Analysing the CPEC

This refers to the article, ‘Local industries and the CPEC’ (Sept 29) by Zahoor Khan. The article clarified that every trade and investment agreement between two countries is based on mutual benefit. The CPEC is mutually beneficial for both Pakistan and China in a sense that Pakistan needs to access technology and equipment to boost its industrialization process and it has abundant raw material that is even unexplored due to deficient resources and technology while China needs markets to sell its products and to find raw material. The CPEC is a 3,000 km network of roads, railways and pipelines to transport oil, gas from the Gwadar Port to Kashgar city, and the development of means of communication for the economic progress of any country cannot be ignored. Its benefit to link with new Maritime Silk Route will serve as a bridge between three billion people in Asia, Africa and Europe.

The concerns raised by the writer in the end are answered in the article itself. According to the writer, China is establishing business units in neighbouring countries instead of processing the products in China. At this point, Pakistan needs the FDI to generate economic activity in the country.     Thus the CPEC is not only a need-based project, it will also address other social problems of Pakistan like poverty and unemployment.

Nazia Jabeen

Karachi