The China–Pakistan Economic Corridor (CPEC) is an economic passageway, comprising number of mega projects, under construction at a cost of $51 billion. The project is intended to expand and upgrade our national infrastructure, as well as deepen and strengthen economic ties between the two countries.
Pakistani economists predict that the CPEC will result in the creation of upwards of 700,000 direct jobs between 2015 and 2030, and add 2 to 2.5 percentage points to the country’s annual GDP.
It was announced on Nov. 26 that more than 100 Chinese companies are willing to invest in Pakistan under the China-Pakistan Economic Corridor (CPEC).
Significance of Chinese investment:
Chinese investment helps Pakistan reach its economic potential by providing capital to finance new industries and enhance existing businesses, boosting infrastructure, production capacity, and jobs opportunities in the long run.
The higher growth supported by Chinese investment pays dividends for all Pakistanis by increasing tax revenues to Federal and Provincial Governments, and increasing the finance available to spend on hospitals, schools, roads and other essential projects.
Chinese investment has other benefits beyond adding new capital. By bringing in new businesses with links in different markets it opens up extra export opportunities, uplifting overall export performance. It also encourages competition and increased innovation by bringing new technologies and utilities to the Pakistani market.
“CPEC is the result of long-standing friendship of China and Pakistan and now will strengthen economic cooperation of both the two countries,” Zhao Guobin, CPEC’s Council Executive Chairman, said in an announcement.