AZADPAKISTAN2009
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Pakistan and China , friendship is a modern age examplifying relation. Based on certain traits which define , "Friendship" and "Brotherhood" . This Friendship has expanded into a mutual trade partnership which is a logical step between two friends and brothers. Certain elements have debated if Pakistan can afford the expenses associated with CPEC (China , Pakistan Economic corridior) again lets use the full name here because both nations are equal partners in this deal. So thru arguments I want to showcase why this is a absolutely best thing to happen in region.
Before we begin we need to understand few common traits which are Universal in both Pakistani and Chinese communities.
a) Cutural respect
b) Genuine care
c) Acknowledgement and celebration of each brother's success
d) Ability to engage in mutually beneficial gains & Trade
Pakistan & China we both share this common traits of mutual respect as discussed above
Let us examine both Pakistan and China individually, Pakistan to it's core is a Agricutural society and has always relied on trade with it's neighbouring countries to sell it's goods and generate society. Similarly China has been a Traditional power house in education , and silk trade. As seen both nations have been a traditional Hub of commerce & Trade.
Now one thing by this point has been quite clear that both nations understand the value of Trade & Commerce it is part of their individual regional history.
This article will atttempt to view the impact of CPEC from Pakistan's point of view because we really connot get into Chinese side and their economic revival because that itself is a University Course becasue Chinese commerce and Government model should be a University Degree course.
So without a further delay , lets examine some of the benefits all are in favor.
Argument #1: Pakistan can benefit from becoming a better Agricultural Country
So how can Pakistan become a better agricultural economy under the CPEC initiative. Very simple , various Hydral power projects which are part of the CPEC initiative will ensure that sufficient water is conserved and the water can be used for drinking , irrigation and also for farming which is the number one occupation in Pakistan. The chronic shortages for water supplies in Pakistan are due to the primary reason that international bodies have continued to refuse funding for True economic projects which are needed for an economic revolution in Pakistan.
Argument #2: Electricity Deprived Industrial sector of Pakistan to benefit
It has been a common knowledge in Pakistan that the hinderence caused by lack of Electricity for last 20-25 years has held back Pakistan's industrial sector from performing efficiently. World wide countries run 3 shift workforce creating ample hiring oppurtunities and also working more efficiently. However copared to that trend Pakistan has been forced to curtail the working hours on numerous ocassions just becasue the state was not able to provide the industrial companies the electrical power input it required. This contributing fatcor casued unaccounted for damages to Pakistani economy for past 20-30 years perhaps as far as 40 years of under production.
Argument #3: Improvement in City, inter province connectivity infrastructure
It is well known fact that all developed nations of world have few common characteristics one of these characteristics is that they all have focus on roads, trains, and cheap inner city or province transportation. Now when we view Pakistan' landescape we will see that Pakistan has never had a we developed road , and train network. The current railway tracks that exist in Pakistan have been left over systems constructed almost 150 years ago by then British Government rule in Subcontinent region. The station , the tracks and every possible item is a model from that period of long time ago. The world however has moved on to more modern travel system. So how does CPEC addresses this key area of economy
a) Improved network of roads, better connectivity between cities
b) Highway roads, for inter province connections
c) Setup of Airports for inner city travel
d) Setup of raiway tracks
e) Setup of Rapid Bus or Train systems in key cities of Pakistan
The objective being the mobilization of maximum amount of workforce for ease of outreach to all cities of Pakistan.
All trade inside Pakistan will move more efficiently on these network setup thru CPEC.
Argument #4: Economic Industrial and Scientific centers
From 70's onward , one area that most people in Pakistan from that time will recall is that we just never had that initiative to setup massive industrial and commerce center. Sure we setup the industrial center in Karachi , however we could not keep it optimally functional due to lack of electricity primarily and departure of large number of Pakistani workforce to Middle east. The political elements of Pakistan were not able to understand what or how the economic centers would have to be revived in Pakistan. There has ben lack of planned initiative and the biggest hurdle in attracting foreign investment was an developed infrastructure in cities. Lack of phone lines, red tape with business setup.
