Abstract:
China Pakistan economic corridor (CPEC), is a plan of china Belt Road Initiatives (BRI), which are currently under construction throughout Pakistan. CPEC includes, Infrastructure, Energy, and Gwadar projects. Data have been gathered through different research article, different reports, and through different websites; such as CPEC official website, State bank of Pakistan, IMF, World bank data. The main aim of this study is to examines the impact of CPEC investment on GDP, to estimate the number of employment generated through different projects under CPEC, and how Pakistan will repay the lan and how the loan will be repaid. The results shows a positive relation between investment under CPEC and GDP growth rate of Pakistan. CPEC investment is taken is independent variable and GDP is take as dependent variable. The results also indicates that CPEC investment will be providing around 12 million jobs to domestic workers by the end of 2030. The repayment of loan will be starting from 2022 and Pakistan will have to pay this loan in 20 years. A report by IMF, Pakistan have to pay around $3.5 billion per annum to return the loan to China. Looking it a current scenario the repayment of loan on time seems difficult.
