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OpinionComment

Just who will the China-Pakistan Economic Corridor really benefit?

Adnan Aamir says many in Pakistan see the projects as a way to boost the economy and solve unemployment woes. Others, however, worry about debt, an influx of Chinese workers and few opportunities for locals

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Men chat in front of buildings in Karachi, Pakistan, in August. The appeal of Karachi, home to some 15 million people, two large seaports and Pakistan's financial infrastructure, is set to rise as China pumps in more than US$50 billion to boost infrastructure and transport links across the nation. Photo: Bloomberg
Adnan Aamir
Pakistan has always relied heavily on foreign remittances and foreign aid to bolster its struggling economy. As such, signing the China-Pakistan Economic Corridor agreement in 2013 was seen as a blessing for the country. The corridor is part of China’s Belt and Road initiative and comprises energy and infrastructure projects worth some US$57 billion.
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Many saw the project as a solution to Pakistan’s economic woes and even termed it a game changer, capable of producing millions of jobs and solving the country’s unemployment problem.

However, soon after the project’s inception, it came in for criticism from different quarters. The main fear is that it has the potential to convert Pakistan into an economic colony of China.

Details of the agreement have not yet been made public, but what is known suggests the majority of the projects revolve around loans that must be repaid. A report from a brokerage house in Pakistan said the country could have to pay US$90 billion to China over 30 years.

Moreover, economic experts have started questioning the assertion that the economic corridor will bring millions of jobs for the people of Pakistan, given that China is bringing its own labour force. Thus far, there has not been any major job creation.

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Pakistani Foreign Minister Khawaja Asif, left, with his Chinese counterpart Wang Yi in Beijing , last Friday. Photo: Xinhua
Pakistani Foreign Minister Khawaja Asif, left, with his Chinese counterpart Wang Yi in Beijing , last Friday. Photo: Xinhua
Chinese labour is cheap compared to workers in Pakistan. So, Chinese companies find it economically beneficial to bring their own workforce from China rather than employing local labour. Chinese workers are also accustomed to long hours in tough conditions, unlike many of their Pakistani counterparts. As a result, local labour isn’t the automatic choice for employment in economic corridor projects.

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