October 5, 2020 Read More →

China-Pakistan corridor yet to boost industrialization in Pakistan

The Third Pole:

What was once considered the path to prosperity for Pakistan is now a fraught subject. In the past three years, there has been little progress on the China-Pakistan Economic Corridor (CPEC), touted by both Beijing and Islamabad as the cornerstone of friendship between the two countries.

During the landmark visit of Chinese President Xi Jinping to Pakistan in 2015, China pledged USD 46 billion for a range of energy and infrastructure projects. But the corridor today is nowhere near its goal of boosting industrialisation in Pakistan.

The slowdown in recent years has been attributed in part to reduced interest in the project from the new government in Islamabad, which has had its share of teething problems in the shape of economic and administrative challenges.

Coal brings other risks. Chinese-financed coal plants won’t help Pakistan reduce its reliance on imported fuels or solve its energy security problems, argued a recent G-Hub report.

Pakistan faces an overcapacity in energy supply by 2022, and the huge financial burden of power capacity payments, Simon Nicholas, an energy finance analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), argued in a recent report. 

[Atika Rehman and Beth Walker]

More: Pakistani military in charge, provinces sidelined in a revived CPEC

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