What Pakistan has achieved so far with CPEC in Past Five Years
China Pakistan Economic Corridor (CPEC) is a long term pact signed between Pakistan and China in the year 2013 for the betterment of Pakistan and a sign of a healthy relationship between the countries. It is basically focused on the 4 major areas for development i.e. Gwadar port, energy, transport groundwork and industrial development. But it is not only restricted to these four aspects; instead, the pact is proving itself to be beneficiary all over Pakistan. Since then Pakistan has observed some major development changes that have aided in the economic position of the country.
CPEC has gradually raised the economy of Pakistan by the two-gap model introduction that suggested that foreign developed countries must increase foreign investments and exports to generate higher revenue. Moreover, this model has resolved the issue of limited investment due to a shortage of funds and has provided a good economy for Pakistan’s development.
By January 2019 CPEC counted in nine new developed projects and 13 undeveloped worth $19 billion. It raised Pakistan’s economy by 1%-2% every year and has managed to create 70,000 job openings for locals in the country.
For further assistance, China provided $5.874 billion as a concessional loan to Pakistan with the lowest interest rate of only 2% which comparatively lower than the actual interest rate. China also provided an interest-free loan of about $143 million for Gwadar East Bay Expressway project. Also, they are providing their support for residential projects in Gwadar to maintain a standard level of lifestyle there. So it is a good time for the investors if they want to invest or reside in Gwadar as under CPEC Gwadar has gone under major transformation and is said to become next Dubai in the coming year thus its land price will be multiplied and would be worth a good some of the money. It is thus making you gain high profits.
Because of this pact, Pakistan’s GDP growth has sustained a uniform growth rate, and Pakistan’s financial state has got much better. For five years the GDP rate has gone up by 4.77%. And from the year 2017 and 2018, it grew the highest rate by 5.8% in the last 13 years.
According to an article published in tribune Pakistan’s annual foreign direct investment grew from $650 million to $2.2 billion, and the per capita annual income rose from $1,334 to $1,641.
Energy shortage is an important issue that Pakistan is facing due to multiple reasons like energy loss and power theft which costs Pakistan about an average loss of $13.5 billion in GDP. According to a study, Power shortage left Pakistan in the dark hours for a long time, with rolling power cuts that vary from 10 to 22 hours in rural areas. CPEC has started the development of multiple projects with a total installed capacity of MW. And from 2013 CPEC has managed to level up the power supply added by 3,340MW. That is the reason for the decreased shortage of power. In addition to that Pakistan been provided with Matiari Lahore 660kv HVDC transmission to ensure the least energy loss.
The famous and the most beautiful route of Karakoram highway is also the wonder of CPEC. And its phase 2 is nearly half complete. The developed infrastructure has much added up to the connectivity between the cities and the countries. And under these developments over 51000 job opportunities surfaced in the five years. Also, this infrastructure revolution will significantly add up to the increased tourism resulting in great economic boost. Some outstanding projects under this sector are
Gwadar has been declared a free trade port thus it tends towards being a huge revenue generating a city of Pakistan’s with its quality of being a warm deep sea port which will be operating 12 months of the year thus uninterrupted trade all year. Gwadar is right now under the full speed of its development, and up till now new roads, storage yards, oil supply and monitoring facilities have been introduced.
Furthermore, Gwadar City has also undergone a major transformation like new roads, industries, oil city, residential and commercial projects. Thus Gwadar is right now a prime location to invest in as this city will be the epitome of modern living in coming times.
FUTURE OF CPEC
CPEC has proved to be beneficiary over the past five years and is said to be more advantageous in future times. As China has installed multiple projects; thus work opportunities have increased balancing a good rate of lifting poverty and unemployment from Pakistan. Pakistan is willing to adopt these policies from the Chinese government to maintain the low rates of poverty. Moreover, it also hopes to have stronger industrial growth thus healthier development. Although there are some issues CPEC is bound to face like Pakistan has a substantial foreign debt, therefore, it will be hard to meet the financial needs of CPEC projects moreover increasing terrorism in Baluchistan have a threat to the Gwadar port development. But these factors have existed now for a long time, and despite these factors, CPEC has managed to give such development changes to Pakistan that improved the economy of Pakistan to some reasonable extent. CPEC is responsible for a good outlay of Pakistan in the map of the world and gives Pakistan a new modern shape. Thus it is very beneficiary for the real estate sector if anyone wants to buy or invest in properties that are under CPEC like Gwadar. Because all these projects are destined to be the growth changer of Pakistan’s GDP thus a great place to earn good business.