CPEC initiatives is a STERIOD shot in Pakistan's arm , a planned initiative to fix the infrastructure and also setup professional Finaicial , Industrial and Scientific & IT sectors in Pakistan to revive Pakistan's industrial and scientific segment. The country has been running at a collective efficiency rate of perhaps 7% after the economic & industrial segments are launched the efficiency rate perhap may jump to almost 100%. The economic sections will revive all provinces , and mobilize workforce in all four provinces.
Argument #5: Better Federal Tax figures
One of the top benefits of having functional Economic centers or Industrial segments , who are running at full capacity after arrival of electricity is that the companies will have better profit figures and revenue figures. These figures will ultimately beneift the Taxation collection from Buisinesses. The businesses in return will have better Tax collection from Salaries paid to workers across 4 provinces. So we can easily see State Taxation collection would automatically increase
Argument #6: Pakistani Stock Exchange , Now Managed by Chinese Administrators
A common theme that most Pakistanis overseas mention is they can't find a simple clear cut methord to buy Pakistani stocks or investment options. This is where Chinese Banks and Trade experience comes into Picture, who can tie up Pakistani companies with various large scale investment drivers from East Asia. The number one gain of course is that "the word"
will have a simpler and easier method to increase their investment in Pakistan done by the Chinese -Pakistani stock exchange initiative. So we are standardizing our stock exchange and investment strategy on Global scale.
Argument #7: Improved Human Resources and hiring across segments
One of the expected benefits to society in general is after creation of Economic zones and industrial sectors there would be more hiring across different segments
Traditional Engineering: Construction, Civil Engineering , Electrical Engineering
New Engineering : Gadget/Chip & Board engineering , Assembly , Manufacturing
Hospitals : More hiring for doctors , improved hiring for nurses.
Businesses Administration: With increased number of companies in Pakistan logical increase
Bank Jobs: With arrival of international trade hubs more bank branches would be required
Agricultural: Better farming , will require more laborers
Infrastructure Labourers: Workers for roads construction , Railway Track workers
City Rapid Transit: Hiring of Operations people to keep such massive hubs operations, drivers for trains, ticket collectors, information provider people, opertors , airport administrators
Argument #8: Returns from CPEC port
The income from port obviously is all bonus for Pakistani Eocnomy
In 2016 Shanghai Port transported 1 Trillion Dollar worth of goods if Gawadar port can operate to a similar capcity it is not hard to see benefit as far as 90 Billion in 1 year for Pakistani economy. However realistically it will take China Pakistan , 2-5 years to reach higher potential but they have the right partner
Argument #9: Improved connectivity with Europe , Middle East , Central Asia , Africa
After one reviewed the points 1 to 8 it is beyond doubt that CPEC will have a positive inpact of Pakistan.
Now to summarize , key areas benefits to state of Pakistan.
a) Better Agricultural Income with better yeild , greater availibity of water
b) Better usage and increased efficiency in Industrial Sectors , Industrial revolution
c) Arrival of new industries into Pakistan such as Aviation, chip & board, Textiles, Cell phones
d) Better Tax collection at Federal Level from Business companies , corporate tax
e) Bigger Human Resource bases more tax collected from hired workers, personal tax
f) Increased stock exchange investment from overseas
All the areas above , will create enough revenue for State to be able to pay back any loan requirements.
The important point to note is CPEC itself is just 1 Source of income for Pakistan
Pakistan itself as a national earns 300 Billions annually from trade and operations.
With Availability of electricity and power this figure will become more normalized around 600 Billion
Current Challenges:
Society with CPEC Enablement:
Before we begin we need to understand few common traits which are Universal in both Pakistani and Chinese communities.
a) Cutural respect
b) Genuine care
c) Acknowledgement and celebration of each brother's success
d) Ability to engage in mutually beneficial gains & Trade
Pakistan & China we both share this common traits of mutual respect as discussed above
Let us examine both Pakistan and China individually, Pakistan to it's core is a Agricutural society and has always relied on trade with it's neighbouring countries to sell it's goods and generate society. Similarly China has been a Traditional power house in education , and silk trade. As seen both nations have been a traditional Hub of commerce & Trade.
