INP-WealthPk

Pakistan Key for Central Asian Countries to Reap CPEC Benefits

February 09, 2022

By Hamid Mahmood ISLAMABAD, Feb 09 (INP-WealthPK): The China-Pakistan Economic Corridor (CPEC) is a huge joint initiative to develop infrastructure in order to boost trade with China and further integrate with the region's countries. The purpose of CPEC is to modernise Pakistan's road, rail, aviation, and energy transportation networks, as well as to connect Gwadar and Karachi to Xinjiang of China. CPEC is the integral part of the Belt and Road Initiative (BRI) proposed by China in 2013 to promote connectivity, trade, communication, and collaboration across Eurasian countries. CPEC is expected to have a significant influence on not just the fortunes of both countries, but also the whole region, since it would provide a gateway to the Indian Ocean, notably through Gwadar Port. While CPEC would benefit many nations, it is probable that landlocked Central Asian nations will benefit the most: with access to warm waters, they will be able to expand their economies through natural resources trade and strengthen commercial ties with other countries. Increased engagement with Central Asian countries would also benefit Pakistan and China, particularly in terms of obtaining access to the region's vast natural resources. Increased regional connectivity will facilitate economic integration and collaboration in other sectors, allowing regional economies to thrive together. Afghanistan, on the other hand, lies between CPEC and Central Asia. Afghanistan offers the quickest and most lucrative commercial and transportation route. The new government in Afghanistan is likewise seeking to improve relations with Pakistan. Taliban spokesman Zabiullah Mujahid has said that the Taliban want to engage in economic operations with other nations and they are eager to join CPEC. Afghanistan would be an excellent match for CPEC and BRI because it is the gateway to connect Pakistan with the rest of the globe. This Afghan inclusion would help the Taliban administration to handle new economic obstacles. In 1991, several new countries emerged on the map of the world after the Soviet Union disintegration. These countries have their own importance for various reasons, particularly for having natural resources such as petroleum, natural gas, coal and iron ore, and having proximity with Russia and China, both of which have significant investment in natural resources. Over the last two decades, China has made a significant investment in Central Asian energy and transportation infrastructure. Other infrastructure in Central Asia, such as roads, trains, bridges, and telecommunications networks, has also been sponsored by China. Central Asian nations have welcomed CPEC and its related projects. Kazakhstan, Turkmenistan, Tajikistan, and Uzbekistan have expressed interest in participating in CPEC. These nations are already engaged in various CPEC projects. Kyrgyzstan has lately expressed interest in participating in this massive undertaking. As a result, all of these Central Asian nations are viable partners for Pakistan and China, with vast opportunities for regional collaboration and mutual economic gain. Their ties with Pakistan go back a long way. Since gaining independence in 1991, all of the C5 nations have maintained diplomatic and economic ties with Pakistan. High trade volumes are indications of a strong bilateral trade relationship, as shown in the graph. Source: UN-Comtrade Database/WealthPk Research Many issues need to be addressed carefully during the construction of the grand plan, including the internal politics of each participating country, relations with global and regional powers, long-term financing, environmental concerns, global public opinion and outward opposition. Stakeholders should be optimistic about CPEC's long-term success since it would not only boost Central Asian and South Asian economies, but also contribute to regional peace and stability by improving connectivity and collaboration.