The Development Opportunities and Difficulties of China-Pakistan Economic Corridor in the Construction of the Belt and Road

Abstract

This paper mainly studied the structural transformation of Pakistan’s power sector and the internal and external political problems encountered in its development, as well as the solutions. This study found that Pakistan changed from oil to coal to generate electricity, which can resolve its internal power shortage problem in short term. However, the best way later in the cooperation is to develop green energy to match the green economy, such as wind power. The construction of the economic corridor can expand the import and export of goods and personnel exchanges between China and Pakistan, and promote the transit trade with Pakistan. Besides, it would effectively increase China’s energy import routes-bypassing the traditional chokepoints of the Malacca Strait and the disputed South China Sea, bringing Middle Eastern oil directly to its southwestern hinterland and reducing dependence on the China-Myanmar oil and gas pipelines under construction. From a broader perspective, the completion of the China-Pakistan Economic Corridor (CPEC) will closely unite countries in South Asia, Central Asia, North Africa and the Gulf through economic and energy cooperation, forming economic resonance and strengthening Pakistan’s strategic position as a bridge connecting Eurasia and Africa.