Opinion

CPEC: upgrading Pakistan’s trade

Connectivity with China is only the first step

Editorial December 27, 2016

On the economic front, the big news this year is the China Pakistan Economic Corridor (CPEC) which consists of a series of rail and road network projects that by all accounts could have a long-term positive impact on Pakistan’s economy. The transportation networks and pipelines which form the CPEC will connect Kashgar, China with Gawadar after passing through large swathes of Pakistan. It is expected that the project will promote trade not only by promoting an easier flow of goods between Pakistan and China, but also because of the ease it will bring for goods to be moved from one part of the country to the other. At present the road transportation distances between different parts of the country result in huge costs which act as restrictions on the free movement of goods. Reaching Karachi often requires journeys of several hundred miles with the result that transport by sea is not preferred by exporters based in central and northern parts of the country.

Similarly, trade with China also suffers due to lack of efficient transportation routes. Presently, most of the trade occurs through sea routes however with the establishment of reliable road and rail transportation network, the flow of goods to Pakistan’s north can both grow in size and value. Connectivity with China is only the first step, since the same networks can then be expanded to encompass more Asian countries and even Europe. It is not remiss to mention here that trade with China is on the strategic agenda of most countries in the current global economic and political climate. Especially countries which are not finding Europe and the Americas to be friendly markets are turning to China since it has the potential to become the primary source of income from exports for many nations. China is establishing footholds in all parts of the world and governments are quick to hitch their bandwagons to its success. Pakistan’s economy is in dire need of just such a boost which the CPEC can provide and it is hoped that our government will simultaneously work on developing trade-friendly policies.

Published in The Express Tribune, December 27^th, 2016.

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COMMENTS (4)

curious2 | 7 years ago | Reply I find it odd that a newspaper which has yet to write a single article which explains CPEC in any detail has no problems promoting it through Editorials. What's up with that?

Hameed | 7 years ago | Reply Good article. Question , I was told the pass between pakistan and China is closed for 4 months a year, because of weather, is this true ? If true are there any remedies planned ? Thank you.

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Abdul Awwal | 7 years ago | Reply And what will Pakistan trade ?

Feroz | 7 years ago | Reply No one paying tributes to the CPEC seems to have any idea about costs of transportation. The Himalayas have been a major barrier isolating South Asia from China and Central Asia. Pakistan if it really wants to go to Europe has to traverse Iran, that being the cheapest route. What is the product Pakistan wants to export to Xinjiang ? For export to other markets in China, sea route will be much cheaper. Central Asian countries have small population with limited buying capacity, therefore no one has spent resources developing them. No one seems to have too much idea about what is going to move on the corridors of CPEC. What volume of sea trade can these CPEC corridors capture ? These transport corridors can turn our to be white elephants if their trade potential has been grossly exaggerated.

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