ISLAMABAD: The Institute of Peace and Diplomatic Studies (IPDS) has released a comprehensive report on the China-Pakistan Economic Corridor (CPEC), showcasing its role in promoting modernisation, industrial growth, and bilateral cooperation between China and Pakistan.

According to the report, CPEC is a transformative initiative with the potential to drive Pakistan’s economic and social progress for decades to come.

By fostering innovation, improving infrastructure, and promoting sustainable development, CPEC continues to serve as a model for economic cooperation between China and Pakistan, said the report.

It said the Pakistan-China partnership has steadily evolved, culminating in the strategic upgrading of relations in 2015 to an “all-weather strategic cooperative partnership”.

Report calls for enhanced transparency, security measures, and focus on environmental sustainability

As the flagship project of the Belt and Road Initiative (BRI), CPEC has emerged as a key driver of regional development, contributing significantly to Pakistan’s infrastructure, industrial, and socio-economic growth, while strengthening the bond between the two nations.

While drawing on the contributions of several prominent scholars and research institutions, this report provides a detailed analysis of CPEC’s impact on various sectors.

Dr Liaquat Ali Shah’s study emphasises the critical role of infrastructure and energy synergies under CPEC, highlighting how the construction of major roads and the development of Gwadar Port have “boosted connectivity” and reduced transportation costs. His research claimed that an $8.9 billion investment in transport infrastructure transformed Pakistan’s economic landscape by linking major cities, such as Islamabad, Karachi, and Lahore, with regional trading hubs like Kashgar in China.

The report noted that energy projects, particularly coal and hydropower plants, alleviated Pakistan’s power crisis, though challenges remain regarding environmental sustainability.

Dr Attaullah Shah’s research focused on the industrial and technological advancements brought about during the second phase of CPEC, spanning from 2021 to 2025.

His study explored the creation of special economic zones (SEZs) and the promotion of industrial growth as key goals of this phase, aiming to attract local and foreign investment.

With a strong emphasis on innovation, sustainability, and job creation, industrial expansion under CPEC is set to position Pakistan as a regional leader in manufacturing and technological advancements, it claimed.

On the environmental front, the report presented insights from Prof Dr Zahid Anwar and Tanzeelur Rehman, who focused on agricultural development and the integration of tourism as tools for promoting sustainability.

They highlighted the environmental challenges posed by coal-based energy projects but noted the ongoing efforts by both China and Pakistan to adopt greener practices. The report underscored the importance of technology transfer and modern agricultural techniques to boost productivity while mitigating environmental risks.

The researchers advocated for the adoption of agri-tourism as a strategy to diversify rural economies, enhance job creation, and promote environmental stewardship.

The strategic importance of Gwadar Port was a recurring theme in the report. Dr Muhammad Munir and Muhammad Abdul Rafay Shaffi’s research emphasised the ‘transformative potential’ of Gwadar in facilitating regional trade and developing Pakistan’s blue economy.

However, the researchers cautioned that security issues and infrastructure limitations must be addressed to fully capitalise on the port’s potential as a driver of regional trade and economic growth.

Dr Abdul Sattar’s work on human development highlighted CPEC’s contribution to skill development, healthcare, and education in Pakistan.

The report emphasised the critical role that human capital played in sustaining the long-term benefits of CPEC and underscored the importance of continued knowledge sharing between China and Pakistan.

The report has several key recommendations, including enhancing transparency and governance, improving security measures for personnel and projects, and focusing on environmental sustainability.

The researchers called for greater investment in underdeveloped sectors, such as agriculture and tourism, promoting small and medium enterprises, and strengthening regional connectivity.

Published in Dawn, October 25th, 2024