ISLAMABAD – their future generations Pakistan, Iran and China stand poisedto transform trade and investment in the region through China-PakistanEconomic Corridor. Pakistan has always enjoyed favourable strategicposition in its region. This explains China’s long standing interest in thecountry and its willingness to support the CPEC, which is a US $62 billioneconomic project.
The economic corridor, seen as a pivotal stepping stone in the all weatherChina Pakistan relationship, will connect China’s autonomous Xinjiangregion to Pakistan’s Gwadar Port. Opening new doors of economicopportunities in the region, around 3000 km mega project will havesignificant implications that can definitely change the dynamics of globaleconomy and politics. This will help strengthen Pakistan’s economy andcement its position in the region. For China, CPEC will open new routes tothe oil rich Middle East via the Arabian Sea. It will reinforce interregional ties and enable the region to stand on its own, with minimalreliance on the West. Worrisome for a few, many countries are eyeing theUS$62 billion corridor with interest.
Pakistan has welcomed the wish of Central Asian Stated to join ChinaPakistan Economic Corridor. Much more than the other Central Asian StatesTajikistan has responded significantly. Even Russia, which has had, attimes, a tumultuous relationship with Pakistan, is now eager to honour theheart of the economic corridor.
With the possible inclusion of these new states, the possibility of CPECbecomes more tangible and resilient undoubtedly. For Pakistan, Iran’sinclusion will increase and multiply the corridor’s advantages andsignificance.
For this reason, Pakistan extended an invitation to Tehran, which Iranreciprocated warmly and very timely. Iran’s economic growth has beenstunted by global sanctions due to its nuclear program over the years.Iranian nuclear game, when implemented, will open up with new possibilitiesahead. With ten percent of the world’s proven oil reserves, Iran’s entranceinto the business world has gotten Pakistani trade and economicrepresentatives to scramble Iran with the intention of win Iranian businessinterest.
With billions of dollars worth of Iranian funds entering the globaleconomy, nations are tweaking their financial plans to accommodate thissurge of income. The oil rich nation’s admittance into the global marketwill drastically change the global oil market as well. Energyhungry/starved China is looking for alternative routes to import oil. WithIran in the loop China can double down on its access to Iranian oil. Thedream of the Iran Pakistan gas pipeline can be completely realized.
For Iran, China Pakistan Economic Corridor will provide the country withmuch needed accessibility to the east. For China, the corridor will providean alternative route to the Gulf region through the Arabian Sea. The costeffective route will make it possible for China to expand its interactionswith the markets of Central Asia, Middle East and Africa.
With Iran’s opening up, Chinese exports could become increasinglycompetitive in Iran and onward. Iran is eyeing as much as US$100 billionworth of energy deals in near future and Iranian abundant oil and gasreserves could find thriving demand in China as well.
The benefits of China-Pakistan Economic Corridor for Pakistan have alreadystarted showing. This economic corridor will provide Pakistan with theperfect opportunity to stabilize itself economically while cultivating tieswith Iran, Afghanistan and Tajikistan in particular and rest of the CentralAsian States in general. Proudly elaborating that the world’s largestexplosives manufacturer, Beijing Auxin Chemical Technology Limited, is allset to establish a plant in Pakistan.
This Company will manufacture emulsion explosives which will meet thefuture demand of explosives and blasting accessories in the light of CPEC,large-scale mining and hydroelectric projects. Energy production being thecurrent core concern of development Pakistan is expected to take a majorleap forward.
The Thar coal projects have been lined up as priority projects and part ofCPEC which in combination with two other harvest projects will be able togenerate up to 2400 megawatts of power current year of 2018. An agreementfor the Lahore Orange Line Metro Project is also completed earlier thisApril. This multi-million dollar deal marks the first urban rail transitproject in Pakistan under the One Belt, One Road Chinese framework. Apartfrom the obvious benefits to Pakistan’s power production, logistics,transportation, communication and freight handling industries, CPEC willalso immensely benefit the country’s real estate running along the tradecorridor.
With all this development going on, China, Pakistan, Iran and South Asiaare looking up and huge affinities in interregional trade could be justaround the corner. Iran’s decision to join China-Pakistan Economic Corridorwould not only usher in an era of improved standard living across theIranian and Pakistani Baluchistan region by facilitating trade among China,Iran and Pakistan but provide a cost-effective gateway to the Gulf regionfor other Asian country like Russia also.
By: Naveed Aman Khan