In summary, the China-Pakistan Economic Corridor (CPEC) has the potential to alter the political landscape of South Asia. It may improve Pakistan’s international status, improve the geopolitical environment, and reduce defense spending. Additionally, the CPEC may help stabilize society by addressing security issues with the support of other countries. However, Pakistan’s economic sovereignty is largely dependent on China, as the CPEC is funded by a $46 billion loan from China. This loan is not an investment that China will recoup through the success of the CPEC. There are concerns about the stability of this arrangement, particularly under the current US administration. If the CPEC fails to generate expected profits, it is unclear how Pakistan will be able to repay the loan.
After paying off its debts, Pakistan has only about $6.5 billion remaining, which is insufficient to cover the cost of importing raw materials for re-export or essential commodities like petroleum and pulses. The country is effectively bankrupt and may face difficulties if it does not receive financial assistance from the IMF or an influx of US dollars in the near future.
Way Forward
If we address our immediate debt issues, I believe it is a worthwhile risk. Each political party has a small group of members who are unhappy with the direction of the party. If these individuals come together, it is possible to create positive change. There can be a disagreement between the priorities of political parties and the priorities of the nation, especially during economic downturns. This can lead to some political parties losing support, but over time, circumstances may change. The current political system, including parties, elections, and a constitution, is the result of a long history of political development and is structured to take into account the motivations and incentives of individuals and groups.
