Pak-China Economic Corridor

(Amjad Zarin, Islamabad)

The plaque for the inauguration of Punjab’s first coal-fired projects on May 31, 2014 read: Project of Pakistan China Economic Corridor. With the advent of the government of Pakistan Muslim League, a great number of projects are surfacing to provide shock therapy to the poor performing economy. Of the many projects, power seems the most crucial sector, a sector that would propel other sectors of the economy. These projects have, enthusiastically, been taken on by the strategic cooperative partnership between Pakistan and China, now being referred to as the Pak-China Economic Corridor.

The name ‘Corridor’ suggests a gateway or a passage that connects the two separate countries/continents/regions. This ‘economic corridor’ will not be the first in history. Rather, as Headrick points out, the use of sea and land routes have assisted in the globalization process of opening Asia, as early as the 19th century. He argues that the Suez Canal, opened in 1869, acted to aid the empires of great powers during the time. The canal through the Sinai Peninsula made trade and empire faster but also economical. The world’s superpower of the time, Great Britain, made great strategic use of it, by transport of goods, officials and soldiers to Bombay and other key colonial hubs in an easier and affordable manner.

Similarly, Pakistan and China’s economic corridor sets out to achieve the same goals in a cooperative and democratic manner. Physically, the corridor is a 2,700-kilometre highway that stretches from Kashghar to Gwadar through Khunjrab. But in essence, these road and rail links will further strengthen the existing bond of brotherhood, as highlighted by the two governments. China Pakistan Economic Corridor from Kashgar to Gwadar will integrate the economies of the two friendly countries. The project envisages establishing several economic zones and physical links connecting Pakistan and China. Both the countries believe that this economic corridor will benefit new emerging regional cooperation in South Asia. This project is set out to transform the future of the region, driven by economy and energy, and the building of pipelines and ports with roads rail infrastructure.

Nonetheless, as attractive as this project may seem for both the countries, they continue to face challenges that require urgent attention.The need to address law and order situation is of crucial importance. Without a stable and predictable environment, it is possible any exogenous shock may cause investors to pull out of the country. Nonetheless, perhaps the growing security issues can be addressed via economic prosperity, posing an alternative for the country to aspire towards; the Prime Minister, Nawaz Shariff,recently spoke of the potential, “The Pak-China corridor will be a game changer in the region.”

Amjad Zarin
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