1. IMPACT OF CPEC ON PAKISTAN’S GDP;
ANALYSIS OF BENEFITS AND CHALLENGES

2. Introduction to CPEC:
 Pakistan and China have agreed to construct One Belt One Road
project which is commonly branded as China-Pakistan
Economic Corridor.
 It is an economic corridor comprising a collection of projects
currently under construction at a cost of $51 billion.
 CPEC aims to facilitate trade along an overland route that
connects Kashgar and Gwadar, through the construction of a
network of highways, railways, and pipelines.
 There are many external and internal confronts for Pakistani
government to execute this multi-dollars project.

3. Impact of CPEC:
 The impact of CPEC is highly fruitful for both the involved
countries.
 The China-Pakistan Economic Corridor (CPEC) was initially
intended to promote mutual development of China and Pakistan
by enhancing bilateral exchanges and cooperation in
transportation, energy and marine sector.
 The corridor is envisioned to rapidly expand and upgrade
Pakistani infrastructure, as well as deepen and broaden economic
links between Pakistan and the People's Republic of China.
 It is considered to be an extension of China's ambitious One Belt,
One Road initiative, and the importance of CPEC to China is
reflected by its inclusion as part of China's 13th five-year
development plan.

4. Benefits of CPEC:
 The corridor not only funds and supports the construction and
connectivity of transportation infrastructures, but more
importantly aims to promote bilateral cooperation in multiple
areas of major projects, as well as information and
communication technology, and to set up more industrial parks
and FTAs.
 Pakistani officials predict that the project will result in the
creation of upwards of 700,000 direct jobs between 2015–2030,
and add 2 to 2.5 percentage points to the country's annual
economic growth.

5. Challenges to CPEC:
 Political unrest, security situation and administrative issues are
some of the greatest challenges in the way of successful
completion of the corridor.
 For India, CPEC is a thorn in its paw. They have put their heads
together to work out new strategies to block the project forward
march. Likewise Israel and the US are also unhappy with this
economic pivot for Pakistan.
 In Pakistan, some political parties like ANP, Baloch nationalists,
PkMAP and some others raised serious objections to the CPEC
project.

6. Recommendations:
 Government must make decision on the basis of economic
gains and multiplier impact on the economy.
 Route prioritization must decide on the basis of population
density (directly relates to population displacement), productive
land under the route, loss of production.
 Strategic importance for Pakistan in short and long run must
give due importance.

7. Recommendations (cont..)
 Transparency must be ensured for smooth functioning and equal
distribution of benefits.
 Government must use the existing institutions (Council for
Common Interest) for resolving all controversies related to CPEC
Last, but the most important aspect, all stake-holders must have
good understanding of Chinese needs, as China is investor of the
project.

8. Conclusion:
Earlier, Pakistan has gone through stages of political
unpredictability and turmoil that enfeebled the country’s progress
roadmap and also affected policy geographic stability. The CPEC
appears to be a very critical project for Pakistan. The construction
of CPEC is an important agreement for the country which has
boundless benefits for its economic betterment.