Ayesha Saba

The China-Pakistan Economic Corridor (CPEC) is an expression of globalisation in the form of an endeavour to support new growth prospects by freeing up capital, labour, and services in order to boost economic growth, said an expert. Dr Talat Shabbir, Director of China Pakistan Study Centre at the Institute of Strategic Studies, Islamabad, said while talking to WealthPK that the economic integration brought by CPEC can be seen in the movement of people and ideas between Pakistan and China.

“The completion of the corridor is expected to create job positions in Pakistan, many of which will be filled by Chinese workers. Additionally, the presence of Chinese companies in Pakistan will bring new ideas and technologies to the country, which could lead to the transfer of knowledge and skills between the two nations,” he said.

Dr Talat mentioned that the export sector is one of the key engines of globalisation. He said Pakistan can improve its exports only if traditional and conventional manufacturing processes are given value addition. “The special economic zones (SEZs), as the hallmark of CPEC, would offer Pakistani entrepreneurs and business communities a wider range of business opportunities,” he mentioned.

According to Dr Talat, trade volume has a direct impact on current account deficit, and trade history shows that Pakistan remained helpless in the balance of payment crisis due to a weak macroeconomic framework. He said the SEZs can be considered as a source of rapid industrial growth and will change the destiny of the region by bringing in employment opportunities.

“When we talk about Gwadar Port, its major concept is basically that the CPEC will connect all these regions. Definitely, there are no double opinions about Gwadar becoming a source of connecting South Asia to South Africa,” he said. Dr Talat said it is very important to work on Gwadar, to prioritise it, and to bring it into focus after it emerges as a hub for Europe and the Middle East.

“A lot of work is needed in Gwadar and it is important to attract people there. There are two components of Gwadar -- port component and the city component -- and both components need to be developed simultaneously. If the port is developed and the city is not, there will be issues,” he said. Dr Talat said the CPEC’s spill over effect from South Asia to Central Asia, the Middle East and Europe will bring a new wave of globalisation for Pakistan. “The people of Pakistan feel secure with this investment in a way that China has a long and sustainable history of reliable relations with Pakistan,” he added.

Credit: Independent News Pakistan-WealthPk