CHINA-PAKISTAN ECONOMIC CORRIDOR: PROSPECTS AND CHALLENGES FOR ECONOMY OF PAKISTAN

Abstract

Chinese huge $62 billion investment in China-Pakistan Economic Corridor (CPEC) project in Pakistan creates numerous prospects and challenges for the economy and stability of Pakistan. CPEC is part of the China’s One Belt and Road Initiative (OBRI), which connects different countries and encourages the global economic Initiative. CPEC includes energy, agriculture, tourism, Gwadar port, communication and connectivity infrastructure and many other different types of projects. Currently CPEC first phase is completed and now second phase has begun. CPEC can play the most important role in the future direction of the Pakistani economy. CPEC is very beneficial for the people of Pakistan and China. This review study on the prospects and challenges for economy of Pakistan from the perspective of CPEC is evaluating the recent scenarios, which sees the potential and evaluation of areas on economic activities and potential threats, which can counter by the governments of Pakistan and China on regional and global level. This study also highlights the difficulties, which are creating by the India to impose sanctions on economic products of Pakistan through the platform of (Financial Action Task Force) FATF and harm the projects of CPEC. The findings revealed that Pakistan must promote the CPEC, counter CPEC propaganda, and integrate with the plan to create a smoother image of Pakistan, achieve national cohesion and reduce radicalization. Moreover, China and Pakistan should work together to break the shadow of distrust.