As the extended part of One Belt One Road (OBOR) initiative that aims to interconnect the economic world, China– Pakistan– Economic– Corridor consists of different projects like road and railway, agricultural projects and energy projects in Pakistan. This paper aims to assess the current situation and the potential economic benefits of the energy projects of CPEC for Pakistan. Through research based on the statistical data, we find CPEC enormous contribution of $35 billion investment in the energy sector will bring some positive changes in energy sector of Pakistan. Actually, CPEC is playing a vital role in economic development of Pakistan. The potential economic gains include the following: increasing of supply energy mix with cheaper prices- generating energy by utilizing local resources –coal, wind, solar energy and water which help decreasing energy import- decrease trade depicts, encourage Foreign Direct Investment (FDI), reducing unemployment, infrastructural development, industrial zones, trade and local manufacturing industries. This study also explores some risks and challenges to the economy of Pakistan from CPEC.
Saddam Hussaina: Department of International economics & Trade, Business School, Hubei University, Wuhan, 430062, P.R. China
Chunjiao Yua: Open Economy Research Centre, Business School, Hubei University, Wuhan, 430062, P.R. China
Ali Sohail: School of Public Policy and Administration, Xi’an Jiaotong University, Xi’an, 710119, Shaanxi, China
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