CHINA'S GEO-ECONOMIC OUTREACH IN PAKISTAN (2000-2018): IMPACT ON GOVERNANCE AND DEVELOPMENT

Abstract

This research focus on the geo economical aspect of China in Pakistan and the detail analysis of CPEC from 2000 to 2018 and self-political social and economical transformation in Pakistan by China engagement. This work locates geo-economics – the utilization of economic leverage in pursuit of particular objectives – as principal to China’s regional strategy, distinct from traditional geo-politics that is based on dominance of territory and military force. That phenomenon can be observed in the case of the Belt and Road Initiative (BRI), such as CPEC: While granting Pakistan different forms of requisites like connectivity, energy supply for industrialization, and offering China better connectivity facilities for trade. CPEC has filled some of the main infrastructural gaps of Pakistan: it has given employment and also provided development aspect in SEZs. This corridor connects Gwadar port to China’s hinterland namely Xinjiang, which provide China with an access to the Arabian Sea and a saving on transportation expenses. For Pakistan, these projects are important for the modernization of the economy even though they have raised issues of emerging debt burden, increased financial dependence and issue of accountability. The paper brings out the fact that the said project has forced structural changes on Pakistan particularly in the energy and transport sectors but governance questions remain unanswered. These are weaknesses such as bureaucracy, corruption, and institutions’ inability to efficiently coordinate and deal with large numbers of foreign investments efficiently. CPEC has also socially enhanced skill development, employment in different regions of Pakistan. But introduction of Chinese and Pakistani workers as a combined force has brought in cultural factors that need to be well dealt with to allow for socio-economic growth and development of this nation in a harmonious manner. Finally the study concludes that while CPEC can unlock a major source of economic growth in Pakistan it also brings certain risks to sovereignty and governance that have to be well managed and responded to through any balance of power diplomacy Pakistan. To this stream of literature on geo-economics and geo-governance, this research adds understanding of how such trade and economic arrangements re-fashion institutional and policy systems in developing countries. This work offers useful information for policymakers and scholars interested in studying the socio-political effects of such partnership on institutional change and economic transformation in developing states.