Inauguration of CPEC: A milestone for development or economic challenges for Pakistan

Abstract

The Islamic Republic Pakistan and its neighbor’s country China share a longstanding and amicable Collaborative bond, despite their differences. The China-Pakistan Economic Corridor or CPEC is a substantial bilateral as well as international trade endeavor. The primary aim of this paper is to shed light on the economic collaboration between China and Pakistan while addressing the challenges associated with it. Each Pakistani province features a CPEC-linked special economic zone aimed at attracting Chinese investments. This initiative promotes regional connectivity, benefiting neighboring nations like Afghanistan, Iran, India, and Central Asia as well as both China and Pakistan. As a cornerstone of the Belt and Road Initiative, CPEC symbolises a significant stride that emphasises regional cooperation and development. It explores how China and Pakistan are addressing these challenges, given China's investment in Pakistan's infrastructure. To achieve this objective, the research conducted a comprehensive analysis of the economic collaboration between the two nations, considering China's substantial investments in Pakistan's infrastructure growth. The study examines the contemporary challenges faced by both nations in effectively executing the economic corridor. Furthermore, the paper underscores its primary objective: to elucidate the positive impacts of CPEC, especially for Pakistan. While addressing the challenges associated with the CPEC, the paper emphasises the potential transformative effects it can yield. To conclude, this study reveals several key findings regarding the CPEC's positive impacts on Pakistan, regional connectivity, and its role in the Belt and Road Initiative