Impact of CPEC on Economy of Pakistan

Today we are going to discuss a very important topic “CPEC effects on Economy of Pakistan” When we talk about CPEC many questions came into our mind. One of the most common questions is “In what ways and to what extent will China-Pakistan Economic Corridor (CPEC) benefit Pakistan?”  Well CEPC has its own pluses and minuses let’s see the plus points first.

Some of the benefits but not limited are listed below:

• Lesser taxes
• Higher GDP
• Greater inflow of Forex
• Exponential economic output
• Decreased unemployment
• Empowered military
• Fewer security concerns
• Gwadar would come into existence
• Strengthened international relations between China and Pakistan
• Greater exploration of the province of Baluchistan in terms of its natural resources

These were little bit of the benefits we have something more to tell you.

GDP Growth

• $62 billion to be added to the economy, 20% of the total GDP of Pakistan.
• Pakistan’s GDP growth rate increased from 4.7% in 2015 to 5.4% in 2016 (World Bank)
• Pakistan total GDP has increased from $244 billion to more than $ 300 billion in 2017(World Bank)
• $13 billion will be added to Pakistan’s GDP by 2025 (IMF)
• 2 to 2.5% annual economic growth rate expected till 2030.  (Applied Economics Research Centre)

Energy generation

• Access to electricity for the rural population increased from 90.3% in 2015 to 98.8% in 2016 (World Bank)
• Transmission and Distribution Losses went down to 16.5% in 2017 from 19% in 2015 (Ministry of Finance)
• Bill recoveries increased from 16% in 2015 to 19% in 2017 (Ministry of Finance)
• Installed capacity of electricity is 29,573 MW in 2018, which was 22,812 MW in 2013 (Pakistan Economic Survey)
• Electricity generation increased from 96,496 GW/h to 117,326 GW/h (Ministry of Finance)
• A total of $ 33.8 billion in energy project have added 12,230 Megawatts of energy (Pakistan Economic Survey)

Job Creation

• CPEC will reduce unemployment by 2.32 million by end of 2018 (Global Times)
• 800,000 direct jobs estimated in the next 15 years. (Ministry of Planning and Development)
• Early harvest projects of CPEC have created 30,000 direct jobs for Pakistanis (ACCA Global and PCI)
• Construction of ML-1 projects will further create 10,000 to 15,000 direct jobs this year (Ministry of Planning and Development)
• 75% of the total employees working in CPEC projects are Pakistanis, contrary to the belief that the Chinese have a higher representation (Ministry of Planning and Development)

In-short CPEC is boosting Pakistan’s economy in all ways. CPEC is a Gateway to prosperity for Pakistan.

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