CPEC Is Stitching Central Asia To The Arabian Sea

The China-Pakistan Economic Corridor represents a journey toward regional globalisation within an increasingly interconnected world, promoting peace and development while serving as a cornerstone of economic transformation. It is reshaping regional trade and connectivity. Conceived as a flagship project of China’s Belt and Road Initiative (BRI), the CPEC aims to fortify economic ties between China and Pakistan while fostering regional and border integration. From extensive infrastructure development to energy and industrial cooperation, the CPEC offers immense promise. Beyond benefiting China and Pakistan, it also positively impacts Iran, Afghanistan, the Central Asian Republics, and other broader regions.

In 2013, when Pakistan’s Prime Minister, Mr. Muhammad Nawaz Sharif, visited China, agreements were signed to enhance economic integration and prioritise the construction of the CPEC. In April 2015, Chinese President Xi Jinping travelled to Pakistan, marking the official launch of the first phase of the CPEC. According to Khalid & Anam, its initial worth was estimated at US $46 billion, making it China’s largest investment in a foreign country, later expanding to US $62 billion.

The Sadan Route in China, likely referring to the Silk Route, was a historic trade pathway connecting China to the West, Central Asia, and Europe through the Karakorum Highway. It ranked among the most vital trade routes in history, facilitating the exchange of goods, services, ideas, and cultures. Since Gilgit Baltistan (GB) serves as the gateway to the CPEC, it holds immense significance for China and acts as a link to Central Asian countries. After a prolonged period, Chinese President Xi Jinping announced the revival of this Silk Route, which is why it is now referred to as the Silk Route or One Belt, One Road (OBOR).

Within Pakistan, the CPEC enhances connectivity, linking isolated regions from the Khunjerab Pass to Gwadar

The China-Pakistan Economic Corridor (CPEC) carries symbolic importance for the Karakorum Highway (KKH), constructed over challenging terrain between 1960 and 1978. It was opened as a crossing route between Pakistan and the People’s Republic of China. With the advent of the CPEC, the KKH has been reconstructed, with several bridges and tunnels already completed. The enhanced connectivity enabled by this transportation infrastructure is poised to improve the social and economic well-being of the region, which had long remained underdeveloped. One of the most significant advantages for Gilgit Baltistan (GB) is the surge in international trade, bolstering local industries, creating new opportunities for human resource development, and strengthening trade-related sectors. Furthermore, the uncertainty and risks tied to the route have been substantially diminished.

The CPEC serves as a milestone for connectivity under the One Belt and One Road Initiative (OBOR), aiming to enhance regional connectivity and facilitate market access through highways and railways. China, the world’s second-largest trading nation, imports oil over vast distances from foreign countries. Pakistan stands as the only country that significantly reduces China’s transportation costs, providing easier access to market economies while improving transit and trade facilities to boost border commerce and stimulate economic growth. Within Pakistan, the CPEC enhances connectivity, linking isolated regions from the Khunjerab Pass to Gwadar.

The CPEC connects the Kashgar region in China with the Gwadar region in Pakistan, with the Khunjerab Pass playing a pivotal role at the heart of the corridor. The year-round operation of the Khunjerab Pass is expected to accelerate CPEC projects by ensuring the smooth passage of people and goods, boosting infrastructure, generating employment, and stimulating economic growth in both nations. Activity at the Khunjerab Pass has grown considerably, with over 50,000 passenger journeys, 11,000 vehicle movements, and 40,900 tons of cargo passing through the port. This reflects a notable 42.6% increase in vehicle movements and a 72.7% rise in cargo volume year over year. Additionally, the construction and development of the Kashgar-Karachi route enhance road safety, expand traffic capacity, and promote railway infrastructure, including the strategic ML-1 railway line under the CPEC, which seeks to establish an integrated transport corridor and upgrade the railway system.

The Belt and Road Initiative (BRI) is a global infrastructure development strategy by China to improve trade, boost economic growth, integrate provinces within national economies, and strengthen the relationship between China and Pakistan. As noted in a World Bank report, between 2003 and 2007, trade between China and Pakistan increased by 41% annually. Between 2007 and 2018, it grew by 11% annually, rising from US$1.2 billion in 2003 to US$16.2 billion in 2018. Pakistan has long grappled with economic challenges such as rising inflation, unemployment, trade deficits, uncertainty, and a lack of foreign investment. This initiative aims to address these challenges by improving communication within Pakistan and with China, encouraging foreign investment, reducing unemployment, and providing technical skills to the labour force. The project plays a central role in infrastructure development, leading to significant progress, such as the transformation of Gwadar into a major trade and business hub. One of its most notable achievements is the establishment of Gwadar harbour, where the opening of a new container facility in March 2019 increased the port’s capacity from 1.2 million to 2.5 million twenty-foot equivalent units (TEUs) annually, marking considerable advancement as highlighted in the Pakistan Economic Survey 2020-21.

Although both countries have established relevant ministries and departments to create a cooperation mechanism and developed the Long Term Plan for the China-Pakistan Economic Corridor (2017–2030), a structured framework for collaboration has been designed to coordinate CPEC growth. The plan includes short-term projects to be completed by 2020, medium-term projects by 2025, and long-term projects by 2030. By 2030, the CPEC is expected to be fully realised, establishing a sustainable economic growth mechanism, enhancing trade activities, fostering industrial cooperation between China and Pakistan, and extending its influence to Central and South Asia.

The China-Pakistan Economic Corridor is more than just a bilateral economic endeavour; it is a transformative initiative with far-reaching regional and global implications. By enhancing connectivity, trade, and infrastructure, the CPEC has the potential to drive economic growth, create job opportunities, foster regional integration, and prove a game-changer for Pakistan, particularly for Gilgit Baltistan (GB). The strategic development of roads and railways has already improved Pakistan’s economic landscape while reinforcing ties with China.

As the CPEC progresses toward its 2030 completion target, its success will hinge on effective policy implementation, cooperation between stakeholders, and sustainable development practices. If managed efficiently, the CPEC will not only solidify Pakistan’s position as a key trade and transit hub but also contribute to broader economic stability and prosperity across the region. Ultimately, the CPEC stands as a testament to the power of regional collaboration in shaping the future of economic globalisation.

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