INP-WealthPk

China, Pakistan Ready to Extend CPEC Benefits to Afghanistan

April 18, 2022

By Hamid Mahmood ISLAMABAD, April 18 (INP-WealthPK): China, Afghanistan, and Pakistan are ready to work together to expand the China Pakistan Economic Corridor (CPEC) to Afghanistan, and assist Afghanistan in connecting to the rest of the region. State Councillor and Foreign Minister Wang Yi recently stated at a meeting of foreign ministers in China that given the current situation, China, Pakistan, and Afghanistan should restart the trilateral cooperation mechanism and advance cooperation in the areas of politics, development, and security based on mutual respect, equal-footed consultation, and mutual benefit. Afghanistan's interim leadership is keen to enhance relations with Pakistan. According to Taliban spokesperson Zabiullah Mujahid, Afghanistan is keen to join the CPEC and participate in economic activity with other nations. In order to increase regional connectivity and economic integration, China sought to expand CPEC to include additional nations in the region. Afghanistan has already profited from CPEC policies through the Pakistan Afghan Transit Trade, which totalled almost $2 billion in 2018. Containerized commodities traveling on CPEC routes have repeatedly reached Afghanistan through Gwadar Port, the CPEC's crown jewel, demonstrating the benefits of CPEC and its spirit of regional connectivity aimed at realising the notion of a community with a shared future for mankind. The trade volume between Pakistan and Afghanistan peaked in 2011 at about $3 billion, according to WealthPK research, proving the two nations' strong bilateral ties. This volume has declined over time due to the unpredictable Afghan situation. Due to the tense border situation, trade volume was $1.38 billion in 2020, as seen in the graph. Trading volume climbed by $0.47 billion in 2021, representing a 32.55% increase. It is likely to rise further the following year. Afghanistan and Pakistan have long had geopolitical dynamics, cross-border interactions, trade, and regional connectivity. These factors will decide the future stability of Afghanistan and the region if they work together. Because it would give Afghanistan the most direct sea access via Pakistan, the CPEC would be the most effective choice for incorporating Afghanistan into the Belt and Road Initiative (BRI). The stability and prosperity of Chinese BRI partners, particularly the neighbouring countries like Afghanistan, are critical to the success of the BRI and CPEC. Afghanistan is a good fit for the BRI because it provides the fastest route between China, Pakistan, Central Asia, the Middle East, the Persian Gulf, and the Arabian Sea; and because this effort will aid in the development and restoration of Afghanistan's infrastructure. The massive CPEC project has the potential to provide infrastructure and energy links between Afghanistan and Pakistan, as well as connect South Asia and Central Asia. The CPEC has sparked a lot of interest in improving Afghanistan's economic connectivity with Pakistan, as well as other neighbouring countries including Iran and Central Asian states. Experts believe that if CPEC reaches Afghanistan, the war-torn nation would profit from a development windfall. The expected windfall might be realised through CPEC project expansions with Afghanistan, notably in the fields of road and rail infrastructure, energy, high-tech industrialization, and market-based commercial centres. The re-established link will open the door to significant foreign investment, resulting in the creation of more well-paying jobs.