ISLAMABAD – CPEC, China-Pakistan Economic Corridor, is a first step of thejourney towards economic regionalization in the world of globalization inthe hope of regional peace, development and growth of economy not only forPakistan and China but also for Iran, Afghanistan, India, Central AsianRepublics and beyond. CPEC is the piece of OBOR (One Built One Road), thisis an olden belt that could bind 65 countries of Central Asia, Europe andAfrica to share the economic prosperity.

Silk Road was first invented by the German geologist and explorer BaronFerdinand von Richthofen in 1877; the “Silk Road” has been used as ametaphor of European and Asian cultural and trade interchange. The SilkRoad provided the vehicle for all sorts of creative exchange betweenenormously diverse peoples and cultures. Share the prosperity by providingthe more open business, investment and exchange opportunities to play inopen economies with relaxed restricted boundaries. From ancient to middleand from middle to modern age road infrastructure is playing being a partof back bone in the development of any country then why the importance ofroad infrastructure is denied by a group of people of Pakistan.

This is the matter of Pakistan’s progress and sovereignty, is not thematter of any personal understanding and self-creating theories regardingthe development of any economy that infrastructure and investment of roadsis useless and not needed for Pakistan.

Being a developing country, road infrastructure is deadly requirement ofPakistan. Each and every student of Economics and Development Sciencesknows the value of roads construction is the path of business and economicactivities which can serve more positively, consistently and long lastingin the economic growth.

Because it is very easy to notice for street man that where road isapproached the numerous economic activities like shops, hospitals, variousinstitutes, factories, hotels, motels and filling stations start to work.The vast network of roads that is pursuing all major parts of the country,such infrastructure is much important for the progress of a region and canbe verified by the authentic research publication,“ROAD INFRASTRUCTURE ANDREGIONAL DEVELOPMENT”. The overall impact of motorway is shown in thefollowing Table-1:

According to Padjen (1996) there are three theories that explore therelationship between infrastructure and development:

Ø *Development through a surplus of infrastructure*; strong infrastructureinvestment*→ *more jobs *→ *more budget surplus*→ *net debt down*→ *moreeconomic growth.

Ø *Development through a deficit of infrastructure*;more productioninvestment*→*more job in factories*→*more budget surplus*→*net debtdown *→*moreeconomic growth. This can lead more investment demand in infrastructure.

Ø *Balanced development*.Development of infrastructure and production issustainable.

In Pakistan development through surplus infrastructure is used through CPECproject. This could produce following pattern of economic perspectives.

Complexities with their effects:

· Induced Effects – changes in the accessibility and character ofa region, and

· Catalyst Effects – impact on other policy instruments.

· Direct Effects – analyzed through changes in employment.

*ECONOMIC PERSPECTIVE:** As work on infrastructure and energy projectsunder CPEC starts → directly increases the employment opportunities forboth labour or human capital →could increase the per-capita income →whichenhances the purchasing power of people → the consumption on education,health and other stock of life will increase → so demand of products willincrease → this increased in demand will induce the total investment →moreeconomic and business activities will increase → which ultimately willincrease the GDP growth → that will reduce the budget deficit→ alsoincrease in individual employment, consumption and investment will putcatalyst effect which prompts the government policies by creating efficientamendments in policy instruments to stable and balance the economy. Fromthe other side trade will increase that will balance the trade deficit andimprove the balance of payments. *

Socio-economic impact of road infrastructure and motorway all direct orindirect can be seen precisely under the acknowledgement of world’s adoptedtheories of development with its prose and corns by following tables 2, 4.

*C**PEC Energy Projects *can cover the Energy Crises that are the bigroadblock hindering the process of economic progress of Pakistan. CPECproject’s big contribution to addressing this challenge to overcome thishuge obstacle makes this project more valuable for the patriots ofPakistan.

There are many projects of energy at Port Qasim Karachi, Naran,Khyber-Pakhtunkhwa, Sahiwal, at Gwadar, Balochistan, Matiari to Lahore,Faisalabad Transmission Line Project. Actively Promoted Projects are inKohala Hydel Project, AJK, Rahimyar Khan and Gilgit KIU Hydropower and manymore projects are the part of this project.

*CPEC **is a Source of Utilization of Unutilized Resources of Pakistan*, asPakistan has abundance of labour and natural resources, like wind power,swift flow of water, deep water of Gwadar and huge number of unutilizedcoal could be utilized through energy related projects.And labour abundancecan be utilized efficiently under the projects of infrastructure.

*P**olitical instability *is chief challenge of Pakistan that causinginflow of FDI (foreign direct investment)adversely, CEPECand ultimately theeconomic growth of Pakistan. All factors that are creating the politicalinstability must be condemned by the patriotic Nation of Pakistan.

*C**ONCLUSIVE VISION *of the study is elaboration the ongoing challengesregarding China Pakistan Economic Corridor (CPEC), both inside and outsidethe country. These challenges sometime appear in the shape of heavycriticism on high interest rate and social changing by the opposition whichcould be more treacherous and harming to gain the targeted results of suchbig projects.

It is well known concept that with progress of any society some cultural,social and economic changes will definitely accrue which should becompromise to taste the prosperity of the people and for the country.Nodoubt this is high financial investment oriented project, due to long termproject it has high risk for the investors that is the only reason of highrate of interest on the debt is taken.BY: Samina Khan