China-Pakistan Economic Corridor: Opportunities and Challenges

Abstract

The paper discusses salient features of the China-Pakistan Economic Corridor (CPEC) and attempts to analyse the opportunities and challenges coming along its way. This research highlights the importance of the CPEC in China’s Belt and Road Initiative (BRI) and focuses on the strategic importance of Gwadar port as well as the significance of the CPEC for both China and Pakistan that is providing the shortest connectivity to China with Central Asia, West Asia, South Asia and onward to Europe. Moreover, it emphasises on how distance will be shorten for oil transportation from Gulf to China and will enable Beijing to play an important role as a major import and export corridor in the world. It also addresses the question about the trade deficit between China and Pakistan and highlights that the CPEC will also boost the bilateral trade. Furthermore, the study discusses different segments of the construction and prospects of the CPEC and questions the threat perception for the game changer project ─ the CPEC and how Pakistan can tackle these threats.