of China-Pakistan Economic Corridor. Chinese Ambassador declared that "Iran is a very important country along BRI and we look forward to enhancing our cooperation with Tehran".

According to CPEC impacts on Pakistan's geopolitical posture, it has attracted a great deal to build new relations with Russia and Central Asian states. Pakistan and Russia signed a defence agreement in November 2014 and conducted the first-ever"Joint Military Exercise" in October 2016 and currently in November 3r major military exercises were conducted in Pakistan and Russian military delegation visited in South Waziristan.

With the recent development of new relations of Pakistan and China, both governments have focused on early harvest projects which are under construction and both projects are assured that these projects will be completed till 2020.

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