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Showing posts with the label Pakistani Economy

CPEC- The opaque view from a Pakistani perspective

Image credits- VOA ( After a break of nearly two months, I am returning to active blogging. To start with, I have decided to deal with CPEC, the most talked about project in South Asia) China Pakistan Economic Corridor (CPEC) is a collection of projects undertaken by China in Pakistan to connect landlocked Western China to the Arabian sea based Gwadar post in Pakistani Baluchistan.  This includes rapid development of infrastructure including roads, railways, power generation projects, industrial parks, special economic zones besides developing Gwadar port. CPEC is termed as a game changer by Pakistan. But doubts still linger in the minds of many. The international monetary fund (IMF) in it's report has warned Pakistan of long term consequences that will bring untold misery to the Pakistani economy due to their inability to repay the loan amount back to China with above normal interest rate.  There is also concern that China will virtually take over the entire Pakistan

Pakistan: What Stands in CPEC’s Way? ( Source- The Diplomat / Author- Muhammad Daim Fazil)

Gwadar Port ( Image credits- WIkimedia Commons / J. Patrick Fesher) Source- The Diplomat Author- Muhammad Daim Fazil When Chinese President Xi Jinping unveiled the blueprint for the enormous $46 billion China-Pakistan Economic Corridor (CPEC) project last year, Pakistan was understandably pleased. The Pakistani government considers the project a game changer for its fragile economic structure. This exhilaration partly stems from the country’s wobbly economic performance in recent years, which has seen it fall short of GDP and other financial targets. The project has also elevated Islamabad’s strategic partnership with the regional superpower. CPEC is viewed as a lifeline for Pakistan, yet three potential obstacles could yet derail this multifaceted project. Provincial Resentment in Pakistan A lack of domestic consensus can hinder development in any part of the world, and CPEC is no exception. When CPEC was initially introduced, every mainstream political party sup

A Miracle on the Indus River? ( Source- The Diplomat / Author- Ahmad Rashid Malik)

Gwadar port ( Image credits-Wikimedia Commons / Paranda) Source- The Diplomat Author- Ahmad Rashid Malik The Indus River is known as the lifeblood of Pakistan’s economy. Great ancient civilizations were formed along the Indus River, including the Gandhara and Mohenjodaro. Pakistan’s economy will continue to rely on the River Indus but a new dimension has been added. Now the China-Pakistan Economic Corridor (CPEC) is bringing a sharp transformation. It is offering the tantalizing prospect of an Indus River miracle to match those on the Yellow River (China) and Han River (South Korea). Pakistan can also learn much from Japan, Singapore, and Malaysia. The government has its sights on becoming the 25th largest economy in the world. The CPEC project has become a full spectrum project. Learning from the Asian miracle economies by sharing experiences is essential if a prosperous new Indus River civilization is to emerge. First, the flagship project, the CPEC itself, will

Pakistan's New Military Budget: By the Numbers ( Source- The National Interest / Author- Shane Mason)

Source- Wikimedia Commons / Credits- MORS Source- The National Interest Author- Shane Mason While the release of Pakistan's new defense budget went unremarked in Washington, the country's importance demands an in-depth review. It should come as no surprise that the release of Pakistan’s federal budget on June 5 went unremarked in Washington. Nevertheless, Pakistan’s budget—particularly its defense budget— will quietly attract the attention of American officials and analysts who work this issue because important U.S. interests are engaged in Pakistan. Pakistan is a large country with the potential to enjoy robust economic growth and attract foreign investment. It is a front-line state in the fight against violent extremism, and it is one of the world’s nuclear powers. The United States, in other words, wants Pakistan to succeed. Its national budget can help or hinder success. Pakistan’s potential won’t be realized until it is at peace with itself and it

CHINA – PAKISTAN ECONOMIC CORRIDOR: CHANGING DYNAMICS OF SOUTHERN ASIA – ANALYSIS (SOURCE- EURASIA REVIEW / AUTHOR- BRIGADIER ARUN SAHGAL RETD)

Image credits- Xinhua Source- Eurasia review Author- Brigadier Arun Sahgal (Retd) The strategic landscape in Southern Asia is witnessing three major strategic shifts; most important from Indian point of view is the unveiling of China – Pakistan economic corridor linking landlocked Xinjiang region of China to the warm waters of Arabian Sea and further to Middle East, Europe and East Coast of Africa. In many sense it is game changer with long term strategic consequences for the region in general and India in particular. Second is the prospect of Iran’s integration with international community as a normal nation a process that has already begun. This has made number of regional actors most predominant being China and Russia and to limited extent even Pakistan initiate serious commercial and security dialogue, given the possibility of opening number of geopolitical and economic opportunities. A third element is the growing Eastern orientation of Russia and the emergin