KARACHI – “Creation of over 700,000 direct jobs between 2015 to 2030 is linked with China-Pakistan Economic Corridor (CPEC). This mega project is a game changer which is expected to add 2 to 2.5 percentage points to the country’s annual economic growth.
Under this project, private consortia will construct energy infrastructure worth over $33 billion to improve Pakistan’s constant energy shortages.
One of the expected outcomes of CPEC is the expansion of the economy from $ 229 billion to $1.30 trillion by 2025.”
Prof. Dr. Samina Khalil, Director, Applied Economics Research Centre (AERC), University of Karachi (KU) expressed these views while delivering a lecture held at the applied economics research centre here on Friday (Dec. 23).
She said that the project priorities include transport and communications, energy infrastructure, industrial parks, special economic zones, and people to people cooperation. She said that the aim of this agreement is to enable the government to cooperate in the planning and development of CPEC and facilitate and intensify economic activity along the Corridor.
She maintained that the project activities are expected to galvanize Pakistan’s economy and propel it onto a higher growth trajectory by lowering transactions costs, improving productivity, encouraging research and development, and spurring innovation.
Talking about the major outcomes of CPEC, she said that some of expected outcomes of this mammoth project include the expansion of the economy from $ 229 billion to $1.30 trillion by 2025, escalation of the per capita income to $5000 by 2025, increase of exports from current level of less than $25 billion to $150 billion by 2025, and rise of the national savings to 26 per cent of GDP by terminal year.
Some important economic features of this project make it important for Pakistan, these features include investors confidence reinforced, facilitate achieving Pakistan’s GDP Growth above 7 per cent, accelerate economic activity led by construction sector, overcoming the energy deficiency, infrastructure development, employment opportunities in Baluchistan and KPK, establishment of new special economic zones alongside corridor, and all provinces and regions would be equal beneficiaries.