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INTERNATIONAL POLITICAL ECONOMY

Instructor: Mr.Sadiq ul Huda

CPEC: WHY IS IT A
MYSTERY? POTENTIAL
BENEFITS
Muhammad Osama Yousuf
Sumaiya Shakeel

International Political Economy

Higher than mountains, deeper than oceans, sweeter than honey, and stronger than steel.
- Chinese President Xi Jinping

INTRODUCTION

China Pakistan Economic Corridor or CPEC has been termed as the corridor
of opportunities by the governments on both sides of the border
Pakistan

China

Mega gigantic project


15,000 billion Rupees
Building on international standards:
Industries
Trade zones
Motorways
Railway Tracks
LNG Terminals
Pipeline Projects
Transmission lines
Fiber optic cable
Unemployment
Forex

Investment $46b
Crossroad for expanding Global
ambitions
Strategic and political advantage:
Alternate to Straight of Malacca
(14,000KM shorter)
Unrest in West China and role in
regional affairs
Supply moved to this port Million of
dollars saving
Access to:
Middle East
African markets
Pipeline corridor

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However, there are several issues that have created a cloudy image of the
project

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ISSUES
Provincia
l issues
National
issues
Regional
issues

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PROVINCIAL ISSUES

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PROVINCIAL ISSUES
The dispute between provinces due to the early harvest project , they
claim that Punjab will be given the lions share
Law makers of KPK and Baluchistan have rejected the eastern route in the
early harvest project
They claim that natural route is more feasible and economical
They say that CPEC is aimed to develop the under developed western
China so the Federal government should also replicate the Chinese by
developing the western route first
They claim that people will also lose their lands and have to relocate as a
result of development and suspect that federal government will not pay
any compensations
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NATIONAL ISSUES

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NATIONAL ISSUES
Law makers fear that CPEC may be the next East India Company
Political parties are promoting regionalism and trying to malign the CPEC
project
The federal government is promoting the CPEC as a project that will
traverse through just the eastern route
The political parties are creating a chaotic political outlook by fighting
over the routes , this can give rise to reluctance in the Chinese to
abandon the project

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REGIONAL ISSUES

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REGIONAL ISSUES
According to the Indians the development of Gwadar port will end their
designs for hegemony in the Indian Ocean
It will also create a Chinese listening post near the U.S. fleet stationed in
Qatar
It will provide the access to the strategic Strait of Hormuz to China via
Gwadar which supplies 60% of Chinese oil supply

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REGIONAL ISSUES
The Chinese access to the Indian Ocean will be detrimental to the interest
of the Indians and the Americans

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COMMANDER KULBHUSHAN
YADAV
In 2016 Pakistan arrested commander Kulbhushan Yadav, an operative of the
Indian Research and Analysis Wing (RAW)
He is the highest ranking spy ever to be apprehended in the history of
espionage
He was working under the alias of Hussein Mubarak Patel
He has spent around 30 years in the Indian military and intelligence service
He confessed to be the mastermind behind the terrorist activities in
Balochistan and Karachi
He confirmed the claims of RAWs involvement in Baloch insurgency
This shows the criticality of security situation for the success of CPEC and
Indias efforts to sabotage it
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REFERENCES
Dawn
Pak-China institute
Centre for power studies (CAPS)
The National Bureau of Asian Research

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