Now one thing by this point has been quite clear that both nations understand the value of Trade & Commerce it is part of their individual regional history.
This article will atttempt to view the impact of CPEC from Pakistan's point of view because we really connot get into Chinese side and their economic revival because that itself is a University Course becasue Chinese commerce and Government model should be a University Degree course.
So without a further delay , lets examine some of the benefits all are in favor.
Argument #1: Pakistan can benefit from becoming a better Agricultural Country
So how can Pakistan become a better agricultural economy under the CPEC initiative. Very simple , various Hydral power projects which are part of the CPEC initiative will ensure that sufficient water is conserved and the water can be used for drinking , irrigation and also for farming which is the number one occupation in Pakistan. The chronic shortages for water supplies in Pakistan are due to the primary reason that international bodies have continued to refuse funding for True economic projects which are needed for an economic revolution in Pakistan.
Argument #2: Electricity Deprived Industrial sector of Pakistan to benefit
It has been a common knowledge in Pakistan that the hinderence caused by lack of Electricity for last 20-25 years has held back Pakistan's industrial sector from performing efficiently. World wide countries run 3 shift workforce creating ample hiring oppurtunities and also working more efficiently. However copared to that trend Pakistan has been forced to curtail the working hours on numerous ocassions just becasue the state was not able to provide the industrial companies the electrical power input it required. This contributing fatcor casued unaccounted for damages to Pakistani economy for past 20-30 years perhaps as far as 40 years of under production.
Argument #3: Improvement in City, inter province connectivity infrastructure
It is well known fact that all developed nations of world have few common characteristics one of these characteristics is that they all have focus on roads, trains, and cheap inner city or province transportation. Now when we view Pakistan' landescape we will see that Pakistan has never had a we developed road , and train network. The current railway tracks that exist in Pakistan have been left over systems constructed almost 150 years ago by then British Government rule in Subcontinent region. The station , the tracks and every possible item is a model from that period of long time ago. The world however has moved on to more modern travel system. So how does CPEC addresses this key area of economy
a) Improved network of roads, better connectivity between cities
b) Highway roads, for inter province connections
c) Setup of Airports for inner city travel
d) Setup of raiway tracks
e) Setup of Rapid Bus or Train systems in key cities of Pakistan
The objective being the mobilization of maximum amount of workforce for ease of outreach to all cities of Pakistan.
All trade inside Pakistan will move more efficiently on these network setup thru CPEC.
Argument #4: Economic Industrial and Scientific centers
From 70's onward , one area that most people in Pakistan from that time will recall is that we just never had that initiative to setup massive industrial and commerce center. Sure we setup the industrial center in Karachi , however we could not keep it optimally functional due to lack of electricity primarily and departure of large number of Pakistani workforce to Middle east. The political elements of Pakistan were not able to understand what or how the economic centers would have to be revived in Pakistan. There has ben lack of planned initiative and the biggest hurdle in attracting foreign investment was an developed infrastructure in cities. Lack of phone lines, red tape with business setup.
CPEC initiatives is a STERIOD shot in Pakistan's arm , a planned initiative to fix the infrastructure and also setup professional Finaicial , Industrial and Scientific & IT sectors in Pakistan to revive Pakistan's industrial and scientific segment. The country has been running at a collective efficiency rate of perhaps 7% after the economic & industrial segments are launched the efficiency rate perhap may jump to almost 100%. The economic sections will revive all provinces , and mobilize workforce in all four provinces.
Argument #5: Better Federal Tax figures
One of the top benefits of having functional Economic centers or Industrial segments , who are running at full capacity after arrival of electricity is that the companies will have better profit figures and revenue figures. These figures will ultimately beneift the Taxation collection from Buisinesses. The businesses in return will have better Tax collection from Salaries paid to workers across 4 provinces. So we can easily see State Taxation collection would automatically increase
Argument #6: Pakistani Stock Exchange , Now Managed by Chinese Administrators
A common theme that most Pakistanis overseas mention is they can't find a simple clear cut methord to buy Pakistani stocks or investment options. This is where Chinese Banks and Trade experience comes into Picture, who can tie up Pakistani companies with various large scale investment drivers from East Asia. The number one gain of course is that "the word"
will have a simpler and easier method to increase their investment in Pakistan done by the Chinese -Pakistani stock exchange initiative. So we are standardizing our stock exchange and investment strategy on Global scale.
