It is quite obvious that the prime minister of Pakistan will not at all be making any kind of miscalculations when it comes to the economy of Pakistan. If we take the example of his China–Pakistan Economic Corridor (CPEC) then he already had a detailed cost-benefit analysis. He has been looking quite determined not to set a foot wrong again. But the main question is will this China–Pakistan Economic Corridor (CPEC) be able to pull it off? Let us have a look at China Pakistan Economic Corridor analysis:
Benefits of China–Pakistan Economic Corridor (CPEC)
- It will be a game changer for both countries. This project will lead to additional business and additional savings.
- China spends $18 million on the import of these 6.3 million barrels of oil each and every day. They are the shipment costs from the Middle East. But with the completion of this project, costs will be able to be significantly down to just one-third of these current levels. China will also be able to save $6 million every day and about $2 billion every year.
- With the completion of this project, the Chinese promised to make an investment of $46 billion in Pakistan. The amount of $11 billion will be set aside for infrastructure projects. $35 billion will be used for energy projects.
Cost of China–Pakistan Economic Corridor (CPEC)
- This project will only come out as a road and a pipeline project meant just for Chinese business if Pakistan is not able to mobilize its infrastructure and trade industry.
- Right now the Chinese investment in the power sector of Pakistan does not at all seem much promising. Hopefully, at the end stage of this China–Pakistan Economic Corridor (CPEC), investment in the private sector might get increase.
- If Pakistan fails to prepare a trade-centric kind of economic vision then additional business opportunities might not be received by us from this project.
China–Pakistan Economic Corridor (CPEC) Analysis Advantages And Disadvantages
My View
It is the need of the time that our planning and finance ministers should be imposing a toll tax on all of the Chinese oil shipments. They should be imposing a toll tax on their trade traffic. Pakistan planning and finance ministers should be making a negotiation of infrastructure projects with China.
We should understand the fact that China needs us. By now, Pakistan should be taking this huge opportunity by having a pragmatic approach in mind. Try not to leave too much massive cash on the Chinese Wall. It is also important for the federal government to make this realize Balochistan and KP that CPEC is a project for the whole of Pakistan. In CPEC, ”P” stands for Pakistan and not Punjab.
