China Pakistan Economic Corridor Projects (CPEC) is a 50 billion-dollar project launched by the Chinese Communist Party’s president Xi Jinping. Political disturbance, international debt limits, and the Corona Virus pandemic have all come together to reduce Chinese investment in Pakistan as Beijing holds off on projects under the $62 billion China-Pakistan Economic Corridor (CPEC). That is a deep dive into a CPEC crisis.
China’s Dream Project To Dominate The Arabian Sea
The project was launched in 2013 and aimed to develop seaports, road networks, pipelines, and airports.
This project aimed to develop and provide Pakistan with high-class energy projects, mining facilities, and other projects to improve Pakistan’s GPD by 15%.
CPEC is a flagship project of China’s Belt and Road Initiative (BRI). BRI has given responsibility for developing a network of roads and passes. China wants to connect its largest western province Xinjiang with Pakistan’s Gwadar port in Balochistan. By this Chinese communist party wants to enter and dominate the Arabian sea.
In 2016 China sent gits trade cargo through this route and also approved some power projects in 2017. A high-class railways network was also to be established throughout Pakistan to improve its inefficient and disorganized transport system.
The Chinese also planned to connect Gwadar and Karachi port under CPEC projects. Gwadar port was also developed by China only in 2006 the expansion of the court was completed.
China holds a significant stake of 45.6 billion dollars in CPEC. All the major companies involved in Road network development, Dam construction, Energy production, etc belongs to china. Everyone knows China’s policy of debt trap in which Pakistan is present right now. Whereas, the loans given by China are like quicksand of debt traps. But the political instability of Pakistan becomes the biggest hurdle in progress, and that is a significant reason for the CPEC crisis in Pakistan.
The USA and India have always criticized China’s policy of CPEC. Moreover, Knowing that Kashmir is an integral part of India, China is laying CPEC in Pakistan Occupied Kashmir(POK). POK is India’s part occupied by terrorist countries. The USA also criticized the loans given by China, but China itself is facing the CPEC crisis in Pakistan.
The political and financial crisis has created an environment of national emergency in Pakistan. This is the reason behind the CPEC crisis in Pakistan.
Already struggling with the pandemic, Pakistan’s elected government is counting its last days. The contractors stopped the projects after the cheques worth 5 billion dollars were bounced, and the payments got failed. It is a critical financial crisis faced by CPEC in Pakistan. The economic situation of Pakistan is too unstable, quoted media reports. The projects affected are Hakla-Dera Ismail Khan, Western Route of CPEC, and Karachi-Lahore Motorway sections.