Analysis of Determinants for CPEC’s Success and Failure: Emerging Challenges and Lessons for Pakistan

Abstract

The China-Pakistan Economic Corridor (CPEC) has received global attention as the flagship project of the Chinese Belt and Road initiative. While CPEC is considered to be a wellthought and well-crafted initiative, this paper evaluates its possible dividends for Pakistan and scope of regional cooperation. It highlights the urgent need to introduce technological modifications and structural reforms in the trade, industrial and manufacturing sector to help maintain a balanced export-import ratio, alongside minimisation of energy losses, trade and budget deficits. The essence of any Economic Corridor remains unfulfilled if it fails to engage regional neighbours, in this case India, Iran and Afghanistan in the obvious presence of deep-rooted conflicts, fragile security issues and strategic interests. Increased economic interdependence may help reduce the level of anxiety shared by regional neighbours and Pakistan. Growing energy and communication infrastructural needs in the region can also enable a confluence of differing national interests into mutually beneficial grounds of cooperation