APD | Pakistan transforming from Geopolitics into Geo-Economics

Editor's notes:

The author is Prof. Engr. Zamir Ahmed Awan, Sinologist (ex-Diplomat), Editor, Analyst, Non-Resident Fellow of CCG (Center for China and Globalization), National University of Sciences and Technology (NUST), Islamabad, Pakistan.(E-mail: [email protected]).

The government of Uzbekistan has expressed its willingness to utilize Karachi and Gwadar ports for its trade operations and requested Pakistan's support for accession to the Quadrilateral Traffic in Transit Agreement (QTTA). The QTTA, under CPEC, provides an alternative route bypassing Afghanistan and relying on the Karakoram Highway via China to reach the Central Asian States. Pakistan plays a significant role in QTTA and ensured support to Uzbekistan in this regard.

CPEC has the potential to change global trade routes and trends. Under CPEC, Pakistan has built a vast network of Motorways and Highway, in the length and breadth of the country. The development of the transportation sector made it possible for logistics and cargo services quick, convenient, and affordable. It has resulted in enhanced economic activities.

The development of the Gwadar deep seaport is a mega achievement under CPEC. It is the largest deep seaport in this whole region, with a capacity of 400 million tons of cargo per year upon completion. The number of berths will reach up to 150 by 2045. Capable of handling Type of ships: Phase I (Current): Bulk carriers of 30,000 Deadweight tonnage (DWT), and container Panamax vessels of 52,000 (DWT), Phase II (Proposed): 200,000 (DWT) Neopanamax vessels and Phase III (Proposed): 400,000+ (DWT) Chinamax (Valemax) vessels, and TI-class supertanker. While it is under development stage, but operational partially and being used for international trade already.

ML-1 is railway project under CPEC, to upgrade the railway tracks, establishing new routes and replacing it with modern state of the art railway network to boost the transportation sector and promoting huge economic activities.

Pakistan is blessed with rich natural resources, diversified minerals, and the mining sector is one of the basic strength of Pakistan. Agriculture is the backbone of our economy. Approximately 70% of the population is youth under the age of 40, and a qualified workforce ensures a bright future for Pakistan. English is widely spoken in Pakistan and has a long history of interacting with foreigners. Pakistani society is friendly and peace-loving and can absorb foreigners easily. Law and order situation has improved a lot, flexible and friendly policies were introduced. As a result, Pakistan's economic outlook gained recognition.

Recent Moody's ratings on Pakistan are encouraging. IMF, World Bank, and International Financial Institutions have shown confidence in Pakistan. Economic indicators are improving gradually. The flow of Foreign Investment is growing at a good pace. Pakistan is a moderate, peace-loving nation and respects international norms and practices. Pakistan was founding member of GAAT and WTO, and signatory of almost all international agreements, protocols, and frameworks.

China-Pakistan Economic Corridor (CPEC) initiated with an investment of $46 billion, enhanced to $62 Billion, and may also increase in the future. Saudi Arabia has pledged to invest $20 Billion in Oil City near Gwadar, Russia has a similar pledge, UAE is willing to invest heavily. Japan, South Korea, and Malaysia have a keen interest in investing in Pakistan. EU is engaged with authorities in Pakistan for several projects. The US has planned to send high-level trade delegations with plans to invest in Pakistan heavily.

Pakistan's liberal and flexible policies, an abundance of raw material, a qualified yet competitive workforce, and its geostrategic location – connecting with almost half of the world, are the decisive parameter for Multinationals Companies and investors. Pakistan itself is 220 million population – a considerable big market. However, 1.2 Billion and 1.4 Billion huge markets of India and China are in the neighborhood. Middle-East, Africa, Europe, Central Asia, and East Asia are easily accessible markets from Pakistan.

Pakistan is ready to take-off economically and has the potential to contribute to global trade and economy. Pakistan is transforming from a hub of geopolitics into geo-economics.

(ASIA PACIFIC DAILY)