- This initiative itself is big as launching a Rocket to Mars from Economics prespective and from investment perspective
- It enables a simple man all across Asia and half of world to buy stocks in Pakistani companies thru chinese systems
Argument #7: Improved Human Resources and hiring across segments
One of the expected benefits to society in general is after creation of Economic zones and industrial sectors there would be more hiring across different segments
Traditional Engineering: Construction, Civil Engineering , Electrical Engineering
New Engineering : Gadget/Chip & Board engineering , Assembly , Manufacturing
Hospitals : More hiring for doctors , improved hiring for nurses.
Businesses Administration: With increased number of companies in Pakistan logical increase
Bank Jobs: With arrival of international trade hubs more bank branches would be required
Agricultural: Better farming , will require more laborers
Infrastructure Labourers: Workers for roads construction , Railway Track workers
City Rapid Transit: Hiring of Operations people to keep such massive hubs operations, drivers for trains, ticket collectors, information provider people, opertors , airport administrators
Argument #8: Returns from CPEC port
The income from port obviously is all bonus for Pakistani Eocnomy
In 2016 Shanghai Port transported 1 Trillion Dollar worth of goods if Gawadar port can operate to a similar capcity it is not hard to see benefit as far as 90 Billion in 1 year for Pakistani economy. However realistically it will take China Pakistan , 2-5 years to reach higher potential but they have the right partner
- Port Income : 9%
- Economic Zones: 15%
Argument #9: Improved connectivity with Europe , Middle East , Central Asia , Africa
- Better trade routes to all regional and distant continents and Trade Hubs are just further benefits of Economic route.
- It is well expected that business travel between Gawadar Airport and other hubs will incrase gradually
- Likely this would be a precursor to construction of more Hotels / Residences in Gawadar to be able to house business travellers.
After one reviewed the points 1 to 8 it is beyond doubt that CPEC will have a positive inpact of Pakistan.
Now to summarize , key areas benefits to state of Pakistan.
a) Better Agricultural Income with better yeild , greater availibity of water
b) Better usage and increased efficiency in Industrial Sectors , Industrial revolution
c) Arrival of new industries into Pakistan such as Aviation, chip & board, Textiles, Cell phones
d) Better Tax collection at Federal Level from Business companies , corporate tax
e) Bigger Human Resource bases more tax collected from hired workers, personal tax
f) Increased stock exchange investment from overseas
All the areas above , will create enough revenue for State to be able to pay back any loan requirements.
The important point to note is CPEC itself is just 1 Source of income for Pakistan
Pakistan itself as a national earns 300 Billions annually from trade and operations.
With Availability of electricity and power this figure will become more normalized around 600 Billion
- Getting to 600 Billion range is the targetted goal for Pakistan's own economy , without the income from Gwadar
Current Challenges:
- GDP 300 Billion
- Unefficient power generation
- Unefficient water conservation
- Over importation of Fuel Sources (Excessive Oil & Gas import)
- Lack of Metro / Rapid systems resulting in over usage of oil / gas
(Cities cannot generate Million Dollar/day in revenue by Metro/Rapid systems)
- We are spending too much on oil/gas instead of using Nuclear electricity
- Large amount of land is unfarmable 25% land in punjab/sindh , 99.9% of Baluchistan is not farmed due to lack of canals, water channels and dams
Society with CPEC Enablement:
A) GDP 600 Billion 50% increase in GDP
- Surplus power energy, more power for Industrial usage
- More water saved for agricultural needs , more food products produced
- Electricity can be used to run cars, buses, trains (Less Oil/Gas footprint)
- Million can travel on Metro train / Rapid systems
- Efficient Stock Exchange (Pakistan-China-Stock Exchange)
B) Income from CPEC port (Additional benefits put in National Saving account)
- 9% Port Share
- 15% Economic Zones
- 1 to 90 Billion revenue/ year
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