CPEC power projects expected to up GDP by 2 percent

ISLAMABAD: The enhanced power generation capacity, resulting from China-Pakistan Economic Corridor (CPEC) projects, is expected to add two percentage points to Gross Domestic Product (GDP) in the medium to long-term, an official said on Tuesday.

“All the energy projects are aimed at adding 17,045 Megawatts (MW) to mitigate chronic electricity shortfall and provide a reliable support for domestic economic activities and exports,” an official at Planning, Development and Reforms Division told APP.

The sources added that out of $47 billion CPEC portfolio, the bulk, around $35 billion, would go into energy projects, whereas $12 billion was to be spent on roads and other infrastructure projects. “The CPEC transport infrastructure projects -roads, railways, port facility upgrade- will allow easier and low cost access to domestic and overseas markets, promoting inter-regional and international trade,” the official said. The services exports, the source informed, would also benefit from increased trade traffic from China, while establishment of Special Economic Zones (SEZ) alongside the CPEC routes would also facilitate domestic and foreign investment.

“These SEZs will have a multiplier effect on growth via connectivity to other regions, accessibility to markets, job creation, etc,” the source said and added this will also help in integrating less developed areas into folds of active development.