Impact of CPEC on the Economic Development of Pakistan: A case based on energy sector development

Abstract

As the world has moved ahead with the regional and global strategic alliances the geo- strategic and geo- economic cooperation amongst the countries. The best example of such partnership is that Pakistan China Economic Corridor (CPEC). In general, the time span of such partnership of CPEC agency issued the 2014- 2030 in three stages. Short, medium and long-term complete. The projects would be completed in the following years: 2018, 2025 and in 2030, respectively. The Commission calculated the cost of all projects over $ 46 billion revised to $ 51.5 billion dollars. The programs include "a network of highways, railways, pipelines, transport, oil, gas and electricity." The sector of energy is led the development of renewable and non-renewable projects by the Commission to the beneficiary. The energy sector is vital for the economic growth of Pakistan, Pakistan has been plagued by a. severe lack of energy due to economic growth in the gross domestic product resultantly energy dependence hindered GDP. This paper has been prepared to see the impact of the energy sector of the economy of Pakistan. Literature has been thoroughly scanned to achieve the goal, and also conducted various interviews with relevant persons. Given the time and investment, energy projects under the plan will help increase economic growth through CPEC. From surveys and interviews, the result shows that Pakistan's dependence on non-renewable energy source can reduce, for the first time in Pakistan are looking to invest in renewable energy, which will spur economic growth as long as it remains an ideal energy mix is maintained. Investment in the energy sector and infrastructure would not only give more excess energy to the economy but also boost GDP in real terms.