The CPEC project has been in the pipeline for some time. The 50 billion dollar project, mainly financed by the Chinese banks, aims at improving Pakistan’s economic outlook by helping the country to upgrade its existing infrastructure. The project will help the country invest in new projects mainly pertaining to the energy sector. Air, road and sea connectivity will be enhanced and the county is expected to become a lucrative market for foreign direct investment. However, the country needs to be wary of the multi-billion project. In the past, the country has been unsuccessful in maintaining a positive trade balance with countries it has signed an agreement with. With the exception of Sri Lanka, Pakistan has faced constant trade deficits with China, Malaysia, Iran and Indonesia. Our trade deficit with China amounted to $9.84 billion in 2015. CPEC will most likely add to this deficit since the country will have a huge amount of loan to pay back. Our current account will shrink because profits will be utilised for debt repayment. In addition, Pakistan has formed a special security division for CPEC projects to provide security to the CPEC-related projects. This will put added pressure on the already strained government budget. It is essential that the government formulates a strong policy to cater to these concerns before it is too late. Nida Anser Mirpur Azad Kashmir